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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 rate2014Planned 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.
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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
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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
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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
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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
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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
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Cont..
EXAMPLE PICO SYSTEMS
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EXAMPLE MINI-GRID SYSTEMS
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AGATOBWE Power plant ( 200 kW) Distribution lines at Nkomero Centre
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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,
-Samuel Fell, Energy Economist, [email protected]
Appreciation for the audience
THANK YOU
