Rwanda Green Growth Strategy 18nov11 - Global Climate Change ...

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Detailed Programmes of ActionProgramme 6: Sustainable Small Scale Energy Installations in RuralAreasResponsible Stakeholders (lead in bold)MININFRA, EWSA, RURA, Private SectorSummary of Programmes and ActionsOff-grid or mini-grid generation potential should be utilised to increase access to electricity in rural areas.This strategy should be seen as pre-electrification and complementary to the grid expansion plans. Rwandawill increase development of small scale generation in rural areas by encouraging private sector involvementthrough performance-based grants and incentives for consumer finance; maximising energy projectpotential through high load factors and appropriate maintenance; and building consumer confidencethrough demonstration and product standards. The end goal of these actions is a commercially-viablemodel for rural electrification. Action 1: Private Sector InvolvementPrivate sector involvement can accelerate the diffusion of small scale renewable generation projects intorural areas. Rwanda will encourage private sector involvement in a number of ways. Firstly, it will removeimport and VAT taxes on renewable technology components. Secondly, it will set up a grant-per-unit-soldscheme to incentivise private companies to invest in solar products and biogas digesters. Thirdly, in order toovercome the barrier of high up-front costs for consumer, the GoR will encourage credit institutions – banks,microfinance institutions, savings and credit cooperatives (SACCOs) – to extend consumer finance to thosethat want to purchase renewable energy technologies such as solar home systems and biogas digesters.The GoR will encourage lending through either partial loan guarantee, in which it would assume the risk of acertain percentage of clients defaulting, or a grant-per-unit-financed scheme. Lastly, the GoR will extendloan guarantees to buy down the interest rates of loans for renewable energy enterprises, such as microhydro engineering companies, mini-grid operators, and solar and biogas retailers. Alternatively, the newClimate and Environment Fund, FONERWA, could extend concessional loans to such enterprises. As minigridand off-grid systems have high capital costs, grants should incentivise or require the use of efficientend-use technologies. Action 2: Maximisation of Energy Project PotentialCurrently, significant generation potential is lost through poor maintenance, or because projects arefinancially unsustainable. For example, to be financially viable, micro hydro projects must operate with a highload factor. To ensure this high load factor, consideration will be given to productive end-uses of the energyduring the planning of future micro hydro programmes. For example, a hydro plant could be developed intandem with an “anchor consumer” such as a mill, school, or tea plantation that will make up the bulk of theload factor. Once the load factor is guaranteed, it will be then possible to consider construction of a minigrid.Productive end-use strategies should therefore be the norm. Night-time use for electricity, such asbattery charging stations uses, will also be considered. Maintenance strategies are crucial to the success ofany energy project. Local technical and managerial capacity will be built, and where a private company isreceiving a grant-per-unit-sold, a portion could be made conditional upon the product working after a certainnumber of years. Action 3: Build Consumer ConfidenceCreating consumer confidence and awareness in renewable energy technologies is essential to promoteuptake, particularly for solar technologies, pico hydro and biogas digesters. Product standards, drawn fromestablished international standards such as those set by the Lighting Africa Initiative, will be implemented toensure quality. In partnership with the private sector and research institutes such as KIST and CITT,thegovernment will hold marketing events to disseminate information about benefits of renewables and thehealth and environmental pitfalls of traditional fuels; and will implement demonstration projects to promoteconsumer awareness and test the suitability of products for specific communities.66Government of Rwanda
