Rwanda hands over power plant management to private sector

President Paul Kagame unveiling Nyabarongo Power project

President Paul Kagame unveiling Nyabarongo Power project

Rwanda has given authority to private investors to manage the country’s micro hydro power plants, and permission to generate power, according to the Cabinet meeting resolutions published Wednesday.

Companies which will be in-charge of the micro hydro plants include Carera- Ederer & Tiger Hubert Heindl who will now control the Agatobwe hydropower plant while, a Joint Venture between Energicotel Ltd & Adre Hydropower will take charge of Keya, Nkora, Nyamotsi I, Nyamotsi II and Cyimbiri micro-hydropower plants in the Western Province.

“A Joint Venture between Prime Energy and Kochendӧrfer & F.EE Hydropower GmbH will control Mukungwa II Gashashi, while Prime Energy and Kochendӧrfer & F.EE Hydropower GmbH will oversee Rukarara II and Gisenyi” a statement signed by Stella Ford Mugabo, the Minister in-charge of Cabinet Affairs said.

The announcement follows President Paul Kagame’s recent call to expedite handing over management of energy projects to private companies.

Ngali Group, one of the local energy companies has since been established, but the sector remains with a major gap to tap on the existing energy resources.

Ngali Energy Ltd is among companies that have been permitted to generate power from Base I, Base II, Ngororero, Rwondo and Ntaruka III hydro stations.

Others are Led Energy Solutions and Green Energy Ltd and Prime Energy Ltd which have been tasked to generate power at Mugara and Rukarara 6 hydro power stations.

The country is in the midst of a rapid expansion of its electrical grid and many new plants have been proposed or are under construction.

Rwanda is planning to expand from 45 MW of grid power in 2006 to 563 MW in 2018 and may import up to an additional 450 MW from neighboring countries. As of February 2015, national generation capacity totaled 153 Megawatts

Electricity accounts for only about 4% of primary energy use in Rwanda and the country’s major rivers have proven potential to support run-of-the-river hydropower plants in a total of 333 sites across Rwanda. Hydropower contributed 55%, of the installed generation capacity

Business and investment opportunities exist in Micro and Small Hydropower projects and shared regional hydropower projects with East African Community partners.

Two small hydropower projects are currently under construction.

The largest domestic hydropower project under construction is Nyabarongo I, with an installed capacity of 28 MW.

Some shared hydropower projects with neighbouring countries are also underway, including a 145 MW project shared by Burundi, DR Congo and Rwanda and a 90 MW project to be jointly developed by Tanzania, Burundi and Rwanda.