The government of Rwanda was awarded a grant from the Sustainable Energy Fund for Africa (SEFA) for green mini-grids. SEFA is a multi-donor trust fund administered by the African Development Bank (AfDB). The $840,000 grant will be used to promote green mini-grids (GMGs) and pave the way for private investments in this sub-sector. The project is expected to support Rwanda’s efforts to provide electricity connection to at least 145,000 rural households and improve off-grid access rate from 5% to 22% by 2018.
The project is one of SEFA’s country programs of enabling environment support for GMGs that will address sector planning, regulatory and policy interventions and market development activities in up to six countries in 2016-2017. SEFA’s support to green mini-grids is fully in line with AfDB’s commitment to support energy infrastructure, climate change mitigation and adaptation. The project is part of the AfDB’s “New Deal on Energy for Africa” and is aligned with Africa Renewable Energy Initiative (AREI)’s objectives of increasing renewable energy penetration.
The project is developed by the Ministry of Infrastructure and will be implemented by the Rwanda Energy Group, the government utility. It includes mini-grids feasibility studies for up to 20 small hydro sites and a corresponding roll-out plan targeting local private developers.
“When completed, the project will promote private sector participation in the nascent and promising green mini-grids market in the country,” said Negatu Makkonen, AfDB Resident Representative in Rwanda.
“Given the low five% rural access rate to electricity in Rwanda, combined with gradual population growth and significant untapped renewable energy potential, GMGs can provide robust and cost-effective energy access solutions,” Kurt Lonsway, AfDB’s Manager for Environment and Climate Change, said after the approval.