Rwanda is among the fastest growing economies in Africa. This growth aligns with the Rwandan government’s goal of transitioning the country from an agricultural-based economy to one driven more by industry and services. With the support of development partners, the government is shifting its focus toward leveraging electricity services to spur economic development and job creation. Energizing Rwanda’s Development: Opportunities and Strategies for Catalyzing Productive Use of Energy - a product of the World Bank’s Energy Sector Management Assistance Program (ESMAP), in collaboration with Sustainable Energy for All (SEforALL) - utilizes extensive primary and secondary data to assess the country’s potential in the productive use of energy (PUE). Utilizing a rigorous ranking process, the study selected four high-potential PUE technologies for analysis: (1) solar water pumps, (2) refrigerators, (3) electric motorcycles, and (4) electric pressure cookers. The findings demonstrate the presence of a nascent market and the key role affordability plays in the uptake of PUE technologies. Market strengthening will require support for suppliers’ access to finance, consumers’ access to affordable products, and awareness creation and capacity building, underpinned by enabling policies and cross-sector coordination. These actions will require dedicated funding, which can start a virtuous cycle of development.
Authors
- Citation
- “ World Bank . 2024 . Energizing Rwanda’s Development: Opportunities and Strategies for Catalyzing Productive Use of Energy . © Washington, DC: World Bank . http://hdl.handle.net/10986/42149 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- Energy Study
- DOI
- https://doi.org/10.1596/42149
- Identifier externaldocumentum
- 34386105
- Identifier internaldocumentum
- 34386105
- Pages
- 92
- Published in
- United States of America
- Region country
- Rwanda
- Report
- 193367
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- Infra AFR Energy 1 (IAEE1)
- URI
- https://hdl.handle.net/10986/42149
- date disclosure
- 2024-09-12
- region administrative
- Africa Eastern and Southern (AFE)
- theme
- Energy Efficiency,Mitigation,Access to Energy,Energy,Gender,Human Development and Gender,Energy Policies & Reform,Environment and Natural Resource Management,Climate change
Files
Table of Contents
- OPPORTUNITIES AND STRATEGIES FOR CATALYZING PRODUCTIVE USE OF ENERGY 1
- CASE STUDIES 5
- BOXES 6
- FIGURES 6
- TABLES 6
- ACRONYMS AND ABBREVIATIONS 8
- Study Design and Methods 9
- Review of Policies and Initiatives 10
- Analysis of Current Users 10
- Ranking High-Potential Technologies 11
- Addressable and Serviceable Markets 12
- Market Barriers 14
- Market strengthening 15
- Recommendations 15
- Enabling polices and cross-sector coordination 16
- Dedicated funding to start a virtuous cycle of development 16
- 1.1 Overview of the Study Context 19
- 1.2 Study Purpose and Objectives 20
- 1.3 Methodology and Data Collection 21
- 1.4 Structure of This Report 23
- PLANNING POLICIES AND INVESTMENTS 24
- 2.1 Institutional Arrangements 25
- 2.2 Policy and Legislative Framework 27
- 2 .2 .1 Sector policies 27
- 2 .2 .2 Laws and tax regime 29
- 2.3 Investments in PUE 30
- 2 .3 .1 Overview 30
- 2 .3 .2 PUE programs 31
- UNLOCKING ELECTRICITY DEMAND FOR PRODUCTIVE USES 34
- 3.1 Introduction 35
- 3.2 Profile of Productive Energy Users 35
- 3.3 Electricity Consumption for Enterprise Productivity 42
- 3 .3 .1 Consumption scenarios 42
- 3.3.2 Key findings 44
- ANALYSIS OF PUE TECHNOLOGIES 46
- 4.1 Market Overview 47
- 4.2 Selection of High-Potential Technologies 50
- 4 .2 .1 Water pumps 51
- 4 .2 .2 Cold storage and refrigeration 53
- 4 .2 .3 Electric motorcycles 54
- 4 .2 .4 Electric cookstoves 54
- 4.3 Market Sizing 55
- 4 .3 .1 Overview of the analysis 55
- 4.3.2 Addressing affordability assumptions 56
- 4 .3 .3 Estimating addressable and serviceable markets 57
- 4.4 Summing Up 59
- 5.1 Introduction 61
- 5.2 Supply-Side Analysis 61
- 5 .2 .1 Technology suppliers 61
- 5 .2 .2 Market prices 62
- 5.2.3 Business financing and advocacy 63
- 5.3 Demand-Side Analysis 64
- 5.4 Consumer Profile 65
- 5 .4 .1 Smallholder farmers 65
- 5 .4 .2 Butcher milk and retail shops 67
- 5 .4 .3 Motorcycle users 68
- 5 .4 .4 Restaurants 69
- 5.5 Summary of Market Barriers 71
- 6.1 Strategy Overview 73
- 6.2 Market Strengthening 73
- 6.2.1 Access to finance 73
- 6.2.2 Consumer affordability support 74
- 6 .2 .3 Awareness creation and capacity building 74
- 6.3 Enabling Policies and Cross-Sector Coordination 75
- 6 .3 .1 Advocacy for favorable tax regimes 75
- 6.3.2 Comprehensive electricity tariff study 75
- 6.3.3 Consultative efforts across sectors 76
- 6.4 Dedicated Funding to Start a Virtuous Cycle of Development 76
- 6 .4 .1 Eligibility criteria 76
- 6 .4 .2 Funding for implementation 77
- 6 .4 .3 Results tracking 77
- Annex A. Technology Screening Notes 79
- Annex B. Market Sizing Model 81
- Annex C. Pilot Study Summary 82
- Prices and Parameters 82
- Respondent Selection Process 82
- Recommended Actions 84
- References 85
