Rwanda (2012)

Degree of reliance on imported energy: 

<p>
Diesel fuel is imported and transported by truck from the Tanzanian port of Dar es Salaam. Petroleum products account for 25 percent of total imports, estimated at 5,623 bbl/day in 2007. Electricity imports in 2010 accounted for approximately 16% of the total electricity supply, with the majority coming from the Ruzizi II project. Electricity imports to the country have remained static since 2008 at 65.8 GWh, indicating limited scope for further increases in import volume, with current infrastructure arrangements.</p>

Main sources of Energy: 

<p>
Total installed electricity capacity (2009, source: MININFRA): 72.5 MW<br />
Hydroelectric: 59.1 %<br />
Thermal: 40.5%<br />
Solar: 0.4%<br />
<br />
Total primary energy supply (2007, source: GTZ): 1,610 ktoe<br />
Wood: 57%<br />
Wood for Charcoal: 23%<br />
Petroleum Products: 11%<br />
Agricultural Peat: 6%<br />
Electricity: 3%<br />
<br />
The main energy sources for cooking are: electricity, gas, oil, firewood, charcoal and agricultural residues. Charcoal is the source most used in urban areas and is among the causes of environmental degradation. Available capacity as of 2009 was 54.6 MW, 11.5 MW of which was provided by hydropower imports from the Democratic Republic of Congo, and 15 MW of which was provided by rented thermal generators. Rwanda holds joint ownership of the Ruzizi II 12 MW hydroelectric plant with Burundi and the DRC, with SINELAC, a company created and owned by the three involved governments, operating the plant. Total domestic electricity generation in 2010 was 344.7 GWh, with a further 65.8 GWh supplied to the system through imports.<br />
<br />
Diesel remains the primary fuel for self-generation in rural areas, and for emergency supply in urban areas. Kerosene is the main fuel used for lighting. In rural areas, biomass accounts for the vast majority of energy supply. A 2007 study indicated that approximately 80% of fuelwood used in the country was foraged, and therefore did not pass through the market economy of the country.</p>

Country: 

Rwanda

Extent of the network: 

<p>
In 2009, approximately 7% of the population had access to electricity, in total. Of the 90% of the population who live in rural areas, only 1% had access to electricity.<br />
Grid extension has been extremely limited, and economically justified only to meet rural industrial loads and emerging population clusters. The electricity grid consists of 3,300 km of 110 kV, 70 kV, 30 kV and 15 kV lines, with the primary concentration of grid connections running from the West to the North of the country.</p>

Capacity concerns: 

<p>
Rwanda is currently experiencing a net deficit of power. Domestic demand in 2010 was 438 GWh, with final supply being 410.5 GWh, and billed consumption merely 365.3 GWh, a shortfall of 17%. The government plans to double the electrification rate, increasing connections to 16% of the population (200,000 connections) up from the current 100,000 customers by 2012 at a cost of US$400 million.<br />
<br />
In recent years, the combination of strong demand growth with unexpectedly low lake-water levels exacerbated by high technical losses (upwards of 20%) and unreliability of the system, led to extensive power cuts. Transmission and distribution losses have fallen in recent years, but still amounted to 13% in 2010, predominantly from the low-voltage distribution network. If climate change affects biomass resources, this could exacerbate the problem. The lack of sufficient electricity is increasing deforestation, as people seek other ways to produce light and heat.</p>

Potential for Renewable Energy: 

