Rwanda is accelerating its solar power development, aiming to provide electricity to every household nationwide by 2030. The government plans to invest $16 billion in the solar sector.
Currently, 82% of Rwandan households have access to electricity: 57% are connected to the national grid, while 25% rely on off-grid systems (primarily solar power). However, solar currently accounts for only 1% of the nation’s total installed capacity, while hydropower dominates at 39%. Experts point out that over-reliance on hydropower makes the supply vulnerable to droughts or abnormal rainfall, posing instability risks. Therefore, the deployment of solar paired with energy storage systems is particularly crucial.
Technical Pathway: Solar + Storage
To correct the imbalance in its energy structure, the Rwandan government has launched a long-term energy diversification plan. According to the government’s Least Cost Power Development Plan (2024–2050), Rwanda plans to add approximately 1,500 MW of solar PV capacity by 2050, complemented by energy storage systems.
The introduction of energy storage can effectively buffer the fluctuations of solar power generation, ensuring a stable electricity supply during daytime, nighttime, and the rainy season. Simultaneously, the government will leverage the Independent Power Producer (IPP) model to attract private capital and advanced technology, accelerating project implementation and driving energy diversification.
Financing and Policy
The total investment is projected to reach $16 billion, with financing remaining a major bottleneck for project advancement.
- By 2035: The government estimates an investment of approximately $3.6 billion is needed to meet growing electricity demand.
- 2035–2050: The total power generation cost could reach $38 billion, with the solar investment alone accounting for $16 billion.
The Rwanda Energy Group (REG) is responsible for electricity production and distribution: EUCL handles operations, while EDCL is responsible for planning and electrification. Private investors can only participate through the IPP model, with EUCL being the sole off-taker for the generated power.
Industry insiders suggest that the government needs to provide stable policies, transparent electricity pricing, standardized Power Purchase Agreements (PPAs), and an expanded Feed-in Tariff to attract more private investment.
If financing and policy reforms keep pace, Rwanda’s energy plan will effectively improve the national power supply and could provide a replicable energy transition model for other African countries.
