Rural Electrification-Rwanda Title of presentation Case Study Ali Mohamed.pdf · Fatin Ali Mohamed Industrial Development Officer UNIDO , Vienna, Austria UNITED NATIONS INDUSTRIAL

Hydropower Africa 2009, Johannesburg, South Africa

Title of presentationRural Electrification- Rwanda

Case Study

Fatin Ali Mohamed

Industrial Development Officer

UNIDO, Vienna, Austria

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION


ContentsContents

1. Context - Mini hydro based Rural Electrification

2. Rwanda Case Study: Approach

3. Problems Faced and Lessons Learned

4. Impacts and Future Orientations


CONTEXT: Energy, Poverty & Economic Growth

� Lack of access to energy is a major barrier to poverty reduction and economic growth

� Most countries have natural resources, such as hydropower and biomass, which could be used to produce the needed energy

� National governments recognizethe urgent need of Energy inputsfor the process of poverty alleviation and industrial development


CONTEXT: UNIDO mandate

� As part of its thematic priority on Energy and Environment, UNIDO provides services for:

• Improving industrial energy efficiency

• Promoting cleaner technologies

• Enhancing use of renewable energy, and

• Increasing access to energy for productive use

� In line with this, UNIDO promotes rural energy development for poverty reduction and economic growth


� Producing energy from locally available resources contributes to preserving the environment and reducing the burden on state budget

� Mini hydro technology is proven to be reliable in rural conditions

Context: Renewable , Climate & Security of Energy Supply


� Acceptable range of capital cost: 1000 to 5000 $ per kW; it is site specific, depending on civil work, equipment, soil type, accessibility, availability of building materials in vicinity, etc.

� Amount of power provided by water is a function of height and volume of water passing through turbine

� For same kW capacity, the higher the head and the lesser volume of water, the less cost of equipment and civil work

Context: Small hydro power – Economics and Cost Reduction


What it takes to turn access to modern energy What it takes to turn access to modern energy

a business as usual?a business as usual?

Policy & Financial

mechanism

Technology transfer

Almost 0 rural electrificationAlmost 0 rural electrification

No modern energyNo modern energy

Scaling up leading to Economic growth

Technical capacity

Rwanda Case StudyAPPROACH: based on removing barriers


Rural Electrification – Scaling up Phases

Phase III-business as usual

Critical mass of experts in feasibility studies construction, operation, maintenance,..

Critical mass of experts in feasibility studies construction, operation, maintenance,..

Established equipment supply market, established maintenance and spare parts services,equipment costs reduction,..

Established equipment supply market, established maintenance and spare parts services,equipment costs reduction,..

Key Key factorsfactors Phase I- Demo Phase II- scaling up

Capacity & Capacity & awareness awareness buildingbuilding

Technology Technology TransferTransfer

Selection & testing of appropriate technology in function of Performance -maintenance, spare parts, costs,..

Selection & testing of appropriate technology in function of Performance -maintenance, spare parts, costs,..

Awareness building of Stakeholders, initiation of critical technical mass

Awareness building of Stakeholders, initiation of critical technical mass

Consultations on & drafting proposal forFinancial mechanisms

Consultations on & drafting proposal forFinancial mechanisms

Defining roles & stakeholders responsibilities Increasingof critical mass

Defining roles & stakeholders responsibilities Increasingof critical mass

Narrowing selection, market created leads to reducing costs, availability of spare parts established experience in maintenance,..

Narrowing selection, market created leads to reducing costs, availability of spare parts established experience in maintenance,..

