Rwanda, a country that has remarkably expanded electricity access from just 6% in 2009 to over 75% as of March 2024, has set its focus on energy efficiency at a crucial juncture in its path toward achieving Sustainable Development Goal 7 (SDG7) of providing access to affordable, reliable, sustainable and modern energy for all.

By prioritizing energy efficiency early on, Rwanda can reap significant economic and environmental benefits and ensure the adoption of efficient technologies and development approaches. In our recent report "Energy Efficiency Potential Assessment for Rwanda", prepared in collaboration with the Ministry of Infrastructure (MININFRA), estimates show that Rwanda could potentially reduce electricity consumption by about 22% by adopting energy efficiency measures in different sectors.

The interventions create an estimated investment opportunity of over $91 million and could result in saving $25 million annually in reduced power generation and purchase costs, offering an attractive payback period of just over three and a half years. This offers a compelling opportunity for reducing the necessary fiscal support to the power sector and attracting private sector investment in energy efficiency interventions.

End user energy savings potential

Note: The sector-wise annual electricity savings potential has been estimated based on energy audit reports from across the world. A range of minimum and maximum savings potential has been considered for each sector. The table presents only the electricity savings potential. Other forms of energy have not been covered due to data limitations. Source: Energy Efficiency Potential Assessment for Rwanda.

However, crucial sector gaps need to be addressed to leverage these investments and realize efficiency gains. We’ve identified the following areas for improvement:

To address the identified gaps, the report proposes a comprehensive roadmap for implementation of energy efficiency measures in Rwanda through policy, institutional, and financing interventions, including:

The energy efficiency roadmap for Rwanda is serving as a foundation for the World Bank and other development partners to assist the Government of Rwanda in scaling up energy efficiency interventions. Getting these interventions right will help set Rwanda as an example in the region for incorporating energy efficiency measures while rapidly expanding electricity service delivery.

The assessment was financed by Italy’s Ministry of Environment and Energy Security through the Single Donor Trust Fund “AGREED,” which is administered by the World Bank.

According to blogs.worldbank.org