IMPACT OF SOLAR PHOTOVOLTAIC TECHNOLOGY ON POVERTY REDUCTION IN TANZANIA - A CASE STUDY OF MBEYA CITY

Abstract

Solar PV technology is the important component of the system which mainly used to convert sunlight into power, and used for both rural and urban areas as an input for social and economic development activities. Tanzania is among of sunbelts countries with irradiance range between 4.1- 7.5 kWh/m2 for different regions in the country. Energy demand is high with the growth rate of 15-20 percent per annum and high population growth rate of 2.9 percent annually. To bridge the gap, use of renewable energy resources especially Solar PV has shown improved results in the study area. The national grid is cost-effective solution for powering highly population regions. High distance from main grid, low population density areas with low level of energy demand, high level of power loss, difficult terrain hinder the extension of main grid but the off grid system such as Solar PV diesel hybrid system and solar PV standalone provide a viable solution. Under the dissertation work impact of solar PV technology on poverty reduction in Tanzania, has been attempted through a case study of Mbeya city. The study has been carried out through literature review, energy demand analysis, the design of three types of solar PV systems, data analysis, findings discussion, conclusion and recommendation. Based on the energy demand the solar PV diesel hybrid system with battery has proven to supply the reliable power which accelerated the growth of micro and small enterprises. Solar PV standalone which provide basic energy for household level and Solar PV grid connected of 2MW which supply quality energy has been designed. Both solar PV systems has shown the improvement of social economic impact. Solar PV when injected to national grid has shown tangible result on micro and macro level due to increased energy consumption which indicates the economic growth within the study as the result poverty is reduced. Poverty reduction indicators such as increase of productivity, competitiveness, employment generation, increase of enterprises revenue and sustainability of enterprises before and after the use of Solar PV technology has been carried out and show the positive changes iv After interpretation of results indicate major improvements on health, education, income, employment and growth of non-farm enterprises have been found which shows the poverty reduction.