Rwanda Senators Ask Solar Firms to Prove Systems Before State Support

Rwandan senators have challenged private renewable energy companies to prove that their systems work in private businesses before seeking government facilities for wider testing.

Senator Penine Uwimbabazi gave the challenge during a meeting between private energy operators and the Senate Committee on Economy and Finance last week.

Her position came after a proposal by Methode Maniraguha, chief executive officer of Abundio Energy, a solar panel manufacturing company.

Maniraguha had asked the government to allow private companies to install solar systems in public institutions and factories without upfront payment.

Under the proposed energy-as-a-service model, the companies would finance and install the systems. Users would then pay for the electricity they consume.

The proposal was meant to show that solar power can supply equipment and machines that some people believe require other forms of electricity.

"There are some misconceptions that solar energy is not capable of powering certain equipment. Some people ask whether it can even power a fridge or whether it can run big machines. We want to prove that it can," Maniraguha said.

Uwimbabazi, however, said private firms could conduct such tests within the private sector before asking the government to provide public facilities.

Senators question service after installation

The senator suggested that companies first work with other members of the Private Sector Federation who run businesses and health facilities.

"Why can't you start with your counterparts, the PSF members who have health facilities, wood workshops and other businesses? Let the state get involved after you have demonstrated that the solutions work," she said.

Her position also raised the issue of what happens after solar equipment has been installed and paid for.

Uwimbabazi criticised companies that sell solar systems to households but fail to return when the equipment develops faults.

"There is also a shortage of technicians. If the equipment stops working and there is no technician to fix it, what is the role of the companies?" she asked.

Senator Frank Habineza also called for arrangements that would keep companies responsible for off-grid solar equipment after installation and payment.

The exchange came as private energy operators presented problems affecting renewable energy projects, including funding, regulation and climate conditions.

The concerns cover both solar projects for homes and larger renewable energy projects such as hydropower plants.

Hydropower investors face finance, water problems

Andrew Mbangukira, chairperson of the hydropower subsector at Energy Private Developers, said investors had found sites with potential to produce between 5MW and 20MW.

Some investors, however, struggle to secure power purchase agreements for the projects.

Mbangukira said investors need conditions that allow them to earn enough from a project to make it financially viable.

"When you call on a private investor to establish a hydropower plant, you have to offer them something that makes the investment viable. If they do not see the potential to make a profit, they will not come," he said.

Water shortages during dry periods are also affecting hydropower generation.

Mbangukira said lower water levels can reduce the output of plants that have higher production capacity.

"A plant that can produce 5MW can produce only 2MW during the dry season. Sometimes we operate the machines for five hours and spend another five hours waiting for the water level to rise enough for them to operate," he said.

Sosthene Mubera, another EPD subsector chairperson, said financing was limiting off-grid energy projects.

He said companies face expensive collateral requirements when seeking funds for their projects.