Despite of high unit costs on rental power, the State Minister in charge of Energy Eng. Albert Butare has assured local entrepreneurs and investors that there will be no rise in power prices this year.Speaking at Hotel Novotel on Sunday, while making a presentation during the Monetary Policy Review for 2006 organised by the Central Bank of Rwanda [BNR], Butare said that government was planning to reduce the unit cost from Frw. 110 to between Frw. 60-70.

“The country [Rwanda] is hiring Heavy Fuel Oil Generators that give output of 15 kilowatts, but we do hope that instead of a rise in power prices, we are planning for a significant reduction this year as the government initiative to facilitate the entrepreneurs,” Butare said.

He further said that seventy percent of power used is rental power; a factor that will hinder the competition of local firms in the East African Community market. He, however, said that efforts to boost power production by the heavy fuel generators are underway, with expected rise projected to reach 20KW.

He further said that the government is to minimise the costs of power by among other methods, the use of diversity sources like biogas, use of improved cooking stoves, improved charcoal production. He also said the completion of the petroleum pipeline from Mombasa to Kigali would alleviate the problem.

Butare further explained that the exploitation of Methane Gas on Lake Kivu is to start this year, and that the ongoing pilot study project is to end in three months time.

He also said that several hydro-electricity power stations are under construction, giving the examples of Rukara hydro-electrical power project that will generate 9.5 kilowatts and Nyabarongo project that will generate 27.5 kilowatts by the year 2009.

He said that alternative power sources like solar energy projects are under construction by German companies at Rebero highland; while wind, geothermal and bio fuel are also being considered.

Butare also that disclosed that as a means of countering the receding levels of Lake Burera, the government so far decided to stop the operations at the Mukungwa hydroelectricity power station.

BY JOHN BAYINGANA
The New Times