Huge gains in energy sector, but power cuts, low supply persist

Inadequate power supply and unscheduled load shedding have been some of the main challenges that manufacturers faced this year, with many saying they had cost them dearly in terms of plant breakdowns and repairs. Though the infrastructure minister James Musoni ordered the energy utilities in August to increase the number of hours for uninterrupted electricity supply to nine, up from the present six hours, the challenge still persists as industrialists in the Kigali Special Economic Zone were last month complaining about power cuts. The minister had asked power utilities to supply industrialists and other productive sectors uninterrupted electricity from 6am in the morning to 3pm in the afternoon daily. The problem of power shortages was exacerbated after water levels at some of the main power dams, like Nyabarongo I, reduced affecting power generation and supply. Of Rwanda’s 185MW installed power generation capacity, only 119.38MW has been supplied in the past months, according to the power utilities, leaving a 41.8MW deficit. The country will have to wait until April next year for 30MW of power that was expected to be imported from Kenya by the end of this month to ease shortage. However, the government is upbeat and expects to add 70MW onto the national grid by the end of the fiscal year, and also plans to increase the country’s total generation capacity to 563MW by 2017. These challenges notwithstanding, the country’s electricity generation capacity has increased from 110MW to 185MW in the past 18 months. Recently, Kivuwatt gave the power utilities some relief when it connected about 25MW from its methane gas plant at Lake Kivu onto the national power grid. Rwanda launches E.Africa’s first utility-scale solar energy project One of the key developments in the energy sector this year was the launch by Rwanda of East Africa’s first utility-scale solar energy project in February. The Gigawatt Global 8.5MW solar project at the Agahozo-Shalom Youth Village in Rwamagana is said to have boosted the country’s total grid capacity by 6 per cent. The $23.7 million solar energy project was officially brought online on February 5. Recently, the government signed a power purchase deal with American energy firm, Symbion Power. The 25-year power purchase agreement signed between Symbion Power Rwanda and the Rwanda Energy Group (REG) is for the purchase of 55MW from the firm’s methane gas project on Lake Kivu in the Western Province. When the plant eventually comes on line, it is expected to significantly improve the country’s energy supply. In addition, during the year, REG signed a number of memorandum of understanding with various countries, including Israel and Ghana aimed at knowledge transfer. The utility signed a deal with Israel’s Electric Corporation (IEC) that provides a framework to establish co-operation for technical support in areas of energy project development and energy transmission and distribution as one of the initiatives aimed at addressing the issues of power leakages and shortage. Chinese to fast-track Nyabarongo II project In a bid to fast-track the Nyabarongo II hydro-power project, the government signed a memorandum of understanding with Sinohydro Corporation, a Chinese state-owned company, where the firm will develop he 120MW Nyabarongo II power project. As one of the strategies to increase access to off-grid power, the government signed a memorandum of understanding with the UK government, where rural households will be able to acquire solar systems. The initiative is part of the Energy Africa campaign and the agreement was signed by Minister for Infrastructure James Musoni and Nick Hurd, the UK International Development Minister during the Global African Investment Summit in London recently. Micro-hydro power plants leased In a move aimed at promoting efficiency and boost the country’s power generation capacity, the government leased 22 micro-power projects to private investors. The plants were leased to seven private power developers for 25 years, which signed power purchase and concession agreements with the Ministry of Infrastructure, the Rwanda Development Board and the Rwanda Energy Group. According to the Ministry of Infrastructure, 15 of the plants are new, while seven were already operational and only needed to be upgraded to boost their capacity and efficiency. The plants are located in Northern and Western provinces, and include Agatobwe, Nyamyotsi I and II, Kimbili Rukarara V, Rugezi, Mutobo, Base I and II, and Ngororero. As the curtains fall on 2015, Rwandans and industrialists, in particular, will be hoping for reliable and adequate power supply in the New Year. It could also be the time to give more incentives to importers and vendors of solar power systems to ease access to these equipment, especially in the rural areas. The move, which supplements efforts aimed at encouraging a green economy in Rwanda, will also reduce pressure on the national grid and support growth of small businesses across the country

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Huge gains in energy sector, but power cuts, low supply persist