8th September, 2015
Republic of Rwanda
Off-grid rural electrification
Energy Division, Ministry of Infrastructure
Overview of Rwanda’s
Energy Sector
The Off-grid sector
Current programs in place
Future outlook of Off Grid
Solutions in Rwanda
Presentation
Outline
1
Sector Policy Background
2
Policy Background
3
Policy Background
Policy Area Key policy
measures
• Description
Electricity sub-sector
• The main policy objectives for the electricity sub-sector are to ensure
sufficient, reliable, sustainable and more affordable power supply:
• Transition to cost reflective tariffs:
• Improve power quality and security by diversifying technologies and
accelerating imports.
• Increase proportion of cleaner energy through IPP investment
streamlining. (Phase out HFO and diesel)
Rural Electrification/ Off-grid sub-
sector
• Simplify licensing frameworks:
• Introducing greater competition and flexibility in off-grid service
provision through measures to simplify licensing and stimulate SPDs;
• Pilot a PPP approach for increasing rural energy access.
• Ensure universal access to electricity in all schools and health clinics
4
Electricity Access Sub-sector Background
ESSP Objectives
On-grid connections: 48% of households by 2018 (or
1,108,000 HH), with 389,00 connections from
relocation and fill-ins.
Off-grid connections: 22% of households (460,600
Households) by 2018. development of innovative
PPPs for providing off-grid energy solutions.
Public services: 100% of schools and health centers
connected (On-grid and off-grid)
EARP: For households too far away, and where more
economical off-grid will be encouraged. Closely
monitor resettlement progress.
Small-scale off-grid distributors: Revision of simplified
licensing framework and investigate possible inclusion
under REFIT
Implementation
Harmonization of 3
year grid extension
plans
With off-grid
Resettlement and
connection policy
Develop and
implement PPPs and
strategy.
Secure climate/RE
finance
RURA with
MININFRA
Main NEP
Directives
Introducing greater
competition and
flexibility in off-grid
service provision
through measures to
simplify licensing and
stimulate SPDs;
Pilot a PPP approach
for increasing rural
energy access.
Ensure universal access
to electricity in all
schools and health
clinics
Energy Sector Overview
 Rwanda’s economy grew at an
annual average rate of 8.3% over
the past 5 years;
 Current Government target is to
achieve 11.5% annual average
growth over the EDPRS II period
(2013-2017);
 Rwanda’s second Economic
Development and Poverty
Reduction Strategy (EDPRS II)
enshrined in four thematic areas,
aims at achieving rapid economic
growth, rural development,
productivity and youth
employment, and accountable
governance;
RWANDA: VITAL STATISTICS
 Access to affordable and modern
sources of energy is therefore essential
to the achievement of the above
development objectives;
Energy Sector overview
 Dependence on Biomass (wood energy) for fuel stands at 85%. We target
to reduce this to an est. 55% by 2017 & to 50% by 2020
 Current Electricity installed capacity is 160 MW. We intend to increase To
at least 563 MW by 2017/18
 Current generation mix: 60.32% hydro, 32.03% thermal ,2.3% methane &
5.42 % solar. The target is to increase generation from indigenous resources
& gradually reduce over dependence on thermal.
The Current Status & Planned Energy Sector
Growth
Electricity Access
0%
50%
23.0%
4.7%
29.9%
8.6%
48.0% 22.0%
Electrification rate
2014
Planned 2015/16
 Current access to electricity is
23%. We target to increase the
access to 70% by 2017/18. Public
institutions (schools, health
facilities, administrative offices) to
be connected 100% by 2017/18
 Current network length: 3,932km
MV, 1,078km LV & 1,228km HV.
We are expanding the network to
meet the access targets
 An estimated $ 3bn of investment
capital is required to generate
563 MW & reach 70% access by
2017/18.
8
Target: Government target of 22% off-grid electrification by 2018, SE4ALL
Action Agenda targets 12-20% by 2030 (currently ~1%)
Policy Framework:
EDPRS II, Energy Policy and Strategy support off-grid development in poor
rural areas.
