Ethiopia to commence selling electricity to Kenya in November – New Business Ethiopia
Ethiopian Electric Power (EEC), a state agency responsible for generating electricity, will begin selling electricity to neighboring Kenya starting next November.
Hiwot Eshetu (acting head of Marketing and Business Development at EEC), indicated that Ethiopia will sell electricity to Kenya for the next 25 years. The energy deal between the countries is in three phases.
The first phase, which will last three years, will see Ethiopia selling 25 megawatts to 200 Megawatts depending on the pick hours and down times. The volume of energy Ethiopia supplies to Kenya will increase to 400 megawatts over the next three year period, from 150 megawatts.
According to Mr. Hiwot who stated that Ethiopia will charge Kenya 6.5 US dollars per kilowatt-hour of electricity, Kenya will purchase 400 megawatts of electricity in the third phase.
He indicated that after five year, there will be new negotiations on the tariff for the energy Ethiopia will sell to Kenya. It is worth mentioning that Ethiopia currently earns over $100 million annually by selling electricity to Djibouti and Sudan.
Ethiopia has signed memorandums with South Sudan, Somaliland, Tanzania and Tanzania to expand its market. These agreements will allow Ethiopia to supply electricity primarily from renewable energy sources like hydropower.
It should be remembered that the African Development Bank financed the highway and electricity transmission line linking Ethiopia and Kenya. Although the linkage of electricity between the two countries was delayed initially, it was expected to begin in 2018.
Kenya was not the only beneficiary of Ethiopian power. AfDB was initially expected to provide businesses and industries with 3,100 GWh more energy in 2018, and it was projected to increase to 5,100 GWh by 2022.
Similar to July 2021 the Board of Directors of the African Development Bank Group has approved two grants worth $83.6 millionTo increase cross-border electricity trade between Ethiopia and Djibouti, and to deepen integration within the Horn of Africa subregion.
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