Rwanda Energy Situation

1.1 Energy Sector

The energy consumption of Rwanda‘s 9.2 Million inhabitants is one of the lowest in the world, for example, the average electricity consumption in 2004 was only 31 kWh per capita per year (in Germany was 7,442). Less than 6% of the population has access to electric power, with less than one percent in rural areas. 65% of the electricity is generated by hydropower, the remaining by diesel generators. 11.5 MW out of 56.6 MW total capacity are imported from the CEPGL association (SINELAC and SNEL companies in Burundi). The fuel for 3 diesel generation stations (around 100,000 t/year) contributes to 60-80% of the import expenditures. Biomass counts for 85% of the country energy balance and if exploitation persists at this rate, in 15 years the country will be entirely deforested. Due to the low purchasing power (more than 60 % of country’s population live below the absolute poverty line), more than 90% of the households use firewood or charcoal for cooking with traditional ovens with an efficiency rate of 15-20%.

1.2 Power generation and distribution plans

The economic sectors with the greatest potential for growth (agricultural processing, tourism, IT) are precisely the areas that depend most on improvements to the energy supply. While larger enterprises work mainly with expensive diesel generators, most of the small businesses in rural areas have no power supply. This limits their options for expansion and hinders productivity. At the same time, due to the shortage of energy the greater part of the social infrastructure is unable to provide services efficiently.

As during the 1994 genocide, most of the infrastructure for power generation and distribution was destroyed, the government resolved to implement a rehabilitation and expansion programme in 2002. The monopoly of the energy and water supplier, Electrogaz, which is currently under preparation for its privatisation, was abolished. The energy policy of 2004 is in line with environmental standards and envisages demand coverage by harnessing hydro power, methane gas from Lake Kivu, wind power, solar power and geothermal energy sources. Until 2010, the generation capacity is planned to increase from 40 MW, including imports, in 2005 (56.6 MW by the end of 2008) to 130 MW in 2012. The power supply grid had an extension of about 3,230 km in 2006 and it is targeted to reach 5,000 km in 2012. International donor community has pledged 228 M$ in order to be invested in the implementation of the five years programme National Electricity Access Programme 2009-2013.

Rural electrification, in particular, does not reach most regions. There are only few providers of decentralised energy systems in the country. The PSP Hydro project will contribute to strengthening the capacities of small and medium-sized enterprises, as well as the social infrastructure, through improvements to the power supply. At the same time, the project will provide technical and business expertise to support the creation and development of economically sustainable small and micro energy providers.

Activities and Approaches of other donors in MHP:

European Commission (EC)

The European Commission will provide a grant for the 50% of the cost of the plants that they will develop. According to the EC rules, this grant can not be given to private companies, therefore, they will give this money to the MININFRA, who will provide the remaining 50% of the investment.

The EC will choose the sites to be developed and will open a tender to select the company that will construct the plants.

Once the plant is finished, the MININFRA will give a concession for the exploitation of the plant to a private company, who will have to pay 50% of the cost, which means that the MININFRA will recover its investment and, in the end, the plant will be managed and maintained from a private approach.

Belgian Technical Cooperation (BTC)

The new BTC plants will follow a scheme similar to the ones of the EC. In this case, BTC may also cover the costs of the grid extension, which would mean that, in practice, they will provide more that 50% of the required investment. In addition, the MININFRA may request own resources from the future operator of the plant in order to share the cost from the construction stage of the project.

Energy for cooking purposes

In Rwanda, firewood and charcoal are practically the sole providers of cooking energy in the
rural areas. Firewood covers 90.4 % of the demand and charcoal 7.4 %, the remaining 2.2 %
being mainly covered by agricultural residues. Even for the urban households firewood
(52 %) and charcoal (39.5 %) are by far the main sources of energy used, other sources
being gas and kerosene (2002 population and housing census). This dependency on
firewood and charcoal creates an unsustainable situation as the demand (1.93 kg/capita/day,
MININFRA, 2005) largely surpasses the production (0.46 kg/capita/day, MININFRA, 2005).
The Government of Rwanda is trying to curb the rate of deforestation amongst others by
banning the felling of trees without a permit. This rule applies to all trees including the ones in
privately owned production forest. However, it is doubtful whether this measure will help
without the availability of energy alternatives and fuel efficient woodstoves.
Households in rural Rwanda depend for more than 90 % on fuelwood to meet their domestic
energy needs. For many of these households it becomes increasingly difficult to satisfy their
daily domestic energy requirements, due to the high population pressure and stringent
legislation designed to reduce (fuel)wood consumption. Collection of traditional fuels devours
time, in particular for women and children, which could have been spent otherwise at school
or in productive activities. By burning these fuels, particularly women and small children are
exposed to smoke and prone to respiratory illnesses and eye ailments. Often, the same
households are facing also the consequences of lack of hygiene and proper sanitation,
resulting in water borne diseases affecting mainly women and children. At many places, the
collection of traditional fuels damages the environment on which the people heavily rely.