Govt lays firm foundation to meet power generation targets

Rwanda targets to extend power to at least 70 per cent of the households in the country by 2018. To achieve this ambitious goal, government projects to boost electricity generation to 563MW within the next two years. Presently, about 25 per cent of the Rwandan households are connected to electricity, while the country’s total installed power capacity is around 190MW, an increase from 186MW in 2015. Despite this rise in generation, industrial energy users have continued to complain of insufficient power supply, a situation they say has affected production and raised operational costs. Though more renewable energy sources are being tapped to further increase generation capacity, demand seems to be growing at higher rate compared to supply. What is encouraging, however, is the fact that renewable energy uptake has gone up, especially in the rural areas where vendors for off-grid power systems have put more emphasis. And as the year ends, one of the most interesting developments recorded in the energy sector was government’s move to make power more affordable, at least for low-income earners, the dynamics of choosing the beneficiaries under this programme notwithstanding. These efforts by government, Rwanda Energy Group (REG) and other stakeholder could have influenced the World Bank doing business report 2016, which lauded the country’s efforts to improve access to electricity by entrepreneurs. So, with 11 days remaining to the year’s end, what has been done to support government’s ambitious objective of increasing electricity generation to bring the targeted 563MW online by the close of 2018? This would mean that about 48 per cent of the households would be connected on the national grid, while 22 per cent on off-grid power. Generation and access to electricity As government and energy sector investors move to increase power generation to 563MW, which is one of the medium-term goals under the second Economic Development and Poverty Reduction Strategy (EDPRS II), many players doubt whether these targets are achievable. However, government says it is using a multi-source approach, especially focusing on small and big hydro-power plants, deepening solar energy use, as well as other renewable power sources to achieve this goal. According to REG officials, efforts have been directed toward having a diversified, but balanced power production, distribution and supply to meet the national targets. It is such initiatives that have enabled the country to increase electricity generation capacity from 98MW in 2010 to 186MW in 2015 and, finally, 190MW as of October, 2016. This achievement, according Ministry of Infrastructure and REG officials, has improved access to electricity, with grid connections under the Electricity Access Rollout Programme (EARP) and related initiatives growing from 110,000 households in 2010 to over 590,000 households by August 2016. On average, 75,000 new households are connected onto the grid annually since 2011, which means that about 25 per cent of Rwandan households are connected on the grid presently compared to 10.8 per cent in 2011. Over 2.6 per cent of the population is served by off-grid power source like solar energy. Completed projects Most of Rwanda’s electricity is produced by hydro-power plants, including the Nyabarongo hydro-power plant that produces 28MW of the country’s 190MW installed power capacity, Giciye II micro hydro-power plant contributes 4MW, the first phase of the KivuWatt project produces 25MW, while 8MW from the plant will be added by end of June. The 23MW Gishoma plant could also add 15MW onto the national grid this financial year, which together with 8MW from KivuWatt will increase electricity generation to 213MW by end of the financial year. Of the solar energy sources, the GigaWatt Global in Rwamagana District is the biggest contributor at 8.5MW, while thousands of households are connected by independent solar power equipment vendors, including NOTS Solar Lamps, MeshPower, Mobisol and BBOXX. To reduce power losses, the power utility has constructed and upgraded a number of transmission lines and substations in and around Kigali and in the provinces. Other power lines are under construction to allow power evacuation and trade across the region. According to Rwanda Energy Group, there are also regional interconnection lines being built, such as the 220kV transmission lines Mirama-Birembo (Uganda-Rwanda); Karongi-Rubavu-Goma transmission line, while feasibility studies for the 220kV Kigoma–Huye–Ngozi–Gitega (Rwanda-Burundi), and that for 220kV Rusumo–Shango (Tanzania–Rwanda) transmission line are also ongoing. Projects in pipeline There are major projects that will substantially increase generation capacity like the 50MW Symbion methane gas plant on Lake Kivu, an 80MW peat-to-power project by Hakan, while regional projects such as the 80MW Rusumo and 147MW Rusizi III are in advanced stages. In addition, there are seven privately-owned hydropower plants with a total capacity of 16 MW that are under construction, with commercial operation dates planned in the very near future going into 2017. Governmnet is also counting on projects like construction of the Gabiro substation, rehabilitation of the Kigali network, construction of the Rulindo–Gabiro–Musha transmission line that is expected to transmit 110kv, as well as construction of the 30MW thermal power plant to boost power supply. Earlier in April, the Cabinet approved the Rural Electrification Strategy. Other efforts to increase power supply include importation of 30MW from Kenya and another 400MW from Ethiopia in the medium-term. Improving transmission and distribution To boost energy generation and distribution, the government and the European Union, signed a financing deal worth €177 million (about Rwf157 billion) that seeks to support the energy sector for the next five years. The financing agreement was the first of a series to be signed and part of a €460 million programme of EU grant financial assistance to Rwanda agreed in 2015. In addition, government and the Federal Republic of Germany, signed a bilateral agreement worth €15 million (about Rwf13 billion) to support energy supply in the country. The project will also benefit other countries in the Great Lakes region. The grant will also support construction of Ruzizi III hydro-power project and improve energy supply in the country and the Great Lakes region to foster socio-economic development. Off-grid energy Government seeks to increase off-grid power solutions to at least 22 per cent or around 530,000 households in the medium-term through partnership with the private sector. At the beginning of the year, it signed an agreement with Ignite Power, a Mauritian firm, to deploy off-grid standalone solar systems in rural areas. The $50 million (about Rwf37 billion) five-year deal has been one of the biggest in the sector this year. Under the agreement, Ignite Power will deploy solar power systems in rural Rwanda, while beneficiaries will get a two-year grace period to pay for the solar systems. Last month, YUMN Limited, a renewable power developer, signed a funding agreement with lenders to develop an 80MW peat-fired power plant. The $350 million project in Mamba Sector, Gisagara District in Southern Province will be financed by Africa Finance Corporation, Finnfund, PTA Bank, Afrexim Bank, Development Bank of Rwanda and Exim Bank of India. Rwanda joins sustainable energy for all programme Meanwhile, the Sustainable Energy for All Action Agenda (SE4All) was officially launched during Rwanda Energy Infrastructure Forum (iPAD) in November. The programme highlights the country’s plans to achieve universal electricity access with a combination of both grid extension and off-grid solutions for the most isolated areas. These and more efforts will play a crucial in helping Rwanda increase access to power to 70 per cent by 2018, and 100 per cent by 2020. The country’s power generation capacity currently stands at about 190 per cent, with hydro-power accounting for 97.37MW of Rwanda’s total installed capacity, thermal is at 51.7MW, methane accounts for over 10MW, while 8.75MW is produced from solar energy, among others. The Gigawatt solar power farm in Rwamagana District supplies 8.5MW. (File photo) business@newtimes.co.rw

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Govt lays firm foundation to meet power generation targets