Efforts by Rwanda to tackle power challenges have received a major boost from Dutch renewable-energy firm GigaWatt Global, which is poised to invest $23-million in a solar power plant.
The plant, which will have a capacity of 8.5 MW, will be built in the Rwamagana district, about 50 km from the capital, Kigali.
Says Rwanda’s Minister of Energy and Water, Emma Francoise Isumbingabo: “Gene- ration and provision of electricity to all Rwandans is a priority for the government. This initiative to produce 8.5 MW of clean energy is an important [step] towards closing our current energy gap,” she says.
GigaWatt Global will design, finance, maintain and operate the plant.
The firm, which is focused on the development and management of utility-scale solar fields in emerging markets, has built relationships with international financial institutions such as the World Bank, the Overseas Private Investment Corporation and the International Finance Corporation to promote and support renewable-energy projects.
GigaWatt Global VP Chaim Motzen says the company is bringing to Rwanda extensive experience in renewable energy, considering its involvement in solar projects development worldwide with a combined capacity of over 2 800 MW.
He adds that construction of the plant will start shortly and it is expected to be operational within 12 months. “We are going to fully finance the project through equity finance and acquire debts from financial institutions.”
GigaWatt’s investment in Rwanda comes at a time when the authorities in the East African nation are seeking ways to raise $6- billion to finance a major energy expansion programme aimed at tackling severe electricity challenges.
Rwanda requires this amount to finance energy projects with a combined capacity of 1 000 MW over the next six years.
Although Rwanda is the fastest-growing economy in East Africa, at an average of 7% a year, according to the World Bank, the country’s electricity output currently stands at a paltry 100 MW and only 11% of its population has access to electricity.