Rwanda Energy Situation
Overview
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Energy situationRwanda‘s energy balance shows that about 85% of its overall energy comes from biomass (99% of all households use biomass for cooking),11% from petroleum products (transport, electricity generation and industrial use) and 3% from hydro sources for electricity. In 2009 about 10% of the total population (150 000 connections) had access to electricity and the government has started a roll out programme to rapidly increase this to 16% (350 000 connections) by 2012 and at least 30% by 2020. The country has currently about 84 MW installed generating capacity (hydro and diesel) but there are a number of new sources coming on line within the coming years. This includes hydro power (Rukara 9 MW by 2011, Nyaborongo 27,5 MW by 2013, numerous small hydro plants adding up to 15 – 20 MW over the coming years while feasibility studies are underway to for large dams with a total capacity of 400 MW or more) and methane gas from lake Kivu. The first production started end 2008 and private companies have been contracted to supply 25 MW by 2010 and 100 MW by 2012. The currently utilized hydro capacity is 42 MW. However, the strong dependence on hydro power represents a risk which became evident in the 2004 energy crisis when a combination of drought and over-utilization led to a rapid draw down of the dam water levels leading to acute supply shortages. Although diversification of energy sources is a high priority, the Government of Rwanda continues to develop hydro power as the least cost generation resource. GoR has the ambitious target to increase production capacity until 2017 to 1GW. The economic sectors with highest potential for growth (agricultural processing, mining, tourism, IT) depend heavily on energy supply. The costs of electricity are very high at about $0.23 per kWh . At the same time, due to the lack of electricity in the rural areas, this reduces the efficiency of the social services (health, education and adminstration). The Government has a program to provide all health centres and adminstrative centres and 50% of the schools with solar power if they are too far from the grid by 2012. A number of special programs are already under implementation. Generally, Rwanda is well-endowed in renewable energy resources but most still remains an untapped potential. Micro hydro-power in particular constitutes a significant potential for rural power supply with many areas having ample rainfall and most streams and rivers unexploited. Solar irradiation is high - between 4-5 kWh/m2/day - but diffusion is hampered by high initial cost and limitations on high load usage. Biogas is promising for thermal energy needs for farm and small institutions, especially considering the large number of households that own cows and other livestock. Hydro sectorTo address the low rural electricity access level and the relatively high cost of existing generation alternatives, the government has recently embarked upon a sizable Micro-hydro development program to provide power to rural villages and towns. The projects are implemented in cooperation with a large number of Donor partners and often focused primarily on the construction phase. There are in total 21 Government initiated projects that aim to deliver a total of 11MW for 2012. Currently, there exist at least 21 hydro power plants below 50 kW. Their distribution per installed generation capacity is as follows: 0 - 5 kW : 13 5 - 25 kW: 4 25- 50 kW: 4
There are only few providers of decentralized energy systems in the country. The PSP Hydro project will provide technical and business expertise to support the creation and development of economically sustainable small and micro energy providers. This will contribute to improve the power supply in Rwanda for productive applications (small and medium-sized enterprises), as well as the social infrastructure and electricity for households. A MININFRA survey in 2007 prepared a micro hydro atlas which identified 333 sites for small and micro hydro power which can be used for minigrids or connected to the national grid, depending on the location. There have already been a number of projects implemented through the Ministry with assistance of UNIDO, BTC and EU. These are constructed under direct supervision of the ministry and once operational, will be handed over either to the national power utility or will be managed through private companies or in joint venture. Biomass sectorBiomass (firewood, charcoal and residues) remains practically the only source for cooking for many years to come as electricity will remain to expensive in the medium future. LPG consumption is extremely low (consumption per capita is 1/50 only of Kenya, the market leader in the region) while kerosene is practically only used for lighting. For the urban areas wood and charcoal will remain the most import sources of fuel for cooking while in rural areas households mainly relay on agricultural residues (with its negative impacts on soil fertility) and collected wood. The Government‘s Vision 2020 asks for a reduction of biomass consumption by 50% by 2020, but is it not clear what the alternative sources of energy will be. Government programmes have focused on the increase of wood production (already 80% of the country‘s firewood and charcoal come from eucalyptus) through plantations and agro forestry programmes. The Government enforces very strict tree cutting laws and permits are required for cutting of all trees, even eucalyptus from private lands. This has partly resulted in inefficiencies in the wood and charcoal production and legislation should be adapted to address this issue. Also the use of wood for brick burning is virtually impossible in the country. All these measures have resulted in the remarkable achievement that deforestation that today the remaining natural forests in Rwanda are very well protected and are even recovering from the war damage in the 1990s while planted and renewable Eucalyptus trees provides 80% or more of the required fire wood and charcoal. Furthermore, all effors are made to increase efficiency in charcoal production and the use of improved stoves. Already over 50% of all households have improved stoves (different models depending on the fuel used - either the Kenyan Ceramic Jiko for charcoal in towns or mud stoves in the rural areas) and the Government wants to increase this percentage to 100% while at the same time improving the efficiencies of the improved stoves. There are a number of special programs to increase efficiency in the charcoal production and to improve and disseminate better cookstoves.
