Energy Private Developers accelerating universal energy access in Rwanda

Rwanda has set very ambitious target of achieving universal energy access by 2024. It is only five years from now to light all Rwandans through a mix of on-grid and off-grid solutions, unlock environmental and significant social economic benefits.

Rwanda targets to connect 300,000 households annually to off-grid energy solutions to meet the 2024 access target.

The strides Rwanda continues to make in energy sector are convincing to meet the target through concerted efforts and strong public-private partnerships.

It is anticipated that by 2024, off-grid solutions will contribute up to 48 per cent as grid solutions contribute 52 per cent of national electricity connections.

Currently, about 51% of Rwandan households have access to electricity, including 37% connected to the grid while 14% are using off-grid solutions.

The efforts expended by Energy Private Developers (EPD) are part of fruitful public-private partnerships that continuously draw the country to a step closer through funds mobilization, conducting advocacies among other initiatives for the target to materialize.

Established five years ago, EPD is a registered professional association in Rwanda regrouping private companies operating in the energy sector takes pride to be part of the journey.

As an independent professional association, EPD coordinates constructive dialogue between the public and private Rwandan renewable energy sectors. By sharing information and advocating for a positive working environment for the private sector, they are supporting Rwanda’s government Electrification Goal of bringing 100% electrification by 2024.

EPD works with different stakeholders such as; the Private Sector Federation of Rwanda (PSF), Government of Rwanda , Ministry of Infrastructure, Rwanda Development Board (RDB) and Rwanda Energy Group (REG). It also works with International Development agencies such as Power Africa, DFID, EnDEV, GIZ, and many more.

All the above work together to address critical issues in the Energy sector and pave a way forward through which the sector can grow and thrive.

EPD has a membership of more than 100 private enterprises in multiple energy sectors including solar, hydro, LPG gas, biomass, biogas, methane gas and more.

It is one of the 5 associations making the Chamber of Industry under the Private Sector Federation of Rwanda.

Renewable Energy for Sustainable Growth Conference

The recent successful Renewable Energy for Sustainable Growth Conference (RE4SG) 3rd edition that ran from 5th to 6th November 2019 hosted by EPD at Kigali Convention Center, Rwanda is another milestone to propel Rwanda’s energy sector to greater heights.

It was an opportunity to reflect on achievements and take stock of how Rwandans have been supported in accessing energy through public-private partnerships.

Organized under the theme: ‘Promoting Universal Green Energy Access in Africa’,  this year’s edition featured panel discussions from different energy stakeholders on different themes aimed at discussing opportunities, challenges in the energy sector and how to address them.

On the first day, panelists discussed Renewable Energy Status in Rwanda, E-mobility, Achieving Universal Solar home energy access  through Solar Home Systems, Mini grids and technologies to reach Universal Energy Access, the role of Hydro Power in Rwanda’s Energy Mix and Closing the role of Gender Gap in Rwanda’s Energy Sector among others.

The second edition of the conference held in the previous year focused on ‘Re-energizing agriculture through solar power workshop’.

The conference was graced by the Permanent Secretary at the Ministry of Infrastructure, Patricie Uwase, Jean Claude Musabyimana, the Permanent Secretary at the Ministry of Agriculture and Animal Resources (MINAGRI), the Chairman of Energy Private Developers (EPD), the Deputy CEO of Rwanda Development Board among other stakeholders including the CEO of Rwanda Energy Group, Ron Weiss, the CEO of EPD, Sanday Kabarebe and the World Bank Country Manager among other guests.

Dr Ivan Twagirishema , the Chairman of Energy Private Developers  highlighted that the annual  RE4SG that was first organized three years ago has built energy brand and a strong energy platform, created a plane field for Rwanda’s renewable energy market while providing a platform where both local and international investors, sector’s stakeholders can come together to explore the available market opportunities,  challenges and possible solutions not only for Rwanda  but also considering the African and global market.

According to Africa Development Bank, over 640,000, 000 Africans have no access to energy, corresponding to an electricity access rate for African countries at just over 40%, the lowest in the world.

Dr Twagirishema stressed thataccess to energy is crucial not only for domestic use and electrification outcomes but also for reducing the cost of doing businesses and unlocking economic potential as well as the creation of jobs.

