- The Rwanda government unveiled a new energy policy on Monday, February 17, which updates the 2015 policy.
- The government plans to encourage private sector participation in energy projects across various stages, including construction, financing, installation, and maintenance, particularly in electricity supply and clean cooking sectors.
The Rwanda government unveiled a new energy policy on Monday, February 17, which updates the 2015 policy. Rwanda will require at least Rwf2.5 trillion in investment in various energy sources.
According to the Ministry of Infrastructure, the new policy was informed by emerging challenges and realities as well as technological developments such as electric mobility, nuclear and radiation subsector development, hydrogen, autonomous power generation, and the use of natural gas for industrial and household use, which have created gaps in the 2015 policy thus a necessity for an update.
The new policy, which is benchmarked against the UN Sustainable Development Goal of ensuring access to affordable, reliable, sustainable, and modern energy for all people by 2030, aligns with Rwanda’s Vision 2035 and Vision 2050. It focuses on increasing energy access and transitioning to cleaner energy solutions.
The government plans to encourage private sector participation in energy projects across various stages, including construction, financing, installation, and maintenance, particularly in electricity supply and clean cooking sectors.
The policy also highlights the importance of utilising the country’s abundant energy resources, such as hydropower, solar, peat, methane, wind, geothermal, biofuels, nuclear, and hydrogen, to meet energy demands and reduce dependency on imports.
Here is a breakdown of the policy document into nine key energy sources, their development, and the necessary investment.
Hydropower
Hydropower accounts for 27 per cent of Rwanda’s total installed electricity capacity. The policy will ensure conservation of water catchment areas, increase storage capacity for reservoirs, and implement multipurpose hydro-power projects.
The plan includes an investment of over Rwf1 trillion to develop regional, national, and micro hydropower projects, with an additional Rwf62 billion allocated for rehabilitating existing plants.
Solar energy
With its geographical location near the Equator, Rwanda has huge solar potential. However, current solar capacity is limited. The policy aims to enhance solar energy use by supporting hybrid solar storage technologies, incentivising local production, and developing connection frameworks to integrate solar power into national and isolated grids.
Wind energy
While wind resources are generally poor in most of Rwanda, some areas show promise. The policy emphasises the need to conduct detailed wind assessments and update the country’s wind atlas.
A budget of Rwf500 million will be allocated for feasibility studies, and Rwf15 billion for constructing wind power plants to generate 15MW in addiction to current capacity.
Geothermal energy
Rwanda’s geothermal resources have an estimated potential of 50 to 90MW. Although more research is needed, the policy supports further geothermal resource assessment to attract investors and manage exploration risks.
An investment of up to Rwf60 billion will fund exploration studies and development to produce 30MW by 2034-35. There are ongoing geothermal studies in Bugarama, Karongi, and Rubavu.
Methane gas
Lake Kivu’s methane resources are substantial, with an estimated volume of 40 billion cubic metres. Methane has been exploited for power generation in Rwanda since 2015, currently producing 82.4MW. The policy recommends efficient resource management and minimal environmental risks.
An investment of Rwf218 billion will be made to increase methane gas energy generation and further exploit this resource for other uses, such as cooking and fertilizer production.
Waste-to-Energy (WtE)
The government aims to expand waste-to-energy capacity by converting waste products into heat or electricity. Currently, Rwanda has a small WtE plant with a capacity of 0.07 MW fuelled by gasification of rice husks.
Policy actions include supporting local waste-to-energy initiatives, offering incentives for plant development, and promoting large-scale production and distribution. The budget includes Rwf80 billion for waste-to-energy projects, aiming to add 15MW to Rwanda’s current energy generation.
Peat energy
Rwanda has extensive peat resources with an estimated 23-33 million dry tonnes of exploitable deposits, representing a technical potential of 121-161MW of capacity. However, peat use presents environmental and sustainability challenges.
The policy focuses on developing hybrid power systems combining peat with other energy sources, as well as researching efficient peat power generation and promoting investment in peat by-products.
The government will also promote research and capacity development for efficient peat power generation, provide appropriate incentives to attract investments to capitalise on ash and the by-products of peat.
Maximising the production capacity of existing peat power plants will involve an Independent Power Producer (IPP) business model, where a private entity or company generates electricity for sale to the government. Rwanda had a baseline peat power capacity to produce 85MW as of 2023-24. However, it produces less energy due to various challenges.
Nuclear energy
The policy envisions nuclear energy as a long-term solution, supporting the creation of a regulatory framework for nuclear power. A feasibility study for a nuclear power plant will cost Rwf5.3 billion, and the development of the plant is planned to cost an estimated Rwf1trillion for 110MW capacity.
Hydrogen technology
Hydrogen technology is also considered a potential energy resource. The energy policy includes a feasibility study for developing hydrogen technology at an investment of Rwf500 million. A pilot 10MW hydrogen power project will require Rwf30 billion.