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Rwanda-Intern Reports Intern Reports Appendix G July 2011 EditorsMegan Cole [email protected] Ryan Hogarth [email protected] AuthorsGloria Mutoni [email protected] Tito Rugamba [email protected] Ernest Ramuni [email protected] Photography by Megan Cole and Ryan Hogarth This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. However, the views expressed and information contained in it are not necessarily those of or endorsed by DFID or the members of the Climate and Development Knowledge Network*, which can accept no responsibility or liability for such views, completeness or accuracy of the information or for any reliance placed on them. *The Climate and Development Knowledge Network ("CDKN") is funded by the Department for International Development and the Dutch Ministry of Foreign Affairs and is led and administered by PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP is assisted in the management of CDKN by an alliance of organisations comprising the Overseas Development Institute, Fundacion Futuro Latinoamericano, South-South-North, LEAD International, and INTRAC. Smith School of Enterprise and the Environment University of Oxford Hayes House 75 George Street Oxford OX1 2BQ United Kingdom www.smithschool.ox.ac.uk Smith School of Enterprise and the Environment Rwanda Private Sector Investment in Green Technologies Contents Private Sector Investment in Green Private Sector Investment in Green Acronyms and Abbreviationsi Technology 1. Introduction1 2. Scope of the Study2 3. Methodology3 4. Case Studies4 4.1 COPED Ltd4 4.2 Rural Energy Promotion (REPRO) SARL 4 4.3 Modern Technology Services, MTS Ltd 5 4.4 BBOXX Ltd5 4.5 Construction and Renewable Energy Technologies, CRET5 4.6 TEKUTANGIJE Ltd5 4.7 Nuru Energy6 5. Findings 7 5.1 Common comments7 5.2 Specific challenges and suggestions7 6. Analysis and Conclusion9 Smith School of Enterprise and the Environment i Acronyms and Abbreviations EWSA Energy, Water and Sanitation Authority KCS Kigali Cleaning Services MININFRA Ministry of Infrastructure RWF Rwandan Franc UNFCCC United Nations Convention on Climate Change USD United States dollar VAT value-added tax W Watt Smith School of Enterprise and the Environment i Chapter 1 Introduction Private Sector Investment in Green Private Sector Investment in Green Rwanda is putting great effort into environment house gas emission in energy sector: the protection, and has currently placed a special disengagement of the Government for the profit of Technology emphasis on mitigation and adaptation to climate the private sector. For this reason, among others, change. The Rwandan inspiration and the National Strategy on Climate Change and Low determination are embedded in Vision 2020. It Carbon Development for Rwanda includes the includes 6 pillars, one of which is to have a private perspective of the private sector. This study aims to sector-led economy. In addition, Rwanda’s first reveal the challenges faced by private investors in national communication to the United Nations green businesses, and government policies that Convention on Climate Change (UNFCCC) could help to overcome those challenges. suggested among the strategies to reduce green Smith School of Enterprise and the Environment 1 Chapter 2 Scope of the study Case studies were conducted on private reduced emissions of greenhouse gases. The companies in Rwanda that are providing climate following technologies have been considered: change mitigation and adaptation technologies. - Solar Climate change mitigation technologies, for the - Micro hydro purpose of this study, are those that reduce energy consumption, or that convert renewable sources - Improved cooking stoves into heat or electricity, and which therefore lead to - Biogas - Waste management - Mechanically generated electricity 2 Smith School of Enterprise and the Environment Chapter 3 Methodology Private Sector Investment in Green Private Sector Investment in Green Interviews were conducted with business overcome such challenges. Each interview is owners and managers of seven companies discussed in detail in the following section. Technology operating in Rwanda. These interviews were Company records, as well as a number of informal with open questions focused on the national development documents have been interviewees experience and challenges in providing consulted to determine a baseline for the climate change mitigation and adaptation services, government’s consideration of the private sector in and elicited policy recommendations that the policy formation. government could implement to help businesses Smith School of Enterprise and the Environment 3 Chapter 4 Case Studies 4.1 COPED Ltd Non-Recyclable Waste (in yellow). It has two In 1999, Kigali