<p>
<u>Solar energy </u><br />
Average horizontal irradiation is 5.5 kWh/ m2/day. Rwanda is also home to the largest single solar installation in Africa - the Kigali Solair plant- which generates 250 kW and feeds into the national electricity grid. The plant was funded by the German municipal power company Stadtwerke Mainz, and installed by Juwi in 2008.<br />
<br />
<u>Wind energy </u><br />
The Ministry of Energy recently commissioned a feasibility study to determine the wind power capacity of Rwanda. This National Wind Atlas is being developed with the help of the Belgian government. Wind energy is currently exploited only in decentralised off-grid applications.<br />
<br />
<u>Biomass energy </u><br />
An estimated 2.3 million tons of wood fuel are consumed in the country annually. The Rwanda Energy Management Authority (REMA) estimates that Rwanda has a deficit of 4 million cubic metres of wood fuel, due to extensive deforestation, and over-reliance on biomass for heating and light in rural areas. Also, as the majority of rural biomass is foraged, market mechanisms to improve the quality of fuel will be slow to take effect. Fuel-wood caps are to be imposed in several districts of the country to combat this. Aforestation measures, accompanied by a concurrent reduction in biomass consumption, aim to increase the forested area of the country to 23.5% by 2012. The country also has significant peat reserves, estimated at 155 million tonnes in 2008. GIZ are supporting the development of the National Biogas Development Program, which aims to install upwards of 15,000 biogas digesters for schools and farming households, to provide biogas for cooking and lighting, and reduce dependence on fuel-wood. Plans have also been put in place to increase national annual biodiesel production to 16 million litres, and install an additional 1 MW of biogas-fired power capacity.<br />
<br />
<u>Geothermal energy </u><br />
Potential exists for between 170 &ndash; 320 MW of geothermal power generation, due to the country&#39;s proximity to the geothermal resource of the Great Rift Valley. Studies have indicated thermal waters with temperatures of up to 150&ordm;C.<br />
<br />
<u>Hydropower </u><br />
Hydropower potential in the country is estimated to be 500 MW, with only 72 MW having been exploited.<br />
<br />
The country has substantial hydroelectric resources, as well as natural gas deposits under Lake Kivu, which could make Rwanda self-sufficient in electricity, or even a net exporter. But the development of natural gas power plants, or new dam construction, requires both time and investment. Nevertheless, the Ministry of Infrastructure is financing 11 hydropower plants with installed capacities from 100 kW to 9.5 MW. GIZ (Deutsche Gesellschaft f&uuml;r Internationale Zusammenarbeit, formerly GTZ) are also providing support to MININFRA for the promotion of SMEs in the small-hydro sector. Three companies have currently commissioned small-hydro projects, with a combined capacity of 755 kW, with a further 3.6 MW under consideration from 10 other projects. By 2015, the Government hopes to have promoted an additional 45 MW of small-hydro capacity in the country.</p>

Potential for Energy Efficiency: 

<p>
The National Energy Policy has an objective of ensuring energy audits are carried out in industries, particularly the energy intensive ones, in order to enhance energy efficiency. The Energy Development and Poverty Reduction Strategy (EDPRS) aims at reducing technical losses from 23% to 15%, and to increase the share of energy efficient appliances to roughly 30 MW by 2012. The National Energy Policy has also identified the need for improved demand-side management measures, especially in fuel-wood consumption, and the necessity for improved efficiency in the transport sector to reduce petroleum imports (approximately 75 per cent of all imported petroleum is consumed within the transport sector). To this end, a project for the distribution of 800,000 compact fluorescent lights (CFLs) was included in the most recent strategic energy plan.<br />
<br />
Electricity use per capita in Rwanda is extremely low, due to the small percentage of the population who have access to electricity services, standing at 22 kWh per capita in 2008.</p>

Ownership: 

<p>
<b>Electricity market</b><br />
<br />
1976- REGIDESO Rwanda became ELECTROGAZ by Decree n&deg; 18/76 of April 1976, and t was granted a monopoly for the production and distribution of water and electricity for 99 years.<br />
<br />
1999- Law n&deg; 18/99 removed the monopoly and liberalized the two sectors.<br />
<br />
2003- ELECTROGAZ was placed under a management contract with Lahmayer International to manage and restructure ELECTROGAZ in collaboration with Hamburg Water Works for 5 years.<br />
<br />
2006- 31 March, management contract was terminated, and reverted to the Government of Rwanda through the Board of Directors and the Management of the company.<br />
<br />
2008- ELECTROGAZ was split into the Rwanda Energy Corporation (RECO) and the Rwanda Water and Sewerage Corporation (RWASCO).&nbsp; RECO is in charge of electricity generation, transmission and distribution while RWASCO runs water supply and sanitation services provision.<br />
<br />
2009- December, the Lower Chamber of Parliament passed a law abolishing RECO/RWASCO, replacing them with the Energy, Water and Sanitation Authority (EWSA, http://www.ewsa.rw/).<br />
<br />
<b>Liquid fuels market</b><br />
The petroleum sector is controlled by the Ministry of Commerce and Consumption, which is responsible for setting the pricing policy of petroleum products. Rwanda has no upstream oil industry or refinery activities. In the downstream sector, all of the country&rsquo;s oil imports come through Kenya and Tanzania. Distribution and marketing of fuels products is carried out by ERP (Enterprise Rwandaise de Petrole), SGP (Societe Generale de Petrole), Rwanda Petrolgaz, Engen (www.engen.rw) and Shell.</p>

