Scaling up Off Grid Energy in Rwanda Project
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GVEP has applied Sida funds to carry out the "Scaling up Off-Grid Energy in Rwanda (SOGER) Programme" during the period 2016-2019. The overall objective of the programme is to contribute to the growth of a sustained market for off-grid renewable energy in Rwanda by 1) supporting private sector to deliver access to modern energy to about 77,500 people in rur...
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More about the contribution
GVEP has applied Sida funds to carry out the "Scaling up Off-Grid Energy in Rwanda (SOGER) Programme" during the period 2016-2019. The overall objective of the programme is to contribute to the growth of a sustained market for off-grid renewable energy in Rwanda by 1) supporting private sector to deliver access to modern energy to about 77,500 people in rural areas, in a way that is inclusive of people living in poverty and as a means to drive economic development by creating nearly 7,000 jobs; 2) work towards reducing carbon emissions, thus contributing to better environment, limited climate impacts and greater resilience to environmental impact, and climate change by reducing dependency on unsustainable energy sources that contribute to pollution, and environmental degradation. In relation to the Energy and Farming, introduction of solar powered pumps irrigation systems technology will improve resilience of small farmers to withstand the climate changes in a more climate friendly and cost effective way by allowing farmers to access predictable and adequate water at the place and time when crops need it. Improved resilience to climate change will be ensured through making irrigation systems hydraulic feasible (water availability), well designed (storage capacity; conveyance capacities and control structures) as well as operated (water allocation). The technology will also contribute to protecting the field environment against degradation in the long term and to ensure water and land resources are utilised efficiently and in a sustainable manner. However, the system should be properly designed and managed, because if it is not well managed, the irrigation systems can waste water and energy, deplete or pollute water resources, and fail to produce good crops and cause soil degradation. GVEP International will implement the programme through third parties. An agreement would be signed between the third parties and GVEP while routine of disbursement will be established as well. The Scaling up Off grid energy in Rwanda Project total budget is SEK 31,500,000 and all of which shall be contributed only by Sida. The additional SEK 500,000 has been made to cater for procurement audit and for assessing capacity of GVEP International Rwanda Office. This amount is set out of the budget with Cooperating Partner (GVEP International). The disbursement to GVEP are allocated as follows:1) the first disbursement, which caters the inception period, is allocated SEK 5 100 000; where as the subsequent disbursements, for simplicity reason, are described on yearly basis because where disbursement is required twice a year have been merged, but in the grant agreement the disbursements are based on specific period which they fund. Thus, the subsequent disbursements are reported as follows: the disbursement in the first year of implementation is SEK 11,700,000; where as the disbursement in the second year of implementation is SEK 10,700,000; and lastly the disbursement in the third year of implementation is 3,500,000.
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Total aid 19,593,280 SEK distributed on 0 activities
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Result
The project was initially designed to support up to seventeen projects to become operational during the 3-year implementation phase 2016 - 2018 (extended to Sep 2019). This included seven Renewable Small Project projects from RESP Facility and ten Pico-hydro projects from the Pico-hydro Facility respectively. Unfortunately these targets were not achieved in totality due to regulatory uncertainty. The majority of projects and associated activities were put on hold and only four projects became operational. Thus, the performance of the project was severely hampered by a sudden change in the regulatory environment. The Rwanda government, through the Energy Development Cooperation Limited (EDCL), decided to stop giving out permits for businesses pending the completion of the National Electrification Plan. However, the plan was delayed and underwent several revisions, which delayed it ever further for about 1,5 years. Without a EDCL permit, it was no possible to construct and operate a mini-grid in Rwanda since a developer must have approval from EDCL. In addition to the electrification plan, the government also worked on the regulatory environment surrounding mini-grids, such as Simplified Licensing Framework and the Ministerial Guidelines on Mini-grid Development. The delay in the publication of these documents also contributed to the delay of approval of project sites. These factor negatively affected progress with respect to the construction phase of projects, in which major activities were expected to be performed such as production and distribution of electricity that would be connected to households, as well as public and commercial institutions. Overall, this severely affected the ability of the project to achieve its objectives. Despite the challenges, the project did support four projects to become operational - two Renewable Energy Small Projects and two Small/Pico-hydro Projects as follows: Mesh Power-Solar (4Kw); Absolute Energy-Solar (50kW); Kabrud-Hydro (13kW) and Mudasomwa mini-grid-Hydro (34kW). These business were supported in the construction phase, including investor facilitation, capital raising, system design, equipment procurement, as well as support in developing operational and maintenance guidelines. In addition, SOGER supported 28 business and 32 entrepreneurs with the productive use of electricity for operating mini-grids. The support enabled these entrepreneurs to build and expand their businesses using the new power generated. According to the Mid-term Review conducted in 2018, the project also performed well in terms of more generic activities. This included gender sensitization, number of financial institutions approached, number of small and medium sized companies supported, as well as project preparation and development, regulatory advice and productive use support. The Mid-term Review also highlights the importance and contribution of SOGER related to technical assistance, as what distinguished SOGER from other projects. This aspect was particularly well received and did position the project effectively to address the developmental/start-up challenges associated with mini-grids.
The overall objective of SOGER was to contribute to the growth of a market for off-grid renewable energy in Rwanda. The would be done by supporting the private sector to deliver access to energy to 77,500 people in rural areas, in a way that was inclusive of people living in poverty and as a means to drive economic development by creating 7,000 jobs. The intervention also seeked to develop an enabling environment for the mini-grid sector through creation of knowledge reports and toolkits, through interactions and capacity building with stakeholders, and the development of projects to show proof of concept. The specific objectives of SOGER were expressed under the two components of the programme: 1) Renewable Energy Small Projects (RESP) 2) Small Project or Pico-hydro Projects (SHP). The specific objective of RESP was to accelerate the development of Renewable Energy Small Projects (RESPs) to deliver access to energy in rural Rwanda. This facility targeted to provide at least seven projects with a package of technical and transactional advisory support services targeting to deliver energy to 11,000 households. The design of the RESP facility focused on creating a sustainable market for the development of Small Hydro Power and Renewable Energy mini-grids and a “launch-pad” for the scale up of the sector. Projects to be supported under the facility ranged from 50kW to 3MW. It could be greenfield isolated mini-grids (using renewable energy such as solar, small hydro projects, etc.) installling new connections; grid-connected renewable energy mini-grids creating new access and selling to the grid; or grid-extension projects extending the distribution network from the existing generation facilities, provided there was a possibility of reaching out to the communities with no electricity access. The objective of the Pico-hydro Facility was to accelerate the development of the pico-hydro sector by supporting the development of 30 micro-utilities with a total capacity of 450kW, providing reliable and clean electricity to 22,500 people and at least 35 public institutions, as well as to numerous commercial enterprises. This facility targeted to work with local, private enterprises/project developers who develop and own the micro-utilities whilst involving the communities. In addition, the facility aimed to support private enterprises/project developers to become commercially sustainable businesses, and to create direct and indirect income opportunities in the communities they serve. The targeted pico-hydro projects were small scale with an average capacity of 41 kW while the major purpose of this component was to lay the foundation for further expansion of the pico-hydro sector through creating an enabling environment and by demonstration effects of the 30 established micro-utilities.
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