Rural Electrification Strategy currently under development
Regulation: Simplified Licensing Framework for isolated/ off-grid to be
approved any time:
Applies to grids between 50kW and 1000kW
Tariff principles outlined, with regulator allowed to review tariffs
Grid expansion to mini-grid allows for private small power producer, utility
purchase of assets, or moving of mini-grid assets at a compensated rate
Incentives:
Results Based Finance program for MHPP mini-grids and pico-solar PV
solutions
VAT exemptions for RE and certain mini-grid equipment
Government and donor supported projects
The off-grid sector
MAPPING OF ON-GRID VS OFF-GRID TARGET VILLAGES
9
10
SOLAR PV
Benefits, Issues and interventions
Benefits
1. Cost savings: Cheaper system would save the average rural family around $60 per year.
2. Health and safety benefits: Eliminate fumes from candle and kerosene
3. Economic Productivity and Educational benefits
4. Macro-economic benefits: Solar systems could save up to $80m in kerosene imports over 5-years
The current market based approach is not working (less than 1000 units sold per month)
Consumer awareness
Quality Control
High Prices
Limited Supply Chain
Market Problems Policy Solutions
RSB to Develop Clear standards
requirement for import
Large Scale Government
Awareness programme: PV is as
good as Grid for most
Government programme
installation and subsidisation
11
The off-grid sector continued
Baseline:
-7,900 households, 335 schools and 50 health centres with solar PV systems
-3,065 households connected with hydro mini-grids/off-grid
Project examples:
# PLAYERS NAME OF THE
ACTIVITY
CURRENT STATUS
1 Mobisol Solar PV in HHs 5000 HHs have access. The activity is still ongoing
2 Ignite Power Solar PV in HHs 1,000 HHs have access. Pilot Project completed in Feb 2015
3 Chinese Grant Solar PV in HHs 400 HHs have access. Completed in May/2015
4 EU- Grant Solar PV in Schools 300 Schools have access. Completed in Dec/2014
Solar PV in HHS 1500 HHs have access. Completed in Dec/2013
5 Indian Grant Solar PV in Schools 35 Schools have access. Completed in Sept/2014
6 BTC Solar PV in Health
Centers
50 Health centers have access. Completed in Dec/2012
7 MIT Solar Centralized PV
System
200 HH targeted in Fy 2015/16
12
Demonstration projects: Mesh Power (small systems), MIT system,
Colorado State University village system
Policy Environment: Rural Electrification Strategy, Off-grid baseline
and Autonomous Generation Guidelines , Energy Access Action Plan (FY
2015/16)
Local Production: encouraging local investment in assembly/
manufacturing of solar home systems and accessories
Finance:
-Results Based Finance for mini-grids and pico Solar PV (2015 onwards)
-Development of the Renewable Energy Fund (REF), seeking funding from:
-Scaling Up Renewable Energy Program (SREP) at final stage of application
to focus on off-grid RE
-National Appropriate Mitigation Action (NAMA) under development
-EU General Budget Support
Near future developments
13
OFF-GRID SOLAR ELECTRIFICATION PROJECTS:
 IREAPPP 300 SCHOOLS SOLAR ELECTRIFICATION: 0.52 MW Supply and
installation of photovoltaic solar PV equipment in 300 rural schools in 28 districts
under the European Development fund. All of them have been fully completed
and operational.
 SOLAR PV IN 35 SECONDARY SCHOOLS IN 4 DISTRICTS (Kayonza (7), Huye (6),
Nyaruguru (13) and Kirehe (9)-funded by the Indian Government) Installations
completed in all 35 schools by “Clean Energy Technologies” and “Su-kam”
(Indian).
 (PIPELINE Projects) SOLAR HOME SYSTEMS IN 400 HOUSEHOLDS IN 4
DISTRICTS (Gisagara, Ruhango, Gatsibo & Gakenke with Support from Chinese
government).
 SOLAR ELECTRIFICATION OF GREEN VILLAGE: in Gicumbi District with 46Homes ,
1school, 1Health center and a market.
 MOBISOL: EU Grant to electrify 49,000 Households and 1000 schools in the
newly mapped areas for off-grid extension by 2018. So far 5600 homes electrified.
 IGNITE SOLAR: Has signed an agreement with REG to electrify 1000 Households
in 6monts to end by March 2015. So far 300 connections have been made. Upon
successful completion of these, they shall sign an MoU to scale up the project
14
Cont..
EXAMPLE PICO SYSTEMS
15
EXAMPLE MINI-GRID SYSTEMS
16
AGATOBWE Power plant ( 200 kW) Distribution lines at Nkomero Centre
17
We are happy to share additional detailed presentations on:
1) The utility’s off-grid rollout plans
2) The Simplified Licensing Framework
3) The EnDev Results Based Financing Program
4) The Energy Policy and Sector Strategic Plan
Please contact:
-Eng. Robert NYAMVUMBA, Energy Division Manager,
rnyamvumba@gmail.com
-Samuel Fell, Energy Economist, samuel.fell@mininfra.gov.rw
Appreciation for the audience
THANK YOU

Kigali | Sep-15 | Republic of Rwanda Off-grid rural electrification

  • 1.
