Power policy

Burundi’s Electricity Law, last updated in 2015, establishes rules for the development of new generation sites, including the possibility of public-private partnerships, and specific regulation for hydro power plants. The country’s rural electrification program is planned mainly around grid extensions and decentralized systems. The country has a specialized Rural Electrification Agency, which aims to plan and develop projects to electrify isolated areas. The only effective support for renewables developers in Burundi is import-tariff exemptions for solar and wind equipment established by the East African Community, of which Burundi is a member. There are no fiscal incentives or other policy instruments such as feed-in tariffs. There are no specific laws discouraging fossil fuels. Burundi has committed unconditionally to reduce greenhouse gas emissions by 3% compared to a business-as-usual scenario for 2030, as part of its nationally determined contribution.

Power prices and costs

Electricity tariffs are set by the monopoly electricity supplier, Regideso. Power prices are extremely high, considering the high proportion of hydro, with average tariffs being among the world's most expensive. The lack of power supply has been driving these high tariffs, along with grid inefficiencies and a lack of investment into new infrastructure. In 2017, amid the lack of power supply, Regideso leased a 30MW gas power plant to supply the capital Bujumbura. The dependence on the thermal power plant has made electricity tariffs increase more since then.

Power market

Renewable energy installed capacity is dominated by small hydro power plants (55%), followed by natural gas (34%) solar PV (6%) and biomass (5%). The capital Bujumbura accounts for 95% of electricity consumed. Besides its national generation, Burundi also imports electricity from neighboring countries Democratic Republic of Congo (DRC) and Rwanda, through a cross-border hydropower complex. The power sector continues to be dominated by Regideso, which has a monopoly on electricity transmission, distribution, and supply. Transmission, distribution, and generation infrastructure is old and needs further modernization and investment.

The Burundi government recently finalized a power sector “master plan” which estimated investment needs of $661 million over the next five years to boost electricity access to 30% by 2030.

Doing business and barriers

Burundi is one of the poorest countries in the world and relies heavily on foreign aid. The country has been plagued by civil wars and political tension for decades. It is ranked 166th among 190 countries in the World’s Bank Doing Business index for 2020. Bureaucracy, poor infrastructure, trade challenges, high taxes and low access to credit are among the challenges for businesses. On the positive side, Burundi joined the East African Community in 2007 and started the implementation of a common external tariff in 2009. Burundi also made major reforms to improve the procedure for creating a new business. The relationship with the East African Community could be a good opportunity for Burundi to proceed with the country's participation in regional infrastructure projects, such as interconnection and shared hydro power plants with neighboring countries.

The country has faced difficulties attracting investment for energy infrastructure due to political instability and conflicts. The legal framework requires updating to attract private sector participation. The economic and political instability of the country has also affected human capital and the development of a skilled workforce. Bureaucracy and the purchasing power of the population are also an important barrier for clean-energy developers.

EV market

The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.

EV policy

The government has yet to implement any substantial policy support in the sector and the EV market remains at an early stage.

Buildings market

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage. But they are developing a renewable energy strategy planned for 2030 which they pretend to implement in the next few years.

Buildings policy

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.