A reliable supply of energy is a basic prerequisite for economic development and improvement of living standards for all. Energy is a requirement for heating, cooking and lighting homes, but also as electricity for running machinery and equipment, for powering health facilities and schools. No country has had sustained development without a corresponding increase in energy demand per capita.

The mission of the Rwanda energy sector is to create conditions for the provision of safe, reliable, efficient, cost-effective and environmentally appropriate energy services to households and to all economic sectors on a sustainable basis. By fulfilling its vision and mission, the energy sector will contribute to the goals of national socio-economic development, including the progressive elimination of poverty.

Currently, serious and dedicated efforts have been undertaken, to develop the energy sector, to increase generation, improve transmission and distribution, diversify the energy sources, to reduce costs and elaborate a conducive legal and regulatory framework. The energy sector is moving fast and it is at the same time, more stable and harmonized than before. All stakeholders, ranging from the central and local governments to private companies and development partners, have committed themselves to contributing to the development of the sector.

In order for the energy sector to contribute in a substantial manner to accelerated economic growth, and in order to meet basic energy needs, the following clear set of objectives and targets have been set for the energy sector till 2012, under the Economic Development and Poverty Reduction Strategy (EDPRS):

   1. Increased Access to Electricity

    *      Increase electricity supply to 130MW
    *      Increase connectivity from the current 6% to at least 16% of the population
    *      Electrify 100% of Health Centres and Administrative centres up to sector level
    *      Electrify 50% of all schools in the country

   2. Reduced Cost of Service and Introduction of Cost Reflective Tariffs

    *      Introduction of Cost Reflective Tariffs
    *      Conduct tariff study in order to revise tariff level and tariff structure
    *      Reduce technical and commercial losses from 25% to 15%
    *      Promotion of energy saving measures and equipment (such as energy audits, increased use of Compact Fluorescent Lamps, Solar Water Heaters etc.)

   3. Energy diversification and security

    *      Diversify beyond Hydro and methane and develop renewable sources of energy (peat, waste, solar, wind, geothermal)
    *      Secure supply of oil/petroleum needs
    *      Construction of at least 15,000 Biogas plants
    *      Dissemination of improved stoves

   4. Strengthening the governance framework and Institutional capacity

    *      New legal and regulatory framework will be put in place to attract private sector participation
    *      Adequate and quality human resource capacity will be developed
    *      Institutional framework and intra-institutional cooperation reinforced (Sector Wide Approach-SWAp)