This report “Financial Aggregation for Distributed Renewable Energy in Rwanda” by UNDP assesses the market readiness and potential for financial aggregation of the DRE sector in Rwanda. It provides an in-depth analysis of the key precursors to financial aggregation and the barriers that will need to be tackled if the potential addressable market is to be unlocked. It presents an action plan setting out two pathways with specific barrier-removal activities to systematically address these barriers, enable broader replication and achieve market scale-up. Key highlights of the report are:
- The distributed renewable energy (DRE) market in Rwanda has experienced considerable growth over the past decade. In the captive power market, the installed capacity of commercial and industrial (C&I) solar projects has grown to 5.7 MW by 2023, marking 18% growth since 2020.
- Despite this growth, the market for small-scale, low-carbon, energy assets in Rwanda is still nascent when it comes to financial aggregation.
- The quantified market opportunity assessment shows that the DRE sector with the largest financial aggregation market opportunity in Rwanda is OGS, followed by captive power and mini-grids. Electric mobility also presents a large potential market opportunity but this is based on a qualitative assessment.
- The OGS market is the most mature market currently, indicating relatively high readiness for financial aggregation compared to other sub-sectors such as mini-grids and captive power which exhibit low readiness at this stage.
- Bulk procurement – a different form of aggregation – can be used to grow the overall DRE asset base.
Access the complete report here