Initiating institution framework, approving financial mechanisms

Initiating institution framework, approving financial mechanisms

Operational& fine- tuned financial mechanisms

Operational& fine- tuned financial mechanisms

Policies & Policies & Financial Financial

mechanismsmechanisms

Time

APPROACH: progress in phases


Phase I: Demonstration Projects & Learning by Doing Capacity Building

Creation of critical massof technical capacity & awareness building

Pilot sitesIdentification & feasibilityStudy, Construction, operation, management, equipment performance

Conducive Policies & financial mechanismsDevising & fine tuning

Learning by doing

Feed back, fine tuning & innovation

APPROACH: in a learning & innovation process

Feed back, fine tuning & innovation


Agency for Rural Energy Development

Donor Funding

Government (Min of Finance)

Administrative Unit of BRD

Common Development Fund

Local Government as a Project Developer

CBOs or Private sector

CommercialBanks

LoanFunds

GrantFunds

Flow of Rural Energy Development FundsFlow of Rural Energy Development Funds

APPROACH: A scenario for financial mechanism & serv ices delivery


GISENYI

KIGALI

GIKONGORO

GITARAMA

KIBUNGO

RUHENGERI

CYANGUGU

BYUMBA

BUTARE

KIBUYEKibuye

Cyangugu

Gikongoro

Kibungo

Butare

Goma

BIRUNGANAT'L PARK

UGANDA

REPUBLIC OF

TANZANIA

DEMOCRATICREPUBLIC OF THE

CONGO

UNITED

BURUNDI

PARK

NATIONAL

KAGERA

LakeBunyonyi

LacCyambwe

LakeMujunju

LakeBisongou

LacIhema

LacKivumba

Lac Hago

Lac Mikindi

LacRwanyakizinga

LacNasho

LakeMutanda

LacKivu

LacMpanga

LacBurera

LacRuhondo

LacMuhaziKagitumba

Akan

yaru

Nyabarongo

Lowa

KageraLacCyohoha

LacRweru

Kagera

Gishyita

KABALE

Cyesha

BUKAVU

CyeshaCyesha

Kirehe

KALEHE

KIKUNGIRIKIKUNGIRIKIKUNGIRIKIKUNGIRI

IteraIteraItera

KiansechiKiansechiKiansechiKiansechi

KABALEKABALEKABALE

NYARUGUMBANYARUGUMBANYARUGUMBANYARUGUMBANYARUGUMBA

BYUMBABYUMBABYUMBABYUMBABYUMBA

KaishoKaishoKaishoKaisho

BuginaBuginaBuginaBugina

RUHENGERIRUHENGERIRUHENGERIRUHENGERIRUHENGERI

GISENYIGISENYIGISENYIGISENYIGISENYI

KabayaKabayaKabayaKabayaKabaya

KIGALIKIGALIKIGALIKIGALIKIGALI

GitaramaGitaramaGitaramaGitaramaGitarama KanzenzeKanzenzeKanzenzeKanzenzeKanzenze

GishyitaGishyitaGishyitaGishyita

NYANZANYANZANYANZANYANZANYANZA

BUTAREBUTAREBUTAREBUTAREBUTARE

NGARA

Cyesha

KireheKireheKireheKirehe

KibehoKibehoKibehoKibehoKibeho

Numbi

BUKAVUBUKAVUBUKAVU

Cyesha

KALEHEKALEHEKALEHEKALEHENguziNguziNguziNguziNguzi

BIRENGABIRENGABIRENGABIRENGABIRENGA

4 mini hydro sites with 6 mini gridsNyamyotsi 100kW in operation since 8/ 2006, Mutobo 200kW & Gatubwe 200kW 7/2008 & Nyam II, 100 kW will be in 9/2009

The approach applied resulted in…


PRESENT

Economic Activities

Indicator No.

Primary School 1

Secondary School 1

Pharmacy 3

Health Centre 1

Carpentry Workshop 2 Slaughter house 1 Small Scale Shops 23 Micro-credit scheme 3 Grain milling machine 2 Sewing Cooperatives 3 Market 1

Available input to the potential economic activities are:

• Banana plantations of about 70 ha• Forest of about 5 ha• Sand• Fertile soils• Hydro-power potential (2 km)• Working Group (20-40 years) of about 40% of population• Motorable road to village• School teachers• Potable water• Cultivatable marshland of about 20 ha• Domestic animals (cows, sheep, pigs, goats)

Site selection based mainly on evaluation of Socio-Economic profile and potential productive uses- For example:

POTENTIAL Economic Activities

Important issues: potential productive use


Socio economic profile of Nyamyotsi Micro hydro

Will purchase electricity & stimulate existing income generating activities

Will have increasing work opportunities and become able to pay for energy services

Low-income(100 USD/yr)

75%

Middle-income(400-800 USD/yr) 25%

Total of 700 families (4,000 inhab.)

