The Governmenthas been advised to adopt a strong and sustainable energy master plan and lease cost concept for sustainable future power generation, distribution and access.

Energy experts speaking at the iPad Rwanda Power Infrastructure Investment Forum, taking place in Kigali, yesterday, said this would not only increase power generation but also reduce the cost of electricity to consumers.

Embracing strong lease concepts will help the country secure a long term financial system that will ultimately draw more investors into the energy industry, the experts said.

Hayashi Toshiyuki, senior adviser and economist, power development planning   Japan International Cooperation Agency, said Rwanda’s opportunity to supply power should be driven by demand for effective pricing purposes.

"There is also need to conduct an economic financial analysis and institute strong investment guidelines based on technological risks,” Toshiyuki said.

"This will provide long term solutions to Rwanda’s power constraints. There is also need for regulatory bodies to play a leading role on how electricity is priced for the benefit of the citizens.”

The lease concept will be coming in as a long term solution for the limited financing the sector is currently grappling with, Toshiyuki added.

Paul Hinks, chief executive of Symbion Power, US, said for sustainable availability of energy, it is critical that African economies start moving away from donor aid and start powering private investments into the sector.

"You don’t need to rely on World Bank all the time for the sustainability of the energy sector, stakeholders must find a way of getting behind the private sector and make sure you institute strong energy reforms, structures and capabilities,” Hinks said.

David Mwangi, a Kenyan energy consultant, said the logistical challenges will depend on how the private sector is positioned to take on investments.

Energy plan hailed

According to the experts, Rwanda’s energy plan has high chances of succeeding because of its public and private sector component.

"Rwanda is an example to the rest of sub-Saharan Africa and that’s why most companies are so keen to come and invest in the country,” Hinks said.

Jamil Korked, deputy general manager of Steg International Services, encouraged prospective investors to consider Rwanda in their business activities due its political stability and security, good governance and transparency, and organised and structured administration.

The government is targeting to increase its power generation capacity from the current 155MW to 563MW by 2017.

Access to electricity is also projected to reach 70 per cent by 2018 from current 22 per cent.

This will see government invest about $3 billion and the private sector $1.3 billion.