Knowledge Note

"Sustainable Energy Subsidy Reform in Rwanda."

Reforming electricity subsidies is a complex challenge in Rwanda, a landlocked country with limited energy resources and a small industrial base. Expensive and historically unreliable electricity services have been detrimental to the growth of businesses and unaffordable for a large section of the population. ESMAP grants have supported World Bank engagement and analysis, which have helped to set out options for decisive government action. As a result, the government has been able to significantly reduce fiscal transfers to the electricity sector, while doubling new connections per year, halving tariffs for low-income households and making connection charges significantly more affordable.