Contribution analysis of electrical energy management in

the industrial and commercial sector: a challenge to the

Tanzania utility industry

A K Mohamed

M T E Kahn
Centre for Distributed Power Electronic Systems, Department of Electrical Engineering, Cape Peninsula
University of Technology, Bellville, South Africa

Abstract the Indian Ocean in the Eastern part (www.tanza-

The investigation of electrical energy management nia.go.tz/economicsurveyf.html). It has land cover-
(EEM) in the industrial and commercial sector age of 945 749 km2. Approximate 37.1 million peo-
determines how energy management affects elec- ple live in Tanzania, whereby about 70% of the
tricity consumption and what makes its potential for population lives in rural areas (http:/www.tanza-
being used to reduce peak demand of utility indus- nia.go.tz/population.html). The economical devel-
tries. The aim of this paper is to analyze the contri- opment of Tanzania mainly depends on agricultural
bution of electrical energy management in the production, industrial development and small busi-
industrial and commercial sector and highlight its ness activities which largely depend on electrical
challenges to the Tanzanian utility industry. Energy energy. The power sector is managed by the
efficiency technology analyzed in this paper Tanzania Electricity Supply Company (TANESCO).
includes energy efficiency lighting and power factor TANESCO is a solely Government owned compa-
improvement. The analysis found that, if EEM is ny which has been given a mandate for generation,
properly implemented, a significant amount of distribution and transmission of electricity.
energy could be saved and could be converted to For many years, electricity was generated from
monetary benefits which might facilitate the devel- hydro, oil, coal and, to a minor extent, biomass and
opment of other activities. The utility industry can solar photovoltaic sources, but since 2004 it has
benefit from saving considerable amounts of energy been generated from natural gas as well [ESI Africa,
as well as the reduction of peak demand which can 2006]. Hydro was predominantly a major sources
minimize the race of stumbling on new energy of electrical energy in Tanzania. Due to the drought
sources and construction of new power plants. The experienced in many parts of the country which
saved energy can be distributed to other consumers reduced water levels in hydropower stations and
so as to improve accessibility or reliability of the consequently reduced generation capacity, the
electrical system and consequently minimize the Government initiated via its utility company, a
impact of environmental pollution. focus on expansion of non-hydro power sources
such as natural gas and coal.
Keywords: electrical energy management, energy Energy management is a set of activities, which
efficiency technology, power factor correction, cost aim to reduce or shift electricity use so as to
benefit analysis improve system reliability and manage electricity
costs (Bjorke, 1986). However, in Tanzania, energy
management (EM) has never been thought of as an
alternative way for improving the performance of
the utility industry, or to meet the energy demand of
the country as it is done in other countries like
1. Introduction South Africa. By the implementation of energy
Tanzania is located in Eastern Africa, bordered by management, the utility company can save sub-
Kenya and Uganda in the North, Rwanda, Burundi stantial energy which can defer the need for extend-
and the Democratic Republic of Congo in the West, ing new power sources (Ming, 2006).
Zambia, Malawi and Mozambique in the South and The aim of this paper is to analyze the potential

Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008 55

 250
area for electrical energy management in the indus-
trial and commercial sectors, and highlight it as a Available capacity
200
challenge to the utility industry as well as to the end Effective capacity
user. The comparison with the energy status of
150
South Africa is also presented in this paper. The
paper concentrates on energy efficient lighting,
100
energy efficient motors, cogeneration and power
factor improvement. Section 2 presents an
overview of the power sector in Tanzania, section 3 50
shows the status of energy consumption, section 4
considers the type of commercial and industrial 0
Mtera Kidaru Nyumba Hale New Kihansi
load, section 5 gives analysis and results, and sec- ya Mungu Panani Falls
tion 6 the conclusions.
Figure 1: Capacity of hydropower plant
2. An overview of the power sector in Source: TANESCO
Tanzania
Tanzania has abundant energy resources for power 200
generation, but the energy situation is still charac- 180
terized by low per capita consumption of commer-
160
cial energy – petroleum, coal and electricity (MEM,
140
2003). In general, Tanzania depends largely on bio-
mass fuel energy. 120
100
2.1 Available capacity of electricity 80
generated 60
Hydro plants are important sources of electric 40
power in Tanzania. They account for more than 20
55% of the total available capacity of the country.
0
The remaining portion is contributed by thermal
power plants. The total installed capacity is 1,027.3
MW. Figures 1 and 2 show the existing capacity of
hydro and thermal power plants.
In comparison with generation and installed Figure 2: Capacity of thermal power plant
capacity of other SADC countries, e.g. South Africa Source: TANESCO
of having a population of about 44.2 million people
[Country analysis brief, 2007], their available process for analyzing how much new generation
capacity is 40,481MW [EIA, 2003], that is, Tanzania capacity may be needed, which generation
has about 2.5% of the installed capacity of South resources are applicable, as well as how transmis-
Africa. Table 1 shows generating and installed sion and distribution systems should be expanded.
capacity of South Africa. As per (ESI Africa, 2006), Tanzania load
demand forecast assumed that the Gross Domestic
Table1: Generating and installed capacity of Product (GDP) will be 6%, while the electricity
electrical energy in South Africa demand will grow at 10% to 12% per annum. In
Source: EIA (2003) addition, it is assumed that there will be an
Plants Generation Available
increased capacity of mining and manufacturing
(billion kWh) capacity (MW) industries. The forecasted generating expansion is
shown in Table 2.
Hydro 0.777 661
Nuclear 12.663 1 800
Table 2: The forecasted generating plants
Geothermal and others 0.246 - expansion
Thermal 202.24 38 020 Source: TANESCO
Total 215.926 40 481 S/N Plant name Capacity (MW) Year
1 Zambia interconnector 200 2010
2.2 Load demand forecasting
Demand forecasts estimate the amount of electrici- 2 Ruhudji 350 2016
ty needed in the geographical area served by a 3 Mchuchuma coal Phase I 200 2018
power system. Demand forecast may project the 4 Mchuchuma coal Phase II 200 2022
amount of energy that will be needed over the 5 Rumakali 222 2022
course of the year(s). A demand forecast is a basic

56 Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008

 Based on the future expansion, there will be Figure 4 shows the proportion of electrical energy
about five new installed generating stations from consumption in different sectors.
year 2010 to 2022, some of which are of natural
gas and coal. The demand forecast of African coun- 100
tries in total is projected at 951 Billion kWh by the 90
year 2030, with an average annual increase of Percentage of commercial energy
80
2.9% (International Energy Outlook, 2006). Percentage of total energy
South Africa is a big producer of electrical ener- 70
gy in Africa. Coal and oil are predominant energy 60
resources in countries. These sources of energy 50
have an adverse effect on the environment, result- 40
ing in environmental degradation. If electrical ener-
30
gy management is implemented properly, it may
defer the need for installing the forecasted generat- 20
ing stations by the mentioned years. The power 10
saved by implementation of energy management 0
will be used to cater for the increasing demand.

3. Status of energy consumption in

Tanzania
3.1 Overall energy consumption Figure 3: Energy consumption per sector
The development process has proved that energy is Source: MEM (2003)
one of the key ingredients of any growing economy
and a key input to the operation of all sectors. The
national energy demand (consumption) is estimat- Industrial
ed at 22 Million tones of oil equivalent (TOE) per & commercial Other 32%
annum or per capita energy consumption of 0.7 38%
tones of oil equivalent (MEM, 2003), 90% of which
comes from biomass and mainly used in the house-
hold sector; 8% from petroleum and gas, and 1.5% Residential 32%
from electricity. The contribution of coal and other Figure 4: Electrical energy utilized per
renewable sources is 0.5% (Mwihava and Mbise, sector, 2005
2005). While the total energy consumption of Source: TANESCO
South Africa is 128.49 million TOE of which coal
constitutes 75.4%, oil 20.1%, nuclear 2.8%, natural The pattern of electrical energy consumption per
gas 1.6% and hydroelectricity is 0.1%, the per capi- sector shows that the commercial and industrial sec-
ta energy consumption of South Africa by year tors consume large amounts of energy compared to
2004 was 2.9 TOE (Country Analysis Briefs, the household sector and the consumption trend
2007]). Figure 3 shows a summary of overall has been rapidly increasing from 2002 to date,
Tanzanian energy consumption by sector. The over- (Table 3). This calls for the need for implementation
all energy consumption by sector shows that the of electrical energy management in the industrial
household sector constitutes a large share of the and commercial sector. The barrier for execution of
total energy consumption and most of them are energy management is a lack of skills and aware-
non- commercial energy. This energy is mainly used ness among the end users of electrical energy, and,
for cooking, brewing, ironing and lighting. The as a result, more energy is wasted.
main source of household energy includes fire The pattern of electricity generation and con-
wood, charcoal and biomass (agricultural residue sumption in South Africa for the year 2003 was
and animal dung). These kinds of energy are easily 215.926 Billion kWh and 198.842 Billion kWh
accessed by the majority of low income earners. respectively, and the loss was 15.115 Billion kWh,
i.e. 7% of the generating capacity (EIA, 2003).
3.2 Current electrical energy consumption
Electricity is the source of modern energy for eco- 3.3 A need for energy management in
nomic activities. Currently, only 10% of the popula- Tanzania
tion has access to electricity supply, mainly those There is a large population, increased urbanization
who live in urban areas (Mwihava and Mbise, and good industrial growth in Tanzania. The indus-
2005). The household, commercial and industrial trial sector grew by 9% in 2005 compared to 8.6 %
sectors are the big consumers of electrical energy in in 2004 (www.tanzania.go.tz/economicsurveyf.html).
Tanzania. Other energy consumers include electric- The increase in industrial growth was mainly attrib-
ity exported to Zanzibar Island, and public lighting. uted to the increased production and mining indus-

Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008 57

Table 3: Overall pattern of electrical power generated and consumed from 1995–2005 (million kWh))
Source: TANESCO
Year Public lighting Domestic Commercial Zanzibar Total Transmission Total power
& industrial Island consumption loss generated
1995 11 660 876 84 1631 246 1877
1996 7 927 809 86 1829 193 2022
1997 3 1023 635 89 1750 222 1972
1998 8 1059 740 104 1911 253 2164
1999 2 1126 566 115 1809 516 2325
2000 2 1192 614 105 1913 571 2484
2001 4 1048 836 127 2015 727 2742
2002 0.1 1120 823 133 2076.1 714 2790.1
2003 0.2 1058 1190 145 2393.2 792 3185.2
2004 0.1 1162.7 1232.3 160.9 2556 840.5 3396.5
2005 0.03 1186.5 1312.7 185.6 2684.83 982.07 3666.9

tries. The growing urbanization is coupled with the equipments and air handling equipments (Smith,
increase of small industrial development (SIDO) 1978). Ultimately, due to increase in modern office
and drives tremendous increase in commercial machines and equipment, which encompass elec-
energy demands, which strain electrical supply sys- tronic controls and/ or circuits, when they are left on
tems. standby mode, consume some energy called stand-
Energy drives every economy of a country. The by power loss (Mohantry, 2001). Lack of monitor-
relationship between energy consumption and ing and control mechanisms of switching off the
quality of life is shown in (Pastrnak, 2000 through lighting or air conditioning (A/C) systems after
the Human Development Index (HDI) against per working hours, some light and A/C or fans are run-
capita energy consumption. It shows that the quali- ning idle and contribute to energy loss (Knisley,
ty of life as measured by the HDI increases as per 1999).
capita energy consumption increases. The HDI is a Incandescent and fluorescent lamps are a wide-
factor that uses life expectancy, education and GDP spread type of lighting used in this sector. The dis-
to measure quality of life. Industrial development advantage of fluorescent lamps is their low power
needs a stable and reliable electrical supply for pro- factor caused by inductive ballast while the disad-
duction stability. Hence, an energy management vantage of incandescent lamps is its low efficiency
strategy is required to increase the efficiency of the and diminutive life. Therefore, energy management
existing supply systems by minimizing the con- is a very important undertaking as it controls ener-
sumption pattern while improving the quality of the gy consumed in this sector.
energy services.
4.2 Industrial sector
4. Type and characteristics of electric The electric motors are omnipresent of electrical
loads and their opportunity for energy equipment in the industrial sector. They account for
management a greater amount of total energy consumed in
Demand can be managed in two ways: either industrial plants. Induction motors are the most
increase generating or manage load in demand / widely used motors in industries (Haward, 1982).
end user side. The industrial and commercial sec- The power factor (pf) of the induction motor is
tors consume about 36% of the total energy gener- between 0.5 to 0.85 laggings. Therefore, the total
ated in Tanzania. Research on electrical energy power factor of the industries is diminished, usually
management in this sector is of most importance for ranging between 0.6- 0.75 lagging (Bhatia, 1983).
the benefit of the power supply industry and end The problems of Low pf are as follows
user side. • Increase AC distributed cost
• Cause electromagnetic compatibility (EMC)
4.1 Commercial sector environment due to high harmonics
The combination of economic improvement, • Increase unnecessary demand from the supply.
increases of private companies and including archi-
tecture have contributed to a widespread use of In addition to low Pf problems, the motor and its
electrical energy. In this sector, electricity consump- systems cause energy waste via the following:
tion has been rapidly growing due to increased use • Improper selection of appropriate load with
of air conditioners, interior lightings, lifts, office motor

