Republic of RwandaMinistry of Infrastructure

Policy and Planning Department

Off Grid Electricity Access Expansion Programs in

Rwanda

5th Mini Grids Action Learning Event: Reaching Universal Energy Access in Ghana by 2020

June 24th to 28th , 2019

Country Background

Land area (sq. km):26,338 sq.km

Population: 12.79M (2019)

Population Density: 475/km²

Current Power Generation• Installed generation capacity: 221MW• Rwanda Peak load: 140MW

Hydro45%

Thermal27%

Methane14%

Peat7%

Solar6%

Import3%

Energy Mix 2019

Current Access Rate

Total households 2019: 2,709,000 Current access 51% as of April 2019, (On-grid - 38% & Off- grid – 13%) Households connection: On-grid – 1,021,734, & Off- grid – 350,216 Target:

o Kigali connected 100% by 2021o Productive users 100% by 2021o Country wide 100% by 2024

79%

72%

49% 49% 49%45% 45%

41% 41% 39% 39%34% 33% 32% 32% 32% 32% 31% 30% 30% 30% 30% 29% 27% 25% 24% 23% 23% 21%

17%

3% 3% 2% 9% 6% 10% 9%

17%12%

16%

10%

21%

13%9%

12% 11% 13%8%

11% 11%7% 9%

14%10% 12% 13%

9%12%

18% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

grid off-grid

Rural Electrification Strategy

Target: Eligible Ubudehe category 1 only Target: Ubudehe category 2, 3 and 4

Target: Mainly category 3 and 4 and Productive use areasTarget: Ubudehe category 2,3 and 4

Program 1Govt will provide subsidy to these HH

Program 2Govt will provide risk mitigation facility for SHS

Program 3Govt will provide risk mitigation facility Mini grids

Program 4Grid extension programs (EARP)

Program 1Govt will provide subsidy to these HH

Targets 154,000 HH that met the set eligibility criteria

Nearly 2,000 systems have been installed through various donations from governmental institutions and private companies

Implementation goes through a procurement process depending on available funds27 companies operating in Off-grid in Rwanda.

24/27 have signed a cooperation agreement with EDCL and participate in the tenders for program 1.

Rural Electrification Strategy

Program 2Govt will provide risk mitigation facility for SHS

Targets ubudehe category 2,3 and 4 HH that will meet eligibility criteria

The Scaling-up Renewable Energy Program (SREP) fund will be used to implement this program

Households will access a loan from the Savings and Credit Cooperatives (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

The 24 companies that have signed a cooperation agreement withEDCL will be the ones allowed to implement Program 2.

Any other company can enter by signing an agreement with EDCL

Rural Electrification Strategy

Program 3Govt will provide risk mitigation facility Mini grids

Targets ubudehe category 3 and 4 HH

The SREP fund will be used to implement this program

Companies will be able to acquire a loan to invest in mini-grids

There are currently 9 operational mini grids in Rwanda.

Rural Electrification Strategy

Program 4Grid extension programs (EARP)

Targets ubudehe category 3 and 4 HH and Productive use areas

EARP will continue to roll out the grid access program targeting mainly productive use areas

Grid and mini-grid co-existence will need to be streamlined

Rural Electrification Strategy

National Electrification plan

13%

38%

49%

Share of Customers 2019

Off-Grid(SAS)Grid-Standard(GE & MG)NonElectrified

31%

21%10%

21%

7%10% Existing Grid

Grid Extension

Existing off grid

SAS

SAS/Microgrid

Microgrids

52%48%

Share of customers 2024

Off-grid electrification: Status

Category 2018 2024 target Gap Number of companies

Solar Home Systems(HHs) 253,181 1,274,180 1,020,999 27

Mini-grids (HHs) 3,582 326,884 323,302 9

Total Off-grid 256,763 1,601,063 1,344,300 36

Off-grid electrification: Current StatusSHS minimum standards availableMini-grid guidelines available.Currently, 84 mini-grids (78 DC and 6 AC) installed

with a total capacity of around 250 kW.Awareness campaigns on off grid electrification

program ongoingDetailed Feasibility studies of identified mini-grid

sites will be carried out under SEFA/AfDB funds andBRD/Enabel and tendered out to private developers formini-grid development.

Taxes exemption on solar materials

OSC (Off-grid Solar Company)

Window 1:SACCOs

Window 2:Banks

(commercial, microfinance)

Window 3: Mini-grid

developers

Window 4:Locally-

registered Off-grid solar

companies

Renewable Energy Fund

BRD

Sub-loans toHH and micro-

enterprises

Sub-loans to HH and SMEs

Wholesale lending Wholesale lending Direct lending Direct lending

SREP Funds/REF

The REF is implemented by the Rwanda Development Bank (BRD) and provides local-currency financing through 4 active windows:

Lending through SACCOs Lending through banks Lending to off-grid mini

grids Lending to Off-grid solar

companies (OSC)

REG-RBF Scheme

Ubudehe category Range of subsidy level

Ubudehe 1 80 - 90 %Ubudehe 2 55 - 65 %Ubudehe 3 30 - 40 %

Accelerate off-grid connections through the use of targeted subsidies to increase the affordability of Solar Home Systems (SHS).

Target 2024: Connections of 1,274,180 HHs Contribution AfDB-RBF: 124,800 HHs Contribution EnDev-RBF: 40,000 HHs Contribution REF (Windows 1 and 4)

Hair Salon connected off-grid: Rwamagana District

With access to off-grid power, he started a barber shop that now makes at least 4,000 Frw per day.

This solar mini-grid was built by Mesh-Power in Bugesera District, Mwogo Sector. It has enabled citizens of this area to start businesses such as welding, bars (with refrigerators), sewing with electrical machines

Productive users on Mini-grid: Mwogo Sector Bugesera District

RENERG (30 kWp)mini-grid

Ducane Kabrud ( 19 kW)

ECOS (11kW)

Partners in the off-grid

Next Steps...Increase off grid electrification for both standalone and mini-grid systems: Call for proposals for mini-grid development; Design a scheme that will help increase affordability

in off grid beneficiaries; Awareness campaign; Implementation of Monitoring system of off-grid

electrification (SHS and Mini-grids)

Thank You