WSHPDR_2013_Final_Report-updated_version

1.1.9 Rwanda
Lara Esser and Laxmi Aggarwal, International Center on
Small Hydro Power
Key facts
Population 11,689,696 1
Area 26,338 km 2
Climate Temperate; mild in mountains
Topography Mostly grassy uplands and hills; relief is
mountainous with altitude declining
from west to east.
Rain
Pattern
Two rainy seasons (February to April,
November to January). 1
Eastern and south-eastern regions are
more affected by prolonged droughts
while the northern and western regions
experience abundant rainfall that at
times cause erosion, flooding and
landslides. The spatial variability has
been attributed to the complex
topography and the existence of large
water bodies within the Great Lakes
Region. 2
Electricity sector overview
The energy policy in Rwanda focuses mainly on the
electrification of the country, which has increased
significantly from 6 per cent in 2005 to 12 per cent in
2010 through the electrification roll-out programme.
The Ministry of Infrastructure (MINIFRA) has bundled
the activities of several donors and pushed the
promotion of renewable energies. 4
The Government of Rwanda has set out clear targets of
1,000 MW production and 50 per cent of connections by
2017. 5
In the framework of the National Energy Policy,
hydropower plays an important role in the
electrification of the country as it is the main renewable
energy source for electricity generation (figure 1). This
includes micro hydropower and isolated mini-grids,
which should be encouraged by a simplified legal and
regulatory framework and governmental investments. 4
Hydropower imported
Hydropower
Gas methane
Thermal
10.44%
14.64%
34.89%
40.03%
0% 10% 20% 30% 40% 50%
Figure 1 Electricity generation in Rwanda
Source: Rwanda Environmental Management Authority 3
Rwanda Electricity Corporation (RECO), formerly known
as ELECTROGAZ, the government-owned utility, , will in
the short to medium term, still be the dominant player
in the electricity market which is regulated by the
independent Rwanda Utilities Regulator Authority
(RURA). However, independent power producers (IPPs)
are also encouraged in the generation sector. Selfcontained
off-grid schemes are encouraged: these can
be owned and operated by RECO or by private
developers. The National Energy Policy foresees three
types of licensing issued by RURA:
Single buyer licence: RECO is to be licensed as the
single buyer of electricity. It will enter into
agreements with private developers of generation
projects for the purchase of electricity;
IPP licences: All generation projects or concessions
involving private investors are to be licenced by
RURA.
Off-grid licences: Concessions are granted by RURA
to private companies to generate, supply and
distribute electricity within an area of the country
not covered by RECO. The tariff and other supply
provisions are to be regulated by RURA.
Within the electrification roll-out programme, the
Rwandan Government and various donors provide
funding to a number of small hydropower projects.
Different donors are funding micro hydropower under
different schemes among them is the United Nations
Industrial Development Organization (UNIDO), the
World Bank and the African Development Bank (AfDB).
A part from this, the Energising Development Private
Sector Participation (EnDev PSP) programme, involves
private investor schemes. The programme finances 50
per cent of the total costs, while private developers
cover the remaining 50 per cent. The programme
motivates banks to offer lending for micro hydropower
investments. Imported capital goods such as micro
hydropower equipment are exempt from the value
added tax (VAT) payment.
Requests for small hydropower permissions are given by
the regulatory authority RURA. 4
Small hydropower sector overview and potential
In 2009, hydropower contributed 20 MW to 55 MW
installed capacity at four small hydropower stations and
a number of independent micro-hydropower stations
(table 1). 4 In October 2011, three more micro-hydro
plants were inaugurated, with a total capacity of 3.2
MW. They are located in Keya, in Rubavu District and
Cyimbili and Nkora in Rutsiro District and feed into the
national grid to increase the power output by five per
cent. The three plants were co-funded by the
Governments of Rwanda and Belgium, at the cost of
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