Power grids of Burundi, Rwanda, and Tanzania Interconnected and synchronized through Rusumo project, in March 2024
The Power Grids of Burundi, Rwanda and Tanzania were fully interconnected in March 2024 through the 80MW Regional Rusumo Falls Hydroelectric Project, NELSAP has revealed.
“Interconnection and Synchronization of power grids of Burundi, Rwanda and Tanzania have been completed already creating a unified power pool,’ said the Rusumo Project Manager Eng. Alloyce Oduor. The Burundi, Rwanda, Tanzania ‘Rusumo network’ consists of 372 km of 220 kV Overhead Transmission Lines (OHTLs). The Transmission Lines for Burundi is 160 km and runs from Rusumo to Muyinga and onwards to Gitega. For Rwanda, the OHTL is 118km and it runs from Rusumo to Bugesera onwards to Shango, while that of Tanzania is 94km and runs from Rusumo to Nyakanazi.
All Rusumo Transmission Lines and substations have been completed and commissioned and from November 3rd, 2023, to January 31st, 2024, the Transmission Lines transmitted 66 million KWh energy (see separate story on pg. 1).
“Now that this interconnection has been completed, it presents the countries with an opportunity to trade power among themselves and even to neighboring countries through a power ‘wheeling’ agreement,” explained Eng. Jacob Manyuon Deng, the NELSAP-CU Regional Programs Officer for Power and Trade. A ‘wheeling’ agreement allows two countries that do not share a border, to trade power through a third country network at a fee.
The power utilities of the three countries executing the Transmission Lines, Tanzania Electric Supply Company Limited (TANESCO), Régie de Distribution d’Eau (REGIDESO) of Burundi and Rwanda Energy Group (REG-EUCL) signed a Power Purchase Agreement (PPA) with Rusumo Power Company Limited (RPCL) on various dates in 2023. REGIDESO signed the PPA on June 21st, 2023, TANESCO signed on September 30th, 2023, while REG-EUCL signed on 1st December 2023. The Power Purchase Agreement (PPA) is a contractual agreement between energy buyers and sellers and through it the parties come together and agree how they will buy and sell energy generated by a project.
Take or Pay Model
The power purchase agreement signed between the Rusumo Project and the utilities of the three countries operates on a ‘take or pay model.’ Through this model, Rusumo Power Company Limited (RPCL) declares availability of power, then based on that availability, countries, through the utilities, place their orders for power. From that point the order becomes a ‘dispatch instruction.’ At this initial point, utilities place an order not exceeding the countries’ agreed allocation of 27MW. In case a utility places an order less than the agreed allocation (27MW), RPCL enters discussion with the other two utilities to take up the surplus. If the other two facilities fail to take up the extra power, the original utility must pay for its full allocation of 27MW. Once RPCL and the utilities have reached a ‘dispatch agreement,’ RPCL has an obligation to supply the agreed power without fail, and the countries also have an obligation to take the availed power without fail. Any party that fails to meet its obligation (buyer or seller) is penalized.
Benefits of Interconnection - 80MW Regional Rusumo Project
With connection to multiple buyers of power, Rusumo project has a bigger market to sell its power, meaning the plant has longer running hours that makes it economical. Once the company clears loans used to construct it, it can offer power at an even cheaper rate.