POWERINDABA conference

Fast tracking power investment in Africa

-Opening Rwanda to International Investment-

Eng. Albert BUTAREMinister of State in charge of Energy

Key Policy GuidelinesAligned to the EDPRS

1. Increased access to the majority of the people (enterprises and households)

2. Reduced cost of service and the introduction of cost reflective tariffs

3. Energy diversification and security

4. Strengthening the governance framework and the institutional capacity

EDPRS ��. towards 2012

1. Increased Access to ElectricityGeneration

� Increase supply with 165MW (Domestic generation)

Transmission and Distribution(more ambitious than original EDPRS targets)

� From 92,000 to 350,000 connections� From 5% to 16% access � Extend grid by 4000km� Access by 100% of clinics � Access by 100% of local administration offices� Access by more than 50% of schools

EDPRS ��. towards 2012

2. Reduced cost of service and the introduction of cost-reflective tariffs

� Cost-reflective tariffs introduced and maintained through periodic adjustments

� Continued efforts by Electrogaz in reducing technical and commercial losses

� Increased use of energy saving devices (CFL, Solar Water Heaters, Public Lighting, etc)

EDPRS��. towards 2012

3. Energy diversification and security:

� Solar energy (pv and thermal) programme enforced

� Domestic rural energy (mostly for heating purposes):

� 100% of households use improved cookstoves (2009)� More than 15,000 biogas digestors been built for household

use(2010)

� Other energy supply options promoted(wind, peat, gasification, etc)

� Oil storage facilities secured: strategic reserves for 6 months

EDPRS ��. towards 2012

4. Strengthening the governance framework and the Institutional capacity

� New legal and regulatory framework in place that facilitates private sector participation

� Adequate and quality human resource capacity created

� Institutional framework intra-institutional cooperation reinforced (SWAp)

� System of planning, monitoring, follow up and evaluation of the energy sector performance

Investment opportunities

� Power Generation

� Transmission

� Distribution

� Institutional capacity

The Potential: + 1000 MW

HYDRO:

350 MW

THERMAL

(Methane Gas):

700 MW

Energy Potential in the CountryEnergy Potential in the Country

GEOTHERMAL:

170-350 MW

Investments???.in;

Power generation

Methane exploitation

� W+S Beteiligungs (Germany): 50 MW GCAFinal round of negotiations to be held before the end of May’08

Investments???.in;

Power generation: Methane cont..

ContourGlobal (CG)

� CG, an American investor: 100MW.

� The first round of negotiations completed

� Due diligence has been carried out

� Final round of negotiations to be held on 30th May ‘08

� First 20 MW with equity funds

Investments???.in;

Power generation: Methane cont?

EnDel sa

� GoR and RIG decided to establish a consortium for the construction of a 100MW plant in partnership with IFC, WB, and AfDB as lenders.

� EnDel sa company was formed and registered in Rwanda

� Industrial Promotion Services (IPS) a group of Aga Khan fund for Development (AKFED) was selected as a strategic partner (2008)

� The members of the consortium invited to Kigali in June, 2008 for negotiation on the way forward.

Investments???.

Methane: Environmental and ecological aspects

Monitoring of the Lake Stability and safety

� In March 2007 a successful workshop was held with Minister of Hydrocarbons from DRC and a joint MOU was signed

� A scientific expert team established mandatory requirements for all gas extraction operations (to be attached to any gas concession agreement)

Investments???.in;

Methane: Gas to Liquid fuel

� Various international investors have shown interest for developing methane gas to liquid fuel (GTL)

� Currently negotiations with IDG of SA for a concession going on

Investments???.in;

Power generation: hydro-power

� Rukarara (9.5MW)

� Construction works on track � About 25% of woks accomplished � Power expected on stream in Q3 of

2009

� Nyabarongo (27.5 MW)

� Financed through the Indian Eximbank

� 37% grant element

� Electricity expected on stream in Q4 of 2010

Investments???.in;

Generation: hydro-powerMicro Hydro Power (10 MW)

� 21 sites being developed under different schemes

� 8 MHPP financed by GoR

� 4 MHPP financed by GoR/ UNIDO

� 6 MHPP under PPP supported by The Netherlands and Germany

� 3 MHPP supported by Belgium Govt

Investments???.in;

Power generation: solarKigali Solar

� Kigali Solar Power Plant (250kW) on grid stream since May 2007.

