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Transforming Agriculture and Mitigating Climate Change: The Nasho Solar-Powered Irrigation Project

In Rwanda, as in many Sub-Saharan African countries, the expansion of irrigation is essential for agricultural development, food security and climate resilience. The agriculture sector contributes 90% of the country's food production and 35% of GDP. It is integral to Rwanda's socio-economic development, with around 70% of the population depending on the sector for their livelihoods. However, a large share of the population remains food insecure, particularly in rural areas.

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Transforming Agriculture and Mitigating Climate Change: The Nasho Solar-Powered Irrigation Project

In Rwanda, as in many Sub-Saharan African countries, the expansion of irrigation is essential for agricultural development, food security and climate resilience. The agriculture sector contributes 90% of the country's food production and 35% of GDP. It is integral to Rwanda's socio-economic development, with around 70% of the population depending on the sector for their livelihoods. However, a large share of the population remains food insecure, particularly in rural areas.

Consistent access to water is essential for maintaining and improving agricultural yields, as Rwanda supports diverse crop production throughout the year. However, fluctuating rainfall patterns, water management challenges and competing demands limit farmers' access to reliable water sources. Irrigation plays an important role in securing water for agriculture, yet only around 9.5% of the country's potential irrigable land has formal infrastructure. Inadequate energy access and reliance on costly fuel-based irrigation systems have slowed uptake.

Off-grid solar-powered irrigation pumps offer a solution to these challenges, yet their adoption remains low in Rwanda and across Sub-Saharan Africa due to systemic barriers such as high costs, lack of regulation and limited market development. In 2020, a promising initiative was launched to help surmount these obstacles and enhance agricultural productivity in the Nasho region in the southern expanse of the Eastern Province. The Nasho Solar-powered Irrigation Project, covering around 1,100 hectares, was a collaborative effort between the Rwandan government and the Howard G. Buffett Foundation, which channelled USD 54 million in funding to the project.

The project deployed 63 pivot irrigation systems – powered by a 3.3 MW solar plant with 2.4 MW of battery storage – and benefited 2,099 small-scale farmers. Farmers, organised under the Nasho Irrigation Cooperative (NAICO), managed the infrastructure with technical assistance from Rwanda Agriculture and Animal Resources Development, ensuring the sustainability of the project. This enabled year-round cultivation, more efficient use of resources (including water and fertiliser), and improved crop yields.

According to some estimations, the system could empower small-scale producers to elevate their annual production from 3-5 tonnes per hectare to nearly 10 tonnes per hectare. Alongside these anticipated crop yield gains, the project aimed to ensure access to and adoption of technologies that enhance agricultural value chains and promote soil conservation. The project also enhanced transport infrastructure, with 24 kilometres of existing roads resurfaced and 10 kilometres of new roads introduced.

The Nasho Solar-powered Irrigation Project is set to expand by an additional 1,050 hectares in 2024. This expansion aims to cut emissions 10% by 2030, enhance food security, and reduce dependency on imported fossil fuels, while increasing the land surface under irrigation. The investment needed to realise this vision is projected to be around USD 280 million, requiring participation from the government, the private sector and international partnerships.

Source: See endnote 62 for this module.