“Africa energy potential, especially renewable energy, is enormous yet only a fraction of it is currently used.  Hydro power provides around a fifth of the current capacity   but not even a tenth of its total potential is being utilized.  Similarly, the technical potential of solar biomass, wind and geothermal is significant,” he noted.

“Rwanda set a target of 100% electricity access by 2024 where 40% will be on-grid and the representation of off-grid will be 40%. EPD will bring a significant role in achieving this ambitious target as its members are key players in the energy market,” assured Dr Twagirishema.

Private sector leads

The Permanent Secretary at the Ministry of Infrastructure, Eng. Patricie Uwase said that Rwanda’s targets in energy sector are very ambitious and thanked organizers of the RE4SG conference to have thought of the much planned addition in the country’s journey towards universal energy access.

This year’s conference showcased available opportunities to mobilize financing for affordable energy access technologies.

Uwase expressed optimism that the private sector will continue to take lead in driving these efforts considering Rwanda’s incentives in the sector.

“Rwanda’s current generation mix has more than 53% of renewable energy with the largest contributor being hydro and solar.  We would like more because our target is to reach at least 60% by 2030,” she revealed.

“In addition, the renewable energy will continue to be our main source of energy as well as off-grids because this offers various alternatives in our mountainous region for us to continue increasing access for the people of Rwanda.  The subsector will continue to be dominated by solar energy and this is going to unlock environmental and significant social economic benefits,” added Uwase.

Renewable Energy Fund

She emphasized that it is vital to continue collaborating with partners like EPD to gain from the potential contribution of renewable solar energy along with incentives and numerous initiatives developed to achieve the set target.

One of such initiative is the Renewable Energy Fund managed by the Development Bank of Rwanda (BRD) which has got about US$ 48 million to be invested in providing low cost financing through Sacco’s and commercial banks so that providers and consumers can continuously afford latest energy technologies.

“We are expending a lot of efforts to achieve universal energy access, looking for partners in such meetings.  We are optimistic to achieve the targets, looking at investments allocated to the sector,” said Uwase.

“Private investors run biggest power generation projects, involved in off-grid sector. Their role is critical to achieving the target. The Government has other incentives to lure the private sector like the exemption of taxes for the import of off-grid technologies,” she stressed.

Addressing challenges

Dr Ivan Twagirishema, the EPD Chairman, says the most challenging issue is on the financing side where financial institutions are reluctant to finance energy sector.  He however stressed the need for in-house experts to de-risk and demystify energy investment and change mindset.

Dr Ivan Twagirishema stressed that the organization of energy conferences, regular advocacies bringing together stakeholders to discuss with development partners all over the world, banks, civil societies, NGOs, cooperatives is key to address challenges  lagging energy sector.

NST targets

Zephanie Niyonkuru, Deputy CEO, RDB,  said thatRwanda has got a number of energy sector targets for that will enable accelerated overall economic development.

He explained that RDB has been working with energy developers to make sure Rwanda meets the targets in the National Strategy for Transformation to catalyze social economic development.

“We are happy with the initiatives that have been going on and the activities that the association has been carrying out. We are open for more discussions especially when it comes to anything that the Government of Rwanda might need to do so as to facilitate the energy sector,” assured Niyonkuru.

Positive impact

As he featured on the panel with other energy stakeholders from BBOXX and Power Africa, Sanday Kabarebe, the CEO of EPD, observed that there is a positive impact in the renewable energy sector and hinted on the role of the private sector in universal energy access.

“The Government of Rwanda has embraced the fact that the private sector should take lead in development of the country. An organized private sector is very key and crucial in working together with the government in setting policies and addressing some policy issues,” he said.

“EPD impact is very crucial in making sure that Rwanda achieves universal energy access targets.   The market is open and the private sector players I represent are very positive, taking this opportunity to work with the government and development partners to make sure that we achieve universal access. Keeping an organized sector, collaboration with government and other partners will propel us towards reaching the targets,”added Kabarebe.

He highlighted that EPD is committed to organizing this event every year and hopefully grow bigger and attract more participation of women in energy sector discussions.

“I hope we got opportunities to network and draw measures forward to transform the energy sector. Our core purpose is to make sure that we keep moving forward.  EPD as a single voice for the sector is committed to achieving the same cause towards universal access,” reiterated Kabarebe.

“We need strong members and more members to join the association to harmonize ideas and work with different stakeholders,” he enthused.