Structure / extent of competition: 

<p>
The EWSA is a wholly-owned subsidiary of the Government of Rwanda, and holds a de facto monopoly on most activities within the energy and water sectors of the country, being the only market actor in the transmission and distribution sectors. Private-sector power generation is in it&rsquo;s infancy in Rwanda, and the Government is keen to increase the market share of independent power producers. Currently, the EWSA is the dominant market player in the energy sector. EWSA is a vertically-integrated company in both its energy and water sector operations.<br />
<br />
In the liquid fuels sector, the prices of diesel and gasoline are fixed by the government. Other petroleum products prices are not controlled. ERP, SGP and Rwanda Petrolgaz are privately owned companies. PetroRwanda, the former parastatal petroleum product company, was purchased by Shell in 1999.</p>

Existence of an energy framework and programmes to promote sustainable energy: 

<ul>
<li>
<b>Economic Development and Poverty Reduction Strategy (EDPRS)</b></li>
</ul>
<p>
The EDPRS covers the period 2008-2012, and is the medium-term framework for achieving the country&rsquo;s long term development aspirations as embodied in the Rwanda Vision 2020, and the intermediate targets of the 2015 Millennium Development Goals (MDGs). The Energy Sector Strategy has been developed to support sustained growth in the economy, and raise the standard of living for the Rwandan people by improving access to modern forms of energy at the household level. Objectives include the grid-electrification of 16% of the populace, as well as the provision of reliable electricity supply, through either on- or off-grid measures, to 100% of health centres and 50% of schools. Other objectives include a revision of the currently-outdated tariff structure to better reflect costs, and the establishment of a favourable legal and institutional framework for increased private sector participation. New laws for the electricity and gas sectors are currently being discussed in Parliament.</p>
<ul>
<li>
<b>National Energy Policy 2008</b></li>
</ul>
<p>
The Energy Policy for Rwanda which was updated in November 2008 laid down the Government&rsquo;s commitment to the development and utilisation of renewable energy resources and technologies and energy efficiency promotion.<br />
&nbsp;</p>
<ul>
<li>
<b>National Energy Strategy (2008-2020)</b></li>
</ul>
<p>
The principal objective of the energy sector is to contribute to accelerated sustainable socio-economic development. A number of objectives for the development of renewable energy and energy efficiency are included in the strategy. These include; the further diversification of energy sources, including exploitation of the country&rsquo;s geothermal potential and the increased use of solar water heaters; the increased use of CFLs in households and businesses to reduce energy consumption, energy auditing for industries, and information campaigns on good energy management practices.<br />
<br />
Government policy to promote rural electricity access is primarily based on the extension of the transmission and distribution network, operated by the EWSA. However, where customers are not centralised enough for economic grid extension, solar PV, generators or hydropower may be offered through private suppliers. The Electricity Access Roll-out Program (EARP), jointly-operated by the EWSA and MININFRA (and supported by a number of development partners, including the ADB, the Belgian Government, the JICA and the World Bank), is the implementing program for grid and off-grid electricity access improvements, as set out in the EDPRS.</p>

Current energy debates or legislation: 

<p>
The priority for Rwanda is to implement projects now, to tackle electricity capacity constraints now and in the future, begin to tackle pro-actively the wood crisis, begin to provide greater access to modern energy, and to reduce reliance on petroleum products.<br />
<br />
2011 has seen some key developments in the energy sector of Rwanda. The African Development Bank and other lenders have committed US$ 91.25 million to the development of the Kivuwatt power project, in conjunction with ContourGlobal, an American project developer. The loan agreements were finalised in August 2011, and will finance phase 1 of the project, an integrated methane gas extraction and generation facility on Lake Kivu, near the city of Kibuye. Drilling for the exploration of geothermal energy has commenced near the volcanic Mt. Karisimbi, and is set to commence at three other potential sites (Gisenyi, Kinigi and Bugarama). Finally, the EWSA has begun a solar water heater dissemination program, with customers able to pay either Rwf 210,000 for a 200 litre system, or Rwf 231,250 for a 300 litre system, supplied and installed by the EWSA.</p>

Major energy studies: 

