Rwanda has made significant progress in increasing electricity access through robust domestic policies and regulations, scoring higher than the average of other low-income Sub-Saharan African (SSA) countries in 20 out of 28 indicators of the World Bank’s Regulatory Indicators for Sustainable Energy (RISE) index. The country’s key strategies include:
- Strengthening frameworks for on-grid and off-grid electrification: Rwanda expanded its national electrification plan to encompass off-grid solutions, service level targets, and incentives, significantly boosting its RISE score.
- Establishing cost-effective tariff structures: Initiatives like the lifeline tariff and reduced off-peak tariffs have aimed to keep electricity affordable while ensuring utility financial sustainability.
- Ensuring utility creditworthiness: Restructuring utilities and encouraging private sector participation have improved financial stability and attracted investment.
Key data points:
- Rwanda’s electrification rate increased from under 10% in 2010 to 35% in 2018, with 89% of urban and 23% of rural populations having access.
- The country relies on hydropower (47% of energy-generation capacity) but increasingly uses diesel generators to meet peak demand.
- Investment in the electricity sector saw a boost in 2016, with significant private sector participation, including a USD 350 million peat-fueled biomass plant.
- Total energy sector investment in Rwanda reached USD 154 million in 2017, almost double the SSA average.
Areas for potential improvement:
- Energy efficiency: Reducing transmission and distribution losses is crucial.
- Gender considerations: Better integration of gender aspects into policies and projects is needed.
- Informal settlements: Including informal settlers in electrification plans and addressing financial barriers.
- Tariff exemptions: Consistent enforcement of solar and wind equipment import duties is required.
- Carbon pricing: Developing carbon trading capacity and formal MRV systems to support NDC implementation.
Conclusion: Rwanda’s policy frameworks have been instrumental in its rapid progress in electricity access, but continued efforts are needed in areas like energy efficiency, gender mainstreaming, and carbon finance to achieve universal electricity access.
