1. EAST AFRICAN BUSINESS COUNCIL & EAST AFRICAN COMMUNITY

2. ENERGY : A VIABLE BUSINESS OPPORTUNITY PERSPECTIVES OF ENERGY SECTOR DEVELOPMENT IN BURUNDI

3. 0. INTRODUCTION Socio-economic development based on policy with objectives to increase the gross domestic product: 1. by creating new activities generating incomes so to reduce poverty and achieve social welfare; 2. The role of the energy sector in the implementation of this policy is so capital and socio-economic development can not be achieved as long as the development of the energy is low.

4. BURUNDI ENERGY SECTOR Burundi electric power production is highly inadequate for several years, During the past twenty years, no major national hydro power plant had been made, and over the past fifteen years, at regional level, with the geopolitical crisis and internal political problems, no investment in new production units had been carried out while demand in the region was in growth.

5. PRODUCTION & DEMAND BALANCE The distribution network, both to serve new neighborhoods in Bujumbura, with new centers in the country haven’t been undertaken. As result, the imbalance between increasing demand and stagnant production has only increased, causing loadshading.

6. AND MAIN PROBLEMS With results, loadshadings, which affected some urban areas of Bujumbura city and for a few days a week, have expanded as the demand increased, affecting most peripheral areas of Bujumbura. In dry season, their duration (6 to10 hours a day) can reach four to five days a week.

7. ENERGY PLANING The socio-political instability that prevailed in the sub-region of the Great Lakes, interrupted the planning activities. the energy gap constitutes the main obstacle to socio-economic development initiatives in the sub-region Other energy sources, which are abundant should be developed to reduce the energy deficit. Thus it is necessary and essential to know their locations to act effectively.

8. STATISTICS IN ENERGY SECTOR The energy balance is the most mitigated and one of the lowest in Africa. It consists of: - Biomass: 94.06% - Electricity: 4.27% - Petroleum products: 2.00% - Other forms of energy less developed: 0.02% The hydropower offers possibilities to vary and adapt different uses to the activities of the modern world.

9. CURRENT STATUS OF THE ENERGY SECTOR. The energy status and the electricity consumption balance of Burundi clearly reflect the socio-economic development of the country.. and in addition, technical problems appear in its electricity grid and increase day by day while the demand is clearly improving. This shows that the country needs to implement large-scale projects, such as local and regional projects to develop its energy potential.

10. Hydroelectricity In hydropower, the data which provide energy potential, installed capacity and consumption are: - Global Potential : 1 700 MW - Exploitable Potential: 300 MW - Installed : 32 MW (± 10%) - Average annual production: ± 155 000 MWh - Consumptions : ± 115 000 MWh - Average consumption: 23 kWh / capita / year - Technical and non technical Losses : 30% - Electricity Deficit : ± 25 MW in peak hours

11. And … The electrical grid is under strong interference due mainly to the deficit and to old infrastructure. These two factors only create electrical instability.

12. And …. Mines projects, like MUSONGATI and MUREMERA nickel projects, make that energy demand will require more than 50 MW. With the opening of more of industries after the political crisis, Burundi therefore require more than 80 MW on the existing power capacity.

13. WHICH ARE THE MAIN PROBLEMS IN ENERGY SECTOR? - Investment costs are very high and difficult to mobilize; - The lack of new investment - The cessation of activities of some industrial potential energy-consuming, - Deforestation and destruction of ecosystems in certain areas of the country; - The destruction or the abandon of solar energy and biogas infrastructure, during the civilian war. There were the only renewable energy that had been already experienced ; - Drought during the recent period, - A strong deficit in electricity; - Low involvement of the private sector; - An over-exploitation of traditional energy resources and the low rate of regeneration of natural forests; - Not access of the country to ocean (all petroleum products are imported); - High prices of oil products and lack of strategies to reduce those prices; - Lack of measures to promote renewable energies; - And others ….

14. SPECIFIC PROBLEMS The specific problems concernig the secttor are due to: -Delay to investment, the last hydropower plant has been implemented in 1988; -All production structures are old; -Low rainfall due to climate change; -A lot of technical and commercial losses …

15. OTHER FORMS OF ENERGY Other forms of energy, fossil, solar, wind, just a lot of, contribute to cover energy needs.

16. INSTITUTIONNAL FRAMEWORK The legal framework for energy sector, is registered by Law No. 1 / 014 dated 11th August 2000, and concern the liberalization and regulation of public services.

17. COOPERATION FRAMEWORK Regional interconnections between electrical grids of different countries in the region, in context of regional integration, are going to be realities. Burundi is interested by the NELSAP Energy Program and other regional initiatives

18. SUPPORT IN ENERGY SECTOR The main guidelines of the sectoral policy, which are the General Program of the Government are focused on development of infrastructures and development of energy sector. The rate of access of population to electricity average annual consumption are a clear indicators of poverty. Energy sector has been strongly affected by the socio-political crisis, last years. The energy program stays the main priority of the Government after the political crisis, emphasizing sector strategy for rehabilitation and strengthening infrastructure and extension of rural electrification.

19. STRATEGIES AND INNOVATIONS Strategies for rehabilitation and strengthening infrastructure and extension of rural infrastructure have been taken. Innovation: new approaches to energy supply, including decentralized solar photovoltaic and small hydro power plants to areas which don’t have access to the main grid.

20. PEAT The exploitable reserves are about 32 millions tons of total reserves, estimated at 150 million tons. Annual production is estimated 10 000 tons of dry peat at 30% humidity, per year.

21. BIOMASS Biomass is the source of energy more accessible to the most part of the population. This component, as a sub-sector of renewable energy, is dominated by wood in domestical energy needs.

22. RENEWABLE ENERGY Evaluation of solar and wind resources give following: - Exposure: 4.5 - 5.0 kWh / m² / day in the plains; : 3.3 - 4.0 kWh / m² / day at high altitudes; - Installed solar photovoltaic capacity: not inventoried; - Wind speed: 4 to 5 m / s at the coast of Lake Tanganyika, and increase with altitude; Currently, solar photovoltaic systems are installed all over the country in rural area.

23. FUTURE PROSPECTS New energy projects to increase the capacity of the country with national resources The three countries of CEPGL share hydroelectric projects Ruzizi III RD2 with a capacity of 145 MW and Ruzizi IV SISI 05 with a capacity of 265 MW. Two CEPGL countries (Burundi and Rwanda) share with Tanzania under the Nile Basin Initiative Projects, the hydroelectric project Rusumo Falls (60 MW)

24. Suite… The hydroelectric project of Rusumo FALLS presents a remarkable asset to the three countries in addition to the interconnection program of NELSAP

25. REGIONAL PROJECTS Burundi participates, as announced, in CEPGL projects. Also in EAC Energy Program. In those contexts, large-scale programs are planned. Similarly, Burundi also participate in various projects of the Nile Basin Initiative (NBI).

26. OTHERS. The EAC Regional Master Power Plan Creation of a common market of regional electricity trade The Eldoret - Kampala - Kigali – Bujumbura Pipeline project. This project is among infrastructure projects that AfBD agreed to fund feasibility studies Etc…

27. THANK YOU so much Don’t mind once again for my « broken english » Once again I apologize for that.