<p>
A study on the feasibility of wind energy in Rwanda by Rwindalectric Inc. (2008), a non-profit organisation seeking to improve electricity access through distributed wind power installations.<br />
<br />
<b>Study on the Development of Wind Atlas in Rwanda</b>, in conjunction with the Belgian government.&nbsp;<br />
<br />
<b>Study on Development of National Strategy Plan for the Maintenance of Production and Distribution Equipments of Renewable Energy. </b><br />
The study started in May 2009. The draft report was submitted and presented to the Ministry of Infrastructure.<br />
<br />
Rwanda is also a member of the East African Community, which seeks to promote greater regional integration in all sectors, including energy.<br />
<br />
Within the framework of the EUEI Partnership Dialogue Facility, and the GIZ, a Biomass Energy Strategy Analysis was conducted in 2009. The supply-demand imbalance in the country was assessed, particularly with reference to charcoal production, and a survey of the biomass consumption trends of 3,000 randomly selected households was conducted, and used to produce recommendations for the development of biomass resource policy in the country.</p>

Role of government: 

<p>
<b>MINIFRA</b><br />
The Ministry of Infrastructure (<a href="http://www.mininfra.gov.rw/">www.mininfra.gov.rw/</a>) is responsible for national energy infrastructure, and is the primary government ministry in the energy sector. Rural energy is part of this mandate. The MINIFRA views its role in the off-grid energy sector to include training, strategy, development of technical specifications for energy equipment, recommendation of strategies for the development of the private sector.<br />
<br />
<b>MINIRENA</b><br />
The Ministry of Natural Resources (<a href="http://www.minirena.gov.rw/">http://www.minirena.gov.rw/</a>) is responsible for the management of the forest and water resources of the country, as well as environmental protection and management. The aforestation and wood consumption targets set out in the EDPRS fall under the remit of the MINIRENA.</p>

Government agencies in sustainable energy: 

<p>
The overall energy planning process is driven by the government, yet with strong participation by international donors organisations (NGOs, World Bank), which are key to environmental and poverty issues. Institutionalising planning is the core responsibility of the Ministry of Infrastructure. Under the guidance of the Ministry for Environment and Lands (MINELA) the Rwanda Environment Management Authority (http://www.rema.gov.rw/) is responsible for the co-ordination and implementation of national energy and environmental policies, and formulating the subsequent required legislation.</p>

Energy planning procedures: 

<p>
In order for the energy sector to contribute in a substantial manner to accelerated economic growth, and in order to meet basic energy needs, the Government of Rwanda has set clear objectives and targets for the energy sector to be fulfilled by 2012, under the Economic Development and Poverty Reduction Strategy (EDPRS), such as increasing the electricity access rate from the current 6% to 16% by the year 2012; increasing electricity supply to 130MW, reducing the costs of electricity service and the introduction of cost-reflective tariffs, energy diversification and security. To achieve these targets, many projects are under-way. The Belgian Development Agency, for example, is aiding grid extension, as well as capacity development in energy institutions. The current Sector-Wide Approach (SWAP) for the power sector in the country includes procedures for improving energy security, as well as promoting national and regional conventional and renewable energy projects.</p>

Energy regulator Date of creation: 

<p>
The Rwanda Utilities Regulatory Agency (RURA, http://www.rura.gov.rw/) regulates both the electricity and gas sectors. The regulator was created on 13th September 2001.</p>

Degree of independence: 

<p>
The Regulatory Agency is defined by law as a national institution with legal powers, and autonomous administrative and financial management.&nbsp; The board of directors of the regulator are appointed by the Prime Minister, with a term of three years, renewable once. Financing for the Agency is derived from fees levied on the application for, and granting of licenses, a percentage of the turnover of public utilities (determined by the Minister responsible for each utility sector), and other grants and donations.</p>

Regulatory framework for sustainable energy: 

<p>
So far, Rwanda has not developed a coherent framework for the regulation of renewable energy. The development of a regulatory framework for renewable energy is integral to the current National Energy Policy. In addition, the need for capacity-building, the establishment of standards and codes of practice, and suitable guidelines for the use of renewable energy in the country is identified.</p>

Regulatory roles: 

<p>
RURA is mandated to control and regulate an efficient, sustainable and reliable energy sector. The Agency is responsible for promoting effective competition, advising government during formulation of energy policy, protecting consumers, educating stakeholders, approving contractual undertakings with regard to distribution and transmission of electricity and gas and assessing the tariff structure.</p>

