Kigali — The government last week signed a $23 million (Rwf 15 billion) solar energy deal that will involve generation of 8.5 megawatts of electricity.

Like many African countries Rwanda is pressed for supplying adequate power supplies. The deal includes a power purchasing agreement between the government and Dutch company, GigaWatt Global.

" This agreement comes at a time when we (the government) are looking at ways to achieve our Vision 2020 of which energy plays an important role," State Minister in charge of Energy and Water, Eng. Emma Francoise Isumbingabo said during the signing.

According to the agreement, GigaWatt Global will run the financing and constrction of the solar plant in the district of Rwamagana, country's East Province neighbouring Kigali city while government commits to purchase the power generated.

GigaWatt Global is a multi-national that majors in development and management of utility-scale solar fields in renewable energy in emerging markets, which has seen its footprint in Africa increasing renewable energy mainly for rural Afirca.

Speaking on behalf of GigaWatt Global, Chaim Motzen, Vice President of the company said the project will be able to post the 8.5 MW to the national grid in the next 11 months, with financing raised through equity and debts.

Rwanda boosts of over 50% of solar efficiency, something that will help the country achieve the rural electrification that currently depends on wood fuel.

The country's per capita energy consumption is at 21kWh,whilst electrification rate stands at 16% today with production at 110.8 MW which way below the 2017 target of 1000 MW.

To achieve its ambitious target, the government rolled out a Rwf3 trillion ($4.7 billion) energy strategy that is looking at tapping 320MW from hydro power, and 300MW from methane gas, 215MW from peat, 310MW from geothermal including other sources under study.