BiogasBiogas has been introduced in the country many years ago and Rwanda has gained international recognition for its programme in the prisons and large institutions. The Government in 2008 announced a policy to introduce biogas digesters in all boarding schools (estimated at around 600 schools), large health centres and institutions with canteens to reduce the consumption of firewood. The Ministry organised in 2009 a training programme for about 25 technicians and craftsmen. No further activities are taking place as there are no funds allocated to institutional biogas in the financial year 2009/10. Activities in the domestic biogas sector started much later. It is estimated that over 120,000 households have dairy cows that are kept under zero grazing conditions to reduce soil erosion and also due to lack of grazing areas. These numbers are increasing due to the governments programmes to increase the number of families with dairy cows. The National Domestic Biogas Programme started in 2007 with the construction of 101 pilot digesters funded by the Ministry and with technical assistance from SNV. GTZ/EnDev inputs became available Jan 2008. Since that time the focus has been on capacity building, training of technicians and entrepreneurs, awareness campaigns and promotion. In total another 201 digesters were build up to 30 Sept 2009. About 30 large biogas digesters have been constructed in institutions and Rwanda has received international recognition for the biogas systems that have been installed in the prisons over the last decade reducing firewood consumption by up to 40% and improving hygienic conditions. The Government has announced a policy for boarding schools, health centres and other large consumers to install biogas systems within the coming years. PV sectorRwanda’s PV market is still nascent and primarily dominated by the institutional market driven by the needs of rural health and education service providers. Much of the installations have been fully grant financed by donors with limited government coordination at the national level. This has resulted in a broad range of different technologies and standards being applied by different projects and limited involvement of local companies in procurement and installation. Lack of funds and knowledge about proper maintenance have led to an array of technical problems including malfunctioning batteries, faulty wiring, broken DC-appliances. A recent study commissioned by one of the largest donors in the institutional health PV market, PEPFAR, makes four recommendations to improve the performance of institutional PV systems: 1) to specify energy systems suitable for Rwandan health facilities, 2) to assist partners to develop a clear design, installation and after-service process, 3) to help develop the quality chain through provision of capacity building activities and enforcement of standards and practices, 4) to coordinate regular meetings between key stakeholders. Key problems of the energy sectorThe following problems are noted for the energy sector:
Policy framework, laws and regulationsVision 2020 (published in 2000) is Rwanda‘s long-term development blueprint seeking to transform the country into a middle income position. The policy statement includes a pillar on infrastructural development, including energy with high priority to access to electricity for the population but also a reduction of the use of wood energy from 94% in 2000 to 50% in 2020. The EDPRS refers to Vision 2020 and for the energy sector has four main elements:
The EDPRS requires the increase of electricity generation from a variety of sources such as hydro and methane gas. It specifically asks for at least 50 MW of additional hydro power to be installed before 2012. The EDPRS has specific targets for the number of electricity connections to be reached by 2012 (initial target 200,000 but this has been increased to 350,000), 100% of all health and social centres to be connected to the grid or equipped with PV systems and 50% of all schools covered. 