Maximizing aid effectiveness in Rwanda


Rwanda to gain from 23 million euros of EU support for Energy Efficiency

Posted : 27.04.2015

The Government of Rwanda and European Union are cooperating to improve energy efficiency in Rwanda by reducing energy losses in the Kigali Grid Network. The project will upgrade existing electricity grid infrastructure resulting in increases in reliability of electricity delivery by reducing power loss. The project will cover about 45% of Rwanda Energy Group’s (REG) grid loss programme.

The financing agreement signed between the Minister of Finance and Economic Planning, Claver Gatete and the Head of the European Union Delegation, Ambassador Michael Ryan will support the Rwandan electricity network system with a total amount of 23 million euros (approximately RwF 17.2 billion). The programme will be implemented over a period of 3 years consisting of mainly electricity infrastructure supplies as well as a technical assistance.

“Energy is one of the fundamental sectors that will catalyse the socio-economic development of Rwanda. This support will help improve and establish essential infrastructure that contribute to the reduction of technical losses and allow the transmission of electricity to the national grid and improve the security reliability and quality of supply to the City of Kigali,” Claver Gatete, the Minister of Finance and Economic Planning said. 

"Energy is a new focal sector for the European Union and we believe that this is strong step in towards creating a vibrant energy sector in Rwanda. An efficient power supply will accelerate the socio-economic development of the country and contribute to the increased welfare of the people", declared Ambassador Ryan at the signing.

The project goals are upgrading of the Mount Kigali, Birembo and Jabana substations as well as the construction of the new Gahanga substation.  A 23 km long 110kV power line will be built to connect the stations and to complete what is called the Kigali-Ring. 

The project is in line with the Rwandan national development strategy, the Economic Development and Poverty Reduction Strategy (EDPRS2), which aims to ensure a reliable energy supply as prerequisite for development. It is in-line with global initiatives such as SE4All (Sustainable Energy for All) and supports the Government efforts by responding directly to the Energy sector's goals by helping ensure an efficient power network through grid loss reduction.

Implementation of this project will be undertaken by REG under the supervision of its line ministry, the Ministry of Infrastructure (MININFRA).


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