15 Steadfast for East Africa: Powering Energy Dreams …
461
demand forecasts power generation expenses which are inclusive of the
distribution and transmission costs. Most importantly, they also consider
developer, distributor and utility capital expenditures and include their
return on invested capital.
The additional premium on the tariff should be the incentive to entice
a developer to develop a large-scale utility project within a neighbouring
country to the one that shall contract and consume the majority off-take
to supplement its local production deficit. The additional component
of the premium should be borne by the final consumer state, through
the host state where the developer is undertaking the project. A regional
entity should be set-up to manage the flow of revenue from the final
consumer state, through the host state to the developer in a transparent
and efficient way. This entity should act an impartial custodian of the
agreement and clearinghouse of the transaction.
The Government of Rwanda issued a Renewable Energy Feed-in Tariff
(REFIT) on February 9, 2012, for small and mini-hydropower. The
REFIT guarantees access to the grid for renewable energy generators
and obliges the national utility Energy Water and Sanitation Authority
(EWSA) to purchase the renewable energy generated (IPAD 2015). The
REFITs are calculated based on a cost-plus return basis to ensure sufficient incentives for private investors. They apply only to hydropower
plants ranging in size from 50 kW to 10 MW and are valid for a period
of 3 years after which they will be subject to review by the Rwanda Utilities Regulatory Authority (RURA). There has been a long discussion
and wait for REFITs for other renewable energy technologies, such as
solar, wind and geothermal. This means that if the regulator decides to
implement a premium tariff, then there will be no conflict with existing
REFITs. There is, however, the potential for solar power in East Africa,
and this could contribute greatly in tackling the energy access challenges
in the region (Hansen et al. 2015). Figures 15.2 and 15.3 illustrate the
solar potential in both Kenya and Rwanda.
As illustrated in Figs. 15.2 and 15.3, there is potential for solar
energy to tackle the energy access challenges in both Rwanda and Kenya.
However, more investments are needed especially to ensure that the
people in rural areas to access to affordable solar energy services.
461
demand forecasts power generation expenses which are inclusive of the
distribution and transmission costs. Most importantly, they also consider
developer, distributor and utility capital expenditures and include their
return on invested capital.
The additional premium on the tariff should be the incentive to entice
a developer to develop a large-scale utility project within a neighbouring
country to the one that shall contract and consume the majority off-take
to supplement its local production deficit. The additional component
of the premium should be borne by the final consumer state, through
the host state where the developer is undertaking the project. A regional
entity should be set-up to manage the flow of revenue from the final
consumer state, through the host state to the developer in a transparent
and efficient way. This entity should act an impartial custodian of the
agreement and clearinghouse of the transaction.
The Government of Rwanda issued a Renewable Energy Feed-in Tariff
(REFIT) on February 9, 2012, for small and mini-hydropower. The
REFIT guarantees access to the grid for renewable energy generators
and obliges the national utility Energy Water and Sanitation Authority
(EWSA) to purchase the renewable energy generated (IPAD 2015). The
REFITs are calculated based on a cost-plus return basis to ensure sufficient incentives for private investors. They apply only to hydropower
plants ranging in size from 50 kW to 10 MW and are valid for a period
of 3 years after which they will be subject to review by the Rwanda Utilities Regulatory Authority (RURA). There has been a long discussion
and wait for REFITs for other renewable energy technologies, such as
solar, wind and geothermal. This means that if the regulator decides to
implement a premium tariff, then there will be no conflict with existing
REFITs. There is, however, the potential for solar power in East Africa,
and this could contribute greatly in tackling the energy access challenges
in the region (Hansen et al. 2015). Figures 15.2 and 15.3 illustrate the
solar potential in both Kenya and Rwanda.
As illustrated in Figs. 15.2 and 15.3, there is potential for solar
energy to tackle the energy access challenges in both Rwanda and Kenya.
However, more investments are needed especially to ensure that the
people in rural areas to access to affordable solar energy services.