$5b needed for energy sector development

The government estimates that developing the energy sector will cost between $5 and $6 billion to produce 1000 MW.

Tuesday, February 28, 2012
State Minister Emma Francoise Isumbingabo and Deputy Director General of EWSA Yusuf Uwamahoro at the news conference yesterday. The New Times / Courtesy.

The government estimates that developing the energy sector will cost between $5 and $6 billion to produce 1000 MW.This was disclosed yersterday by the State Minister in charge of Water and Energy, Emma Francoise Isumbingabo, during a news conference ahead of the upcoming Energy Investment Forum.The news conference was held at Rwanda Development Board (RDB). The government expects the forum to attract potential investors, and according to the minister, two-thirds of the total cost of the energy projects is expected to come from the private sector. The forum is scheduled this week, from February 29 to March 1, and will be held under the theme; ‘Energy in Rwanda-Unleashing the Opportunities.’ So far, 250 international, regional and local participants have confirmed participation, according to officials. The energy sector is one of the government’s prioritysectors after traditional sectors like agriculture, manufacturing and real estate that require the involvement of the private sector.It is said to have various challenges like investment capital, independent power producer, power purchase agreement and high electricity tariffs."Access to energy is crucial, it’s actually the pillar of any economic development, and that’s why we prioritize it for the period running up to 2017,” said Isumbingabo.The Economic Development and Poverty Reduction Strategy (EDPRS) indicates that households with electricity increased to 10.8 percent in 2010/2011, up from 4.3 percent in 2005/06.There is a perception that many investors didn’t have enough information about the sector and the purpose of the forum is to engage the private sector and to showcase the available opportunities in all sub-sectors and fields of energy. According to the minister, opportunities are available in hydro, methane gas, solar and geothermal, peat and other forms of renewable energy.According to the draft meeting agenda, presentations will include, Rwanda’s investment climate, energy sector policy, legal and regulatory framework and overview of energy projects in the country.