Kenya and Ethiopia signed Power Purchase Agreement (PPA)

Kenya and Ethiopia have signed a Power Purchase Agreement (PPA) establishing a 500-kilo volts transmission line between the two countries. This new power interconnection agreement supported by the African Development Bank, the French Development Agency, and the World Bank, will provide reliable and affordable energy to an estimated 870,000 to 1.4 million Kenyan households of which 18% will be located in rural areas. The PPA is also expected to deliver long-term, spill-over benefits to countries in eastern, northern, and Southern Africa by facilitating interconnections to the Southern Africa Power Pool and Eastern African Power Pool and northern countries such as Egypt and Sudan.

The agreement is part of the Eastern Electricity Highway Project that aims to increase the volume and reduce the cost of electricity supply in Kenya and provide revenues to Ethiopia through the export of electricity from Ethiopia to Kenya. Upon commissioning, the line will be able to carry up to 2,000 MW capacity in both directions. The signing of the power purchase agreement is one of the critical steps toward live commissioning of the line expected in November 2022.

Kenya’s President Uhuru Kenyatta and Ethiopia’s State Minister of Finance, Dr. Eyob Tekalign presided over the signing ceremony. They were joined by Ambassador (Dr.) Monica Juma, the Cabinet Secretary in the Ministry of Energy of the Republic of Kenya, Managing Director (Ag.), Kenya Power and Lighting Company PLC, Eng. Geoffrey Muli, Chief Executive Officer, Ethiopia Electric Power, Eng. Ashebir Balcha amongst others.

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