AfDB: Investing in energy to achieve universal access to electricity

The Energy sector is one of the key pillars of Rwanda's sustainable development, with the government making deliberate efforts to increase the power generation capacity and distribution throughout the country. To ensure the country achieves its target to meet electricity demand, the government has been intentional to form strong partnerships with development partners and other relevant stakeholders. The African Development Bank (AfDB) has been a strategic partner, making significant investments in Rwanda's energy sector and improving the reliability and affordability of electricity for households and businesses in the country. According to the 2nd edition of AfDB's Country Development Effectiveness Review (CDER), which examines Rwanda's development journey and the Bank's contribution to the country's development results, from 2012 to 2022, the Bank successfully completed four projects with total commitments amounting to $243.3 million, of which $106.4 million were directly invested by the Bank. Scaling Up Electricity Access Project (SEAP) The Scaling Up Electricity Access Project (SEAP), phases one and two, have been pivotal to Rwanda's journey towards universal electricity access. Through SEAP-I, which concentrated on advancing access to electricity in Rwanda's Northern and Western provinces, approximately 1,190 km of distribution lines and associated substations have been constructed. According to the CDER, the first phase of the project facilitated electricity access for 30,535 households, 210 schools, 32 health centres, and 52 local administrative offices. The project has also improved the overall performance of the electricity system, with national grid system losses decreasing from 23 per cent in 2012 to 19 per cent in 2020, as per the AfDB report. The second phase of SEAP sets out to establish approximately 8,112 km of distribution lines across the country, alongside requisite substations, while facilitating 193,336 new on-grid electricity connections. Among these connections, 2,112 are allocated for productive usage customers, aimed at catalysing industrialisation efforts in Rwanda. Additionally, the project endeavours to provide solar home systems to 124,800 households, significantly enhancing access to clean and reliable energy sources. The ongoing project has electrified a vast agricultural expanse in Nyagatare district of Eastern Rwanda, laying the foundation for the Gabiro Agribusiness Hub, poised to revolutionise local farming practices and bolster food security. Methane gas to energy AfDB has supported Rwanda's efforts to boost its power generation capacity through the KivuWatt 26 MW methane gas-to-power project. This facility, the first of its kind globally, taps into naturally occurring methane reserves at the depths of Lake Kivu and utilises it to generate electricity. KivuWatt, according to the AfDB report, has enhanced grid stability and broadened nationwide access to high-quality electricity services. Additionally, the facility has provided jobs for the local community, employing 70 people, 17 per cent of whom are women. KivuWatt has also dedicated 0.3 per cent of its profits annually to impactful social initiatives including the renovation of local schools and the implementation of training programmes for farmers. Through strategic partnerships with partners like the AfDB, Rwanda is on track to achieve universal access to electricity, with over 74% of households already connected as of 2023. Last-mile connections under SEAP have also ensured that the remotest villages in the country have been reached, powering homes, schools, and health centers.

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AfDB: Investing in energy to achieve universal access to electricity