All markets


With a cumulative score of 1.72, Rwanda ranks number 24 among emerging markets and number 51 in the global ranking.

  • Emerging markets
  • Middle East & Africa

1.95 / 5

Power score

1.21 / 5

Transport score


Buildings score

Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.


Low-carbon strategy

Net-zero goal and strategy

Rwanda does not have a net-zero target as of 2022.

Nationally Determined Contributions (NDC)

Rwanda’s updated Nationally Determined Contribution – meaning its official plan to meet the goals of the Paris Agreement – aims to reduce CO2 emissions by 16% versus a business-as-usual scenario by 2030. This is equivalent to an estimated mitigation of 1.9 million metric tons of CO2 equivalent (MtCO2e) and is based on domestically supported and implemented measures and policies.

With international support and funding, Rwanda says it could achieve a further 22% reduction in CO2 emissions by 2030, equivalent to mitigating an estimated 2.7MtCO2e in that year.

Combining these unconditional and conditional contributions, Rwanda could lower its CO2 emissions by 38% by 2030, equivalent to 4.6MtCO2e.

Fossil fuel phase-out policy

Rwanda does not have a fossil fuel phase-out policy. However, it has introduced a few policies to displace fossil-fuel energy consumption and generation, including hydropower development, adopting modern, efficient cooking stoves, and solar pumping for irrigation to replace diesel pumps.


Power policy

By the end of 2019, Rwanda was just over halfway to its ambition of supplying 100% of households with electricity, real progress for a country in Sub-Saharan Africa. That is a major jump from just 10% in 2010. The country aims to achieve its goal using 52% on-grid connections and 48% off-grid solutions, such as solar home systems and mini-grids. State-owned utility Rwanda Energy Group (REG) says that 37% of households are currently connected to the national grid, while 14% access electricity through off-grid solutions.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Electricity prices in Rwanda are among the highest in East Africa, and commercial and residential tariffs have increased considerably since 2010. The biggest driver of this is “take-or-pay” contracts administered by REG. These contracts compensate developers for the contractual offtake from their projects even at times when power cannot be taken. On top of that, the power purchase agreements are signed in dollars and are exposed to currency and commodity price fluctuations. As a result, retail electricity is highly subsidized by REG and the government.


Power market

Small hydro remains the most popular source of electricity generation in Rwanda due to the strong network of rivers, accounting for just under 51% of the total mix. The country also relies on solar, natural gas and diesel, and takes advantage of methane from gaseous lakes in the southwest to produce power. Hydro and solar constitute 52% of total generation in Rwanda as of 2021, leaving a gap of 8% to achieve its 2030 targets.

The government’s power sector has ambitious targets to achieve 512 megawatts (MW) of installed power generation capacity, from 219 MW in 2021. Energy Development Corp., a subsidiary of REG, has been the most prominent developer, but there are also multiple private players involved in Rwanda’s generation sector.

Installed Capacity (in MW)

20122014201620182020050100150200 MW

Electricity Generation (in GWh)

201220142016201820200200400600800 GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

Rwanda prides itself on being one of the best markets to do business in Sub-Saharan Africa and has an appetite for domestic and foreign investment to serve its fast-growing economy. The Rwanda Development Board has been created to support private sector players entering the country, complementing the strong presence of commercial and donor-backed lenders on the ground.

Being a landlocked country, importing components into Rwanda is expensive, even if most are exempt from value-added tax. Access to local credit is a key challenge for off-grid companies, along with lack of purchasing power among the broader population. In addition, REG has said that it will not sign any new PPAs with developers, citing the country’s estimated 86MW oversupply of generation capacity.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

Rwanda has targets to increase electric vehicles (EVs) introduced to the market to 70% by 2035, along with other relevant goals outlined in the National Transport Policy And Strategy For Rwanda. However, the EV market in Rwanda is at an extremely early stage.

EV policy

Rwanda’s Ministry of Infrastructure has an agency called Rwanda Transport Development Agency that handles electric vehicle (EV) development. The government has instituted a series of incentives for EVs, such as a reduced 15% corporate income tax and tax holiday for companies that manufacture and assemble EVs. The country does not have an upfront purchase grant or loan for EVs, but it has chosen to exempt import and excise duties on the vehicles, spare parts, batteries and charging station equipment to reduce the cost of ownership and maintenance. These products are also treated as zero-rated valued-added tax goods.

Meanwhile, electricity tariffs for charging stations are be priced at the industrial tariff level in the large industry category. This allows tariffs to remain at around 94 Rwandan francs ($0.09) per kilowatt-hour, significantly lower than the cost of residential consumption.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

Rwanda’s objectives are to double the efficiency of biomass use and improve efficiency in the electricity sector by 2030. The Rwanda Building Code also sets minimum design requirements to promote the use of energy efficient technologies in buildings

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

In September 2020, the World Bank Board of Directors approved $150 million in funding to improve access to modern energy for Rwandan households, enterprises, and public institutions and to enhance the efficiency of electricity services. Half will be provided as grant funding, and the other half will be provided as a loan.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

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