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Innovative private micro-hydro power development in Rwanda

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  • Pigaht, Maurice
  • van der Plas, Robert J.

Abstract

Under the "Private Sector Participation in Micro-Hydro Development Project in Rwanda", four newly registered Rwandan companies are each constructing a micro-hydro electricity plant (100-500Â kW) and building a low-voltage distribution grid. These companies financed their plants through their own equity and debt with support from the PSP Hydro project. This support comprised a subsidy of 30-50% of investment costs, technical and business development assistance, project monitoring and financial controlling. The experiences gained so far have important implications for similar future micro-hydro energy sector development projects and this paper puts forward three key messages: (i) institutional arrangements rather than technical quality determine the success of such projects; (ii) truly sustainable rural electrification through micro-hydro development demands a high level of local participation at all levels and throughout all project phases, not just after plant commissioning; and (iii) real impact and sustainability can be obtained through close collaboration of local private and financial sector firms requiring only limited external funds. In short, micro-hydro projects can and will be taken up by local investors as a business if the conditions are right. Applying these messages could result in an accelerated uptake of viable micro-hydro activities in Rwanda, and in the opinion of the authors elsewhere too.

Suggested Citation

  • Pigaht, Maurice & van der Plas, Robert J., 2009. "Innovative private micro-hydro power development in Rwanda," Energy Policy, Elsevier, vol. 37(11), pages 4753-4760, November.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4753-4760
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    1. López-González, A. & Ferrer-Martí, L. & Domenech, B., 2019. "Long-term sustainability assessment of micro-hydro projects: Case studies from Venezuela," Energy Policy, Elsevier, vol. 131(C), pages 120-130.
    2. Gaiser, Kyle & Erickson, Paul & Stroeve, Pieter & Delplanque, Jean-Pierre, 2016. "An experimental investigation of design parameters for pico-hydro Turgo turbines using a response surface methodology," Renewable Energy, Elsevier, vol. 85(C), pages 406-418.
    3. Ghadimi, A.A. & Razavi, F. & Mohammadian, B., 2011. "Determining optimum location and capacity for micro hydropower plants in Lorestan province in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 4125-4131.
    4. Ahlborg, Helene & Hammar, Linus, 2014. "Drivers and barriers to rural electrification in Tanzania and Mozambique – Grid-extension, off-grid, and renewable energy technologies," Renewable Energy, Elsevier, vol. 61(C), pages 117-124.
    5. Elizabeth Baldwin & Jennifer N. Brass & Sanya Carley & Lauren M. MacLean, 2015. "Electrification and rural development: issues of scale in distributed generation," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(2), pages 196-211, March.
    6. Laghari, J.A. & Mokhlis, H. & Bakar, A.H.A. & Mohammad, Hasmaini, 2013. "A comprehensive overview of new designs in the hydraulic, electrical equipments and controllers of mini hydro power plants making it cost effective technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 279-293.
    7. Lorafe Lozano & Evelyn Taboada, 2021. "Applying User-Perceived Value to Determine Motivators of Electricity Use in a Solar Photovoltaic Implementation in a Philippine Island," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    8. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    9. Javadi, F.S. & Rismanchi, B. & Sarraf, M. & Afshar, O. & Saidur, R. & Ping, H.W. & Rahim, N.A., 2013. "Global policy of rural electrification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 402-416.
    10. Trotter, Philipp A. & Maconachie, Roy & McManus, Marcelle C., 2018. "Solar energy's potential to mitigate political risks: The case of an optimised Africa-wide network," Energy Policy, Elsevier, vol. 117(C), pages 108-126.
    11. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    12. Geoffrey Gasore & Helene Ahlborg & Etienne Ntagwirumugara & Daniel Zimmerle, 2021. "Progress for On-Grid Renewable Energy Systems: Identification of Sustainability Factors for Small-Scale Hydropower in Rwanda," Energies, MDPI, vol. 14(4), pages 1-16, February.
    13. Holstenkamp, Lars, 2019. "What do we know about cooperative sustainable electrification in the global South? A synthesis of the literature and refined social-ecological systems framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 307-320.
    14. Williams, Nathaniel J. & Jaramillo, Paulina & Taneja, Jay & Ustun, Taha Selim, 2015. "Enabling private sector investment in microgrid-based rural electrification in developing countries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1268-1281.
    15. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
    16. Mainali, Brijesh & Silveira, Semida, 2011. "Financing off-grid rural electrification: Country case Nepal," Energy, Elsevier, vol. 36(4), pages 2194-2201.
    17. Yadoo, Annabel & Cruickshank, Heather, 2012. "The role for low carbon electrification technologies in poverty reduction and climate change strategies: A focus on renewable energy mini-grids with case studies in Nepal, Peru and Kenya," Energy Policy, Elsevier, vol. 42(C), pages 591-602.
    18. Gill-Wiehl, A. & Miles, S. & Wu, J. & Kammen, D.M., 2022. "Beyond customer acquisition: A comprehensive review of community participation in mini grid projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).

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