Ethiopia and Kenya are revising a power purchase agreement that obliges the latter to buy 400 MW at a fixed tariff of USD 0.07/kWh based on a deal made a decade ago.

Ethio-Kenyan Energy Interconnection project has faced delays, though it gained commitments from both sides this time around. Both however have not reached an agreement on the tariffs to be set for the purchase of power.

Delegations of the two countries, which held in-depth discussions both in Ethiopia and Kenya, agreed to speed-up the power purchase deal worth USD 1.3 billion, which will see Kenya import 400 megawatts of power annually.

Moges Mekonnen, corporate communication director at the Ethiopian Electric Power (EEP), confirmed to The Reporter that the details regarding the agreement will be provided soon.

Citing the power purchase agreement between Ethiopia and Kenya, which is financed by the African Development Bank (AfDB), Moges said the electric transmission line, which has a capacity to carry up to 2,000 megawatts and covers 1,055 km, has to be completed before going into operation.

According to Moges, Ethiopia completed the transmission line infrastructure on its side and that all the construction works and electric line materials have been tested. On the Kenyan side, the infrastructure is expected to be completed in the next few months.

Last September, a delegation from Kenya held constructive discussions with EEP officials. One of the main issues raised during the discussion was how Kenya is nearing the completion of the remaining works in a short time.

Apart from the delay of the project, the revision of the power purchase tariff adjustment was raised but remains an uncompleted task, Moges stated.

Last week, an Ethiopian delegation led by Eyob Tekalign (PhD) State Minister of Finance was in Nairobi for talks with Kenya’s Energy Cabinet Secretary, Monica Juma.

The two delegations deliberated on previously signed Power Trade Agreements, finalization, operation guidelines and procedures, wheeling as well as interconnection agreements.

During the discussion, both Ministers reiterated that the benefit of the interconnection project would go beyond Ethiopia and Kenya by creating a pathway and model nations across the continent.

Despite the fruitful discussions, there are still issues that need to be ironed out including the power purchasing tariff.

According to him, the discussions indicated that completion of the remaining interconnection would be completed during in mid-2022.

The Ethiopia-Kenya electricity transmission line is expected to integrate power systems of five countries including Ethiopia, Kenya, Tanzania, Uganda and Rwanda under the Eastern African Power Pool (EAPP) Master Plan.

Source: thereporterethiopia

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