Government to improve investment climate for clean energy

Dar es Salaam. The government has revealed measures it’s taking to encourage investment in clean energy ranging from solar, wind to geothermal power.

These include directing the Energy and Water Utilities Regulatory Authority (Ewura) to review levies and make them friendly to investors.

The government has also engaged a consultant to develop a strategy to promote an enhanced investment climate for renewable energy technologies as well as developing a policy to promote clean energy.

The initiatives were unveiled by the permanent secretary in the Ministry of Energy, Mr Felchesmi Mramba, during the launch of the report dubbed ‘50 Years of Energy Cooperation Between Tanzania and Norway.’

Mr Mramba said the government has directed Ewura to review the current levies and make them more friendly so as to speed up investment in the sector.

“We need to be able to attract investors and that is why we want to assess the existing tariffs to see if they can accommodate clean energy space,” said the PS.

Further, Mr Mramba said the strategy that was being developed will provide a clear roadmap on how to enhance investment in renewable energy.

“The strategy will give us a clear understanding on what we want to achieve and how fast,” he expounded.

Again, he said, with the policy specific on issues related to clean energy in place, the government was positive it would attract more investors in the sector.

“Given the critical role of the energy sector in driving the development of the other sectors of the economy, it is important that our collaboration in developing the energy sector with the involvement of the private sector is further strengthened,” said Mr Mramba.

Norway Ambassador to Tanzania, Elisabeth Jacobsen emphasised the urgent need to accelerate the shift to sustainable energy options, namely energy efficiency and renewable energy.

“Let us power sustainable development with clean and inclusive energy,” urged the Ambassador.

Tanzania has committed to reducing greenhouse gas emissions by 30 – 35 percent by 2030.

To deliver this climate change ambition in the energy sector, the Ambassador said there was a need for a strong partnership between the government and the private sector.

“We are living in times where governments cannot solve all problems alone. It is all about partnerships,” said Ms Jacobsen.

“Opening win-win doors for private sector and foreign investors will benefit Tanzania in achieving clean energy transition in an efficient way,

“Energy transition requires huge financial investments and governments cannot be expected to carry the burden alone.”

As Tanzania signaled that it is open for more investments, the Ambassador exuded her optimism that financing gaps could be filled.

However, she explained that the private sector’s willingness to invest requires a conducive and predictable business environment.

“Investors need a series of dialogues on regulatory framework. There should be mutual understanding between the government and private sector,” said Ambassador Jacobsen.

“We strongly expect these conditions will be met in Tanzania for economic wide low-carbon growth.”