Ministry of Infrastructure

The Republic of Rwanda

Contents

Energy Sector Background

Energy Sector Overview

The Current Status & Planned Energy Sector Growth

Generation & Access Targets

Energy Sector Reform

Planned Generation & Tariff

National Energy Policy

Development of Interconnection

Investment Opportunities

Background

Rwanda’s economy grew at an annual average rate of 8.3%

over the past 5 years;

Current Government target is to

achieve 11.5% annual average growth over the EDPRS II period

(2013-2017);

Rwanda’s second Economic

Development and Poverty Reduction Strategy (EDPRS II)

enshrined in four thematic

areas, aims at achieving rapid

economic growth, rural development, productivity and

youth employment, and

accountable governance;

RWANDA: VITAL STATISTICS

Access to affordable and modern

sources of energy is therefore

essential to the achievement of the

above development objectives;

Energy Sector overview

Dependence on Biomass (wood energy) for fuel stands at 85%. We target to reduce this to an est. 55% by 2017 & to 50% by 2020

Current Electricity installed capacity is 160 MW. We intend to

increase To at least 563 MW by 2017/18

Current generation mix: 60.32% hydro, 32.03% thermal ,2.3%

methane & 5.42 % solar. The target is to increase generation from indigenous resources & gradually reduce over dependence on

thermal.

The Current Status & Planned Energy Sector Growth

Electricity Access

0%

50%

23.0%

4.7%

29.9% 8.6%

48.0% 22.0%

Electrification rate2014Planned 2015/16

Current access to electricity is

23%. We target to increase the access to 70% by 2017/18.

Public institutions (schools,

health facilities, administrative

offices) to be connected 100% by 2017/18

Current network length:

3,932km MV, 1,078km LV &

1,228km HV. We are expanding the network to

meet the access targets

An estimated $ 3bn of

investment capital is required to generate 563 MW & reach

70% access by 2017/18.

Generation & Access Targets

Sales of Tier 2-5 home solar systems, plus number of connections to mini-grids (not connected to the central electricity system)

Planned Generation & Tariff

10

11

12

13

14

15

2005 2010 2015 2020 2025 2030 2035

USc

/kW

h

Projected Average Tariff

Energy Sector Reform

• The Utility recently reformed

and this allows for the private

sector to actively participate

in electric power production,

transmission, distribution and

trading both within and

outside the country;

• Furthermore it simplifies

tendering procedures to

allow investors to bid for

contracts ;

• The Rwanda Utility

Regulatory Agency ( RURA)

is an independent regulator

• The Rwanda Government

through Rwanda

Development Board and

Rwanda Energy Group Ltd, is

ready for business in Energy

Sector ;

• We welcome investors with

both finance and technology;

• We have recently concluded

power deals with different

global project developers

( Ex: Contour Grobal, GigaWatt

Grobal, Hakan, Symbion Power,

etc.)

National Energy Policy Power Transmission Network

The Government of Rwanda strongly

committed to working with its neighbors

(EAC) and regional organizations (EAPP,

EGL, NELSAP) on energy development to

reach its Energy Policy Objectives

Promote the development of the

interconnected regional network and

coordinated planning of generation

expansion to minimize costs and improve

security of supply

Promotion regional power trading to

materially reduce the average cost of

power and the carbon intensity of the

grid

The Policy recommends Import Capacity

of 20% for prudent planning (Security

Purposes)

Development of Interconnection

Power Transmission Network

Development of Interconnection

Power Transmission Network

Kibuye-Gisenyi-Goma-Kigali, 200km, 220kV

double circuit

Rwanda-TZ TL 220kV double circuit 109km for Rwnda

scope

Rwanda-Ug TL, 220kV double circuit, 172km

Rwanda-Burundi, 220km single circuit,

142km to Gitega/Burundi

Kibuye-Kamanyola, 220kV,double circuit, 90km-no funding yet

Development of Interconnection

Development of Interconnection

Development of Interconnection

INVESTMENT OPPORTUNITIES

Other Small Hydro Power

Incentives: •Over 332 Micro Hydropower sites have been identified •69 Greenfield sites identified •REFIT Feed in tariff (from 100kW to 5MW) •Standard PPA for small sites •Size varies between 100kW to 5 MW Way Forward: •Feasibility studies to be carried out and put under competitive process.

