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Hydro Renewable Energy Feed-in Tariff (REFIT) in Rwanda

On February 9th 2012 the Government of Rwanda issued a Renewable Energy Feed-in Tariff (REFIT) for small and mini-hydropower.
The REFIT guarantees access to the grid for renewable energy generators and obliges the national utility EWSA to purchase the renewable energy generated. This is expected to result in the creation of a critical mass of private sector investments in renewable energy and thereby support the establishment of a self-sustaining market in the country.

The REFITs are calculated based on a cost plus return basis to ensure sufficient incentives for private investors. They apply to hydropower plants ranging in size from 50 kW to 10 MW. The Rwandan REFITs are valid for a period of 3 years after which they will be subject to review by the Rwanda Utilities Regulatory Authority (RURA).

REFITs for other renewable energy technologies, such as solar, wind and geothermal are also planned but have not been issued yet by the regulator. The early adoption of the REFITs for hydropower can mostly be attributed to the pressure of private hydropower developers on relevant government authorities, as well as their ability to provide RURA with reliable data as a basis for RURA’s internal validation process.

Additional information: Details
News date: 10/02/2012

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