World Small Hydropower

Development Report 2013

www.smallhydroworld.org
RWANDA

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on Small Hydro Power (ICSHP).
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1 Africa

Hydropower imported

1.1 Eastern Africa

10.44%

Hydropower

14.64%

Gas methane

1.1.9 Rwanda

Thermal

Lara Esser and Laxmi Aggarwal, International Center on

Small Hydro Power
Key facts
Population
Area
Climate
Topography

Rain
Pattern

34.89%
40.03%
0%

10%

20%

30%

40%

50%

Figure 1 Electricity generation in Rwanda

3
Source: Rwanda Environmental Management Authority

11,689,696
2
26,338 km
Temperate; mild in mountains
Mostly grassy uplands and hills; relief is
mountainous with altitude declining
from west to east.
Two rainy seasons (February to April,
1
November to January).
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
2
Region.

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.

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
4
promotion of renewable energies.

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.

The Government of Rwanda has set out clear targets of

1,000 MW production and 50 per cent of connections by
5
2017.
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
4
regulatory framework and governmental investments.

Requests for small hydropower permissions are given by

4
the regulatory authority RURA.

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
4
(table 1). 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
more than Rwandan Franc (RWF) at 9 billion (about 11
5
million). Besides the micro hydropower inaugurated
plants, Belgium also supports the construction of
Rukarara II power plant in Nyamagabe with a capacity of
2 MW.
SHP installed
capacity

In 2009, there were 15 micro hydropower plants under

construction and another 21 planned by the
Government, bilateral donors and private investors,
4
totalling to an additional capacity of 13 MW (table 2).
The information collected was however contradictory. It
was also reported that as of 2010, 333 hydro sites in the
country with a combined capacity of 96 MW were
identified, of which the technical small hydropower
potential was estimated at only 10 MW. In general, the
potential for micro hydropower is considered to be
good due to the countrys geographical conditions and
4
high population density.

23.2 MW

SHP potential

38.2 MW

10

20

30

40

50

Figure 2 Small hydropower capacities for Rwanda

Source: German Agency for Technical Cooperation Poverty-Oriented Basic Energy Services (HERA)4
European Union Energy Initiative , Rwanda, Ministry of
5
Infrastructure
Note: Data is based on mixed results from various
sources.
Table 1
Installed small hydropower capacity in Rwanda
Category

Name

On-grid hydropower

Gihira
Gisenyi
Rukarara
Rugezi
Nkora, Keya, Cymbili
Murunda (REPRO)
Nyamyotsi I
Mutobo
Agatobwe
Nyamyotsi II
Rushaki

Off-grid micro hydropower

Installed capacity
(MW)
1.80
1.20
9.00
2.20
3.20
0.10
0.10
0.20
0.20
0.10
0.04

Available capacity
(MW)
1.80
0.60
9.00
2.00
2.00
0.10
0.10
0.20
0.20
0.10
0.04

Ownership
Public, Rehab
Public, Rehab
Public
Public, commissioned July 2011
Public, commissioned July 2011
Private (PSP hydro (GTZ-EnDev))
Public (UNIDO)
Public (UNIDO)
Public
Public (UNIDO)
Private

Source: Muyange6
Note: Data valid as of 2012.This table omits the contributions made by Ruzizi hydropower projects shared by Burundi, Democratic Republic of Congo and
Rwanda as they are above the 10 MW small hydropower definitions.

Table 2
Small hydropower plants under construction in Rwanda
Name

Installed capacity
(MW)

Developer/producer

Ownership

Mukungwa II

2.500

Government of Rwanda

Public

Nyirabuhombohombo

0.500

Government of Rwanda

Public

Gashashi

0.200

Government of Rwanda

Public

Nyabahanga

0.200

Government of Rwanda

Public

Janja

0.400

Government of Rwanda

Public

Nshili

0.400

Government of Rwanda

Public

Rukararav II

2.000

Government of Rwanda

Public

Rubagabaga

0.314

Calimax

PPP

Musarara

0.438

Sogem Rwanda

PPP

Giciye

4.000

Rwanda Mountain Tea

PPP

Mazimeru

0.500

ENNY

Private

Ruhwa

0.200

Government of Rwanda

Public

Gatubwe

0.200

UNIDO

Public

Source: Rwanda Ministry of Infrastructure in German Agency for Technical Cooperation- Poverty-Oriented Basic Energy Services (HERA)- European Union
Energy Initiative4, Muyange6
Note: UNIDO United Nations Industrial Development Organisation. List may not be comprehensive.

