US$260m peat power plant for Rwanda

30 September 2014

The government of Rwanda is planning to construct a new US$ 260m peat-fueled power plant in Gisagara district, Rwanda to add up to 80 MW into its national grid.

In partnership with Turkish company, Hakan, the new peat power plant will help address the country’s growing energy demands.

The project is the second in the country after the Gishoma peat power plant which is nearing completion and expected to generate 15 MW.

Officials say the new project has started with mining of peat before the plant is established. It is expected that the new peat power plant will start producing electricity by 2017 after completion of the first phase. The second phase is expected to add another 40 MW and will commence in 2017.

Rwanda may, through this new peat power project, woo investors into the energy sector to enable it achieve its target of generating at least 563 MW and to connect at least 70% of Rwanda’s households by 2017.

The country has invested billions in hydro-electricity and methane gas as it strives to meet its targets in line with socio-economic development and poverty reduction strategy.

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