Volume I: Investment Prospectus Rwanda Electricity Sector Access ...

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Figure 4.4: Existing Electricity Network (left) and Potential Micro-hydro Sites (right)Notes: The potential micro-hydro sites shown are selected from the hydro atlas based on a potential installedcapacity of ≤ 1,000 kVASource: NUR CGIS and Ministry of Infrastructure / BTC “Hydropower Atlas”.The affordability of electricityOne of the major constraints on expanding access to electricity in Rwanda will be the limitedability of most households to pay for electricity. Figure 4.5 (below) shows the proportion ofhouseholds that have daily expenditure levels of less than US$1.25 per day. In most areas ofthe country, between 50 and 80 percent of households spend less than $1.25 per day. Thisrepresents a barrier to significantly expanding the use of electricity.Figure 4.5: Proportion of Population in Rwanda Living on Less than $1.25 per DaySource: EICV2 Survey20
In order to provide a realistic view of the number of new connections that can be obtainedwithin a particular sublocation, an analysis of the affordability of electricity was carried out.The approach to account for the affordability of electricity in different parts of the country isdescribed in Box 4.1 (below).Box 4.1: Evaluating the Affordability of Electricity in RwandaThe poverty map presented as Figure 4.5 suggests that careful consideration needs to be given toaffordability in the planning the access programme. Although the Government and developmentpartners want to extend access to electricity to help alleviate poverty, these objectives need to bebalanced against the financial sustainability of the programme by considering the ability of householdsto pay for electricity.There is currently no detailed information on ability to pay for electricity in Rwanda. This Prospectususes data on household expenditures from the Household Living Conditions Study (EICV2) andstudies on comparative expenditures on energy in the region (Kebede et al (2002) and Karekezi(2002)). The EICV2 survey collected data on 6,900 households and divides the country into 30districts, which are then split into expenditure quintiles. A recent survey commissioned by theEuropean Union has also been used to compare the results of the EICV2 survey with more recentdata.The data broadly shows that the average household in the highest quintile in each district spends 3times the average household in the next highest spending quintile, and 13 times the average householdin the lowest quintile. The data also shows that households in the Kigali area are able to spendrelatively more than other parts of the country. Widespread poverty nevertheless remains in the Kigaliarea, with over 40 percent of survey respondents spending less than US$2.50 per week.The survey responses have been used to estimate the proportion of households in each district able toafford an electricity connection, assuming that a household will be able to afford an electricityconnection if:Total Expenditure * Energy Expenditure (%) > Current Tariff * Minimum Consumption (kWh)The minimum consumption level is assumed to be 20kWh per month. This is a very low level ofconsumption from 2–3 energy efficient light bulbs and a radio. The proportion of energy expenditurein each household will vary depending on the characteristics of each household and community, andon the cost of electricity substitutes (such as kerosene, batteries and candles). Arecent comparative study (Karekezi (2002)) found that urban household expenditures on energy inAfrica ranged from 12.5 percent in Burkino Faso to almost 25 percent in Mauritania. Data from anearlier study of energy expenditures in Ethiopia (Kedebe (2002)) also support two importantconclusions:• Poorer households (typically in more rural communities) tend to spend a higher proportion oftheir expenditures on energy. This is because household expenditures in rural areas do not includefood that is grown within the household.• Average household expenditures on fuel and power are typically in the range of 5–6 percent inurban areas, and 10–12 percent in rural areas.The following assumptions have been used on the maximum proportion of expenditures that wouldbe spent on electricity in Rwanda, which provides the following approximate average expenditures onelectricity:Area Max. Energy Expenditures (%) Expenditures on Min. Consumption (%)Urban 10 2–3Peri-urban 15 4–5Rural 20 8-10Deep rural 25 10-1421
Page 1: Rwanda ElectricitySector AccessProg
Page 5 and 6: Table of Contents1 Purpose of Prosp
Page 7 and 8: Figure 2.2: Comparative Data from A
Page 9 and 10: Glossary of TermsAbbreviations and
Page 11 and 12: Executive SummaryThe Government of
Page 13 and 14: A series of important conclusions o
Page 15 and 16: There are three sources of funds fo
Page 17 and 18: 1 Purpose of ProspectusThe Governme
Page 19 and 20: 2 Access Programme is a Critical Pa
Page 21 and 22: supply capacity is available as exp
Page 23 and 24: Table 2.2: EDPRS Targets for Expand
Page 25 and 26: important for the access programme,
Page 27 and 28: Central GovernmentThe Government’
Page 29 and 30: 3.4 Energy Sector Legislation and R
Page 31 and 32: Figure 4.1: Overview of Approach to
Page 33 and 34: Table 4.1: Variables Considered in
Page 35: Figure 4.3: Location of Administrat
Page 39 and 40: The planning approach compares the
Page 41 and 42: • Presidential priorities for ele
Page 43 and 44: Figure 4.8: Least Cost Grid Priorit
Page 45 and 46: Figure 4.12: Least Cost Grid Priori
Page 47 and 48: Figure 4.14: Least Cost Grid Priori
Page 49 and 50: Off-grid micro hydro systemsThe com
Page 51 and 52: Table 4.4: Social Institutions Elec
Page 53 and 54: Figure 4.17 (below) indicates the l
Page 55 and 56: Figure 4.19: Overall Electrificatio
Page 57 and 58: 5 Funding for the Access ProgrammeT
Page 59 and 60: The average contract size is expect
Page 61 and 62: Estimates of the capital cost of th
Page 63 and 64: ased on how much is needed to meet
Page 65 and 66: which estimate 370GWh of domestic e
Page 67 and 68: Table 5.5: Capital Cost of Sector I
Page 69 and 70: on approximately 75 percent of resi
Page 71 and 72: • The capital costs of the access
Page 73 and 74: • EPC contracts for half of the n
Page 75 and 76: Managing Director of RECO will then
Page 77 and 78: Figure 6.2: Overview of Programme M
Page 79 and 80: The electricity utility is well-pla
Page 81 and 82: To account for funds committed to t
Page 83 and 84: Impact on funding requirements-US$1
Page 85 and 86: 7.3 Management of Development Partn
Page 87 and 88:
ReferencesColumbia Earth Institute.
Page 89:
T: +1 (202) 466-6790F: +1 (202) 466
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