58 Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008

• Low efficiency of the motor system alent to R42 for 5 years. The investment cost for the
• Unmatched motors with drives causes high CFL is R78, including insurance and service fees
transmission loss which reduces the efficiency (www.eartheasy.com/live_energyeff_lighting.html)
• The use of traditional variable speed drives e.g. while the cost of fluorescent light is R184
resistance methods [Http://www.lightbulbeporium.com/proddetail.asp].
• Starting and running Idle of the production line Saving is calculated on the basis of saved electricity
consumption multiplied by tariff for commercial
5. Cost benefit analysis of energy entity. The cost of one kWh of electricity in the com-
efficient technology mercial sector is 1.10 R/ kWh (TANESCO, 2007).
The cost benefit analysis is carried out for three Replacement of a 60 W incandescent lamp with 18
promising technologies, i.e. energy efficient lighting, W CFL will result in a saving of 42 W per lamp.
power factor correction and energy efficient motors. In this paper, the working hours are assumed to
The market price for the equipment is the main be eight hours per day. Therefore, there will be 2
source of financial data. 920 hours per year.
The total energy saved by one 18 W and 23 W
5.1 Commercial sector CFL is shown in Table 5, which is equivalent to the
The analysis is carried out considering energy effi- saving of R.675.00 per lamp. If the replacement
cient lighting. It is obvious that investment cost of could be done in a commercial entity with 10 000
energy efficient lighting is more than that of tradi- lamps, the saving will be R 6.749.958 and R
tional lighting technologies but substantial energy 12.362.958 for 18 W and 23W CFL respectively.
saving and longer bulb life is realized. In this study, The total kWh saved is 6.132 MWh and 23W is
compact fluorescent lighting (CFL) is replaced by an 11.242 MWh (for 5 years). The results show that, by
incandescent lamp, fluorescent lamp T12 can be the use of energy efficient lighting, the end user will
replaced by T8. Table 4 shows the comparison of benefit from purchasing less energy. The saved
costs of different types of lamps. money can be utilized in other socio-economic
For minimization of running idle of the lighting, development activities.
air conditioning and/ or fans, a motion sensor or The kWh saved could be supplied to other con-
occupation sensor can be installed in each office. In sumers so as to increase the reliability and/ or to
this analysis, the market price of the appliances and improve accessibility of electrical energy as well as
TANESCO electricity tariff is considered. to minimize environmental degradation. This paper
analysed 18 W and 23 W CFL, in comparison to 60
5.1.1 Lighting W and 100 W incandescent lamps. More energy
saving can be achieved by the replacement of other
Table 4: Comparison of cost of consumer type of lamps like LED.
investment of lamps
Comm. & Rating Operating Operating Cost
5.2 Industrial sector
industrial (W) hours/ life of lamps The cost benefit analysis is considering power factor
lighting year (years) (R) correction (pfc). This is assuming that the capacitor
Incandescent 100 2920 0.34 2.8
bank is used for power factor correction. The invest-
60 2920 0.34 2.8 ment cost of capacitor bank (CB) is R.84.4 /kVAR,
and operating and Maintenance cost R4.5/ kVAR/
CFL 23 2920 5 78
18 2920 5 78 year – 5% of investment cost (Yang, 2006).
The case study is considering a plant load of
T8 single 30 2920 5 184
1000 KW, which operates at 0.8 Pf lagging. If the
T8 double 58 2920 5
power factor is improved to 0.95 lagging, assuming
the plant operates 12 hours a day and 312 hours/
5.1.2 Study results for commercial lighting month (26 days per month), the total monthly kWh
From the end user perspective, one CFL saves the consumed is 312.000 kWh. Figure 5 and Table 6
cost of about 15 incandescent lamps which is equiv- show the influence of pf in a demand pattern.

