How 2014/15 Budget seeks to boost energy targets

The 2014/2015 National Budget saw the energy sector allocated Rwf148.6 billion that is supposed to go to electricity generation, transmission and distribution, alternative sources of energy promotion and energy efficiency and supply security. The allocation is set to steer Rwanda close to the government’s ambitious energy production target to see 563MW of energy realised by 2017 in order to reduce the country’s electricity deficit. The government and its partners have invested in alternative energy sources such as the extraction of methane gas in Lake Kivu and geothermal energy on Mount Karisimbi. Earlier in the year, a new concessional loan worth $40 million (about Rwf27 billion) was signed to fund the construction of 119 kilometres of transmission line from Rusumo Power Plant to Birembo substation in Kinyinya in Gasabo District. The ministry of infrastructure projects that at least 25MW will be added to the national grid from methane gas extraction in September once KivuWatt’s first phase is complete. According to the energy sector strategic plan and roadmap 2013-2017, government plans to increase the country’s capacity mainly from hydro, peat, methane, geothermal and solar. Twenty-five from Kivuwatt methane project, Gigawatt Global Solar Plant (8.5MW) and Gishoma peat plant (15MW) are among the projects that have been mentioned to achieve the set target. Combined energy generation The Energy Water and Sanitation Authority projects that the planned power generation will comprise peat (estimated at 200MW), methane (additional 100MW), hydro (additional 63MW), geothermal (90MW) and solar 18.5MW). Economists argue that private players and expanding energy sources outside hydropower will see more households connected to the national grid and ease power costs for households and businesses. Rwanda’s energy deficit has been said to put pressure on the economy, with imports at 14.5MW. According to World Bank statistics, the cost of energy in the country has risen to $0.22 per kilowatt-hour, compared with $0.08 to $0.10 in the rest of the region. The World Bank also says connectivity to the national grid in the East African region remains relatively low, at 15 per cent of households, but Rwanda is still among the best performers in the region.