Norwegian companies explore opportunities in energy sector

A delegation of representatives from 10 companies in the Norwegian energy sector was in the country last week for the Rwanda-Norway Energy Forum, which explored opportunities in the local energy sector. The firms are members of Norwegian Energy Partners and were here for the energy forum held last week. Rwanda’s energy sector has potential as only 35 per cent of the country’s households are currently connected to electricity while the target is to connect about 70 per cent by 2018, and 100 per cent by 2024, according to Rwanda Energy group (REG). Besides connecting households, Government continues to seek ways to ensure sufficient energy as the country continues to attract investors in different areas, including manufacturing. Morris Kayitare, the director of primary and social energies development at Rwanda Energy Development Corporation (EDCL), said off-grid energy solutions prove to be among the best ways through which Rwanda can achieve energy access targets, especially under Rural Electrification Programme, noting that the sector needs more attention. On-grid system refers to electrification through a network of interrelated power system components like lines and generation. Off-grid means a stand-alone system that is not interconnected to the main (national grid), such as a solar panel or a battery. Rwanda Development Board (RDB) chief operations officer Emmanuel Hategeka said, currently, Rwanda’s off-grid energy access is about 7.6 per cent, against a target of 22 per cent by 2018. Speaking to The New Times at the forum in Kigali, Gulbrand Wangen, the regional director at Norwegian Energy Partners in Africa, Brazil, India and Midstream, said “the firms are here to explore investment possibilities in Rwanda.” NORWEP consists of over 260 member companies in the entire energy value chain. In Rwanda, Wangen said, the companies are considering renewable, solar as well as hydropower energy segments. He said there were 10 more qualified firms with relevant experience in off-grid system in those segments in not only in Norway, but also in Africa. He said Rwanda has regulatory system and a business environment that is in compliance with ethical standards for doing business, citing transparency, openness and professional contract arrangements. Wangen said business development and regulation in Rwanda makes the country attractive. “We are here to find local firms that have the logistics that we can partner with, and to know which projects are in the pipeline that relevant Norwegian firms can work with,” he said. The services offered by the companies include engineering, procurement and contracting, financing in renewable energy, solar systems. Speaking about the need for more investors in off-grid energy option, EDCL’s Kayitare said there are only 24 firms in the trade, of which only four are major. “Our expectation is that investment in the sector will grow, and our target of at least 22 per cent should be met by 2018,” Hategeka said. Facilitating energy access Kayitare said, in 2016, Government set up new strategies to boost access to energy, including providing and covering the cost of energy to the vulnerable and subsidising energy for people who are not vulnerable but cannot entirely afford power. Under the initiative, he said, about 150,000 vulnerable households were identified and the Government got up to $50 million (about Rwf40bn) from the World Bank for equipping households with solar energy. Explaining the facilitation to investors in energy sector, he said Government has a risk mitigation facility, and that Germany International Development Agency (GIZ) provides up to 75 per cent refund for the investment made by an entity, under a results-based financing model. So far, there are close to 200,000 solar energy systems installed countrywide. A solar system costs $540 (about Rwf440,000) over a period of three years, which means the customer pays Rwf12,000 per month. Rwanda has one solar power plant in Rwamagana District, with capacity to generate 8.5 megawatts. It supplies 15,000 households. The country seeks to generate 563 megawatts by 2018, from about 208 currently, as per REG figures. editorial@newtimes.co.rw

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Norwegian companies explore opportunities in energy sector