Home Central Africa Rwanda Explores Vehicle-to-Grid (V2G) Technology to Enhance Energy Efficiency and EV Readiness

Rwanda Explores Vehicle-to-Grid (V2G) Technology to Enhance Energy Efficiency and EV Readiness

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Rwanda Explores Vehicle-to-Grid (V2G) Technology to Enhance Energy Efficiency and EV Readiness

(3 Minutes Read)

Rwanda is assessing the viability of Vehicle-to-Grid (V2G) technology, a system that enables electric vehicles (EVs) not only to draw energy from the grid for charging but also to return excess power back to it. This bi-directional flow allows EV batteries to act as distributed energy resources, responding to fluctuations in electricity demand and supporting the power grid during peak usage.

A representative from the Ministry of Infrastructure (MININFRA) stated that this initiative is aimed at improving energy efficiency and preparing for the anticipated surge in EV adoption. “The current incentives to encourage EV uptake will require us to be ready for higher energy demands,” the official noted. V2G technology is seen as a potential solution to help stabilise the grid and reduce energy costs for EV owners.

In 2024, Rwanda’s electricity access rate reached 82%, and the country generated over 1.4 million megawatt-hours (MWh) of electricity. To support the EV ecosystem, the government offers subsidised industrial electricity rates, approximately USD 0.10 per kilowatt-hour. The Rwanda Energy Group (REG) has confirmed that the country has adequate capacity and reserves, bolstered by projects like the 43MW Nyabarongo II hydroelectric plant.

Despite the technical feasibility of V2G, Nicholas Hu, co-founder of electric mobility firm Kabisa, highlighted that it is currently not economically or operationally practical for grid-connected urban areas due to stable electricity supply and the early stage of EV adoption, especially for four-wheelers. He emphasised that investments in large-scale renewables and hybrid charging infrastructure present more cost-effective energy solutions.

However, Hu identified significant potential for V2G in rural areas served by microgrids. Here, EVs could serve as mobile energy storage systems, extending power availability to facilities like health centers, schools, and agro-processing units.

To further support the EV ecosystem, the government plans to construct 36 EV charging stations, prioritising high-traffic and urban areas, and aims to expand infrastructure such that no EV needs to travel more than 50 kilometres without accessing a charging point. This rollout follows a nationwide mapping of 224 potential charging sites, with private sector partnerships encouraged to accelerate development.

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 Between 2020 and 2024, Rwanda imported 7,172 hybrid and electric vehicles, of which only 512 (7.1%) were fully electric. The remaining 6,660 vehicles (92.9%) were hybrids, mostly brought in since 2021. Recent tax policy changes reintroduced an 18% VAT on hybrid vehicles, previously exempt since 2021, due to concerns over the environmental impact of ageing hybrid models.