Addis Ababa, Ethiopia (11 April 2023)

Ethiopia has emerged as Kenya’s top electricity supplier, surpassing Uganda in January 2023. According to the East African, Kenya imported a staggering 68.48 million kilowatt-hours (kWh) of electricity that month, with 58.01% or 39.73 million units sourced from Ethiopia.

The surge in electricity imports follows a power purchase agreement (PPA) signed between the two countries for the supply of hydropower from the Grand Ethiopian Renaissance Dam (GERD, as well as the impact of a severe drought that hit local hydro-power generation in Kenya.

The success of the PPA has helped stabilize Kenya’s power supply, with the country importing 200 megawatts (MW) of power from Ethiopia since January and planning to increase to 400MW in the future. This has been made possible by a 25-year electricity import deal between the two countries, which Kenya Power has leveraged to purchase cheaper electricity at 6.50 US cents per kWh, a significant reduction from the tariffs charged by independent power producers.

Source: The East African

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Hanna is an aspiring economist in her final year at Addis Ababa University. She has written hundreds of insightful daily stories, analyses, and features about the Ethiopian economy and beyond.

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