Germany invests Rwf30 billion in energy sector

Efforts to boost power generation are set to receive timely support thanks to Germany’s commitment to invest Euros 32.5million about Rwf30 billion into the sector.

Efforts to boost power generation are set to receive timely support thanks to Germany’s commitment to invest Euros 32.5million about Rwf30 billion into the sector.

The funding, according to Ronald Nkusi, the director of external finances at Ministry of Finance and Economic Planning, will help in the rehabilitation and privatisation of the hydropower stations Rusizi I und Rusizi II at the border between Rwanda, Burundi and the DR Congo.

 

Nkusi said the support is timely and will help boost sustainability in terms of energy generation and distribution capacity.

 

On December 16, German Ambassador Peter Woeste and the Executive Secretary of the Communauté économique des pays des grands lacs (CEPGL), Herman Tuyaga, exchanged documents finalising the German commitment with Energy.

 

The contribution, according to Amb Woeste, will strengthen the regional cooperation and stability.

Amb. Woeste commended the decision of the German government to release the huge grant.

The ceremony was witnessed by the Head of Development Cooperation of the German Embassy, Stefan Sckell, and the head of the government-owned Bank for Reconstruction (KfW) of Germany, Markus Bär, and representatives from Rwanda’s energy sector.

Rwanda’s energy ambition

Rwanda targets to extend power to at least 70 per cent of the households in the country by 2018. To achieve this ambitious goal, government projects to boost electricity generation to 563 megawatts within the next two years.

Earlier this year   government and the European Union, signed a financing agreement worth €177 million (about Rwf157 billion) to support the energy sector over the next five years.

The financing agreement was the first of a series to be signed in the coming months as part of a €460 million programme of EU grant financial assistance to Rwanda agreed in 2015.

Rwanda’s  power generation capacity currently stands at about 190 per cent, with hydro-power accounting for  more thhan 97.37 megawatts of the country’s  total installed capacity, thermal is at 51.7 megawatts, methane accounts for over 10 megawatts, while 8.75 megawatts is produced from solar energy, among others.

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