POLICY ASSESSMENT OF ENERGY EFFICIENCY ON FUTURE ENERGY DEMAND OF THE INDUSTRIAL. SECTOR OF TANZANIA
MANDARI, Saada A
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Industrialization has been the main policy agenda for the 5th phase of the government of Tanzania. This is pivotal to realizing Tanzania’s ambition to become a middle-income economy by 2025. Tanzania aims to become a semi-industrialized country by 2025, for which the contribution of manufacturing to the national economy must reach a minimum of 40% of the GDP. To achieve this, Tanzania aims to transform from being dominated by natural resource exploitation and extractive industries (agriculture, tourism, and mining), to becoming an economy with a broad and diverse base of manufacturing, processing and packaging industries, that will lead both the productive as well as the export trade sector. Energy is the vital fuel for economic and social development, and energy efficiency policies enhance development by raising the number of services got from every unit of energy utilized. The country’s energy potential resources include hydro, natural gas, coal, and other renewable energies (solar, wind, biomass, geothermal). The country produces natural gas and coal mostly for electricity generations for domestic consumption and industrial applications. In a country like Tanzania where electricity tariff is very expensive (0.099 USD per KWH), the best solution in this case is for the industries to invest in the adoption of energy efficiency measure in order to reduce the cost of energy use. This study is both qualitative and quantitative to evaluate the impact of energy efficiency policies on future energy demand in the industrial sector of Tanzania. The study specifically focused on the industries’ energy management systems, driving forces for improving energy efficiency, and barriers to energy efficiency. In order to gain an understanding on these issues, structured samples of questionnaire were administered to the industries while also conducting interviews in some industries where the concerned people dealing with energy issues were available. About 21 samples of questionnaire were administered and the surveyed industries were from 17 different categories as seen in the appendices. The results revealed that that energy audit is not being practiced in industries in Tanzania. Almost half of the respondents (40% of the respondents) said that they do not perform energy audits in the industries. Energy management practices were seen to be a myth in all the industries, while there are no policies in existence to promote the adoption of energy management practices. From the LEAP models, it was found that we can save up to 50% of the energy when using energy efficiency practices. A number of recommendations were also drawn from the study including the establishment of relevant energy institutions.