Re-energizing agriculture

The discussions also tackled different areas of interest, including agriculture as a sector employing majority of the population.

For a long time, Agriculture in Rwanda has been a primary source of income, currently employing 70% of the population and contributing 30% of the country’s GDP.

Increased agricultural output and productivity substantially contributes to the overall economic performance of any country.

The second day featured discussions revolving around the main theme: ‘Re-energizing agriculture through solar power workshop,’ co-organized by the World Bank and EPD.

The Permanent Secretary at the Ministry of Agriculture and Animal Resources (MINAGRI), Jean Claude Musabyimana expressed gratitude for such important session bringing together representatives from the Government, development partners, agri-business, energy companies to discuss energizing agriculture through solar power in Rwanda.

The agriculture sector has consistently contributed to the GDP with the latest figures showing 32.7% GDP contribution.

The agriculture sector has proven to be an avenue for propelling the country towards its vision of attaining a middle income status by 2020.  The economic growth requires an increase in profits per ha and capture of productivity games around the value chain.

Raising profits per ha means increasing agriculture yields and switching to high value agriculture commodities which in turn requires infrastructure including irrigation, land husbandry and the adoption of improved technologies in relevant market information among others.

The 4th Agriculture Transformation Strategy was launched in June 2018.

Since then, Musabyimana said, the strategy has been guiding Rwanda’s planning and interventions that it is working with several stakeholders to implement the pillars of the strategy ; the innovation,  extension, productivity and resilience, inclusive markets , value addition and enabling environment in the responsible institutions.

“We recognize the many challenges ahead of us in implementing the strategy but we are also aware of the opportunities to support the growth and development of Rwanda’s agriculture sector,” he noted.

In this regard, Musabyimana emphasized that the adoption of solar power in agriculture will reduce the operation cost, especially irrigation, post-harvest and livestock value chain especially for milk cooling.

“Energy consumption has increased yet farmers have limited resources to afford bills of electricity and other allocated areas where electricity is not yet supplied. The strategy anticipates the achievement of more than 100,000 hectares to be irrigated by 2024 and this is found to be an opportunity to use solar power irrigation systems,” he said.

“The solar power has considerably proven to reduce operational cost and improved farmers income and profitability. The same advantages are equally found in post-harvest handling and milk conservation, “stressed Musabyimana.

The Government of Rwanda through Ministry of Agriculture is currently subsidizing solar power irrigation systems under small scale irrigation technology where the subsidy of up to 50% cost is provided to farmers.

Today 645 hectares are being irrigated using the solar system in Eastern Province.

Another solar power project which is a design phase to cover more than 3000 hectares is ongoing in Kirehe district.

“It is worth mentioning that the promotion of solar power would increase ownership of irrigation systems, post-harvest facilities and cooling techniques by reducing operational cost,” stressed Musabyimana.

Leveraging solar power to boost agriculture

EPD Chairman, Dr Twagirishema said that climate change is a concern of the 21st century with continuous rising of global temperature, highlighting that it is vital for  every sector, including agriculture, to concentrate on number of greenhouse gases they emit and the amount of fossil fuel they consume.

“Warmer temperatures are causing problems such as floods. With such rising concern, solar energy is the major natural optional resource of energy to mankind,” he said.

“Each sector is trying to adopt this renewable form of energy and we do think that this pilot of using solar energy in agriculture will match mainly with the needs we are looking for in Africa,” observed Dr Twagirishema adding that EPD understands that agriculture is one of the sectors which can benefit mutually due to the adoption of solar energy.

With the rising global population, the demand for agriculture products is increasing at an exponential level.

Through different applications mainly solar for irrigation, storage, solar dryers, solar for small rural agriculture processing industries, solar power can highly contribute to improving agriculture output.

Dr Twagirishema said that the energy forum is a good platform to discuss suitable solutions to address issues affecting agriculture.

“From this forum, we expect more private sector investment and involvement, innovative business models and close collaboration with EPD and MINAGRI to make agriculture more productive without heavily depending on the rainy season,” he noted.

According to Yasser El-Gammel, World Bank Country Manager  ‘The importance of agriculture sector in Rwanda is one undisputable things’ henceforth calling for the improvement and growth of agriculture to substantially contribute to development of Rwanda as one of direct channels to poverty reduction.