Why Rwanda is updating its energy policy
Friday, November 08, 2024
Rwamagana Solar Power Station, an 8.5MW solar power plant is the fourth-largest in the East African Community. The government is revising its energy policy to expedite its transition to renewable energy. Photo Courtesy 

Rwanda is revising its energy policy to expedite its transition to renewable energy, aiming to address new challenges in the sector and reduce reliance on fossil fuels.

This updated policy will replace the 2015 version, integrating measures that support sustainability, affordability, and energy access across the country.

Fidele Abimana, the Permanent Secretary at the Ministry of Infrastructure, revealed that the revised policy aims to achieve 100% energy access within five years, with a strong emphasis on renewable sources.

Currently, 80% of Rwandans have access to electricity.

"We need both on-grid and off-grid solutions. As we expand access, we must also assess settlement patterns, especially in high-risk zones, to ensure that electricity infrastructure is established within planned, safe settlements,” Abimana explained.

The updated policy also prioritises enhancing renewable energy sources to curb greenhouse gas emissions. The government aims to incorporate advancements in the energy sector, including nuclear energy and green hydrogen, aligning with global shifts toward cleaner technology, according to the Ministry of Infrastructure.

Reducing electricity tariffs is another focus of the revised policy, as the government aims to make energy more affordable for households. Lower tariffs, Abimana noted, will encourage the use of electricity for cooking and other activities, reducing dependence on biomass.

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The Ministry of Environment estimates that an investment of $1.37 billion is required by 2030 to cut charcoal and wood fuel use from 83% to 42% by adopting clean cooking energy sources.

This shift is crucial to reducing deforestation, as an estimated 380 hectares of forest are lost weekly to charcoal and firewood production.

Jean Felix Mugisha Rugango, CEO of the Green Rwanda Initiative, expressed hope that the new policy will boost subsidies for improved cookstoves and Liquefied Petroleum Gas (LPG) as clean cooking solutions.

About 80% of Rwandans currently rely on charcoal and firewood for cooking.

"There are many households that still depend on firewood and charcoal because they cannot afford clean cooking options like LPG, electricity, or improved cookstoves. We distribute stoves that reduce emissions by 80% and operate on briquettes, which are a cleaner fuel alternative. Increased subsidies are essential to help people adopt these solutions,” he noted.

Rwanda’s 10-year climate action plan outlines the goal of distributing efficient cookstoves to 80% of rural and 50% of urban households by 2030, requiring $380 million to ensure a sustainable balance between biomass supply and demand.

Eric Usanase, Installation and Maintenance Coordinator at Engie Energy Access Rwanda, emphasised that solar energy affordability must be addressed in the new policy. According to the International Renewable Energy Agency, Rwanda has currently deployed approximately 25 megawatts of solar capacity.

"With the revised policy, households should be allowed to install solar systems of up to 250 kW, which exceeds the current limit. This change would open up more investment and sales opportunities,” Usanase explained, urging the government to continue subsidies for solar adoption over the next five years.

Henry Nyakarundi, founder of African Renewable Energy Development (ARED), added that current regulations create barriers for renewable energy investors, partly because the government is both regulator and competitor in the sector.

"Power prices in Rwanda have more than tripled in the past decade, and it’s challenging for private investors to scale in a market where they compete with government-owned projects,” Nyakarundi stated.

The revised energy policy thus seeks to tackle a range of challenges—from affordability and infrastructure to clean cooking initiatives and regulatory reforms—to ensure sustainable, equitable energy access for all Rwandans.