Rwanda Government signs USD 20m Solar energy deal with Goldsol II

KIGALI, 15^th May 2014 – The Government of Rwanda (GoR) has today signed a Memorandum of Agreement (MOA) with Goldsol II, an energy consortium, to construct a 10MW solar power plant worth US$20 million in Kayonza, Eastern Province. The consortium is composed of three companies-TMM Renewables a Company incorporated in South Africa, Gesto Energy Africa a company registered in Malta, and 3E Power Solar, a company registered in Rwanda, says a press release by RDB.

The Agreement will provide a framework to carry out a feasibility study that will assess the project’s power generation. This will then result into a long term agreement between the Government of Rwanda and a company to be established by Goldsol II in Rwanda to generate, manage and distribute power all over the country. The project is expected to be operational by 2016.

Speaking at the signing, the Rwanda Development Board’s Chief Executive Officer Ambassador Valentine Rugwabiza said that: “The current installed generation capacity is close to 120MW. The 2017 energy target is 563MW to allow for affordable access to power to cover most of the country, which is currently at 19.4% to increase to 70% by 2017. ”

She further added that; “Rwanda is keen on conservation of the environment and therefore is using an expansive approach that embraces a range of clean energy solutions; solar being one of them.  Partnering with experienced investors, such as Goldsol II who are contributing 10 MW which is half of our solar energy target of 20MW by 2017, is fundamental to further boosting Rwanda’s GDP.

The realization of this project will not only contribute to increased access to sustainable, reliable, and clean power generation of about 10% to the existing power generation, but will also serve an estimated 38,800 additional households vis a vis the 427,000 connections today. This project will also have socio – economic impacts, such as job creation and improved standards of living for communities.”

The Development and Managing Director of TMM Renewables Nuno Nóbregasaid; “The GoldSol consortium has a track record of investments in Africa that exceeds US$800M, has collective experience of more than 400MW of renewable energy projects in operation worldwide and business presence of more than 10 years on the continent.

The greatest challenge of this project now is to commission as soon as possible, so we can focus on additional renewable energy projects in Rwanda. The excellent social and economic environment that we have been experiencing in this country has exceeded all our expectations and, at the same time, amplified our responsibilities.”

 UM– USEKE.RW

The 10MW solar power plant project was awarded to the consortium, through a competitive tender run by EWSA.