The Rural Energy Fund
The Rural Energy Fund (REF) was established by
The Rural Energy Act, 2005 for the purpose of providing grants to qualified
project developers. The Fund represents a mechanism by which the Rural Energy
Board (through REA) fulfills its mandate.
The Fund Provides resources for:
- Grants towards the capital costs of projects implemented by private and
public entities, co-operatives, and local community organizations.
- The
provision of technical assistance, training and other forms of capacity
building to qualified developers by qualified experts related to the planning
and preparation of a project prior to an application for a grant.
- The provision
of financial assistance. Co-financing investments in innovative pilot and
demonstration projects and applications for renewable energy when development
partners make special purpose funds available for that purpose.
The Fund does not provide grants towards the operating or debt service costs
of any project or developer.
The Eligibility Criteria Documents provide details on how project developers
can access assistance from REA.
Funding Sources
The sources of income for the Fund consist of monies as may be provided:
- by Government, in an annual budgetary allocation;
- a s contributions from international financial organizations,
multilateral and bilateral agencies and other development partners;
- from levies of up to five percent (5%) on the commercial generation of
electricity to the national grid; as fees in respect of programmes,
publications, seminars, consultancy services and other services provided by
the REA;
- as development partners’ contributions to Special Purpose Funds for
rural energy;
- as interest or return on investments.
Trust Agent
A Trust Agent (currently Tanzania Investment
Bank – TIB) is responsible for disbursement of grant payments from the Fund
and ensuring that any pre-conditions set by the Board for making a grant
payment are met by developers.