1. Scaling Solar Applications’ in Rwanda

2. Rwanda: Vital Statistics
Size: 26,338 sq.km
Capital: Kigali
Population: 12M
GDP Growth: 8%
GDP per capita: $723
Gross National savings: 15.3% of GDP.
Gross Investments as a % of GDP: 26.0%
Trade balance (GDP):15.4%.

3. Rwanda Energy Sector Power Generation Installed capacity of 208 MW
Power Generation Potential
Power Generation
Installed capacity of 208 MW
54.5% RE share (hydro and solar)
Rwanda’s domestic energy resources:
Hydropower 313 MW
Methane 350 MW
Geothermal MW
Peat MW
High solar irradiance, with 1890kWh/per sqm
Electricity
Access
27.2% on-grid connections
7.3% off-grid access (solar)
Access Target for 2023/2024
52% on-grid connections,
48% off-grid connections (by solar)
100% Public institutions (schools, health facilities, administrative offices)
Achieve the universal access by 2024.

4. Policy and Regulatory Framework
Rwanda overall strategy to diversify sources of energy by focussing on domestic, RE resources, and phasing out diesel power generation
Rural Electrification Strategy (RES) approved by Cabinet on 27th April 2016.
Simplified Licensing regulations for off-grid and Rural Electrification
Public Private Partnership Law gazetted on 29th May 2016
Investment Code gazetted on 29th May 2015;
Renewable Energy Law being finalized;

5. Rural Electrification Strategy (RES)
Program 1
(provision of Subsidy)
Targets 150,000 HH that met the set eligibility criteria
Nearly 2000 systems have been installed through various donations
Implementation through a tender process, subject to funds availability
Program 2
(Provide Risk
mitigation facility)
The SREP fund will be used to implement this program
HH will access a loan from the SACCOs/Bank and buy a solar system
Companies at a later stage will be able to acquire a loan to invest in their off-grid SHS business
Program 3
(Mini grids facility)
The SREP fund will be used to implement this program
Companies will be able to acquire a loan to invest in their off-grid mini-grids
Program 4
(Grid-extension)
Category 3 and 4 HH and Productive use areas.
Continue to roll out the grid access program targeting mainly productive use areas

6. Investment Opportunities
Off-grid Solar Market Potential
65% of Rwandans are in off- grid areas (about 1.2 million households)
SREP funds to support the development of off-grid energy markets (cheap loan);
The Result Based Finance (RBF) for mini-grid developers, offered by GIZ (a grant that covers up to 70%)
Investment Opportunities
Solar
Energy
Standalone solar home systems;
Mini-grid solar projects with hybrid and storage solutions;
Opportunity to set up a Manufacturing base facility of Solar Energy equipment
Solar energy for irrigation and water supply.
Power
transmission
& distribution
Street lighting on all existing roads to be electrified and;
New roads construction contracts to include street lighting;
Development of different transmission and substation projects to achieve the 52% grid access from 27.3%

7. 8% 1ST 3RD 1ST 7TH B+ B Reasons to Invest in Rwanda Renewable Energy
Sustained economic growth
Investor Friendly Climate 8%
Average GDP growth for the last nine years (08-16)
1ST
Ranked as the easiest place to do business in the EAC region
3RD
Efficient Governance
Ranked as the most competitive economy in Africa
1ST
Africa’s most efficient
government
Access to Markets
7TH
EAC
CEPEGL
COMESA
162 million
90 million
430 million
Most efficient globally
Stable Credit Ratings EU
AGOA (USA) B+
Standrad & Poor‘s
Outlook: Stable B
Fitch Ratings
Outlook: Stable

8. Investment Incentives
Rwanda has an array of fiscal and non-fiscal incentives
Fiscal Incentives
Non-fiscal Incentives
Zero Corporate Income Tax, for companies planning to relocate their headquarters to Rwanda
Free repatriation of capital and assets
Quick business and investment online registration
Preferential corporate income tax rate of 15%, for investment in priority sectors or exporting at least 50% of the produce , in energy, transport, affordable housing, ICT and financial services
Assistance with tax-related services and exemptions
Accelerated depreciation rate of 50%, for the first year in key priority sectors, e.g. tourism, construction, manufacturing and agro-processing, education, health, telecommunication, energy and transport
Assistance with access to utilities (water & electricity)
Assistance with obtaining visas and work permits, EIA
Exemption of capital gains tax, for any registered investor
One stop center that provides notary services, migration, etc.
Seven-year corporate income tax holiday, for export investments and projects over $50 million in tourism, health, manufacturing , ICT and Energy once generating 25MW and above
Provision of aftercare services to fast-track project implementation
Custom tax & duty exemption, for products used in Export Processing Zones (100% exports)
Regardless of the origin of the investor, all business sectors are open to private investment

9. Challenges Opportunities
Solar products available now can only penetrate 10% or so of the market, therefore affordability remains a major challenge. Access to cheap capital, fast and easily accessible working capital and consumer financing solutions.
Solar companies need to build trust of customers and balance between customer acquisition and customer retention;
Time is the biggest enemy for renewable energy projects to materialize. Projects currently take between 1-7 years to develop depending on country, business model and entrepreneur.
Some companies demonstrated success in reaching higher levels of bottom-of-the-pyramid customers by providing a variety of product options.
Successful renewable projects usually combines a tailor-made product with innovative financing solutions and strategic partnership to deliver the service/product.
Networking and knowledge exchanges on the latest innovations of solar systems;
Platform for companies/institutions to enter in collaboration/joint venture. For instance, Tiger power, Belgium concluded a Joint venture with Hobuka Ltd. to develop mini grids in Rwanda in the coming years.
ISA and the Rwanda Energy Private Developers are working on an MoU to boost cooperation and enable off grid solar markets in Rwanda.

10. PROGRESS WITH ISA I. EXPECTATIONS FROM ISA:
Facilitate the Access to long term and low cost finance from Financial Agencies;
Facilitate information-exchange on various productive solar applications and solutions;
Support in the promotion of local entrepreneuship and local assembly & manufacturing base of solar lighting Systems in Rwanda;
Facilitate in mobilisation of solar compagnies from ISA network to participate in Rwanda Rural Electrification program
II. NEXT STEP: Ratification of the Framework Agreement
III. CONTACT DETAILS
Local Point in India: Mr. Mucyo RUTISHISHA, 2nd Counsellor, High Commission of Rwanda
Focal Agency in Rwanda: Mr. Robert Nyamvumba, Energy Division Manager, Ministry of Infrastructure