Kenya Power inks deal to buy electricity from Ethiopia

Kenya Power has inked a 25-year deal that will see it buy electricity from Ethiopia’s utility Ethiopian Electric Power (EEP) effective from November 1, 2022.

The new Power Purchase Agreement (PPA) actualized power trade between Kenya and Ethiopia and follows discussion between the two countries.

The power trade is nevertheless dependent upon the joint testing and commissioning of the interconnector.

“The bilateral discussions are seen in the objective of realizing power trade through a transmission interconnector that will link Kenya and Ethiopia. The agreed tariff is competitive and will see Kenyans enjoy clean, reliable and affordable power,” noted Kenya Power Acting Managing Director Geoffrey Muli.

“It has been a long journey and today marks the culmination of that journey as we crystallize the PPA signed back in 2012. We have signed off the multi-billion project to benefit both countries and Africa with clean electricity,” added EEP Chief Executive Officer Asheber Balcha.

Kenya Power is set to get a maximum firm capacity of 200MW for the first three-years and thereafter 400MW for the remainder of the PPA.

Ethiopian Electric Power is set to become Kenya’s second largest power supplier after Kengen’s Hydros Eastern Cascade which has a contracted capacity of 600MW.

Presently, Kenya Power purchases electricity from Ethiopia and Uganda.

Power purchases from Ethiopia have nevertheless been trailing those from Uganda at 0.42 million kilowatt hours (KWh) as of April 2022.

Imports from Uganda meanwhile stood at 27 million KWh in the same period.