Energy
Overview
- Total installed power generation capacity of 224.6MW
- Electricity Access rate estimated to 51 % (37 on-grid and 14 % off-grid).
Targets
- Biomass (wood energy) to drop from 79.9% to 42 % by 2024
- Access to electricity to expand to 100% by2024 (where by 52% will be on grid and 48% off-grid)
- Productive users to be connected 100% by 2022
- Rwanda plans to achieve 556MW installed power generation capacity by 2024
Strategies
- The Rural Electrification Strategy approved and currently in implementation;
- Involvement of the private sector companies to accelerate and achieve the targeted off-grid Electricity Access
- Availability of Cooperation Agreement between Independent Power Producers with EDCL for supplying, installation and provision of after sales services for two years.
Investment Opportunities
- Standalone solar systems for households and other users
- Mini-grid systems to be installed from different resources solar, hydropower, and biomass ( 20 sites identified, and the feasibility is completed)
Institutional set-up
- Ministry of Infrastructure (for policy and strategy formulation)
- Rwanda Energy Group (implementing Company, providing technical assessment, cooperation and Power Purchase Agreements. It has two subsidiary companies: EDCL and EUCL)
- Rwanda Development Board (Investment process, guidance, facilitation, leading negotiations, issuing EIA, and providing incentives)
- Rwanda Utility Regulatory Authority (setting tariffs, regulate the sector, and provision of licenses in the sector).
- Energy Private Developers Association/EPD (grouping and advocating for the needs of energy private companies)
Investment Process
The process of engaging off-grid suppliers and /or Independent Power Producers to work with the Government is done through the normal procurement procedures;
Incentives to private developers in the power sector
- Provision of investment certificate for the investor’ special treatment
- A variety of non-fiscal and fiscal incentives (tax exemption including VAT on importation of equipment, investment allowance up to 50%, free repatriation of profits, 100% written-off development and research costs, preferential corporate income tax of 15%, Corporate income tax holiday of up to seven (7) years for Energy projects producing 25MW with 50M investment)
- Provision of RDB aftercare support to registered projects with Investment certificate
Implementation of the Rural Electrification Strategy
Stand Alone Systems
- Tier 1: Lighting (3 lamps), one radio and 2 phone charging
- Tier 2: Tier 1 + TV
- Tier 3: Tier 2 + refrigerator
Mini-Grid Systems
- Tier 4: Tier 3 + high power appliances
Grid Extension
- Tier 5: 24/7 high power suited for commercial and industry use
Tariffs ( Excluding VAT)
Industries
- Large industries 94 Rwf/kWh
- Medium industries 103 Rwf/kWh
- Small industries 134 Rwf/kWh
Flat rates for Industries without smart meters
- Large industries 106 Rwf/kWh
- Medium industries 123 Rwf/kWh
- mall industries 151 Rwf/kWh
Ordinary Consumers
- Residential 89 Rwf/kWh for 0-15kWh/Month, 212 Rwf/kWh for btn 15-50 kWh/Month, and 249 Rwf/kWh for capacity above 50kWh/Month
- Non-Residential 227 Rwf/kWh for 0-100kWh/Month and 255 Rwf/kWh for 100kWh + capacity/Month
- Telecom towers 201 Rwf/kWh, Water Treatment plants and Water pumping station 126 Rwf/kWh, Hotels 157 Rwf/kWh, Health Facilities 186 Rwf/kWh and Broadcasters 192 Rwf/kWh
- Small Industries 134 Rwf/kWh for ≤ 22,000 kWh/Year, Medium Industries 103 Rwf/kWh for 22,000- 660,000 kWh/Year capacity and Large Industries 94 Rwf/kWh > 660,000 kWh/Year capacity
- Commercial Data centers 179 Rwf/kWh
Key Energy Private Players (IPP’s)
- KivuWatt developing 100MW from methane by Contour Global (US)
- Hakan developing 80MW from peat (Turkey)
- Symbion Power to develop 50MW from Methane (US)
- Gigawatt Global operating 8.5 MW from solar (US)
- Mobisol supplying standalone systems (GERMANY)
- Rwanda Mountain operating Micro hydropower (Rwanda)
- Ngali Energy developing Micro hydropower (Rwanda)
- Ignite Power supplying standalone systems
- Bboxx Capital supplying standalone systems
Contact Us
For any further details/information you may require, please contact:
Chris Picton Shyaka
Sector Marketing Analyst
Investment Marketing Department
Rwanda Development Board
Email: chrispicton.shyaka@rdb.rw