10 companies from the Norwegian energy sector were hosted by the Rwanda-Norway Energy Forum last week.

 

Rwanda’s energy continues to have tremendous potential for future growth as only 35 per cent of the country has access to electricity. The goal is to convert that number to 70 percent by 2018 and 100 per cent by 2024 according to the Rwanda Energy Group (REG)

 

The Rwandan Government also have a vested interest in the project as they hope to increase the volume of investment in the country in manufacturing as well as other fields.

 

Morris Kayitare, the director of the primary and social energies development at REG weighed in by saying that off-grid energy solutions could be the way to go. He believes that this avenue would accelerate the time frame and ensure that the goals are met, especially with the assistance of the Rural Electrification Program.

 

Emmanuel Hategeka, the Chief operations manager of the RDB said that off-grid energy acees is available to 7.6 per cent of Rwandans today with that number expected to rise to 22 percent by the year 2018.

 

Speaking to The New Times at the forum in Kigali, Gulbrand Wangen, the regional director at Norwegian Energy Partners in Africa, Brazil, India and Midstream, said “the firms are here to explore investment possibilities in Rwanda.”

 

In Rwanda, Wangen said, there is a growing interest in solar renewable as well as hydropower alternatives. He also mentioned the availability of 10 qualified firms in the field in Norway as well asin Africa.

 

Mr. Hategeka also stressed that Rwanda continue to do business in an environmentally sustainable manner and meets all ethical standards, while also stating the continued relevance of transparency, and professionalism today.

 

“We are here to find local firms that have the logistics that we can partner with, and to know which projects are in the pipeline that relevant Norwegian firms can work with,” he said.

 

Engineering, procurement and contracting, financing in renewable energy, solar systems are just some of the services offered by the company.

 

While talking about the need for an increase in the volume of investment in off-grid energy , EDCL’s Kyitare said that there are only 24 firms functioning in the sector today, of which only 4 are major companies.

 

“Our expectation is that investment in the sector will grow, and our target of at least 22 per cent should be met by 2018,” Hategeka said.

 

Kayitare said, in 2016, the Rwandan Government took special measures to ensure that more citizens had access to power by subsiding energy to people who could not entirely afford power.

 

Under the initiative, he said, about 150,000 vulnerable homes were identified and the Government got up to $50 million (about Rwf40bn) from the World Bank to fund solar power to these homes.

Explaining the facilitation to investors in energy sector, he said Government has a risk mitigation facility, and that Germany International Development Agency (GIZ) provides up to 75 per cent refund for the investment made by an entity, under a results-based financing model.

 

Source : Business News Africa