- Ethiopia begins exports energy to Kenya.
- Kenya Power will occupy a maximum capacity of 200 MW for the first three years of the 25-year deal with Ethiopia.
According to Kenya’s Energy Petroleum and Regulatory Authority, Ethiopia has started exporting power to Kenya, with Kenya getting 75 MW from the Wolayta-Sodo substation (EPRA). Although the procedure began last Thursday, EPRA Director General Daniel Kiptoo disclosed that the nation is still commissioning the trade.
The Director General stated that Ethiopian electricity imports are competitive and less expensive than the nation’s typical generation costs. To remove the pricey electricity from the national system and guarantee that the government can meet peak demand, Kenya negotiated a 25-year agreement with the country to begin importing electricity. Kenya Power will occupy a maximum capacity of 200 MW for the first three years of the 25-year deal with Ethiopia, increasing to 400 MW throughout the remaining time.
At the cost of Sh5.3 ($0.043) per kilowatt-hour, Kenya Power purchases most of its electricity from Kenya Electricity Generating Company (KenGen). However, other IPPs have set their power prices for the same unit as high as Sh195 ($1.60). KenGen provides 70% of Kenya Power’s electricity, with the remaining 30% coming from the 21 IPPs. Therefore, long-term decreased electricity prices may result from electricity imports.
According to the energy regulator, Kenya has a geothermal capacity of 863MW. The $500 million line to Kenya can transmit 2,000MW of electricity, potentially earning Ethiopia as much as $100 million annually.