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. The international donor community has pledged 228 M$ to support the implementation of the five year National Electricity Access Programme (2009-2013). There are also targets given for improved cook stoves (from 40 – 100% coverage) and 20% of cattle farmers using biogas. The Ministry has updated its energy policy 2008 – 2012 covering the EDPRS period with assistance from the EUEI. The policy covers all types of energy: electricity, biomass, petroleum, methane gas, geothermal, wind, PV etc. A specific Biomass Energy Strategy (BEST) was developed more or less simultaneously. Initially the BEST focused on the charcoal value chain for the urban areas but this was later expanded with a special energy survey among the rural population and specific recommendations. Some of the most important aspects of the policies for the EnDev programme are: 1. Electricity tariffs which are currently around 0.23 US$/kWh but are subject to further studies and recommendations in order to reduce the costs to consumers and businesses, 2. Feed in tariffs are mentioned but there are no clear policy guidelines as such that may guide investments in small scale renewables such as micro hydro. An overall study was carried out in 2008 describing the tariffs and tax structures. This is to be followed up by a special tariff study in 2010 which is expected to provide more details 3. A new Law for the electricity sector is under preparation. This law will regulate the liberalisation of the electricity sector in Rwanda and set the basis for the creation of an electricity market similar to those in place in the EU countries or the US. The Government has a proposed a draft to the Parliament for its revision, 4. The two key interventions of the PSP Hydro project, the development of MHP plants to increase power capacity in the country and the consolidation of the participation of private MHP developers in the energy sector, are in line with the national energy policy and complementary to the Government‘s efforts. 5. In the biomass sector a three pronged approach is recommended a) on the supply side, increased wood production through higher yields, b) higher efficiency in the value chain through improved legislation, more efficient charcoal techniques and improved cook stoves, and c) Promotion of alternatives such as LPG, kerosene and peat. Institutional set up in the energy sectorA number of ministries and agencies play a significant role in the energy sector depending on the type of energy and the nature of activities covered. The most important institutions are listed below with a short description of their role. Electricity SectorThe Ministry of Infrastructure, Energy Sector is responsible for the strategies, planning and monitoring of the implementation of the different programmes. The ministry also plays an important role in attracting private sector investment and coordinating support of development partners. The Energy and Water Board (created in 2009) is under development and this will take over the role of the coordination of energy programmes. Under the Board there will be an energy board agency that will be charged with the implementation of the different programmes (a function that is currently still implemented directly by the Ministry). Reco/Rwasco is the utility company (which is being separated into electricity and water is a public company but operates along commercial principles for the transmission and distribution of electricity and water. Currently most of the electricity is also generated by RECO but the government is promoting private companies to take over that function such as in the case of electricity production from Lake Kivu methane gas. Rwanda Utilities Regulatory Authority (RURA), which is among others responsible for ensuring that electricity tariffs reflect recurrent costs and all energy activities have to be approved and registered. Private sector role has been limited in the past but the Government is encouraging electricity production through PPPs at large scale (for example Lake Kivu methane projects) as well as in the hydro power sector to support management and construction. Micro HydroThere are only few private enterprises in the hydro power sector able to produce turbines. Currently three stable workshops are active in the manufacturing of pico-turbines: ASM and Chez Silvere both in Kigali and COFORWA in Muhanga. Apart from these three workshops, the workshop at the Don Bosco School in Kimihurura, Kigali manufactured several pico-turbines in the 70s and 80s when it was managed by a religious institution. In addition, two more workshops ABEM (Kicukiro, Kigali) having experiences with manufacturing components of wind turbines and water pumps and SOTIRU (Musanze/North)) maintaining 3 MHPPs are capable but not manufacturing pico hydro turbines at the moment. On governmental level district governments play an important role in the decentralized governance structure in Rwanda and have the capacity to authorize the installation of MHP plants and mini grids in their territory.
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