Examining the benefits of Rusumo hydroelectric plant

It was reported last week that Rwanda was gearing up for the construction of the Rusumo hydroelectric plant as announced by the Ministry of Infrastructure. Consistent with Rwanda’s electricity master plan (2009-2025), this project will help address the issue of power shortage around the country, and provide job opportunities to the residents of Rusumo.The news of yet another dam on our rivers is thrilling by all accounts, and what of it? Allow me to think out loud…The story highlighted the fact that it was paramount that the project received the support of the Rusumo community given the numerous consequences of constructing a hydro plant on residents of the area, and the environment.I am sure Rwandan law has provisions for procedures related to land acquisition; implementation of rehabilitation and resettlement is key to ensuring that families affected by works that are of public interest are compensated appropriately.I hope with this campaign for support comes one of sensitisation about how the dam will change their community and environment, but also that priority will be given to these residents during employment.Speaking of the environment, the engineers working on the project made it clear that the proposed plant would not affect the flow of the Akagera river, or affect the environment. I am very skeptical of this claim (for another day), but indeed, if adequate safeguards for environmental protection are put in place to monitor and implement environmental protection, hydropower production is one of the cleanest sources of energy.Looking beyond the production of power in and of itself, and the benefits we shall reap from increased wattage on our power grid; or the negative consequences on the environment, there ought to be a mechanism in place for recovery of cost (of service) to make the power sector sustainable.But what about the consumers who are below the poverty line? They need power too… One approach could be to provide support in terms of cross-subsidization of power tariffs; this comes at the price of high chances of inefficiencies being hidden between the lines, especially with regard to operations. Rwanda has some of the highest power tariff rates so it is only fair to account for all consumers.Another aspect of interest is that of research; it is paramount that this plant is effectively utilized, and in a manner that complements and supplements the Ntaruka and Mukungwa hydropower stations already in operation (as well as all the other power sources).Operating complex power stations requires robust IT systems for efficient distribution; for example, just as well as cost-efficient technologies for power transmission over long distances; investment in research and development to optimize this system in a customized manner for the Rwandan electrical environment seems like a good idea. Feasible? Why not?Last, but certainly not least, is the notion of competition that cannot stop burrowing through my brain! EWSA has done a terrific job thus far but in which world has a monopoly spurred market development? As our power market develops, how long before new power-generating plants participate in a competitive environment.That would be good for the economy, and great for the consumer; it would ‘diversify’ the power market and result in reduced power tariffs for us consumers. This brings me to another point: that the private sector should participate in the financing of power sector programmes. The government’s job should be more to do with the creation of a conducive, transparent environment for investments.I will end by saying that, in line with the consumer interests, an appropriate balance will have to be struck between interest of consumers, and the need for investment (and return on investment). Now let me throw away all my candles…

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Examining the benefits of Rusumo hydroelectric plant