Tanzania’s annual gross national income per capita is very low and about half the population lives below the poverty line and rural poverty accounts for over 80 percent of total poverty. Poverty remains most severe in rural areas where majority of the population live. Lack of economic growth and of income opportunities for the poor, particularly in rural areas, are key causes of poverty. However, there still remains significant potential for higher agricultural and rural growth as Tanzania has strong comparative advantage in traditional export crops and in staple food.
The Government of Tanzania (GoT) considers availability of energy as necessary to catalyse economic growth.
Tanzania is confronting a major challenge related to expansion of rural energy services. Currently, about 25% of the rural population has access to electricity services. The Government of Tanzania has responded to this challenge by establishing the Rural Energy Agency (REA) to accelerate the expansion of modern energy services to rural communities. However, efforts to aggressively expand electricity access have been challenged by high demand and unmatched resources. Accordingly, REA in collaboration with key stakeholders recognises the importance of coordinated efforts in implementing rural energy services through a MASTER PLAN (hereinafter “REMP).
The study is aimed to support energy sector policies and initiatives towards ensuring reliable and cost efficient energy services for social and productive use, rational and efficient use of energy, and energy conservation. Encourages development of available energy resources in rural off-grid areas and increased contribution of renewable energy sources in the national energy balance.