- Rwanda energy primary use is dominated by biomass which accounts for 85%;
- Total installed generation capacity of 186 MW
- 24.5% connectivity rate (23% on-grid and 1.5% off-grid).
- Biomass (wood energy) to drop from 86.3% to 50% by 2020;
- Generation capacity to reach 563 MW by 2017/18;
- Access to electricity to expand to 70% by2017/18;
- Public institutions to be connected 100% by 2017/18.
- Diversification of Energy sources;
- Focus on domestic sources of energy and phasing out heavy/fossil-fuel generation;
- Involvement of the private sector in power generation through Independent Power Producers (IPP’s) and Private Public Partnerships (PPP’s) structures;
- Provision of Power Purchase Agreement, underpinned with a minimum 25 years concession Agreement.
- Methane gas to power
- Peat to power
- Micro Hydropower
- Off-grid , and mini grid solutions
- Ministry of Infrastructure (for policy and strategy formulation, and granting both concessions and MoU’s)
- Rwanda Energy Group (implementing Company, providing both technical assessment, and Power Purchase Agreements)
- Rwanda Development Board (Investment process, guidance, facilitation, leading negotiations for strategic projects, issuing EIA, and providing incentives)
- Rwanda Utility Regulatory Authority (setting tariffs, regulate the sector, and provision of licenses in the sector).
Competitive approach (Projects granted through open tendering process):
- For strategic projects (big sized projects) and;
- For projects where the government has partly or fully invested in their development phases;
Non-competitive approach (projects granted on proposal evaluation basis):
- For unsolicited projects;
- A variety of non-fiscal and fiscal incentives (tax exemption including VAT on importation of power equipment, investment allowance up to 50%, free repatriation of profits, 100% written-off development and research costs,…)
- Provision of key account managers to fast-track the project in the implementation process
- The installation cost for 1MW from Methane is estimated to $3,700,000;
- The installation cost for 1MW from Geothermal is estimated to $ 3,500,000;
- The installation cost for 1MW from Peat is estimated to $3,200,000
- The installation cost for 1MW from Hydropower is estimated to $4,000,000
- The installation cost for 1MW from solar is estimated to $2,800,000
Industries (Average tariff $22 cent/kWh): 126Rwf/$16 cents/Kwh;
Ordinary consumption: 182 Rwf /$23.6 cents/Kwh.
- KivuWatt developing 100MW from methane by Contour Global (US)
- Hakan developing 120MW from peat (Turkish )
- Symbion Power to develop 50MW from Methane (US)
- Goldsol II developing 10MW from Solar (Portugal, South Africa and Rwanda )
- Ngali Energy developing Micro hydropower project for 45MW (Rwanda)
- Gigawatt Global operating 8.5 MW from solar (Israel)
For any further details/information you may require, please contact:
Strategic Investment Department
Rwanda Development Board.
Investment Promotion and Facilitation Department
Rwanda Development Board.