The Hakan Power Plant, located in Mamba Sector next to the Akanyaru marshes, was launched in 2021 after four years of construction. Despite its design capacity of 80 megawattsâ€"70 of which were meant to be fed into the gridâ€"the plant currently generates only about 23 megawatts.
According to the project manager, Tonci Tadic, the main challenge has been the unreliable supply of peat. Initial feasibility studies suggested that the Akanyaru River would not disrupt peat extraction, but rising water levels linked to heavier rainfall have washed away significant deposits.
'What we have observed over the past four years is the impact of climate variability on the Akanyaru River,' Tadic said. 'The earlier study showed the river's width at 3.5 meters, but it has since expanded to 4.9 meters, causing floods that sweep away our peat.'
Seasonal rains have compounded the problem, making peat mining nearly impossible for three to four months a year. The company also faces a shortage of specialized equipment to extract and transport peat, further limiting operations.
Calls for new investment
Tadic revealed that so far, about $450 million ( approximately Frw 500 billion) has been invested in the plant, but an additional $25 million is needed to expand capacity and resolve the bottlenecks.
'To deliver the 70 megawatts expected to the grid, we must expand the mining area from the current 300 hectares to 800 hectares,' he said. 'We also need at least 40 additional machines to support peat extraction and transportation. With $25 million invested over three years, I believe the plant could finally supply the full 70 megawatts.'
The investor also called for smoother cooperation with the Rwanda Energy Group (REG), which buys the electricity generated by the plant. He noted that while contracts stipulate payment within 45 days, delays have stretched to as long as four months.
'Meanwhile, the Rwanda Revenue Authority still counts penalties for late tax payments, even though REG itself has not paid us on time,' Tadic said.
The Rwandan government has pledged to support the company in addressing these challenges, with discussions underway on how to strengthen collaboration with other agencies.
Broader peat potential
Hakan Power Plant is not the only facility using peat in Rwanda. The Gishoma power plant in Rusizi District also produces 15 megawatts from peat.
Studies indicate that Rwanda holds an estimated 155 million tonnes of peat reserves covering about 50,000 hectares. According to REG data, about 77% of the country's peat resources are concentrated in the Akanyaru and Nyabarongo wetlands, as well as the Rwabusoro valley.
IGIHE
