Rural Energy Agency (REA) of Tanzania

The Rural Energy Agency (REA) was established by the Act of Parliament No. 8 of 2005 as an autonomous body under the Tanzanian Ministry of Energy and Minerals of the United Republic of Tanzania (URT). The main function of REA is to promote and facilitate improved access to modern energy services in the rural areas of Mainland Tanzania. REA became operational in October 2007.

=Functions= The majority of rural Tanzanians have no access to modern energy services (Energy Access in Tanzania). The purpose of REA is to promote and facilitate rural energy development by working in partnership and collaboration with the private sector, Non-Governmental Organisations (NGOs), Community-Based Organisations (CBOs), and government agencies.

REA’s main functions are the following:


 * Promoting, stimulating, facilitating and improving modern energy access for productive uses in rural areas to stimulate rural socio-economic development


 * Promoting rational and efficient production and use of energy, and facilitating the identification and development of improved energy projects and activities in rural areas


 * Financing eligible rural energy projects through the Rural Energy Fund


 * Preparing and reviewing application procedures, guidelines, selection criteria, standards and terms and conditions for grants allocation


 * Building capacity and providing technical assistance to project developers and rural communities, and


 * Facilitating the preparation of bid documents for rural energy projects.

=Organisational Structure=

Board
Both REA and the Rural Energy Fund are governed by the Rural Energy Board. The Board comprises representatives from the Ministry of Finance; Ministry of Energy and Minerals, Prime Minister’s Office - Regional Administration and Local Governments (PMO-RALG), the Private Sector, the Tanzania Bankers Association, the Civil Society, Development Partners and Consumers.

Management
REA is headed by the Director-General, currently Dr. Lutengano Mwakahesya, who is the chief executive officer for the Agency as well as the Rural Energy Fund. REA's management structure is composed of two directorates; one responsible for Finance and Administration and the other for Technical Services.



=Recent activities= REA, together with the Tanzania Electric Supply Company (TANESCO), is currently implementing the second phase of the Rural Electrification Project. The project is expected to end in June 2015, with 1,500 villages expected to be connected to the national grid. Under the project, citizens are only required to pay Tanzanian Shillings 27,000 compared to the normal cost of being connected to the national grid of Tsh177, 000 or more, depending on the location. The completion of the second phase will allow the Tanzania Government to embark on the implementation of the third phase from early July 2015. The primary aim of the project is to improve the people’s welfare in the rural areas through a reliable supply of power.

=References=