Key Energy Investment Opportunities

Category: Investment Opportunity Published: Wednesday, 08 October 2014

ENERGY INVESTMENT POTENTIALS

Rwanda’s energy sector boasts of a great deal of untapped resources for power generation. Potentials include:

I) Hydro power:

Local sites: Hydro currently constitutes the largest source of energy and is expected to remain a major source for a foreseeable future. Available hydropower potential from local sites is estimated at 100 MW. Feasibility Studies of 40 micro and pico hydro sites with an estimated  otal potential of 10-15 MW are completed and are open to private developers.

 

Regional potential: Investment opportunities also exist for some regional hydro projects i.e. expected to come on stream before 2025. These projects include:

a) Ruzizi III (145 MW): supported by EU, AfDB, among others with an expected investment capital of $450Mn and completion date in 2018-19. The project is being developed under CEPGL umbrella for Rwanda, Burundi and DRC. Ruzizi III hydropower project is planned to generate 145MW and the power output is shared equally by three countries. Discussions with potential developers are ongoing.

b) Rusizi IV (287 MW): supported by EU, AfDB, among others with an expected investment capital of $450Mn and completion date in 2019-2020. The project is being developed under CEPGL umbrella for Rwanda, Burundi and DRC. Ruzizi IV hydropower project is planned to generate 287MW and the power output is shared equally by three countries. The project is still open to interested developers.

c) Rusumo (90 MW) falls supported by WB and others. Its expected investment amount is $300Mn and planned completion date is 2018. The project is being developed under NELSAP umbrella for Rwanda, Burundi and Tanzania. Rusumo falls Hydropower Project is planned to generate 90 MW and the power output will be shared equally by three countries. Funding arrangements are finalized with the WB. This an open EPC opportunity.

II) Methane Gas: The methane in Lake Kivu is estimated to be sufficient to generate 700 MW of electricity over a period of 55 years, shared equally between Rwanda and DR Congo Currently a 5 MW pilot plant is under construction by a local company, Rwanda Energy Company (REC) and another 25 MW by Kivuwatt, a Rwandan subsidiary of an American company, Contour Global. There is an extra estimated 100 MW available for private development in the future. Click herefor Methane teaser.

III) Geothermal energy: Geothermal energy in Rwanda’s volcanic area of the Northern Province and the Western Province is estimated to have a generation capacity of between 170 MW and 320 MW respectively. Exploratory drilling is currently underway and is expected to lead to a 10 MW pilot plant at the Karisimbi prospect. After proving the resource, investment opportunities will be open for two more prospects at Gisenyi and Kinigi. Click herefor geothermal teasers.

IV) Peat-to-Power: The theoretical potential for electricity generation from peat is estimated to be at least 400 MW. Rwanda plans to develop its peat resources to generate about 260 MW of power by 2017. Whereas the government funded Gishoma (15 MW) peat plant is under construction, two (2) other peat-to-power projects are on the right track to implementation i.e. 100 MW IPP by Hakan, Turkish investor and another IPP is being investigated by Punj Lloyd, an Indian investor. There is an additional investment potential of at least 15 MW at the Southern bog area/South Akanyaru in the Southern province. Peat mining to supply peat to peat plants under development and for direct use is another investment potential. Click herefor Peat teasers.

V) Solar energy: With a potential of 4.5 kWh per m2 per day and approximately 5 peak sun hours, solar energy has a huge potentiality in Rwanda. The country has already engaged into solar solutions as a lighting substitute for remote areas for ICT in schools, clinics and hospitals. Solar water heaters could be used for water heating to reduce the consumption of electricity in hospitality, clinics, hospitals and catering services and households. There is currently an investment potential to generate power from “solar / wind hybrid systems” with an aim to provide access to electricity in rural communities that currently have no access to the interconnected grid. Click herefor Solar teaser.

VI) Waste-to-power potential: Kigali city produces around 450 tons per day of solid waste of which between 300 and 350 tons/day is centrally collected. The fraction of organic waste comes from households, restaurants, hotels and markets. Other types of waste solid waste available in the country include agricultural waste, livestock waste, and water hyacinth. It is estimated that 100 tons per day of raw municipal solid can produce 1MW, using traditional thermal technologies. The population in Kigali is expected to reach about 1.5 million by 2020. It is believed that the waste collected will reach about 1000 t per day. There is therefor an opportunity for a 10 MW plant. The Ministry of Infrastructure and Kigali City coordinate waste-to-power investments.

Click here for INCENTIVES TO INVESTORS

Please contact EWSA Investment Unit for details:

Mr. Ronny Carbonell, Head of EWSA Investment Unit, Tel: (+250) 784405840,

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or

Mr. Wilson KAREGYEYA, Local Counterpart at the Investment Unit, Tel: (+250)

782731743, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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