Rwanda

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Solar Power, Hydro Power

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Technologies micro hydro power (MHP)

Solar

EnDev 1 May 2006 -
December 2009
EnDev 2 October 2009 -
December 2017
Partners Energy, Water and Sanitation Authority (EWSA), Ministry of Infrastructure (MININFRA), Private sector
Implementers
Outcomes (12/2017) Access to electricity:
  • 21,000 people

Access to modern cooking energy:

  • 11,000 people

Access to modern energy services:

  • 55 social institutions
  • 161 SMEs

Figures reflect the non-adjusted sum of EnDev 1 and EnDev 2 outcomes. Read more in EnDev's Monitoring

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Energy Situation

85% of Rwanda’s overall energy comes from biomass, 11% from petroleum products and 3% from hydro sources for electricity. The main consumers of biomass are households using it for cooking. Other energy sources are predominantly used for transport, electricity generation and industrial production. In 2009, only about 10% of the population had access to electricity. The country currently has about 84 MW installed generating capacity, powered by hydro and diesel.

Approach

EnDev Rwanda is implementing two projects – the PSP Hydro project and a Results-Based Financing programme. Under the PSP Hydro project (Private Sector Participation in Micro-Hydro Power for Rural Development), EnDev Rwanda works with private project developers to facilitate the development of micro hydro power (MHP) plants. EnDev Rwanda supports private developers through technical, financial and business advice. In addition, it supports the Ministry of Infrastructure in establishing a suitable regulatory framework. The private project developers are completely responsible for the success of their projects and must contribute at least 15% financing of the total costs through their own equity, and may take up a commercial bank loan. EnDev Rwanda contributes a grant of on average 25% of the investment cost.

Three micro hydro power plants (96-500 kW) are operational and reliably supply electricity to the grid. They are the first privately developed and operated power plants in Rwanda. Three more MHP projects are currently under development. In 2014, EnDev Rwanda together with the Rwandan energy utility, the Energy, Water and Sanitation Authority (EWSA), tendered out nine sites for micro-hydro power plants to IPPs.

EnDev Rwanda also implements two Result Based Financing (RBF) projects for decentralised off-grid solutions provided by the private sector. Currently, EnDev Rwanda is piloting a new Results-Based Financing Programme for solar lighting and mini grids. This programme is designed to kick-start the development of markets for renewable energy products. Under the solar lighting component, private sector companies receive a financial incentive for selling solar lamps to customers in rural areas. Under the mini grid component, companies receive a top-up for every customer successfully connected to a privately run grid powered by renewable energy. The programme is implemented by a Rwandese bank.

Until 2011, EnDev Rwanda supported the implementation of digesters to supply rural households with biogas for cooking. The target group for the domestic biogas programme is households in rural areas that own cattle in a stable near the homestead. EnDev supported the National Domestic Biogas Programme through technical advice and partial subsidies for such digesters.


MHP ACTIVITIES
RESULTS-BASED FINANCING ACTIVITIES
  • Business management training for private project developers
  • Technical support on feasibility studies, construction works and proper maintenance
  • Limited financial support to investment cost
  • Studies and technical advice to government institutions to strengthen the private sector approach


  • Provision of financial incentives to private sector firms that deliver results
  • Trainings for the Rwandese bank on renewable energy and results-based financing