How off-grid subsidisation could deliver Rwanda’s energy targets

Philippe Bimenyimana, a married father of five children, says that his finances are not as stable to allow him all the basics, let alone paying electricity bills. From farming, Bimenyimana earns approximately Rwf70,000 per month. After deducting all basic necessities, he saves Rwf10,000; which makes it hard for him to connect his home to electricity. His children struggled to do their homework let alone watch TV for they couldn’t afford to buy one. “Our children would go to bed as early as 7am. The home wasn’t entertaining until we acquired a prepaid solar appliances plus a TV from BBOXX.” Bimenyimana says. BBOXX is among the major solar power companies in Rwanda. Bimenyimana is one of the thousands of Rwandans who have relied on torches and kerosene lamps because their homes are yet to be connected to the grid. Well, until at least his story changed recently. But with the introduction of prepaid solar technology and the new 13 solar companies in Rwanda, hundreds of homesteads can now “see the light”, literally. They not only have lights, but have managed to get prepaid TV and radio sets and mobile phone penetration in Rwanda has improved because people have avenues to charge their mobile phones. With the government seeking to increase electricity access (both on-grid and off-grid) target to 100% by 2024, sector players say that subsidisation of off-grid will go a long way in reaching energy targets. Private operators now represent 52% of power generation and transmission projects, according to Ministry of Infrastructure. Initially, the government had targeted 563 megawatts with 70 per cent of household electrification by 2018, before they revised the targets downwards. REG has said they will not add power to the grid before 2018 but instead they want to concentrate on increasing power lines and efficiency. Renewable energy experts say that a little bit of subsidisation would see more Rwandans connected to electricity sooner than later. “I know energy targets are a bit of a stretch but our recent past as a country has proved that nothing is possible. What the government needs is to identify poor homes and strike a partnership with renewable energy companies to expedite distribution and connectivity,” Dario Simbizi, Head of EU project at Mobisol, another major pre-paid solar companies in the country, said. A rural family watching TV powered by solar energy. Currently, REG has a generation capacity of 208 megawatts, less than half of the previously set for 2018. Recent figures from the Infrastructure ministry show that access to electricity as of September 2017 was at 40.7% at the national level (29.7% on-grid and 11% off-grid) compared to 10.8 per cent about eight years ago. When at least 70 per cent of Rwanda is connected to electricity, off-grid power solutions are expected to contribute at least 22 per cent. Besides, hydro-power, Rwanda uses thermal, methane, peat, and solar energy, among others. But solar energy is significantly growing in Rwanda with over 13 companies venturing into the country in the last 4 years to lead the “Solar revolution”. “Solar revolution is very important since Rwanda is among the countries that get irradiated by the solar in a significant way. With availability of efficient solar technologies, we believe that solar can contribute to the country’s energy targets,’ Simbizi told Sunday Times in an interview. Mobisol’s basic system counts three lights, a 100watt panel and 55-amp hour battery and this goes for Rwf400,000 when a customer pays instant cash and Rwf12000 on monthly installment pay-plan. Recently, Mobisol introduced an all-in-one TV system that can be used as light port and charger, with clients having to pay a monthly installment of Rwf12000. BBOXX’S minimum package is at Rwf5700 a month for the whole package. On that, the client can add one more appliance; this can be a radio or a torch. Solar companies are required to at least provide customers with a minimum three lights and a phone charger—to support mobile phone penetration. Solar energy distributors told Sunday Times that the majority of their customers are in the second and third categories of the household social economic, ‘ubudehe’ classification, leaving those in category one (those considered indigent) with no electricity. The second category includes those with a house, are able to rent, and often get food (able to eat at least twice a day). The third category includes those who have at least one person in the family working in government or the private sector. Monica Keza Tumwine, the Managing Director of BBOXX Rwanda, a solar energy company, say that though solar seems can be the right solution to the energy targets, they are not affordable for everyone to have, hence the reason for the government to chip in and subsidise appliances and ensure that even those in category one of Ubudehe are able to get connected. “Affordable is relative. That is why we are using the word “Low-priced”. Appliances are not cheap to assemble let alone shipping material and all costs of production. But we will always provide a service which the majority of the people can afford to buy and maintain,” Keza noted. Rwanda’s mountainous terrain and population distribution are some of the reasons Keza believes that off-grid solutions could fast- track energy targets as compared to rather expensive on-grid. “If you look at Rwanda’s rural electrification strategy,” Keza says, “off-grid is the real and long-term solution. Because the government has realised that if they want to fast-track energy access for the population they need to find another solution that is not on-grid. On-grid is extremely expensive and it takes a while to produce yet an off-grid system takes just two hours to produce energy. “Achieving energy targets is possible with off-grid. But if we can find that financing that is affordable we can light up the population. Our terrain is quite difficult to distribute on-grid energy because it is so hilly. That makes the on-grid production more expensive.” she added. Mobisol’s Simbizi agrees that their products are “unfortunately not affordable” to the poorest of Rwanda but with a little bit of push from the government, even those in remotest areas would be connected. “If you look at the Rwandan landscape and settlements it is very difficult to get every household connected on-grid because it makes it more expensive and it takes long time yet off-grid is cheaper and sustainable.” he said. Robert Nyamvumba, who is in-charge of energy division at the Ministry of Infrastructure, said as much as the government is “doing all it can” to increase on-grid energy there is strong belief that off-grid can deliver the targets faster. “Several on-grid and off-grid projects are in the pipeline. We have also signed some MoUs with solar companies to expedite connectivity which we believe will increase electrification, especially in rural areas.” Nyamvumba said. Currently, Mobisol has more than 23400 customers. About 800 of these have already finished paying their installments for the products bought. BBOXX lights over 35,000 homes in Rwanda. Their target is to connect 58000 homes to solar energy by the end of the year and 825000 households by 2020, according to Keza. editorial@newtimes.co.rw

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How off-grid subsidisation could deliver Rwanda’s energy targets