Page 12 - AfrElec Week 31 2022
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AfrElec                                          TRADING                                              AfrElec


       Kenya, Ethiopia sign 25-year





       power purchase agreement







        KENYA            KENYA has signed a power purchase agree-  maximum firm capacity of 200MW and thereaf-
                         ment (PPA) with Ethiopia to actualize electricity  ter a maximum firm capacity of 400MW for the
                         trade with trial transmission starting in August  remainder of 25-year PPA, said KPLC, a major-
                         and full capacity power export due to start on  ity government-owned utility.
                         November 1.                            KPLC said in a tweet that the agreed tariff is
                           The signing follows the completion of the  competitive and will see Kenyans enjoy clean
                         $1.26bn Kenya-Ethiopia Electricity Highway  reliable affordable power.
                         Project involving a 1,068km-long power trans-  EEP will be the second-largest power supplier
                         mission line and two AC/DC converter stations  to KPLC after the Kenya Electricity Generating
                         at both ends.                        Company Plc (KenGen), whose Seven Forks
                           The project will ensure access to reliable and  Dam has a contracted capacity of 600MW.
                         affordable energy to around 870,000 to 1.4mn   Ethiopia, which is endowed with hydro gen-
                         Kenyan households of which 18% will be located  eration potential of about 45,000MW, has been
                         in rural areas, the Ministry of Finance said.   building dams to generate power for domestic
                           Both actions are in line with Kenya’s and  use and export to Kenya among other neigh-
                         Ethiopia’s pledge to cooperate in electricity gen-  bouring countries.
                         eration and transmission towards ushering in   Kenya will import power from Ethiopia
                         regional energy trade envisioned by the Eastern  through a $1.1bn high voltage direct current
                         African Power Pool (EAPP).           (HVDC) transmission line built jointly with
                           The PPA was signed by Nairobi-listed Kenya  inverter substations at Suswa in Kenya and
                         Power and Lighting Company Plc (KPLC) and  Welayta Sodo in Ethiopia. The countries have
                         state-owned Ethiopian Electric Power (EEP) on  formed a joint project coordination unit (JPCU)
                         Thursday (July 28).                  for the HVDC line.  ™
                           In the first three years, Kenya will get a













































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