Toolkit on the Appraisal of Small Renewable Energy Projects : Tanzania Case Study
The World Bank
1 July 2012
Chapter 1 of this report gives an overview of the project’s background and objectives. Chapter 2 provides a general description of the regulatory, institutional and policy environment for renewable energy in Tanzania. The chapter describes the main existing institutional arrangements in place and shows that the country’s legal framework is conducive to private sector renewable energy initiatives. Chapter 3 discusses the fundamentals of project finance, the basic components of financial analysis and common due diligence factors concerning renewable energy investments. This discussion provides a framework for a better understanding of renewable energy financing, which from a banker’s point of view requires a different approach than the more traditional balance sheet-focused financing. Chapters 4–8 go over each of the most common renewable energy technologies: hydropower, biomass, biogas, solar PV and wind respectively. Each of the technology chapters discusses both the basic technical and financial aspects of the technologies. Each chapter provides readers with a basic understanding of the technology in question and the associated financial challenges.