The Energy Private Developers Association (EPD) and different partners have launched the 2nd Edition campaign to accelerate the integration of solar energy within Rwanda's commercial and industrial sectors.

The awareness campaign, on April 26, 2024, was attended by government officials, solar energy providers offering solar energy solutions, off takers, commercial and industrial enterprises, financial institutions, and investors who finance products of sustainable energy projects.

Through a combination of grid extension and off-grid solar solutions, Rwanda has achieved an electricity access rate of 75.3 per cent,

Renewable energy accounts for 56 per cent of the total electricity generated according to Rwanda Energy Group (REG).

Despite contribution by solar energy towards access for lighting, the adoption rate for solar energy in the commercial and industrial sectors of the country is very low.

This, according to EPD, can be attributed to several factors including the current regulation on the limited cap of 50kw ,low awareness, lack of business incentives for the private sector, and limited access to finance.

Solar energy for the commercial and industrial sector provides several energy technology solutions in a variety of sectors including transport, agriculture, tourism and hospitality, manufacturing, health, information, and technology.

Some of the energy technology solutions include solar powered boreholes, solar for charging stations, cold rooms, solar backup generators, and solar rooftops in areas that are off grid.

EPD says a conducive environment and ecosystem is needed to quicken the adoption of solar energy in the commercial and industrial sectors as Rwanda targets to achieve a universal access to energy where 52 per cent will be on grid and 48 per cent will be off grid.

The Chief Executive Officer of Rwanda Energy Group (REG), Armand Zingiro, said the campaign will increase the uptake of solar energy technology solutions to enable Rwanda to have 60 per cent of its electricity come from renewable energy sources such as solar power by 2030.

He said: "The Government of Rwanda is steadfast in its commitment to increasing the share of renewable energy in the country’s energy mix and achieving universal access to electricity.

"The urgency to reduce carbon emissions, mitigate climate change, and embrace cleaner, more efficient technologies has never been more pressing. At the forefront of this transition is solar energy offering us a path towards a brighter and more sustainable future."

He said renewable power generation equipment and solar appliances were exempted from Value-Added Tax, further incentivizing investment.

This initiative has paved the way for collaboration with 25 off-grid solar companies, he said, adding that EPD’s awareness campaign will stimulate further demand for solar energy adoption within Rwanda's commercial and industrial sectors.

The EPD Executive Chairman, Ivan Twagirashema, said: "With an awareness campaign like this we have to make sure that we are in connection with the companies having solutions and the financial institutions, especially banks.

"We have to make sure that those companies get financial options allowing them to deploy in commercial and industrial area and help those companies to start using the solutions, which produce renewable energy.”

Financing energy products

Speaking about green funds available for the energy sector, Mr. Felix Yvan Rugwizangoga, the Chief Strategy Officer at Rwanda Green Fund, said: "We give not only funds to the public but also to the private sector.

We partnered with Rwanda Development Bank and created what we call Ireme Invest. With proof of concept making sure that your idea becomes bankable, we give grants from $20,000 up to $300,000.”

Ireme Invest is a groundbreaking investment facility that works with Rwanda's private sector to support green business growth.

"We have concluded our second call for proposals where we received probably more than 100 applications from renewable energy,” he noted.

He said the fund provides finance at 12 % interest rate.

According to Alida Ikuzwe, the BRD Manager Energy Portfolio, the bank also supports renewable energy projects.

"We also provide concessional loans to all projects with green initiatives,” she said.

Karen Uwera, the Country Focal Point for IFE Rwanda, a grant is available to support investment activities including in the energy sector in Rwanda that have high impact on employment.

"We have a grant mechanism that operates a co-financing mechanism. So far, we have five contracts signed in Rwanda worth 10 million Euros,” she said.

The next call, she said, will be open from May 15 up to July 1.

"It is a financing investment from a grant of 650,000 euros to five million euros,” she added.

Solar energy providers and offtakers

James Ngugi, the General Manager of Davis & Shirtliff Group, said that one critical thing about solar is sustainability.

"As part of a business, solar is one of the major segments among seven segments that we deal with, and as a group, solar is the biggest business segment, contributing about 31 percent of water to revenue.

"Right now, the campaign we are running with the EPD is telling people that these solutions are available locally in Rwanda. Solar is a reliable alternative to the main source of power,” he said.

Boubacar Diandy, the Managing Director of Netis, which provides efficient and reliable energy solutions to meet the needs of telecommunication providers, industrial and residential markets, said innovative financial solutions are needed to integrate solar energy solutions in the commercial and industrial sector.

"The customers need to understand the benefit of this solar project. The first thing is to do a discount in this type of this campaign for them to be aware that a solution exists. We have to provide a high-quality product because the solar system must be sustainable. We have to come up with an innovative solution that is technically working and technically sustainable,” he said.

Danny Musa, the officer in charge of operations at La Croix du Sud Hospital, said solar energy has been so beneficial in terms of monthly savings after bringing solar panels to the hospital.

"It has allowed us to save money. We needed to cut down expenses and save money. It has also reduced carbon emissions. We do not experience blackouts because solar panels come through. We always have backup in case EUCL electricity, or a generator is not available. We save more than 500 dollars per month,” he said.

Damien Frame, the Global Renewable Centre (GRC) programme manager at University of Strathclyde, Glasgow, said that EPD is the university’s key delivery partner in Rwanda, leading on a programme of engagement to gather perspectives on energy sector priorities and design and deliver appropriate knowledge exchange activities.

He said: "The support we provide is the facilitation of knowledge exchange. So, as a university, we emphasize the importance of connecting the private sector with academia, up-to-date research, and policy makers.

"Initially, the Global Renewable Centre aims to provide the platforms for these discussions to happen, to share knowledge on the technical solutions and the commercial solutions. And then once those networks have been built and the connections have been made between renewable energy players and all the countries involved, then we look to the opportunities that arise from that trying to unlock additional financing for further projects."