Private energy companies should first demonstrate the viability of their renewable energy solutions within the private sector before seeking government infrastructure to test and scale them, Senator Penine Uwimbabazi has said. Uwimbabazi made the call while responding to proposals from private energy operators last week during a meeting between the private sector and the Senate Committee on Economy and Finance. ALSO READ: Sixth renewable energy summit begins on Tuesday in Kigali Methode Maniraguha, CEO of Abundio Energy, a company that manufactures solar panels, had proposed that the government allow private companies to install solar systems in public institutions and factories at no upfront cost to demonstrate that the technology can reliably power their operations. Under the proposed energy-as-a-service model, companies would finance and install the systems, while users would pay for the electricity they consume. “There are some misconceptions that solar energy is not capable of powering certain equipment. Some people ask whether it can even power a fridge or whether it can run big machines. We want to prove that it can,” Maniraguha said. ALSO READ: How Rwanda can attract more renewable energy investments He proposed that the government identify public institutions where private companies could install the systems without public funding and demonstrate their viability. But Uwimbabazi challenged private sector players to first test their solutions among themselves. “Why can’t you start with your counterparts, the PSF members who have health facilities, wood workshops and other businesses? Let the state get involved after you have demonstrated that the solutions work,” she said. She also criticised companies that distribute solar systems to households but fail to return for maintenance when the equipment breaks down. “There is also a shortage of technicians. If the equipment stops working and there is no technician to fix it, what is the role of the companies?” she asked. Senator Frank Habineza similarly called for mechanisms to ensure companies remain responsible for off-grid solar equipment after installation and payment. The concerns were raised as private energy operators highlighted financing, regulatory and climate-related challenges affecting the sector. Andrew Mbangukira, chairperson of the hydropower subsector at the Energy Private Developers (EPD), said investors had identified sites with potential to generate between 5MW and 20MW but sometimes struggle to secure power purchase agreements. “When you call on a private investor to establish a hydropower plant, you have to offer them something that makes the investment viable. If they do not see the potential to make a profit, they will not come,” Mbangukira said. He said prolonged dry periods were also reducing water levels and forcing hydropower plants to operate below capacity. “A plant that can produce 5MW can produce only 2MW during the dry season. Sometimes we operate the machines for five hours and spend another five hours waiting for the water level to rise enough for them to operate,” he said. Sosthene Mubera, another EPD subsector chairperson, said access to finance was also limiting off-grid energy projects because companies face expensive collateral requirements. He called for stronger coordination, supportive regulations and financing mechanisms to reduce risks for investors.
