Rwanda is targeting the generation of 1,000 megawatts of electric energy by 2017. According to the Ministry of infrastructure, the country is generating only 100 megawatts serving 6% of the total population.
However, the Belgian Development Agency (BTC) plans to fund the new electricity generation project to a tune of Euros 55Million for a period of three years.
Erik Van Malderen, a BTC expert working with the ministry of infrastructure on the project disclosed that even though Rwanda’s 1,000-megawatt goal is unrealistic and may be less than what it needs.
There’s need to develop hydroelectricity, methane gas and peat, since they may be able to generate 300 megawatts to 600 megawatts in the same time period.
Other sources of energy can be obtained from the Rusumo Falls project which may generate as much as 30 megawatts.
Van Malderen noted that the construction is scheduled to begin in early 2012, of which 40% of the project will be funded by the Africa Development Bank with bilateral organizations funding 15%.
So far the government is seeking financing for the remaining 55%.
Meanwhile, The Brussels-based agency hopes to attract investors in the country by conducting drilling to prove that about 300 megawatts of energy can be extracted from Rwanda’s part of the East African Rift, a geothermal hot-spot that spans 11 African countries.
“They are a little bit reluctant to invest until it has been proven that there is a resource,” Van Malderen remarked. “But there are some interests from companies,” he said.
The government hopes energy projects will cut the price of electricity by 50% and reduce Rwanda’s dependence on oil imports. “If we don’t invest in renewable energy, we will just witness increase in prices,” Van Malderen warned.
He said that the project was essential to economic growth, and that other countries in the region are working on similar projects. “Both Tanzania and Burundi are building a $360 million hydropower plant that could generate 90 megawatts,” Van Malderen concluded.
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