Role of government department in energy regulation: 

<p>
MININFRA assume a supervisory role in energy regulation, being responsible for supervising standards-setting, in addition to overseeing the implementation of national energy policy. Tariff-setting for electricity is the responsibility of the EWSA.</p>

Regulatory barriers: 

<p>
Whilst regulations are established in law, the current crisis facing the Rwandan energy market is hampering implementation and development. The regulatory framework for sustainable energy in particular is in its infancy, but programs put in place under the EDPRS will serve to promote the need for improved regulatory frameworks. Tariff-setting for electricity is still the responsibility of the national utility, which can lead to an imbalanced tariff structure, particularly if the structure of tariffs is hoped to be used to promote end-user energy efficiency. The assumption of further responsibilities by the RURA, as well as the promotion of competition in the energy sector, for example through unbundling and increased private-sector participation, would further improve fairness and accountability in the energy sector.</p>

References: 

EUEI Partnership Dialogue Facility. Biomass Energy Strategy Rwanda. June 2009. Avaiable at: <a href="http://www.euei-pdf.org/country-studies/biomass-energy-strategy-best-rwa... [Accessed 19th September 2013]<br />
<br />
Rwanda Environment Management Authority. Rwanda State of Environment and Outlook Report. Chapter 8. Energy Resources. Available at: <a href="http://www.rema.gov.rw/soe/chap8.php">http://www.rema.gov.rw/soe/chap8.p... 19th September 2013]<br />
<br />
BTC Belgian Development Agency. Increased Access to Electricty for the rural population.&nbsp;Available at: <a href="http://www.btcctb.org/en/casestudy/increased-access-electricity-rural-po... 19th September 2013]<br />
<br />
GIZ. Support to the National Energy Agency (ANER) and National Domestic Biogas Program (NDBP) Development.&nbsp;Available at:&nbsp;<a href="http://www.giz.de/themen/de/28599.htm">http://www.giz.de/themen/de/28599... [Accessed 19th September 2013]<br />
<br />
Mininfra. Rwanda Ministry Of Infrastructure. <a href="http://mininfra.gov.rw/">http://mininfra.gov.rw/</a> [Accessed 19th September 2013]<br />
<br />
International Renewable Energy Agency. Renewable Energy Country Profile: Rwanda. Available at: <a href="http://www.irena.org/REmaps/countryprofiles/africa/Rwanda.pdf">www.irena... 19th September 2013]<br />
<br />
Mbendi. Oil and gas in Rwanda. Available at:&nbsp;<a href="http://www.mbendi.com/indy/oilg/af/rw/p0005.htm">http://www.mbendi.com/i... 19th September 2013]<br />
<br />
Energy, Water and Sanitation Authority. <a href="http://www.ewsa.rw/index.html">http://www.ewsa.rw/index.html</a>&nbsp;[A... 19th September 2013]<br />
<br />
EWSA. Geothermal Drilling to start at in Karismibi. Available at: <a href="http://www.ewsa.rw/Geothermal%20drilling%20set%20to%20start%20in%20Karis... 19th September 2013]<br />
<br />
EWSA. Selected Applicants to Smaller Solar Water Heater (SWH) Systems. Available at:&nbsp;<a href="http://www.ewsa.rw/Docs/Selected%20Applicants%20to%20smaller%20Solar%20W...(SWH)%20systems.pdf">http://www.ewsa.rw/Docs/Selected%20Applicants%20to%20smaller%20Solar%20W...(SWH)%20systems.pdf</a>&nbsp;&nbsp;[Accessed 19th September 2013]<br />
<br />
All Africa.com. Boosting Rwanda&acute;s Energy Sector. August 2011. Available at: <a href="http://allafrica.com/stories/201108260995.html">http://allafrica.com/sto... 19th September 2013]<br />
<br />
Multilateral Investment Guarantee Agency (World Bank Group). Kivuwatt Ltd. Available at: <a href="http://www.miga.org/news/index.cfm?aid=2610">http://www.miga.org/news/in... 19th September 2013]<br />
<br />
Legal Information Portal, Republic of Rwanda. Law N&deg;39/2001 of 13/09/2001. Establishing An Agency For The Regulation Of<br />
Certain Public Utilities. Available at: <a href="http://lip.alfa-xp.com/lip/AmategekoDB.aspx?Mode=r&amp;pid=8382&amp;iid=... 19th September 2013]