Ruzizi III Hydropower Project is a regional project planned to link Rwanda, Burundi and DR Congo. Rwanda has been pushing for its construction for years, and last month activities for underway to find money.
Rwanda is poised to undergo a transformative energy revolution, with the Government unveiling a bold Rwf 5.2817 Trillion (approx. USD $4 billion) investment plan aimed at powering the nation’s economic growth and social development.
The ambitious initiative, outlined in the Rwanda Energy Policy 2025 released this February, is set to reshape the country’s energy landscape, ensuring universal access to modern, sustainable, and affordable energy services for all Rwandans by 2030.
The policy, crafted by the Ministry of Infrastructure in collaboration with key stakeholders, envisions a future where energy is not just a utility but a catalyst for broader socio-economic progress.
Rwanda’s leadership recognizes that reliable and affordable energy is the backbone of any thriving economy, and this policy aims to position the country as a leader in Africa’s energy transition.
Bridging the Energy Divide
Currently, about 55.9% of households in Rwanda have access to electricity, leaving millions without the modern energy services essential for daily life and economic opportunity.
The new policy sets a bold target: to provide universal electricity access—both on-grid and off-grid—by 2030. This means that by the end of the decade, every Rwandan household and business will have access to clean, affordable, and reliable energy.
To achieve this, the Government will focus on expanding the national grid, improving infrastructure, and promoting off-grid solutions like solar home systems and mini-grids. The policy also emphasizes the importance of affordable tariffs that balance affordability for consumers with the need to attract private sector investment.
Harnessing Renewable Potential
Rwanda boasts abundant renewable energy resources, and the policy leverages this potential to reduce reliance on expensive imported fuels. The country aims to increase the share of renewable energy in its energy mix, with a focus on solar, hydro, methane gas, geothermal, and bioenergy.
By 2035, renewables are expected to account for 65% of Rwanda’s total energy production, down from 49.6% today.
One of the key projects is the development of the Rusizi III (68 MW) and Rusizi IV (95 MW) hydropower plants, which will significantly bolster the country’s electricity generation capacity. Additionally, Rwanda plans to expand its solar power capacity, with a target of generating 100 MW from solar projects by 2035.
Electric Mobility and Clean Cooking
The policy also addresses the pressing issue of pollution from traditional cooking methods and petroleum-dependent transport systems. To combat indoor air pollution, which disproportionately affects women and children, the Government will promote the use of clean cooking technologies like liquefied petroleum gas (LPG), biogas, and electricity.
By 2035, the policy aims to transition 100% of households to modern cooking solutions, significantly improving health outcomes and reducing deforestation.
In parallel, Rwanda will promote electric mobility to reduce carbon emissions and petroleum import bills. The policy includes plans to establish electric vehicle charging infrastructure and incentivize the adoption of electric vehicles. This shift will not only improve air quality but also stimulate job creation in the growing EV industry.
Energy Efficiency and Disaster Preparedness
Recognizing the critical role of energy efficiency in reducing costs and minimizing environmental impact, the policy introduces measures to promote smart energy use.
This includes the adoption of energy-efficient appliances, the implementation of time-of-use tariffs, and the promotion of demand-side management initiatives.
By optimizing energy consumption, Rwanda aims to reduce waste and ensure that energy resources are used more effectively.
Additionally, the policy emphasizes the importance of disaster preparedness and energy security, particularly in the face of climate change. Rwanda will invest in strategic petroleum reserves to ensure a reliable supply of fuel products and reduce vulnerability to global price volatility. The country also plans to build hydro risk mitigation mechanisms to address the challenges posed by droughts and climate variability.
Mobilizing Private Sector Investment
The success of this ambitious plan hinges on the active participation of the private sector. To attract investment, the Government will streamline regulatory processes, offer incentives for renewable energy projects, and facilitate public-private partnerships (PPPs). The policy also encourages local content development, empowering Rwandan businesses and entrepreneurs to play a leading role in the energy sector.
International cooperation will also play a crucial role. Rwanda will leverage regional and international partnerships to improve energy security and access to climate finance mechanisms. The country is committed to meeting its Nationally Determined Contributions (NDCs) under the Paris Agreement, ensuring that its energy transition aligns with global climate goals.
Summary of Key Investments:
- Electricity Generation: $1.5 billion
- Electricity Access: $265.4 million
- Street Lighting: $10.3 million
- Electric Mobility: $1.1 million
- Energy Efficiency and Demand-Side Management: $10.3 million
- Clean Cooking and Heating: $567.6 million
- Petroleum and Gas: $104.0million
- Cross-Cutting Initiatives: $4.4 million