Cleaning Services (KCS) was factories: founded by Paulin Buregeya, the current Chief - ECOMAKE, which transforms dry biomass Executive Officer of COPED Ltd. It started its waste into briquettes operation as a sole proprietorship enterprise. In - ECOPLASTIC, which recycles plastic waste 2004, KCS’ name was changed to Cooperative for Since 1st July waste categories have increased Environment and Development (COPED) and was converted to a cooperative legal statute. In 2008, from three to five which include: organic waste, hazardous waste, recyclable waste, waste paper, COPED’s status changed again. It was registered non recyclable/disposable. In the near future, as a Rwandan limited liability company (Ltd) under COPED will install composting centers that will the name, Company for Environment and convert wet bio-waste into organic fertilisers. Development (COPED Ltd.) COPED’s vision is to lead the East and Central COPED’s activities are limited to Kigali, but it plans to expand to other cities in the future. Africa market. It plans to establish a reference “Waste for Wealth” centre (W4W) that will partner 4.2 Rural Energy Promotion (REPRO) SARL with international organisations for effective and REPRO SARL is a Rwandan private company efficient implementation of different climate change with a focus on renewable energy and rural initiatives. electrification. It has held an investment certificate COPED separates Bio-Organic Waste (collected since 2008. The company’s activities involve in green containers), Recyclable Waste (in blue) and production, promotion, distribution and retail of renewable energy products, as well as the Box 1: Murunda Micro Hydro Power Plant Location of the plant: - Western Province, Rutsiro District, Murunda Sector, Rwishywa River Technical Specifications: - Grid connected - Power: 96KW Financing: - Total cost: RWF 255million (USD 424 thousand) - 32% REPRO SARL’s own contribution - 18% loan from BRD (Rwanda Development Bank) with a 14% interest rate during the pre-operational phase, rising to a 16 % interest rate once production operation commences, - 50% PSP Hydro grant 4 Smith School of Enterprise and the Environment Chapter 4 development of power generation projects through LED light that goes with the product is USD 6, and the construction of micro hydro power plants. a 10W solar panel to charge the box continuously Under the Energizing Development Program throughout the day (and provide sufficient energy (GIZ project), REPRO SARL developed and for 'typical' household use) costs approximately constructed the Murunda Micro Hydro Power Plant. USD 38. BBOXX revealed that it is in the process of It was the first ever privately initiated, owned and developing further products at a whole range of operated micro hydro plant in Rwanda (see Box 1). pricing levels, from USD 20 to 200, depending on the amount of energy the system can store, power 4.3 Modern Technology Services, MTS Ltd Private Sector Investment in Green it can produce, and usability. MTS sarl is a company founded in 2003. It is 4.5 Construction and Renewable Energy based in Rwanda, but has extended activities to Technologies, CRET Burundi and the Democratic Republic of Congo (DRC). Its principle activities are importation, retail, CRET is a company involved in installation and Technology installation and maintenance of electrical and maintenance of biogas. It has been operational medical equipment. since 2006. It provides biogas services to both domesticandinstitutions. In order to promote It provides four main products: domestic biogas, the government has established a - Service 1: Solar energy maximum price. A domestic biogas system costs - Service 2: Electric line between RWF 700,000 and 800 000 (USD 1,165 – 1,331), of which the Government provides RWF - Service 3: Generators 300 000 (USD 500) through the national domestic - Service 4: Medical equipments biogas project (MININFRA). The remaining must be MTS Ltd’s domestic solar system costs an covered by the household. For institutional biogas estimated RWF 1.5 million (USD 2500), and its there is no fixed price. It is negotiated. institutional system costs between FRW 8 million 4.6 TEKUTANGIJE Ltd and 27.5 million (USD 13 thousand - 46 thousand). TEKUTANGIJE Ltd sells low carbon, energy The institutional systems range from 2000 watts to efficient cooking stoves. The name TEKUTANGIJE 3000 watts. When MTS installs a solar system, it was granted registered trademark status by RDB in provides a one year guarantee. Within that year, any April 2009. An image of the stove is provided in problem with the system will be repaired for free. Figure 1. A number of the TEKUTANGIJE stove’s 4.4 BBOXX LTD features increase energy efficiency.
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