On January 11, the Lower Chamber of Parliament approved a law ratifying a $300 million (approx. Rwf380 billion) financing agreement meant to fund a sustainable and eco-friendly energy project in the country. The deal was signed between Rwanda and the World Bank’s International Development Association (IDA), on December 14, 2023, in Kigali. According to the Ministry of Finance and Economic Planning (MINECOFIN), the adoption of the financing agreement by Parliament is “a pivotal step toward universal access to electricity.” The Minister of Finance and Economic Planning, Uzziel Ndagijimana, told lawmakers that the financing consists of two loans, of which $200 million will be paid back within 40 years that are counted after 10 years [of grace period], while $100 million will be repaid within five years counted after a six-year grace period. “Both loans are interest-free,” Ndagijimana said. He indicated that the funding would increase electricity access, strengthen transmission networks and expand clean cooking solutions, without the use of firewood. ALSO READ: Rwanda needs more Rwf600bn to achieve universal access to electricity Over 420,000 households to access electricity under the project The financing mentioned above will fund the “Accelerating Sustainable and Clean Energy Access Transformation Rwanda (ASCENT)” project which aims to expand [electricity] grid access to over 420,000 households, according to information obtained by The New Times from MINECOFIN. The project has a timeframe of five years (2024-2029). It will cover the districts of Gisagara, Huye, Muhanga, Nyamagabe, Nyanza, Nyaruguru, Ruhango, Bugesera, Gatsibo, Kayonza, Kirehe, Ngoma, Nyagatare, Rwamagana, and any other qualifying districts, according to information from MINECOFIN. Clean cooking solutions for 100,000 households The project also seeks to encourage the use of energy or fuel other than firewood, in line with environmental protection. Clean cooking solutions considered under the project encompass electric, liquefied petroleum gas (LPG), and other renewable technologies like solar. Eligibility extends to both urban and rural households, with an initial focus on transitioning urban households to modern cooking solutions. It is expected that an estimated 100,000 households will access these services, MINECOFIN noted. Also, an estimated 60 productive users, with a special focus on schools, will access clean cooking solutions. ALSO READ: Rising gas prices threaten adoption of clean energy in schools Improving transmission network, power supply reliability Information from MINECOFIN indicates that the project targets to improve access to reliable and quality electricity services for the Rwandan population by expanding the transmission network and reinforcing the existing distribution network, thus reducing system losses [of energy]. It is estimated that the project will construct 77 km of transmission lines. “It will reduce instability in power distribution in line with enhancing the quality [of electricity], efficiency, and reliability in electricity supply,” Ndagijimana said. A boost towards universal energy access Upon completion, the project is expected to contribute to a 91 per cent electricity access rate in the country, with 70 per cent connected to the grid while 21 per cent will be off-grid, as per data from MINECOFIN. ALSO READ: Rwanda achieves 70% electricity access, set to host energy conference As of the end of October 2023, 74.74 per cent of Rwandan households had access to energy, with 53.79 per cent of them connected to the national grid and 20.95 per cent accessing it through off-grid systems (mainly solar), according to data from Rwanda Energy Group (REG).
