The organisation responsible for electricity production and supply in Rwanda
is Electrogaz, based in the capital Kigali. Electrogaz, who are also involved in water and gas supply, has been named as one of the state utilities to be privatized. The Burundi National Assembly voted to liberalize the electricity sector in July 2000, ending the monopoly of the parastatal.
Electrogaz will have a new private managing company before July 2002. Six international companies have been short-listed, including South Africa's Eskom Enterprises, Saur International of France, a consortium of Lahmayer International and Hamburger Wasserwerke of Germany, another comprising Manitoba Hydro and Roche Ltd of Canada, Tata Electric Supply Company of India and a consortium of four Belgian firms. The utility's assets will not be sold, but will be privately managed on a five-year contract.
Since the opening of the Makungura Dam project, Rwanda has reduced its dependency on power imports significantly. Previously these imports supplied over half of Rwanda's load.
Power shortages in Rwanda have been combated by the use of methane gas from Lake Kivu to generate an additional 2.5 to 10 MW of power.
Rwanda and Burundi have agreed to the joint construction of the Ruzizi III hydroelectric dam on the Ruzizi river bordering the two countries. Uganda and Rwanda have also agreed on the expansion of the 132/110 KV Mbarara-Gikondo transmission line between the two countries to increase power supply.
80% of electricity consumption occurs in Kigali, where only 5% of the population live. For the rest of the population residing in the rural areas, wood remains the main source of energy. With the privatisation of Electrogaz and the development of future hydropower projects, Rwanda is looking to ensure an increased energy supply in the near future. However, only about 6% of the population is able to have access to the grid, mostly those living in urban areas.
