Rural Energy Agency (REA) is an autonomous body under the Ministry of Energy and Minerals of the United Republic of Tanzania. Its main role is to promote and facilitate improved access to modern energy services in rural areas of Mainland Tanzania. REA became operational in October 2007.

• Vision: Transformation of rural livelihoods through provision of modern energy services.
• Mission: To promote and facilitate availability and access to modern energy services in rural Mainland Tanzania.

Integrity: We treat our customers and other stakeholders fairly and with courtesy. We are ethical in the course of discharging our duties and uphold confidentiality.

Honesty: We are determined to treat customers honestly. We build value-added relationship with customers and stakeholders.

Transparency:

• We are transparent and accountable for what we do.
• Goals and objectives are aligned and clearly articulated.
• Our actions are open to the public scrutiny.
• We are honest about our performance.

The majority of rural Tanzanians have no access to modern energy services. The government maintains that rural Tanzania cannot be transformed into a modern economy, and that rural Tanzanians’ livelihoods cannot be improved significantly without a dramatic improvement in their access to modern energy services.

The National Energy Policy 2003 sets national energy objectives to ensure availability of reliable and affordable energy supplies, and to promote efficient energy use in order to support national development goals. The policy recognizes that, the main thrust has to be based on private initiatives and investments for exploitation of local energy sources. The policy sets an entirely new approach to modern energy in rural areas of Tanzania and the government has committed itself to develop and implement the new strategy to address modern energy needs of over 85% of Tanzanians living in rural areas.

An improved energy supply in the rural areas through public and private sector participation, will contribute significantly in improvement of the livelihoods of the rural population and the attainment of sustainable economic growth. For these reasons, the Rural Energy Board (REB), the Rural Energy Agency (REA), and the Rural Energy Fund (REF) were established and entrusted with the role of promoting, stimulating and facilitating improved access to modern energy services in rural areas through empowering both public and private sector initiatives in rural energy.

The purpose of REA is to promote and facilitate rural energy development by working in partnership and collaboration with private sector, Non Governmental Organizations, Community Based Organizations, and Government agencies. The main functions of REA are the following.

• Promote, stimulate, facilitate and improve modern energy access for productive uses in rural areas in order to stimulate rural economic and social development.
• Promote rational and efficient production and use of energy, and facilitate identification and development of improved energy projects and activities in rural areas.
• Finance eligible rural energy projects through REF.
• Prepare and review application procedures, guidelines, selection criteria, standards and terms and conditions for grants allocation.
• Build capacity and provide technical assistance to project developers and rural communities.
• Facilitate preparation of bid documents for rural energy projects.

REA derives its powers from The Rural Energy Act no.8 of 2005. Being an autonomous body, REA’s powers also emanate from sector legislations: In terms of principal legislation in the electricity sector, it derives its powers from the Electricity Act, 2008; and in the petroleum sector, from the Petroleum Supply Act, 2008. As for regulatory framework, REA works closely with multi-sectoral regulatory authority, EWURA which is responsible for technical and economic regulation of the energy and water sectors in Tanzania.

• Rural Energy Act, 2005: This is an Act that establishes Rural Energy Board, Fund and Agency to be responsible for promotion of improved access to modern Energy services in the rural areas of mainland Tanzania and though a Fund within the Agency Board to provide for grants and subsides to developers of rural energy projects and for related and consequential matters.
• Electricity Act, 2008: This Act provides for facilitation and regulation of generation, transmission, transformation, distribution, supply and use of electric energy. It also provides for cross-border trade in electricity, and regulation of rural electrification.
• Petroleum Supply Act, 2008: This Act provides for regulation of importation, transportation, storage, distribution, sale and use of petroleum and petroleum products.
• Energy and Water Utilities Regulatory Authority Act, 2001: This Act establishes a Regulatory Authority in relation to energy and water utilities.