Rwanda’s Energy Sector Overview REPUBLIC OF RWANDA Rwanda’s Energy Sector Overview Energy Division 9th August,2017 MININFRA-Rwanda

OUTLINE OF THE PRESENTATION BASIC STATISTICS ENERGY SECTOR POLICIES AND STRATEGIES ELECTRICITY ACCESS & STRATEGIES FOR SCALE UP ONGOING INITIATIVES

BASIC STATISTICS: REFERENCE YEAR 2015 Population * Million 11.297 Urban Population % 23 Person/hh Cap 4 Population in cities with public transport 11 GDP US$2010 Billion 8 GDP per capita US$2010/Cap 709 Source: NISR/www.statistics.gov.rw

Project Implementation Sector Structure PMO MINECOFIN RURA MININFRA RDB REG EUCL EDCL O & M Generation D & T Project Implementation

ENERGY SECTOR POLICIES AND STRATEGIES Rwanda Energy Policy (REP) and Energy Sector Strategic Plan (ESSP) developed and approved by the Cabinet. REP and ESSP targets: Increase the electric power system equivalent installed capacity (domestic generation + imports) up to 563 MW; Increase access to electricity to 70% of HHs from which 48% on grid and 22% off-grid; Achieve system savings from implemented energy efficiency measures of up to 10% (50,000 MWh based on current baseline of 2013); Reduce the carbon intensity of the grid by 10% by 2018 and 25% by 2025; Ensure 80% of all households employ cleaner cooking energy technologies; Ensure the necessary infrastructure is in place to meet current strategic reserve requirements;  Realize all Regional Integration Policy priorities for energy sector. Existing Laws Investment Code Electricity Law PPP Law Rwanda-DRC Section: USD 6.2 million-x-rate gap ISOLUX-

ENERGY SECTOR POLICIES AND STRATEGIES (ctd) 2. Rural Electrification Strategy (RES), approved by the Cabinet on 27th April 2016. RES Programs: Government to provide a basic solar system to the households in the category 1/Ubudehe 1. Government to provide a Risk Mitigation Facility not exceeding 10% of the unit cost to the private sector such that solar products will be made available on financial terms our population can afford. Mini-grids will be developed by the private sector and the Government will play a key role in identifying sites, stimulating demand and establishing a framework through which these become financially viable investments.   The Government will continue to roll-out the electricity network through the EARP programme, focusing on connecting high consumption users (productive uses) and driving economic growth.

ENERGY SECTOR POLICIES AND STRATEGIES (ctd) 4. Sustainable Energy For All Action Agenda (SE4All): presented to the Economic Cluster in February 2016.   SECTOR SE4All targets Access to clean and sustainable cooking Close the gap (currently about 20%) between production and consumption of biomass Supply a growing and urbanising population with clean secure supplies of biomass for cooking: 100% access to much more efficient cook stoves than currently used Reduction in losses from charcoal by improving charcoal production and promoting alternatives such as biomass pellets, biogas and LPG Increasing production by improving forestry management To ensure that the efficient cook stove solutions address health issues Access to electricity Achieve 100% electricity access: By 2020, all households will have at least basic levels of access (Tier 1 and above), and by 2030, all households will have at least moderate access to electricity services (Tier 2 and above). Progress to higher quality and quantity of electricity over time, with >70% of the population having Tier 3-5 access by 2030. Renewables Exceed the global SE4All target (26%) of renewable energy as a percentage of the primary energy supply Exceed the global SE4All target (44%) of renewable electricity generation as a percentage of total electricity generation Energy efficiency At least double the efficiency of biomass energy use Extend current rates of electrical efficiency improvement to 2030 Rwanda-DRC Section: USD 6.2 million-x-rate gap ISOLUX-

ENERGY SECTOR POLICIES AND STRATEGIES (ctd) 5. Scaling up Renewable Energy Project (SREP) Investment Plan for Rwanda. Objective to establish the conditions for significant growth in off-grid electricity access solutions for households, firms and institutions; Approved by SREP Subcommittee in November 2015. Agreement signed in June 2017. 6: Renewable Energy Fund (REF). REF will utilize SREP funds to catalyze private sector investments while providing a coherent and coordinated mechanism for donors to support rural electrification. Assessment of REF host institutions completed: BRD proposed as the suitable host institution by MINECOFIN; MININFRA and MINECOFIN approved the establishment of the fund and to follow Cabinet endorsement. Rwanda-DRC Section: USD 6.2 million-x-rate gap ISOLUX-

ENERGY SECTOR POLICIES AND STRATEGIES (ctd) 7. Energy Efficiency Sector. Drat strategy Energy efficiency developed (Pending Approval) Energy efficiency law under development. 8. Biomass Sector. Biomass strategy developed 9. Radiation protection law. The law will regulate the use of radioactive substances to ensure protection of people and the environment from the adverse effects. Draft final law ready to be submitted to the PMO.   Rwanda-DRC Section: USD 6.2 million-x-rate gap ISOLUX-

