Ethiopia Finalizing Preparations To Begin Supplying Kenya With Power

Ethiopia Finalizing Preparations To Begin Supplying Kenya With Power

On Aug 26, 2022 258

Addis Ababa, August 26, 2022 (FBC) – Ethiopia and Kenya have signed a power purchase agreement that lasts for 25 years. The amount of electricity that Ethiopia is going to sell to Kenya is divided into three phases, announced Ethiopian Electric Power (EEP).

According to the Representative Director of the Marketing and Business Development Department at EEP, Hiwot Eshetu, the first phase of the sale for electricity will be 65 megawatts during ‘off-peak hours’ and 200 megawatts during ‘peak hours’, the second phase will be 150 megawatts during off-peak hours and 400 megawatts during peak hours, and the 3rd phase supply will be 400 megawatts at all hours until the completion of the third and final phase of the contract.

The agreement is effective from November 2022, confirmed the Representative, adding that 1KW of electricity will be supplied at 6.5 US cents per hour,

Following the conclusion of the power purchase agreement between the two countries, inspection is being carried out on the power transmission line as the sale of electricity will officially begin at the beginning of November 2022, he added.

The construction of the Ethio-Kenya power highway will play an important role in the sale of electricity that Ethiopia plans to supply East African countries with.

Ethiopia is already supplying power to Sudan and Djibouti, and it has aslo signed a Memorandum of Understanding to sell electricity with Somaliland, Tanzania, South Sudan and other African countries.

Ethiopia Starts Exporting Electricity to Neighboring Kenya

Ethiopia has started exporting electricity to neighboring Kenya following a week of testing of a new transmission line, Ethiopian Electric Power said.

The $500 million line has capacity to transmit 2,000 megawatts of electricity, potentially earning Ethiopia as much as $100 million annually.

“Ethiopia has completed activities to ensure uninterrupted and reliable transmission of power and it is expected that similar activities will be implemented by Kenyan side,” the company said in an emailed statement.

The Grand Ethiopian Renaissance Dam, a giant hydro-power dam on a Nile River tributary, began generating electricity earlier this year, a project it sees as key to economic development but which has stirred tensions with downstream neighbors Egypt and Sudan.

The $5 billion dam will be able to generate 5,150 megawatts of electricity once completed in 2024 and Ethiopia has signed supply agreements with Kenya, Sudan, Djibouti, Somaliland, Tanzania and South Sudan. The Horn of Africa nation earned $95.4 million from electricity exports last year, according to EEP.

Cheap electricity is the missing piece in Somaliland’s Economic Development.

I think this should be a priority for the new Gov’t after the elections.

1 Like