Table 5: Analysis of energy saving potentials and demand reduction in lighting system
CFL Ratings Power saved Energy saved Energy saved for Saving of money
(W) (W) (MWh annual) 5 years (MWh) for 5 years (R)
Scenario 1, 18 42 0.122640 0.6132 675.00
1 lamp 23 77 0.22484 1.124 1 236.40
Scenario 2, 18 420 000 1 226.400 6 132 6 749 958
10 000 lamps 23 770 000 2 248.4 11 242 12 362 958

Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008 59

 Table 6: Relationship between pfc and energy end use cost for improvement of pf from 0.8-0.95
Demand saving kWh charge / Saved demand Cost of Maintenance and Life span
(kVAR) (kVA) month (R) charge /month capacitor bank operating cost (Years)
(R) (R) (R)
429.3 197.4 110 000 7 600 36 215.7 1960 20

buying or rewinding an electric motor. Improving

1052.6
KVA 1176.5 the efficiency of electric motors and the equipment
1250 they drive can save energy and reduce operating
328.7 costs. Energy-efficient motors use less energy.
KVAr 619.8 Because they are manufactured with higher quality
750
materials and techniques, they usually have higher
1000 service factors and bearing lives, less waste heat
KW 1000
1000 output, and less vibration, all of which increase reli-
0.95 ability. The cost effectiveness of energy-efficient
Pf 0.85 motors depend on several factors, including motor
0.8
price, efficiency rating, and annual operating hours
Figure 5: The pf and demand relationship of use, energy rates and cost of installation.

As per TANESCO Tariffs, (TANESCO, 2007), 5.3.1 Motor size

such a plant follows under tariff T3, High Voltage Figure 6 shows that motor efficiency depends on
Maximum demand Tariff, and the monthly rate is the percentage of their loading. Motors should be
shown in Table 7. This calculation excludes VAT. sized to operate with a load factor of between 65%
and 100%.
Table 7: TANESCO tariff structure
Category Monthly rate
Service charge R/ month 38.0
Demand charge R/ kVA 38.5
Energy charge R/ kWh 0.35

Table 8: Cost benefit analysis for power factor

improvement
End user 1st 2nd 20th Payback
perspective year years years period
year
Investment 36 215.7 - -
(R)
Figure 6: Relationship between motor load
Operating
cost - 1 906.1 1 906.1
and efficiency
Saving for 91 199 91 199 91 199
5.3 Cogeneration
12 months (R)
Cogeneration is simultaneous production of heat
Cash flow (R) 54 983 89 293 89 293x 0.41
energy and electrical or mechanical power from the
18 years
same fuel in the same facility. Biomass refuses
(bagasse) can be used for cogeneration energy pro-
5.2.1 Analysis of results for power factor correction duction purposes. The benefit of the cogeneration is
The results show that the pay back periods of that, it increases efficiency, reduces and stabilizes
installing a capacitor bank to end user is about 5 energy cost and reduces greenhouse gas emissions.
months. Therefore, the total saving of one plant for The use of cogeneration can minimize the stress of
20 years will be about R.1 751 550. If the power the supply system and change the consumption
factor of many loads is improved, a substantial profile of the utility industry (Ariss, 2003).
amount of money could be saved by the end users
and the utility company can benefit on improving 6. Conclusion and recommendations
the reliability of electricity. The paper shows how energy can be saved by the
use of efficient lighting, energy efficient motors, and
5.3 Energy efficient motors use of cogeneration in commercial and industrial
Efficiency is an important factor to consider when sectors. The cost benefit analyses show, that if the

60 Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008

traditional light is replaced with CFL or other high Statistics and analysis’ [online] available from http://
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(8/6/07).
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tion also provides savings of demand charge for the Energy Information and Administration (EIA), 2003
industrial customers or end user as it reduces the ‘Country energy balance’ online available from:
www.eia.doe.gov/emeu/world/country/cntry_SF.html
reactive energy flow in the system, which causes the
(18/07/2007).
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prepared by TANESCO, Issue No. 2, [online] avail-
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Journal of Energy in Southern Africa • Vol 19 No 1 • February 2008 61