Important issues: potential productive use


� More kWh sold from same capital investment

� Thus, more affordable energy service/kWh accessible to a wider number of poor beneficiaries

Load Curve

0

10

20

30

40

50

60

70

80

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23Time (hrs.)

(Loa

d (k

W)

Domestic Usage Industrial Usage Total Load Curve

Appropriate ManagementManagementManagementManagement and Productive useProductive useProductive useProductive use of energy produced ⇒⇒⇒⇒ Poverty alleviationPoverty alleviationPoverty alleviationPoverty alleviation

Key issues for sustainability in Rural communities

Productive uses

lighting


Determinants of energy enterprise performance

Energy enterprises

Skills for designing, engineering, construction and maintenance

Access to smart financial mechanisms

Knowledge and experience of appropriate management set-ups

Access to and cost of appropriate equipment and spare parts

Policies and Regulatory frame Promoting PPP

Expected end situation…


Snapshots: awareness building and participation of local population important for ownership


Construction done by

local labours from the

community, trained by &

work under suppervision

of UNIDO experts

Snapshots: local labours & skills


Snapshots: local labours & skills


Snapshots: Some users- around 1200 service wirings; more is add ing…


Some of the Problems faced & Lessons learned:

Erosion of river banks - sandy water


Lessons learned: Erosion of river banks - sandy water

Solutions: Special designs- intakes and forebay tanks


Lessons learned: Erosion of river banks - sandy water;

Solutions: Plantation of bamboo and others to prevent soil erosion

But, a nationwide action

needed as the problem is not

local and water comes from

distances & elsewhere


Local Authority in close cooperation with the

consumer society

TechnicalResponsible

FinancialResponsible

Operators Helpers Security guards

He/ she will be the competent authority of the entire mini hydro power facility and should be responsible to the MINIFRA.

TR is responsible for all the technical matters regarding the power facility & should be carrying out the duties mention in chapter 3.8. In operation and maintenance manual

He/she should be responsible for all financial issues which are covering following duties.-Maintaining the bank account.-Monthly billing.-Handling plant operational expenses-...

Present management set up at Niyamyotsi I

Lessons learned: irregularity of fee collection leading to shortage in

cash flow for appropriate management and running costs


Private company

signing a contract of

management with the

local Authority

TechnicalResponsible

FinancialResponsible

Operators Helpers Security guards

Local Authority in close cooperation

with the consumer society

TR is responsible for all the technical

matters regarding the power facility &

should be carrying out the duties

mentioned in chapter 3.8. In operation

and maintenance manual

He/she should be responsible for all financial issues which are covering following duties.-Maintaining the bank account.-Monthly billing.-Handling plant operational expenses-...

Proposed management arrangement: Private contract of services

A solution: besides more rigorous awareness building, shifting to

private management


Some Impacts: beside providing access to electricity with its impact

on the socio economic situation, a major outcome capacity

building through learning by doing, on various levels is


� GoRw is building on the outcomes and has embarked on a replication process using the south-south cooperation promoted by UNIDO: 8 mini hydro plants totaling 6.75 MW & a small hydro of 9.5 MW are being constructed; 10 other mini hydro plants are financed by European donors

� GoRw has set objective of increasing access to electricity from 6-16% by 2012, where mini-hydro plays the major role in rural electrification plan

Some Impacts: A measurable macro level impacts - GoRw Policies


Thank you!

Documents

Rural Electrification-Rwanda Title of presentation Case Study Ali Mohamed.pdf · Fatin Ali Mohamed Industrial Development Officer UNIDO , Vienna, Austria UNITED NATIONS INDUSTRIAL