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

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Opportunities also exist for the programme to lower the costs of low voltage (LV)reticulation. The electricity utility from Tunisia (STEG) has begun to provide technicalassistance to Electrogaz on low-cost options for LV reticulation, such as the use of singlephase and single-wire earth return (SWER) technology. It is expected that this approachcan be cost-effectively applied throughout parts of Rwanda.A component cost breakdown for MV line, MV/LV transformer substations, LV lines andservice connections is provided in the Technical Annex, Section 3. The main components ofthese capital works are materials (poles and wires), transport and labour.Typical component costs have been assessed based on recent local experience, together withthe current pilot project being undertaken in the northeast of the country (the STEG pilot).A review of experience with other electrification projects has also been completed to providecomparative benchmarks for the projected component targets. 20Figure 5.1 (below) illustrates how the components of MV line extensions are projected to fallover the EDPRS period. Initial savings of around 16 percent are expected to come from theeconomies of scale provided by the access programme, and the larger size of projectcontracts and material procurement lots. Components such as poles will continue to beimported until local manufacturing facilities can be established, which is reflected in theinitially lower cost savings on poles and transport costs. By 2012, cost reductions of around40 percent for MV and LV lines are factored into programme funding requirements. Thesesavings will result from the planned review of technical specifications, together withcontinued improvements in procurement practices. Projected costs also account for areduction in transport costs by 2012 due to the development of local industry and theconsequent reduction in import costs. Additional detail on modelled cost reductions isprovided in the Technical Annex, Section 3.Figure 5.1: Projected Costs pre kilometre of MV Line Compared to Recent Projects80,00070,000Cost per Kilometre of MV line (US$)60,00050,00040,00030,00020,000-16%-38%PolesWiresTransport10,000Labour0Rwanda(current)STEG Pilot(2008)2009 201220 ESMAP. “Technical and economic assessment of off-grid, mini-grid and grid electrification options.” World Bank,Washington, D.C. 2007.44
Estimates of the capital cost of the major components of the access programme are shownin Table 5.2. This table shows the capital costs of rolling out the distribution network toachieve the required connections derived from the geospatial planning exercise, as well as thecapital costs of off-grid solutions where those are more efficient.The cost per kilometre of new MV line is initially estimated to be around US$55,000, afteraccounting for available cost reductions. These costs are expected to fall to US$35,000 perkilometre by 2013 as new material suppliers are established in Rwanda and as the programmegains procurement experience. The costs of connecting low voltage customers have beendivided into “infill connections” (where low voltage networks already exist), and “expansionconnections” (which will require additional medium voltage infrastructure within the supplyarea). A breakdown of the projected cost per connection in the access programme andexpected cost reductions is provided in the Technical Annex, Sections 3 and 4.Table 5.2: Capital Cost Components of Electricity Access Programme (US$ million)Programme Component Unit Cost 2009 2010 2011 2012 2013Network extensions 1Low voltage connections$55,000/km$35,000/km23.5 24.1 20.6 22.7 13.3– Infill connections 2 $350/conn. 10.4 10.0 9.9 11.1 11.0– Expansion connections $440/conn. 1.5 16.3 16.6 17.8 18.6– CFLs $1.82/CFL 0.2 0.3 0.3 0.4 0.4Network strengthening 3 US$65/MWh 1.5 4.1 7.1 10.2 11.8Off-grid connections– Micro-hydro schemes 4 $3,000/kW 4.1 9.2 16.7 16.9 7.3– Solar PV electrification 5 $20,000/kW 6.4 6.4 6.4 6.4 0.7Solar Hot Water $1,250/unit 1.3 1.3 1.3 1.3 0.0Technical Assistance Various 7.3 7.3 5.4 5.4 3.2Total 56.1 78.9 84.2 92.1 66.3Notes: 1 Initial MV line costs are estimated to be US$55,000/km. Costs are expected to fall by US5,000/km ineach year of the programme, reaching $US35,000/km in 20132 The connection costs quoted in the table are an average of per household connection costs for 2009–2012. These costs increase during the access programme as more remote communities are targeted forgrid electrification3 The network is assumed to require further strengthening (for example, upgrading line capacities andconductor sizes) as additional load (MWh) is added under the access programme4 Average cost of micro-hydro generator and mini-grid distribution infrastructure. Actual costs varydepending on size of micro-hydro generator and the population density in the service area5 Includes the capital cost of solar PV units only (i.e. excludes operations and maintenance of PV units)To put the costs of the access programme into context, Table 5.3 (below) summarises theper household capital costs of the access programme. Connection costs start at around45
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Rwanda ElectricitySector AccessProg
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Table of Contents1 Purpose of Prosp
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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 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: The average contract size is expect
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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