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Country in U.S.$262 Million Electricity Rollout

Mon. September 21, 2009; Posted: 01:25 PM
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Kigali, Sep 21, 2009 (East African Business Week/All Africa Global Media via COMTEX) -- ERGY | Quote | Chart | News | PowerRating -- The government of Rwanda plans to spend Rwf148 billion (US$262 million) on a four-year plan to connect an additional 220,000 households and businesses to the power distribution network.

The plan will be implemented by the Rwanda Energy Corporation (Reco), a utility of the former national Water and Electricity Company, Electrogaz.Electrogaz has been divided into two national utilities-Rwanda Energy Corporation (Reco) and Rwanda Water Supply Corporation (Rwasco) which form Reco-Rwasco.

The national electricity rollout plan, seeks to increase power connections from the current 130,000 to 350,000 in four years, according to the acting director general, Reco-Rwasco, Yves Muyange.

Currently, 7% of Rwandan households have access to electricity and government wants to hit 16% by 2012. Rwanda currenty depends on imported electricity although it generates some power using hydro and other fuel sources. The Methane gas in Lake Kivu is yet to provide tangible results, according to the officials.Recently, Rwanda and the World Bank signed the Community Development Carbon Fund (CDF) aimed at reducing carbon emissions. "This is Rwanda's first carbon finance project under the Clean Development Mechanism (CDM) of the Kyoto Protocol," states a document from Reco-Rwasco in part.

The fund will finance a range of activities that will include energy efficient Compact Florescent Lamps (CFLs), incentives to promote the use of solar water heaters and specific initiatives to lower connection costs for the poorest households.

Lower electricity consumption will address power shortages especially during peak hours at night, limiting the use of costly fuel-based power plants, according to Reco-Rwasco.

"The project will also support the targets of the national electricity access programne by reducing electricity consumption and improving affordability for household users", Reco-Rwasco said in a statement. By reducing use of fuel-based power plants, the project will contribute to lowering greenhouse gas emissions, which are responsible for climate change. These emission reductions are carbon assets that can be sold on the international Carbon Market, according to a document from Reco-Rwasco.

For full details for ERGY click here.

    


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