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  282. Emma Gordon, “How Can Sustainable Debt Support China's Energy Transition?”, International Energy Agency, 30 October 2023, https://www.iea.org/commentaries/how-can-sustainable-debt-support-chinas-energy-transition. 282
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  286. Hortense Bioy, “Global ESG Funds Hit With Outflows for First Time in Q4”, Morningstar, Inc., 2 February 2024, https://www.morningstar.com/sustainable-investing/globally-esg-funds-suffer-first-ever-quarterly-outflows-fourth-quarter-2023; International Monetary Fund Climate Finance Policy Unit, “Climate Finance Monitor”, 1 February 2023, https://www.imfconnect.org/content/dam/imf/News%20and%20Generic%20Content/GMM/Special%20Features/Climate%20Finance%20Monitor%20Q4%202022.pdf. 286
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  294. Hortense Bioy, “Global ESG Funds Hit With Outflows for First Time in Q4”, Morningstar, Inc., 2 February 2024, https://www.morningstar.com/sustainable-investing/globally-esg-funds-suffer-first-ever-quarterly-outflows-fourth-quarter-2023.294
  295. Alastair Marsh, “JPMorgan's Exit from Climate Group Sparks ‘Greenhushing' Debate”, Wealth Management, 20 February 2024, https://www.wealthmanagement.com/etfs/bloomberg.com/news/articles/2024-02-16/what-s-greenhushing-jpmorgan-s-climate-group-exit-brings-new-term-to-light. 295
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  297. The Business Times, “China Proposes New ESG Rules to Keep Up with Europe”, 21 February 2024, https://www.businesstimes.com.sg/esg/china-proposes-new-esg-rules-keep-europe. 297
  298. The Business Times, “China Proposes New ESG Rules to Keep Up with Europe”, 21 February 2024, https://www.businesstimes.com.sg/esg/china-proposes-new-esg-rules-keep-europe. 298
  299. Hortense Bioy, “Global ESG Funds Hit With Outflows for First Time in Q4”, Morningstar, Inc., 2 February 2024, https://www.morningstar.com/sustainable-investing/globally-esg-funds-suffer-first-ever-quarterly-outflows-fourth-quarter-2023. 299
  300. International Monetary Fund, ‘Global Financial Stability Report, October 2022: Navigating the High-Inflation Environment', IMF, October 2022, https://www.imf.org/en/Publications/GFSR/Issues/2022/10/11/global-financial-stability-report-october-2022.300
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  302. MSCI, “ESG Investing: ESG Ratings”, accessed 24 February 2023, https://www.msci.com/our-solutions/esg-investing/esg-ratings; Cam Simpson, Akshat Rathi and Saijel Kishan, “The ESG Mirage”, Bloomberg, 10 December 2021, https://www.bloomberg.com/graphics/2021-what-is-esg-investing-msci-ratings-focus-on-corporate-bottom-line. 302
  303. Mattias Taeger, “‘Double Materiality': What Is It and Why Does It Matter?” Grantham Research Institute on Climate Change and the Environment, 21 April 2021, https://www.lse.ac.uk/granthaminstitute/news/double-materiality-what-is-it-and-why-does-it-matter; Malin Emmerich and Karsten Loeffler, personal communication with REN21, 8 March 2024.303
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  306. Box 2 from the following sources: fossil fuel CEO from Ben Stockton and Amy Westervelt, “Inside the Campaign That Put an Oil Boss in Charge of a Climate Summit”, The Intercept, 25 October 2023, https://theintercept.com/2023/10/25/cop28-uae-oil-climate-sultan-al-jaber; USD 100 billion and strong confidence from Jillian Ambrose, “Big Five Oil Companies to Reward Shareholders with Record Payouts”, The Guardian, 1 January 2024, https://www.theguardian.com/business/2024/jan/01/oil-companies-shareholders-payouts-bp-shell-chevron-exxonmobil-totalenergies; fossil fuel spending from International Energy Agency, “The Oil and Gas Industry in Net Zero Transitions”, 2023, https://www.iea.org/reports/the-oil-and-gas-industry-in-net-zero-transitions; Shell job cuts from Ron Bousso, “Exclusive: Shell Cuts Low-carbon Jobs, Scales Back Hydrogen in Overhaul by CEO”, Reuters, 25 October 2023, https://www.reuters.com/sustainability/climate-energy/shell-cuts-low-carbon-jobs-scales-back-hydrogen-ceo-overhaul-sources-2023-10-25; investor reactions from “Shell under fire from Europe's largest asset manager over climate policy “, Financial Times, 15 January 2024, https://www.ft.com/content/8e530a5c-6f67-424a-a9d9-a14d395ee4c1; France from “Environmental Groups File Complaint Against France's TotalEnergies over Climate Impact”, Reuters, 2 October 2023 https://www.reuters.com/sustainability/environmental-groups-file-complaint-against-frances-totalenergies-over-climate-2023-10-02. 306
  307. Climate Policy Initiative, “Global Landscape of Climate Finance 2023”, 2023, https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf. 307
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  322. Mike Scott, “ESG Watch: COP28 a Milestone in Terms of Ambition, but Falls Short on Finance”, Reuters, 14 December 2023, https://www.reuters.com/sustainability/sustainable-finance-reporting/esg-watch-cop28-milestone-terms-ambition-falls-short-finance-2023-12-14. 322
  323. Mike Scott, “ESG Watch: COP28 a Milestone in Terms of Ambition, but Falls Short on Finance”, Reuters, 14 December 2023, https://www.reuters.com/sustainability/sustainable-finance-reporting/esg-watch-cop28-milestone-terms-ambition-falls-short-finance-2023-12-14. 323
  324. Glasgow Financial Alliance for Net Zero (GFANZ), “About Us”, 2022, https://www.gfanzero.com/about; GFANZ, “GFANZ Launches Latin America & Caribbean Network to Support Climate Finance in the Region”, 23 October 2023, https://www.gfanzero.com/press/gfanz-launches-latin-america-caribbean-network-to-support-climate-finance-in-the-region.324