Different donor agencies have assisted Rwanda in its

efforts to build a local small hydropower industry,
following different approaches. UNIDO followed the
route of village level management at the four small
hydropower systems they are supporting. Experience
gained in implementation led to revert to management
models in which the systems are operated through
4
private businesses. The Dutch/German-funded EnDev
programme followed a pure private sector approach
from the outset. Under this programme, five business
consortia have been contracted to implement small
hydropower schemes. Typical participants are local
businessmen, NGOs, social institutions (hospitals), and
local and foreign investors. The EnDev programme
provides 30-50 per cent investment subsidy, technical
assistance, business support, etc., while the developer is
responsible for financial closure (15 per cent equity and
7
loans), construction, permits, etc. Experience to date,
however, indicates a very strong preference of private
investors to supply at least a portion of the electricity
generated to the national electricity grid (and hence to
existing customers, which is contrary to the objectives
of the donors) as the interconnection gave great
comfort to the banks, who appreciated a guaranteed
4
sale of electricity produced.

private sector, such as training of local developers or

financial investments. At least seven project developers
from the private sector operate in the country and have
realized around 30 pico-hydropower plants in recent
8
years.
Renewable energy policy
Given its history, Rwanda has only recently been able to
draft and enhance its environmental protection
instruments. Thus the Electricity Law was enacted in July
2011 with the aim to liberalize and regulate the sector,
to attract private investment while encouraging a more
9
competitive market. A Draft Energy Policy is also in
place, highlighting the need to maximize use of
indigenous energy, improve access and transparency
and most importantly to promote the use of renewable
energy technology and conducive instruments such as
9
feed-in tariffs (FIT).
The Government of Rwanda is currently in the process
of developing a solar energy policy and a Solar Map,
furthermore, renewable energy feed-in-tariffs (REFITs)
are already available for small hydropower and are to be
extended towards solar generation.
Legislation on small hydropower
The Government of Rwanda issued a REFIT in February
2012 for small and mini-hydropower. The REFIT
guarantees access to the grid for renewable energy
generators and obliges the national utility Energy, Water
and Sanitation Authority (EWSA) to purchase the
renewable energy generated. It applies to hydropower
plants from 50 kW to 10 MW. REFITS are valid up to
4
three years.

A 2011 report on the pico-hydropower situation in

Rwanda by the Global Village Energy Partnership
International (GVEP International) and Entec analysed
the potential commercial market for off-grid
hydropower plants in Rwanda, with individual
generation capacities of 50 kW or less. They suggest the
market can be developed through specific interventions
by the Government, development partners or the
3

Moreover, the National Energy Strategy strongly states

the specific objective to increase micro-hydro, mediumhydro and cross-border hydropower projects to about
10
333 MW.

www.giz.de/Themen/en/dokumente/gtz2010-en-HERAEUEI-PDF-framework-conditions-hydropower.pdf.
5. Rwanda, Ministry of Infrastructure (2011). 4th Event
News: 3 more Micro-Hydropower plants to generate 3.2
MW. EWSA, 27 October. Available from
http://www.ewsa.rw/.
6. Muyange, Yves (n.d.). Hydropower in Rwanda:
Ongoing Initiatives and New Investment Opportunities.
Presentation. Available from
www.ewsa.rw/Docs/Hydropower_Solar_Breakout_sessi
on.pdf.
7. Raats, Marcel (2009). Business models for (MHP)
village grids: Two Energising Development Case Studies.
Available from
http://siteresources.worldbank.org/EXTAFRREGTOPENE
RGY/Resources/717305-1264695610003/67434441268073457801/2.3.Village_Grid.pdf.
8. Meier Thomas and Gerard Fischer (2011). Assessment
of the Pico and Micro-Hydropower Market in Rwanda.
Nairobi. Available from
www.gvepinternational.org/sites/default/files/picohydro_market_in_rwanda.pdf.
9. Isumbingabo, Emma Franoise (2012). Rwandas
National Energy Policy and Strategy. Presentation at the
Energy Investor Forum. Kigali, 29 February.
10. United Nations Industrial Development Organization
(n.d.). Rural Energy Development in Rwanda, Poverty
Reduction through Productive Activities, trade Capacity
Building and energy and the environment. Available
from
www.unido.org/fileadmin/media/documents/pdf/Energ
y_Environment/rre_projects_rwanda.pdf.

Barriers to small hydropower development

One of the major barriers to the development of small
hydropower, despite the motivation and instruments
provided by the Government of Rwanda, is the countrys
history which provides no incentive for foreign
investment.
Rwanda has a vast potential for producing clean energy
using small hydropower, however, efforts are often
limited by weak technical capabilities and private sector
actors. In addition, the lack of financial institutions and
the low income of the rural population further hinder
the process of small hydropower development in
10
Rwanda.
References
1. Central Intelligence Agency (2012). The World
Factbook. Available from
www.cia.gov/library/publications/the-world-factbook/.
2. Rwanda Environmental Management Authority
(2009). Chapter IX: Climate change and natural disasters
in Rwanda State of Environment and Outlook Report.
Kigali. Available from www.rema.gov.rw/soe/chap9.php.
3. Rwanda Environmental Management Authority
(2009). Chap VIII: Energy resources in Rwanda State of
Environment and Outlook Report. Kigali. Available from
www.rema.gov.rw/soe/chap8.php.
4. Gaul Mirco, Fritz Klling and Miriam Schrder (2010).
Policy and regulatory framework conditions for small
hydro power in Sub-Saharan Africa: Discussion paper.
Eschborn. Available from

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