Renewable energy and energy supply deficit in Rwanda

Abstract

Renewable energy is clean energy that does not pollute the environment and is a key strategy for improving energy security. This study focused on the variables influencing demand for renewable energy, the influence of this demand on general energy demand, and the reciprocal relationship between Rwanda's energy deficit and renewable energy. Hence, the energy per capital consumption is pretentious by old and small grid infrastructure, speedy growth in demand, supply disturbance and inefficiencies. The failure to increase energy generation despite rising energy consumption has a negative impact. We also hypothesize a pressure on households to demanding renewable energy resulting from observed higher energy supply deficit. According to the literature analysis, the main factors influencing Rwanda's energy demand are the country's GDP, its ability to obtain electricity, and foreign direct investment. When working with data from times series, it is essential to determine the stationarity of the series by looking for a unit root. This happens as a result of time series' nonstationarity. In most cases, non-stationary data used for econometric analysis yields incorrect results.The Johansen Cointegration test was widely used in this study (1991, Johansen). It is used to It is active to demonstrate that the explained and explanatory factors have an ongoing relationship. The ARDL Long Run Form and the Bound Test were used to determine the relevance of the factors. The outcomes discovered that renewable energy plays a vital role on energy supply deficit means it is filling energy supplied gap in order to meet the demand. This study recommended that government should be encouraging people to be more renewable energy efficiency, to make more value on environmental goods and services. Renewable energy generation reduces greenhouse gas emissions from fossil fuels while also reducing energy deficit.