NDF - Financing for climate change and development projects

Investment subsidies for solar water heaters [NDF C4]

Solar water heater on private home in Kigali
22.11.2010
The project aims at mitigation of climate change through reduced demand for peak time electricity generated in fossil fuel plants, by creating a market for solar water heaters in Rwanda

Rwanda
Investment subsidies for solar water heaters
Ref: NDF C4

EUR 4 million
Project period: 2010–2015
Partner agency: World Bank

Objectives

The NDF intervention, constituting a part of the National Electricity Access Programme, aims at mitigation of climate change through reduced demand for peak time electricity generated in fossil fuel plants, by creating a market for solar water heaters in Rwanda. This market is to be kick-started through subsidies and investment support to customers and through start-up support to private firms importing, assembling, manufacturing or selling solar water heaters. Due to the intervention additional fossil peak power generation capacity may not be needed until 2025 and at least 15,000 ton of CO2 emissions per year can be avoided. A successful market creation could result in an even more significant reduction in the CO2 emissions in the years to come.

Financing

The NDF intervention is part of the National Electricity Access Programme, with the World Bank/IDA and the Global Environment Facility (GEF) as lead agencies. NDF finances the solar water heaters component in cooperation with GEF. The implementation of the intervention will be arranged in cooperation with other financiers and local organisations involved. NDF’s grant financing totals EUR 4 million. Total project funding for the National Electricity Access Programme amounts to USD 377 million and for the solar water heaters component to over USD 6 million.

NDF Contact

Country Program Manager Charles Wetherill
Telephone +358 10 618 002

More information

SolaRwanda Project Brochure