    8th September, 2015 Republicof Rwanda Off-grid rural electrification Energy Division, Ministry of Infrastructure
  • 2.
    Overview of Rwanda’s EnergySector The Off-grid sector Current programs in place Future outlook of Off Grid Solutions in Rwanda Presentation Outline 1 Sector Policy Background
  • 3.
  • 4.
    3 Policy Background Policy AreaKey policy measures • Description Electricity sub-sector • The main policy objectives for the electricity sub-sector are to ensure sufficient, reliable, sustainable and more affordable power supply: • Transition to cost reflective tariffs: • Improve power quality and security by diversifying technologies and accelerating imports. • Increase proportion of cleaner energy through IPP investment streamlining. (Phase out HFO and diesel) Rural Electrification/ Off-grid sub- sector • Simplify licensing frameworks: • Introducing greater competition and flexibility in off-grid service provision through measures to simplify licensing and stimulate SPDs; • Pilot a PPP approach for increasing rural energy access. • Ensure universal access to electricity in all schools and health clinics
  • 5.
    4 Electricity Access Sub-sectorBackground ESSP Objectives On-grid connections: 48% of households by 2018 (or 1,108,000 HH), with 389,00 connections from relocation and fill-ins. Off-grid connections: 22% of households (460,600 Households) by 2018. development of innovative PPPs for providing off-grid energy solutions. Public services: 100% of schools and health centers connected (On-grid and off-grid) EARP: For households too far away, and where more economical off-grid will be encouraged. Closely monitor resettlement progress. Small-scale off-grid distributors: Revision of simplified licensing framework and investigate possible inclusion under REFIT Implementation Harmonization of 3 year grid extension plans With off-grid Resettlement and connection policy Develop and implement PPPs and strategy. Secure climate/RE finance RURA with MININFRA Main NEP Directives Introducing greater competition and flexibility in off-grid service provision through measures to simplify licensing and stimulate SPDs; Pilot a PPP approach for increasing rural energy access. Ensure universal access to electricity in all schools and health clinics
  • 6.
    Energy Sector Overview Rwanda’s economy grew at an annual average rate of 8.3% over the past 5 years;  Current Government target is to achieve 11.5% annual average growth over the EDPRS II period (2013-2017);  Rwanda’s second Economic Development and Poverty Reduction Strategy (EDPRS II) enshrined in four thematic areas, aims at achieving rapid economic growth, rural development, productivity and youth employment, and accountable governance; RWANDA: VITAL STATISTICS  Access to affordable and modern sources of energy is therefore essential to the achievement of the above development objectives;
  • 7.
    Energy Sector overview Dependence on Biomass (wood energy) for fuel stands at 85%. We target to reduce this to an est. 55% by 2017 & to 50% by 2020  Current Electricity installed capacity is 160 MW. We intend to increase To at least 563 MW by 2017/18  Current generation mix: 60.32% hydro, 32.03% thermal ,2.3% methane & 5.42 % solar. The target is to increase generation from indigenous resources & gradually reduce over dependence on thermal.
  • 8.
    The Current Status& Planned Energy Sector Growth Electricity Access 0% 50% 23.0% 4.7% 29.9% 8.6% 48.0% 22.0% Electrification rate 2014 Planned 2015/16  Current access to electricity is 23%. We target to increase the access to 70% by 2017/18. Public institutions (schools, health facilities, administrative offices) to be connected 100% by 2017/18  Current network length: 3,932km MV, 1,078km LV & 1,228km HV. We are expanding the network to meet the access targets  An estimated $ 3bn of investment capital is required to generate 563 MW & reach 70% access by 2017/18.
  • 9.
    8 Target: Government targetof 22% off-grid electrification by 2018, SE4ALL Action Agenda targets 12-20% by 2030 (currently ~1%) Policy Framework: EDPRS II, Energy Policy and Strategy support off-grid development in poor rural areas. Rural Electrification Strategy currently under development Regulation: Simplified Licensing Framework for isolated/ off-grid to be approved any time: Applies to grids between 50kW and 1000kW Tariff principles outlined, with regulator allowed to review tariffs Grid expansion to mini-grid allows for private small power producer, utility purchase of assets, or moving of mini-grid assets at a compensated rate Incentives: Results Based Finance program for MHPP mini-grids and pico-solar PV solutions VAT exemptions for RE and certain mini-grid equipment Government and donor supported projects The off-grid sector
  • 10.
