Global Innovation Lab for Climate Finance has decided to implement a financial instrument to accelerate the deployment of solar home systems in the country. The organisation will therefore produce $9 million worth of shares to hopefully connect 175,000 people to the solar off-grid system.
It is a wind of change blowing on the solar energy sector in Rwanda. The Global Innovation Lab for Climate Finance has decided to issue $9 million in securities to enable Rwanda to accelerate the deployment of solar domestic systems across the country. The government intends to make this resource available to private and public developers so that they can in turn respond more effectively to public demand.
According to the Global Innovation Lab for Climate Finance, the loans will be pooled with developers in the form of marketable securities to facilitate their access to capital markets and therefore increase their development. A real boon for these entities for which the ability to raise funds, as well as financial balance, remain two important obstacles to their expansion in the country. This situation is further reinforced by the fact that the population buys solar installations themselves. However, in doing so, sales depend on the ability of solar developers to take advantage of their own balance sheets.
According to Global Finance, “this instrument can raise $100 million in the Rwandan market alone to electrify about two million households. We will then be able to extend it to other East African markets with similar electricity access needs and institutional and economic conditions”. For the time being, the organisation intends to release $9 million in equity securities. An action that will make it possible to electrify about 175,000 households through solar energy.
Rwanda wants to connect 300,000 households to the electricity grid, relying mainly on off-grid solar energy. In its electricity access policy, Rwanda aims to achieve 100% by 2024, with a contribution rate of 48% for off-grid solar solutions. Currently, 51% of Rwandan households have access to electricity and 14% of them benefit from this access through off-grid solar solutions.