The aim is to meet rising demand as well as attract more investments, after the 2014 World Bank Ease of Doing Business report noted that low energy output remains a hurdle for investors.

In the past two months, Rwanda, Tanzania and Kenya have announced a number of power upgrade projects.

Rwanda recently announced that it will meet its 2017 target of increasing access to electricity to 70 percent of the country’s population from 22 per cent currently. 

The country’s energy sector strategy plan 2013-18 projects an electricity demand of 563MW to be generated from a sustainable generation mix of hydro, methane, geothermal and solar, gradually phasing out thermal power by the end of 2017.

Last week, James Musoni, Rwanda’s Minister of Infrastructure, said that the country was working hard to streamline investment procedures in the power sector, aimed at attracting the private sector.

“The government through the Rwanda Development Board plans to achieve an additional 408MW by 2018. We want to stand out in all the key investment areas. Energy costs have been our undoing especially when it comes to attracting investments. We want to reverse this,” Mr Musoni said at an investor’s conference in Kigali targeting the energy sector.

According to the World Bank’s Ease of Doing Business report, Rwanda’s energy is expensive and limited, with electricity costing 22 US cents per kWh compared with 8 US cents-10 US cents in the rest of the region.

Consumers in Uganda and Tanzania pay 11.8 and 7.4 US cents per kilowatt of electricity respectively, while in Kenya the cost is 25.7 US cents.

The 2013 World Bank electricity consumption figures rank Rwanda’s per capita energy consumption at 25.78 kilowatts, Burundi’s at 18.34 kilowatts, Uganda’s at 65.94 kilowatts, Tanzania’s at 76.50 kilowatts and Kenya’s at 128.24 kilowatts.

Rwanda’s electricity generation more than doubled, from 45MW to 110.8MW, between 2005 and 2013, increasing access from 2 per cent to 22 per cent of the population.

Currently, Rwanda is planning a number of energy projects including the $300 million 80MW Rusumo hydroelectric project to be constructed on Kagera River, the $450 million 147MW Rusizi lll hydro project, and a 200MW methane gas concession in Lake Kivu.

“We also plan to construct other domestic hydropower plants with a 150MW installed capacity and various high voltage transmission lines to evacuate generated electric power for stable and reliable power supply to manufacturers. This is why we are looking for $5 billion energy investments through public-private partnerships,” said Mr Musoni.

 

Source : http://www.theeastafrican.co.ke/news/-/2558/2548872/-/511absz/-/index.html