Nyabarongo II Hydro Power •Nyabarongo-I completed with capacity of 28MW

Incentives: •128 MW multi-purpose project with damn and pumped power, irrigation and other uses •Phase 1: 47.5 MW ( Dam based plant) •Strategic importance: energy, water supply, irrigation, flood control •Phase 12: 80 MW ( Pumped Storage based plant) Way forward: •Completion of Feasibility Study by July 2015 • Investment as BOT

Feasibility Study On-going by Feedback Infra(Indian Firm)

Feasibility Studies Required

Value of projects: Est. USD 350-500m

Methane Power Generation Incentives: •Lake Kivu has est. 700MW over 55 years, split equally between Rwanda and DRC •3.6 MW Government owned pilot project completed and connected to Grid Nov 2008; •100MW IPP under construction in two phases; • Phase 1: 25MW pilot project COD expected before end of 2015; •Clear L. Kivu management prescriptions on safe operation and maintaining our resource established Way forward: •50 MW to start construction this year ( Symbion-IPP) •Available more than 100MW with Combined Cycle technology (Methane Gas & Steam) under-feasibility study now

Peat to Power Generation

Value of projects: Est. USD 3m per MW Incentives: •Nationwide peat assessment exists indicating around 600MW of potential and currently being updated.( by SWECO –Sweden ) •Study to be finalised July 2015; IPP to be launched thereafter. •Seeking investors in both peat mining, power generation or both

Way forward: Encouraging Developers to invest in peat to power (Combined Cycle to be considered)

Feasibility Study on going by SWECO(Swedish Firm)

Feasibility Study & Detailed Engineering Designs Required

Geothermal Power Generation

Incentives: •Geothermal Master Plan being developed, ready by Sept. 2015

Way forward: •Final ground studies underway as part of Master Plan •Resume exploration dependant on Master Plan •Once exploration proves potentials of power source, the Government will engage private sector for power production

Study On-going

Solar Power Generation

Incentives: •Largest utility scale PV plant in East Africa located in Rwanda •Solar Assessment 2013 •Looking for further utility PV power from 2017/18 at cost reflective tariff •Large off-grid potential available with results based financing program and other government incentives •Rural Electrification strategy underdevelopment • Renewable Energy Law (Draft) Way forward: •Off-grid market available with target to reach 22% House Holds (520,000 HHs) by 2018

Feasibility Study Required

Off-grid: Mini-grids Electrification

Incentives: •PPA with off-taker guarantees demand and results based finance support •Simplified Licensing for Rural Electrification in existence and to be updated before end 2015 •Sites identified where grid will not reach within 5 years •22% Electrification target by 2018 through off-grid solutions •Some feasibility studies available

Way forward: •Private Sector is key for this sector to reach the target

Feasibility Study Required

Eldoret – Kampala – Kigali Oil Pipeline Incentives: •Eldoret – Kampala feasibility study finished •Kampala–Kigali feasibility study completed August 2014 •Strong incentive to undertake project for energy security and regional integration

Way forward: •Envisage PPP/EPC models •Still looking for investors

Value of projects: Est. USD 1 bn Kampala- Kigali section

Regional Integration: Investments

Feasibility Study Completed

Feasibility Study Complete

Rusizi III & IV Hydro Power

Incentives: •International tenders for construction and transmission •Pre-feasibility study completed Way forward: •Fund mobilization for detailed study and implementation

Feasibility Study on-going 400/220kV Transmission Lines and substations

Incentives: •Feasibility studies have been finalized with the final output in Oct, 2015 options on going in the investment unit Way forward: •Budget to be mobilized • Implementation of the project by Fiscal Year 2016/17

THANK YOU