Focusing on Rwanda, this country report is part of a three-part series on Distributed Renewable Energy (DRE) in East Africa. It assesses the financial challenges faced by the energy access sector and proposes financial aggregation, specifically the aggregation of distributed renewable energy (DRE) receivables, as a possible avenue.  

When appropriately designed, financial aggregation can bridge funding gaps and expedite capital deployment. The report examines the market readiness for DRE financial aggregation in Rwanda and analyzes national factors using the Political, Economic, Social (demographic), Technological, Legal and Environmental factors (PESTLE) framework. It also explores the energy sector's current status, and delves into various DRE sub-sectors. The study identifies barriers, quantifies market opportunities, and concludes with an action plan for stakeholders.

The report advocates for the exploration of multi-jurisdictional financial aggregation, bundling DRE assets, not only within Rwanda but also across East Africa, to attain the critical mass necessary for cost-effective transactions, and providing an opportunity for regional collaboration. Rwanda’s conducive business environment, its supportive tax legislation and the country’s ambitions to be a leader in green and sustainable finance provide a good starting point.

UNDP’s Climate Aggregation Platform is a flagship initiative of the Sustainable Energy Hub and Climate Hub to support the structuring and deployment of innovative business models and financial mechanisms to accelerate energy access and a just energy transition. To read the other report in the series please visit Financial Aggregation for Distributed Renewable Energy in East Africa: An Overview of the Region and Financial Aggregation for Distributed Renewable Energy in Uganda.