ELECTRICITY ACCESS On –grid access to electricity 17.60% Indicators Baseline (2012/13) Actual Performance EDPRS II Targets 2017/18 On –grid access to electricity 17.60% 27.5% (increase by 2.5% in 2015/16) 48% -1,108,882 new connections Off-grid access to electricity 1% 8% off Grid 22% -111,812 new off- grid solutions Strategies to reach the targets On-Grid Strategies Review of connection policy: connect all HHs within 37 m from the existing grid (Low Voltage) will increase access from 24.3% to 28% as on grid access by June 2017 Speed up implementation of ongoing EPC contracts Off-Grid Strategies Incentives to private companies (currently more than 20 solar companies) to invest in the off grid market and connect households with solar systems to achieve 22% by June 2018. Design of Rural Electrification Strategy program1 to eensure support HHs in Ubudehe category1 & 2

Demand forecast: The growth rate of 10% p/y is recommended based on analysis JICA Medium Case Forecast based on previous, impressive 8% p/y growth Forecast based on very aggressive 11.5% p/y growth Historic 8% p/y growth Recommended forecast based on 10% p/y growth 2018 563 MW generation target Recent MININFRA/REG forecast JICA Low Case Vision 2020 demand forecast The 10% p/y growth rate puts Rwanda in line with the fastest rates experienced by industrialising countries and allows for significant growth in residential, commercial and industrial demand

0.58 TWh consumed in the year ending March 2017 ENERGY MIX (Year ending MARCH 2017) 0.58 TWh consumed in the year ending March 2017 Electricity demand has grown for 9.6% annually in average for the last 10 years

Updates on Transmission and network stability, Cont… 220 KV electricity interconnection (30-60-100MW, 2015/2018) Transmission line interconnecting Rwanda to Uganda Completed. TL to interconnect Rwanda to DRC is under construction. 104.14/179.86 km of HV line stringing done. 220kV Rwanda-Burundi interconnector and substations Tender document completed by the consultant. 13

Generation Roadmap (2016-2024) Key Generation Roadmap (2016-2024) Financing period Operating period Construction 2016 2017 2018 2019 2020 2021 2022 2023 45 MW Small Scale Hydros To be delivered over 4-years 45 30 60 30 MW Imports from Kenya+ 60 MW 3-year contract 80 MW Rusumo 26.7 147 MW Ruizizi 49 8 75 8 MW KivuWatt & 75 MW Ph2 13 37 50 MW Symbion 80 Hakan 80 Total Committed: 423.7 MW Demand growth Achieved by Driven by Comment 11% China Heavy industries, mining, ports Very aggressive 10% Singapore Refining, chemicals, ports Recommended 8% Rwanda (2001-2014) Agriculture, tourism Current

ENERGY SECTOR KEY CHALLENGES AND STRATEGIES Strategies/Way forward Regulatory Instruments Rwanda Grid Code Regulation Governing Electricity Licensing Regulation Governing Simplified Licencing Framework for rural electrification Guidelines Promoting Energy Efficiency Ministerial order on annual fees(1%& 0.3%) Regulation on Electricity Quality of service Electricity safety regulation Financing gaps for the implementation of priorities and achievement of targets. Continued mobilization of Private players into partnership with GoR in energy investments by preparing tender documents.

ENERGY SECTOR KEY CHALLENGES AND STRATEGIES (ctd) Strategies/Way forward Limited affordability/accessibility of use of off-grid solutions. Awareness campaign and sensitization conducted countrywide for use of off-grid solutions in remote areas, Promotion of use of biomass alternatives such as LPG, biogas and peat briquettes. LPG tax removal, Subsidies and technical support for biogas Private sector involvement in making peat briquettes High energy losses (22.7%) & unreliable power supply Different projects are under implementation: Kigali ring network & smart metering project JICA funded substations meant to stabilize power supply to KSEZ, Kigali Airport, etc. Ring network (Rulindo-Ngarama-Musha) Kibuye-Kigoma-Rwabusoro & Mamba-Rwabusoro-Rilima transmission line Rehabilitation of distribution lines

ENERGY SECTOR WORKING GROUP (SWG) Residential Customers Non- Residential Customers Industrial Customers Consumption (kWh) block/month FRW/kWh (VAT exclusive) [ 0-15] 89Rwf/kWh equivalent 0.10 USD [>15 – 50] 182Rwf/kWh equivalent 0.21 USD >50 189Rwf/kWh equivalent 0.22 USD Consumption (kWh) block/month (VAT exclusive) [0 -100 ] 189 Rwf/kWh equivalent 0.22 USD >100 192Rwf/kWh equivalent 0.225 USD Designation Basis of charge Tariff (VAT exclusive) Small industries including Water treatments plants, Water pumping stations and Telecom towers (Flat rate)  126 Rwf/kWh equivalent 0.14 USD Other Medium Industries 90 Rwf/kWh equivalent 0.11 USD 27/06/2014 ENERGY SECTOR WORKING GROUP (SWG)

Summary of recommendations On-going Initiatives to Improve the sector Summary of recommendations Immediate: Adopt 10% demand growth forecast across the sector (review annually) A FS for the identification of 20 potential mini grid sites Longer term: Ministry of Infrastructure and Rwanda Energy Group to reschedule build programme to optimize demand and generation balance (using IRP Model ) MININFRA, REG, MINICOM and RURA to investigate how best to stimulate demand through attracting energy-intensive users (to achieve 10%) Energy Efficiency Strategy to be Approved and implemented (priorities: LED lighting for end users and reduced losses)

Annex2: Interconnectors

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