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Off-grid power to meet connectivity targets
Kampala, Uganda | DIAS NYESIGA | The World Bank is happy to be a strategic partner of the Government of Rwanda in the energy sector, according to Yasser El-Gammal, World Bank country manager for Rwanda.
He was speaking about the 2018/19 fiscal year budget that was presented to both chambers of parliament on June 14.
He explained that through several operations, the Bank has already supported the government to increase power access and generation capacity, restructuring of Rwanda’s electric utility, and improving its efficiency.
While presenting the budget, the Finance Minister, UzzielNdagijimana, said priority areas in the sector will include more production, rehabilitation of old lines and construction of new ones, and boosting off-grid electricity such as solar power.
Rwanda’s current installed power generation capacity is 209MW, with over 44% households accessing electricity, about 12% of which is from off-grid power solutions, mainly solar energy. This year the government targets to add 7.6MW to the national grid.
More Rwandans will be able to access electricity in the next fiscal year based on new government measures to increase production and distribution in the 2018/19 national budget.
I the long-run, the government is looking at the Hakan Peat To Power project 80MW, Rusumo hydropower plant 80MW, and 50MW Symbion methane gas power plant on Lake Kivu, and eight small hydro power schemes, among others, to bolster the generation.
This year, allocation in the budget to boost electricity production, distribution, and connectivity is Rwf144 billion.
Electricity distribution will take Rwf42 billion and increasing access to off-grid power by rural communities through solar will take Rwf2.9. This will provide solar equipment through partnership with Mobisol, a local off-grid equipment vendor.
Energy falls under the recurrent budget that will take 57% of the total budget of Rwf1.4 trillion.
Rwanda is banking on increased electricity generation to drive its ambitious transformation agenda to deliver the country into an era of industrialization.
Some of the highlighted activities next financial year includeconstruction of the Gasogi-Kigali Special Economic Zone line (Rwf8.2 billion);the Rusumo-Bugesera-Shango line was allocated Rwf6.7 billion, while theKigoma–Ngozi line at the Burundi border got Rwf9.8 billion, and Mamba-Rwabusoro line Rwf12.1 billion.
The sector allocation fits well with this year’s budget theme of“Industrialization for Job Creation and Shared Prosperity”. The theme aligns with the government’s 7-year National Strategy for Transformation (NST1)that will usher in the country’s Vision 2050.The government expects to finance 68% of this year’s budget through domestic resources.
The budget is also in line with the government plans to support the so-called “fourth industrial revolution”whilemaking the country a technology hub.
According to Rwanda energy Group (REG), more than 115978 households will be connected on the national electricity grid, and another 118,772 households are expected to access off-grid energy sources by the end of next year.
Rwanda Energy Group (REG) is rolling out power under a phased strategy that will ensure the country realises its power goals and connects all Rwandans to either the national grid or off-grid power sources by 2024.The national grid has 2,934 productive users.
REG is targeting torehabilitate 200 kilometers of old and overloaded power transmission (medium and low voltage) lines, and build a new Jabana-Mount Kigali-Gahanga high voltage transmission line and associated substations.The utility expects these projects to increaseelectricity distribution and reduce losses and hence boost service delivery.
To achieve its energy sector targets, the government is also looking to develop private public partnerships to bankroll energy projects needed to generate power that will sustain expected economic growth.
