Investment subsidies for solar water heaters [NDF C4]
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
Program Manager Martina Jägerhorn
Telephone +358 10 618 002
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