Date: 16th May, 2012
The Rural Energy Agency (REA) was established under the Rural Energy Act, No.
8 of 2005. The main role of the Agency is to facilitate and promote investment
in modern energy supply to increase access to modern energy services in rural
Tanzania Mainland at the same time reduce carbon footprint by utilizing
renewable energies. The Government of Tanzania has received funds from the World
Bank under the TEDAP Off-grid Component. It is intended that part of the funds
will be used to cover eligible payments in terms of Matching and Performance
Grants for supply, installation and operation of solar PV, small Wind Turbines,
hybrid systems, micro and mini-hydropower Plants to supply electricity to
isolated rural areas in Mainland Tanzania.
2. The Business
It is expected that the developer will come up with a Business Model that
attract both the Matching and Performance Grant funding. The maximum Matching
Grant that will be provided is one hundred and fifty million Tanzanian Shillings
(TZS 150,000,000.00) while the Performance Grant will be five hundred thousand
Tanzanian Shillings (TZS 500,000.00) per connection with a
maximum of 1.2 billion Tanzanian Shillings (TZS 1,200,000,000.00). The
Performance Grant will be given as far as the developer identifies potential
rural customers to be connected in the mini-grid that will be supplied from the
system that the developer will supply and install. The Matching Grant will be
used to carry out the initial preparatory works including carrying out
Feasibility Study, Business Plan, Environmental and Social Impact Assessment
(ESIA) and Resettlement Action Plan (RAP). It is expected that some of the
proposals will have costs above maximum indicated grants. In view of this, the
Agency expects that the Winner will co-finance the project from other sources of
funding in order to realize the project.
Overall Program Objective is the provision of clean, affordable, sustainable
and environmentally friendly energy services to rural communities on Mainland
The following are some of the specific objectives of the competition.
• To increase access to electricity for
lighting and productive use for rural communities on Mainland Tanzania.
• To increase access to electricity for
secondary schools and health facilities for various uses.
• To increase use of biomass in electricity
generation in the rural areas.
• To apply improved technology for exploitation
of low cost renewable energy sources including wind, solar, biomass etc.
• To bring to the market products that are
competitive in terms of prices using the Low Cost Design Standards that have
been developed by REA in collaboration with other stakeholders.
• To build sustainable technical and commercial
capabilities of rural energy entrepreneurs to operate and sustainably manage
renewable energy systems.
• To enhance private/public sector project
developers’ competencies in preparing viable and bankable project proposals.
• To contribute towards achieving Government
objective of attaining 30% access to modern energy services by 2015.
4. Who Should
Proposals are welcome from civil society groups such as registered women
groups, social entrepreneurs, Community Based Organization (CBOs), private
foundations, government agencies, academic institutions, the private sector, and
5. How to Apply
Proposals using the available Templates that are to be downloaded from
www.rea.go.tz/Resources/eLibrary.aspx have to be submitted through the Rural
Energy Agency postal address or email address provided below. For instructions
and detailed information on how to apply, please visit our website at
If you are unable to access the internet or the website, please contact REA
through the following telephone numbers +255 22 2412001-3 or send an e-mail to
Download proposal templates listed below from our electronic library at
a) REA Pre-Feasibility Report Template for Rural Energy
b) REA Project Identification Concept Note Template for Rural
c) REA Business Plan Template for Rural Energy Projects.
7. Summary of Key
• 31st May, 2012: Deadline for submission of
• 1st June, 2012 – 15th June, 2012: Review of
• 15th June, 2012: Announcement of finalists.
• 16th June, 2012 to 14th August, 2012:
Preparation Detailed Proposals.
• 15th August, 2012: Submission of detailed
• 16th August, 2012 to 14th November, 2012:
Review of Detailed Proposals.
• 15th to 16th November, 2012: Exhibition and
• 1st March, 2013 to 28th February, 2014:
Implementation and start of operation of proposed project.
8. Submission of
a) You MUST send your completed proposal in the proposed
template/format to the Rural Energy Agency (REA) by e-mail at
email@example.com as per above deadlines.
b) Language to be used in the proposal is preferably English
since most of the proposals will attract foreign financing. However, a proposal
submitted using Swahili Language will also be considered. Proposals submitted in
other languages apart from the ones mentioned here will not be honored.
c) Implementation time-frame: Proposed activities must be
completed within 12 months of receiving the initial disbursement.
Rural Energy Agency - REA
Mawasiliano Towers, 2nd Floor
Sam Nujoma Road
P. O. Box 7990
Dar es Salaam, Tanzania
Tel: +255 22 2412001, +255 22 2412002, +255 22 2412003
Fax: +255 22 2412007