Detailed Programmes of ActionStrategic ObjectivesEnergy Security Food and Water Security Social Protection and DRR Low Carbon Development Protection of Ecosystem Sustainable Land UseEnablling PillarsInstitutional Financial Capacity Building Integrated Planning and Technology, ResearchFrameworks StructuresData Management and Infrastructure Key IndicatorsDetailed Programmes of ActionAction 1: Private Sector InvolvementAction 2: Maximisation of Energy Project PotentialAction 3: Build Consumer Confidence# and size of private renewable energy enterprisesLoad factors, failure ratesProduct uptake ratesComparative CostAction 1: Private Sector Involvement Low Medium HighAction 2: Maximisation of Energy Project Potential Low Medium HighAction 3: Build Consumer Confidence Low Medium HighEmissions ReductionAction 1: Private Sector Involvement High Medium LowAction 2: Maximisation of Energy Project Potential High Medium LowAction 3: Build Consumer Confidence High Medium LowClimate ResilenceAction 1: Private Sector Involvement High Medium LowAction 2: Maximisation of Energy Project Potential High Medium LowAction 3: Build Consumer Confidence High Medium LowTimscale to InitiationAction 1: Private Sector Involvement Immediate Short Medium LongAction 2: Maximisation of Energy Project Potential Immediate Short Medium LongAction 3: Build Consumer Confidence Immediate Short Medium LongProgramme LengthAction 1: Private Sector InvolvementAction 2: Maximisation of Energy Project PotentialAction 3: Build Consumer ConfidenceOngoingDevelopment: 0-3 years, implementation: ongoingDevelopment: 0-3 years, implementation: ongoingClimate Finance StreamsAdaptation Fund - AfDB Sustainable Energy Fund for Africa - Africa Enterprise Challenge Fund - Africa InfrastructureInvestment Fund - Climate Finance Innovation Facility - Clean Technology Fund -ClimDev-Africa Special Fund - DEG –Deutsche Investitions - EIB Post-2012 Carbon Facility - EIB-KfW Carbon Programme II - Global Climate ChangeAlliance - Global Energy Efficiency and Renewable Energy Fund - Global Environment Facility - Hatoyama Initiative -International Climate Change Initiative - International Climate Fund - International Development Association - KfWDevelopment and Climate Finance - Least Developed Country Fund - Nordic Development Fund - Private InfrastructureDevelopment Group - Public Private Infrastructure Advisory Facility - Seed Capital Assistance Facility - UNDP/MDGCarbon facility - UNEP Greening the Tea Initiative - UNEP Renewable Energy Enterprise Development Programme -World Bank Carbon Facility - Clean Development Mechanism- Voluntary Carbon MarketsNational Strategy on Climate Change and Low Carbon Development 67
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Executive SummaryRwanda imports all
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Executive SummaryAs the three large
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Executive Summaryrural areas and th
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Executive SummaryviiiGovernment of
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xGovernment of Rwanda
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Acronyms and AbbreviationsJADF Join
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Definition of Key TermsClimate resi
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Chapter 1The purpose of the Strateg
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Chapter 1Strategy Write Up and Revi
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Chapter 2Rwanda hosts deposits of g
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Chapter 2temperature increase of up
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Chapter 2Figure 8: Global oil price
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Chapter 2Figure 10: Rwanda’s a) k
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Chapter 2GHG emissionsFigure 11: Il
Page 32 and 33: Chapter 216Government of Rwanda
Page 34 and 35: Chapter 3Vision 2050: For Rwanda to
Page 37 and 38: Chapter 4Programmes of ActionChapte
Page 39 and 40: Chapter 4Programme 4: Integrated Ap
Page 41 and 42: Chapter 4Programme 9: Efficient Res
Page 43 and 44: Chapter 5Enabling PillarsChapter 5:
Page 45 and 46: Chapter 5Assessment of Adaptation a
Page 47 and 48: Chapter 5WaterTransportMiningLandIn
Page 49 and 50: Chapter 5Priority 3. Promote CDM an
Page 51 and 52: Chapter 5Priority 2. Develop capaci
Page 53 and 54: Chapter 5A Technology Needs Assessm
Page 55 and 56: Chapter 6Roadmap to ImplementationC
Page 57 and 58: Chapter 62. Integrated soil fertili
Page 59 and 60: Chapter 65. Knowledge Management: S
Page 61 and 62: Chapter 6Gender EqualityGender equa
Page 63 and 64: Chapter 6To deal with unavoidable m
Page 65 and 66: ReferencesReferencesReferences1. UN
Page 67 and 68: AcknowledgementsAcknowledgementsAck
Page 69 and 70: AcknowledgementsAndy Plumptre, Anec
Page 71 and 72: Detailed Programmes of ActionDetail
Page 73 and 74: Detailed Programmes of ActionStrate
Page 75 and 76: Strategic ObjectivesEnergy Security
Page 81: Detailed Programmes of ActionStrate
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