Regulatory review of the electricity market in Rwanda: towards crowding-in private sector investment

Abstract

This report provides an analysis of Rwanda’s electricity sector policies, laws, and regulations in relation to crowding-in private sector participation in developing national electricity infrastructure. The report is part of the United Nations Economic Commission for Africa and RES4Africa Foundation joint program on Regulatory Review of the Electricity Sector in Africa: Towards Crowding-in Private Sector Investment. The electricity market of Rwanda saw rapid improvements in power generation and network expansion, reaching 227 MW capacity in 2020 from more than 40 generating plants. Through the Energy Sector Strategic Plan, major investments are implemented to increase generation capacity and expand electricity services to a growing number of households through on-grid and off-grid systems. Rwanda is seeking accelerated economic and social development. Rwanda has made major strides in crowding-in private sector investment in the generation segment of the electricity market, as well as in off-grid investments. To meet the transformation aspiration, enabling the participation of the private sector across the electricity market value chain will be essential. In line with this general objective, the purpose of this regulatory review is to pinpoint the main strengths and gaps of the policy and regulatory framework currently in force related to private sector participation in the entire electricity market. It further aims to offer concrete recommendations for regulatory improvement and reform towards attaining a competitive, resilient, and sustainable electricity market.