    MAPPING OF ON-GRIDVS OFF-GRID TARGET VILLAGES 9
  • 11.
    10 SOLAR PV Benefits, Issuesand interventions Benefits 1. Cost savings: Cheaper system would save the average rural family around $60 per year. 2. Health and safety benefits: Eliminate fumes from candle and kerosene 3. Economic Productivity and Educational benefits 4. Macro-economic benefits: Solar systems could save up to $80m in kerosene imports over 5-years The current market based approach is not working (less than 1000 units sold per month) Consumer awareness Quality Control High Prices Limited Supply Chain Market Problems Policy Solutions RSB to Develop Clear standards requirement for import Large Scale Government Awareness programme: PV is as good as Grid for most Government programme installation and subsidisation
  • 12.
    11 The off-grid sectorcontinued Baseline: -7,900 households, 335 schools and 50 health centres with solar PV systems -3,065 households connected with hydro mini-grids/off-grid Project examples: # PLAYERS NAME OF THE ACTIVITY CURRENT STATUS 1 Mobisol Solar PV in HHs 5000 HHs have access. The activity is still ongoing 2 Ignite Power Solar PV in HHs 1,000 HHs have access. Pilot Project completed in Feb 2015 3 Chinese Grant Solar PV in HHs 400 HHs have access. Completed in May/2015 4 EU- Grant Solar PV in Schools 300 Schools have access. Completed in Dec/2014 Solar PV in HHS 1500 HHs have access. Completed in Dec/2013 5 Indian Grant Solar PV in Schools 35 Schools have access. Completed in Sept/2014 6 BTC Solar PV in Health Centers 50 Health centers have access. Completed in Dec/2012 7 MIT Solar Centralized PV System 200 HH targeted in Fy 2015/16
  • 13.
    12 Demonstration projects: MeshPower (small systems), MIT system, Colorado State University village system Policy Environment: Rural Electrification Strategy, Off-grid baseline and Autonomous Generation Guidelines , Energy Access Action Plan (FY 2015/16) Local Production: encouraging local investment in assembly/ manufacturing of solar home systems and accessories Finance: -Results Based Finance for mini-grids and pico Solar PV (2015 onwards) -Development of the Renewable Energy Fund (REF), seeking funding from: -Scaling Up Renewable Energy Program (SREP) at final stage of application to focus on off-grid RE -National Appropriate Mitigation Action (NAMA) under development -EU General Budget Support Near future developments
  • 14.
    13 OFF-GRID SOLAR ELECTRIFICATIONPROJECTS:  IREAPPP 300 SCHOOLS SOLAR ELECTRIFICATION: 0.52 MW Supply and installation of photovoltaic solar PV equipment in 300 rural schools in 28 districts under the European Development fund. All of them have been fully completed and operational.  SOLAR PV IN 35 SECONDARY SCHOOLS IN 4 DISTRICTS (Kayonza (7), Huye (6), Nyaruguru (13) and Kirehe (9)-funded by the Indian Government) Installations completed in all 35 schools by “Clean Energy Technologies” and “Su-kam” (Indian).  (PIPELINE Projects) SOLAR HOME SYSTEMS IN 400 HOUSEHOLDS IN 4 DISTRICTS (Gisagara, Ruhango, Gatsibo & Gakenke with Support from Chinese government).  SOLAR ELECTRIFICATION OF GREEN VILLAGE: in Gicumbi District with 46Homes , 1school, 1Health center and a market.  MOBISOL: EU Grant to electrify 49,000 Households and 1000 schools in the newly mapped areas for off-grid extension by 2018. So far 5600 homes electrified.  IGNITE SOLAR: Has signed an agreement with REG to electrify 1000 Households in 6monts to end by March 2015. So far 300 connections have been made. Upon successful completion of these, they shall sign an MoU to scale up the project
  • 15.
  • 16.
  • 17.
    EXAMPLE MINI-GRID SYSTEMS 16 AGATOBWEPower plant ( 200 kW) Distribution lines at Nkomero Centre
  • 18.
    17 We are happyto share additional detailed presentations on: 1) The utility’s off-grid rollout plans 2) The Simplified Licensing Framework 3) The EnDev Results Based Financing Program 4) The Energy Policy and Sector Strategic Plan Please contact: -Eng. Robert NYAMVUMBA, Energy Division Manager, rnyamvumba@gmail.com -Samuel Fell, Energy Economist, samuel.fell@mininfra.gov.rw
  • 19.
    Appreciation for theaudience THANK YOU