- Kenya Power and Ethiopian Electric Power to commence power trades.
- Both companies signed a 25-year PPA.
Kenya Power Company has signed a Power Purchase Agreement (PPA) with Ethiopian Electric Power (EEP) to commence power trade from November 1. The agreement was signed by the company’s acting managing Director, Geoffrey Muli and Ethiopian Electric Power Chief Executive Officer Ashebir Balcha.
The firm noted, “In the first three years, Kenya will get a maximum firm capacity of 200 megawatts(MW) and thereafter a maximum firm capacity of 400 MW for the remainder of the 25-year PPA.”
The agreed tariff will see Kenyans enjoy clean, reliable, and affordable power.
EEP will be the second largest power supplier to Kenya Power after the KenGen Hydros Eastern Cascade, with a contracted 600MW capacity.
To enhance and speed up reforms in the energy sector, the President appointed a task force that handed its report in September 2021 with recommendations to review Power Purchase Agreements (PPAs) signed with Kenya Power to lower power costs.
As part of the ongoing reforms in the energy sector, the government, a week ago, effected a 15 per cent reduction in power tariffs. The decline is part of a 30 per cent reduction promise and will cover the period between January and December 2022, reflecting bills covering the December 2021 period.