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E.5.1 Backup Infrastructure Energy: Rwanda leveraged off-grid energy solutions to improve electrification Rwanda • • • Context Households in Rwanda have a low electricity access rate: 51% overall, including 37% connected to the grid and 14% using off-grid technologies Rwanda has set a target of 100% access to electricity by 2024 Off-grid solutions such as solar home systems and mini-grids are viable alternatives to grid connections, which takes time to establish Rwanda Energy Group estimates that 48% of all households will have off- grid solutions by 2024, a 34 percentage points increase from current situation What did Rwanda do? The Government of Rwanda signed a $48.94m funding agreement with the World Bank in 2017 for off-grid electrification The fund enabled qualified savings and credit co-operatives (SACCOs) and commercial banks to open lines of credits to provide affordable loans to households and small business for solar system purchases 24 private companies have signed partnership agreements with Rwanda Energy Group to provide solar home systems Rwanda is conducing a national campaign to change people's mindsets to buy and use solar home systems, instead of waiting for grid connections 1. Multilateral Development Banks Source: The New Times; Media Coverage עעע || || || Key successes Recognized the importance of off-grid solutions in achieving the national electrification targets Successfully leveraged the fund from MDBs¹ to offer affordable loans to households and small businesses for the purchase of off-grid systems Improved locals' interests in off-grid solutions through the national campaign organized to change people's mind-sets to buy and use solar home systems Learnings for Plateau State Map out the electricity demand and supply and identify the need and magnitude for off-grid solutions Secure initial funding from MDBs¹ or other sources and develop partnerships with local banks to offer affordable loans to households and small businesses that will relay on off-grid solutions Develop partnerships with off-grid system providers to offer end-to- end solutions Launch a state-wide campaign to demonstrate the benefits of off- grid systems 171 Copyright © 2019 by Boston Consulting Group. All rights reserved. A
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