� Stadtweke Mainz & MININFRA looking into expanding the project to 1MW

268Health Centers

200 Offices of Sectors

500 Schools

Solar PV projects in rural areas for Health Centers, Schools and Administrative offices by 2010Mixed financing: (GoR, Belgian Cooperation, GEF, EU, USAID)

Investments???.in;

Power generation: Geothermal

(150 -350 MW potential)

Geothermal Research

� Studies on identification

of potential drilling sites

being conducted

Preparation for drilling

� By mid 2009 Exploratory

drilling done

Other initiatives: Biomass Energy

� Domestic Biogas Programme has taken off(15,000 households connected by 2010)

� Staff recruited� Funding mechanisms in place (private + subsidy)� Two technological options;

� Brick work digesters� Fiber glass pre-fabricated digesters

� Biomass strategy launched

� Improved stoves� Improved methods of charcoal production� Other technologies; gasification, waste to energy, etc

�

Other Initiatives; 2007 - 2008Energy Efficiency Mechanisms

� Procurement of 400,000 CFL’s in process (saving 15 – 20 MW)

� 50.000 energy saving lamps have been distributed

� Next batch of 150.000 lamps arrives in March ‘08 and 200.000 will be tendered in Q3 of 2008

� Installation of solar water heaters assembly plant starting in April ’08

� Solar equipment exonerated from import duties

� CDM: Many projects are eligible for carbon credits; being developed for approval (CFL, biogas plants, solar and methane)

Regional initiativesGeneration

� RUSIZI II (36MW, SINELAC): rehabilitation of turbines is urgently needed. Working on possible financing

� RUSIZI III (140MW): feasibility study financed by EU ongoing, to be finalized by end 2008.

� RUSIZI IV (205MW): pre-feasibility study financed by EU ongoing, to be finalized by end 2008.

� RUSUMO (62MW): Feasibility study and technical design ongoing and will be finalized by the end of 2008

Access

� Transmission

� Distribution

Roll out Programme

� In order to provide more access, we now need to concentrate on transmission and distribution lines:

� Roll out Programme: from 5% to 16% connected

� Computerized model with GIS data

� Shows least-cost options

� Establishes investment plan for next 10 years

Roll out Programme cont?.

� Programme will have different inputs� Electricity Master Plan (ongoing)

� Demand Forecast

� Rural Electrification

� System analysis (engineering)

� Tariff Study

� Aided by specialized consultants for computer model

� Policy update

� Twining with STEG (Tunisia): STEG uses new technology that can reduce the cost of connection by 70%

Line: Mbarara- Birembo

UGANDA - RWANDA

Line: Kigoma – Rwegura

RWANDA-BURUNDI

Line: Goma – Gisenyi – MukungwaDRC-RWANDA

Line: Bujumbura - Mururu-Goma

BURUNDI-RWANDA-DRC

Regional Interconnections

Line Mbarara- BiremboLine: Rusizi-Karongi-

Rubavu-MukungwaLine: Biharamulo- Rusumo-Kigoma-Bujumbura

TANZANIA-RWANDA-BURUNDI

Institutional setup and Performance

� Sector Wide Approach (SWAp) launched for better harmonization and alignment of actors in the sector

� Better planning, and more qualified staff

� Electrogaz is performing considerably better

� Gas and electricity laws have been submitted for Cabinet consideration

ISSUES TO ADDRESS

1. Financing gap

� We estimate the total EDPRS to costs at around 750m USD

� GoR investments (30%)

� Development Partners (47%)

� Private investments (23%)

� Generation: Geothermal :US$ 9m (2008 - 2010)

� Transmission and Distribution 852 Km of Low, Medium

and High Voltage

Conclusion

In RWANDA,

Doors are wide open

For

International Investment!

Please come, and come now!