Peat power plant in Gasagara district, southern Rwanda
KIGALI – The Government of Rwanda is seeking to unlock the full potential of the Gisagara peat-fired power plant by bringing in a new investor to address persistent fuel supply challenges that have left the facility generating less than half of its expected electricity output.
The plant, located in Mamba Sector, Gisagara District, Southern Rwanda, was designed to supply 70 megawatts (MW) of electricity to Rwanda’s national grid but is currently producing about 30 MW, according to officials.
The government’s planned intervention was revealed on Monday during a Senate session where lawmakers questioned officials over the low performance of the facility, which was built to increase Rwanda’s domestic electricity generation capacity.
Senator Marie Rose Mureshyankwano raised concerns over the gap between the plant’s projected and actual output, questioning how an investor approved to deliver full capacity could continue operating far below expectations.
“If a plant comes saying it will produce 100 percent, receives the necessary approvals, but later produces only 30 percent of what it promised, what happens?” she asked.
The plant, operated by Turkish firm Hakan Power Plant, was commissioned in 2021 after four years of construction. It was developed with an installed capacity of about 80 MW, with 70 MW expected to be supplied to the national grid.
However, production has remained constrained by challenges linked to peat extraction, the main fuel used to generate electricity at the facility.
Trade and Industry Minister Antoine Marie Kajangwe told Senators that the government had identified a new investor who will assess how to increase peat production and ensure a more reliable supply of fuel throughout the year. The new investor will be made public very soon, he added.
The Minister said the investor will explore solutions to allow peat extraction to continue even during rainy seasons, when mining activities are disrupted, affecting electricity generation.
“We have an investor who is going to study how peat can be extracted in sufficient quantities and stored for use during the rainy season so that production can reach 100 percent or close to it,” Kajangwe said.
The plant’s management has previously cited climate-related changes and infrastructure limitations as major factors affecting operations.
Late last year, Project manager Tonci Tadic said rising water levels in the nearby Akanyaru River have affected peat deposits, with flooding washing away areas previously identified for extraction.
He explained that peat mining becomes extremely difficult during rainy periods, when operations can be interrupted for several months. The plant also requires additional specialised equipment to expand extraction and transportation capacity.
The company has estimated that an additional $25 million investment would be needed over three years to address the bottlenecks, including expanding the mining area from about 300 hectares to 800 hectares and acquiring additional machinery.
So far, about $450 million has been invested in the project.
Rwanda has identified peat as one of its domestic energy resources, with the country estimated to have about 155 million tonnes of peat reserves covering approximately 50,000 hectares. Most of the deposits are concentrated in wetlands including the Akanyaru and Nyabarongo areas.
The country also operates the Gishoma peat power plant in Rusizi District, which contributes about 15 MW to the national grid.
The government now hopes the new investment partnership will help resolve the operational challenges at the Gisagara facility and enable it to operate closer to its designed capacity, increasing its contribution to Rwanda’s energy supply.
