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

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Using the range of estimates of willingness to pay for electricity US$0.50c/kWh andUS$0.70c/kWh an initial estimate of the economic return of the access programme hasbeen calculated. This economic cost benefit analysis is provided in the Technical Annex,Section 4. For new household connections, the analysis assumes benefits ofUS$0.70c/kWh for the first 20kWh consumed per month, and US$0.50c/kWh for anyadditional consumption. Social institutions and commercial enterprises are assumed to bewilling to pay US$0.70c/kWh. These parameters provide the following economicindicators for <strong>Rwanda</strong>’s access programme over a time period to 2020:• Economic rate of return: 24 percent• Net present value (assuming a discount rate of 10 percent): US$168 million• Levelised economic benefits: US$0.26c/kWhThe economic rate of return for individual components within the overall accessprogramme will be higher than the expected return for the programme as a whole.The results of the least cost grid prioritisation approach for each of the next five years areshown in Figure 4.8 to Figure 4.12 (below). The grid prioritisation shows that theGovernment’s targets can be achieved without requiring a massive extension of the mediumvoltage (MV) network. <strong>Rwanda</strong> is fortunate to have a relatively well-developed MVtransmission network, with more than 60 percent of the population within five kilometres ofthe grid. Over 95 percent of planned new connections to 2012 are within five kilometres ofthe existing grid.The planning also targets a considerable number of new connections in areas that alreadyhave some low voltage networks. These connections are commonly referred to as “infills”,and the majority of these connections will initially be made in the urban area of Kigali andperi-urban areas in the northwest of the country. This part of the access programme willhelp to minimise costs and maximise economic opportunities for the urban poor.While all existing and planned distribution lines have been included to prioritise new gridconnections, some networks do not receive any new connections under the prioritisationapproach. This is because the prioritisation approach takes into account a range of social andeconomic indicators, rather than solely focusing on the existing grid. The final selection ofareas targeted for new electricity connections will need to be reviewed according toprevailing social and political imperatives during the programme implementation phase.26
Figure 4.8: Least Cost Grid Prioritisation for 200937,000 new connectionsFigure 4.9: Least Cost Grid Prioritisation for 201057,000 new connections27
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 and 36: Figure 4.3: Location of Administrat
Page 37 and 38: In order to provide a realistic vie
Page 39 and 40: The planning approach compares the
Page 41: • Presidential priorities for ele
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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