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Rwanda Races to Overhaul Power Grid as Industrial Demand Surges

By
KAM Isaac
Published: April 6, 2026
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KIGALI — The Rwandan government has launched an aggressive infrastructure campaign to stabilize its national power grid, as a sudden spike in electricity demand begins to outpace current domestic supply.

Faced with intermittent outages and a booming industrial sector, authorities on Monday announced a multi-billion-RWF roadmap intended to deliver 500 megawatts (MW) of new capacity by 2028. The strategy blends immediate capacity boosts from peat and solar with long-term ambitions for nuclear energy.

Short-Term Relief: The Peat and Hydro Push

The cornerstone of the immediate response is the Nyiramugengeri peat-fired plant in Gisagara. Currently contributing 20MW to the national grid, the facility is slated to more than triple its output to 70MW by the end of 2026.

Simultaneously, the government is fast-tracking several key hydropower installations:

  • Nyabarongo II & Rukarara IV: Combined, these projects are expected to add nearly 50MW of renewable baseload power.
  • Solar Expansion: Solar is projected to take a dominant share of the energy mix by 2028 to reduce the country’s reliance on seasonal hydro.
  • Methane Extraction: Rwanda continues to scale its unique methane gas extraction projects from Lake Kivu.

Modernizing the “Backbone”

It isn’t just a matter of generation; the transmission system itself is under strain. An 18-month grid reinforcement project is now underway to modernize aging infrastructure and better insulate Rwanda from “fault ripples” originating in neighboring regional networks.

“We are leveraging regional power trade to import electricity when we fall short,” infrastructure officials noted, while emphasizing that the ultimate goal is to become a net exporter of surplus energy to the East African Community (EAC).

Decoupling Energy from Geopolitics

In a notable clarification, State Minister for Infrastructure Jean de Dieu Uwihanganye addressed public speculation regarding the cause of recent outages. Despite the volatile global climate and ongoing conflicts in the Middle East, Uwihanganye asserted that Rwanda’s energy woes are purely a result of domestic success.

“This issue has nothing to do with Iran,” Uwihanganye said, dismissing rumors that regional tensions or international sanctions were affecting fuel or part supplies. “Our consumption hit an all-time high in February. This is a challenge of rapid growth, not external conflict.”

Looking Toward 2030: The Nuclear Ambition

For the long term, Rwanda is looking beyond conventional renewables. The government has confirmed development plans for a 185MW plant due by 2029 and is laying the groundwork for nuclear energy to come online after 2030.

By diversifying into nuclear and expanding off-grid solar home systems for rural populations, Kigali hopes to create a “shock-proof” energy economy capable of supporting its goal of becoming a middle-income country.

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