Kenya has inched closer to clinching a deal to tap electricity from Ethiopia following a pact between the two governments.
Kenya has inched closer to clinching a deal to tap electricity from Ethiopia following a pact between the two governments.
Energy minister Kiraitu Murungi and his Ethiopian counterpart Alemayehu Tegenu reached a power purchasing deal and instructed bosses of power transmission firms Kenya Electricity Transmission Company (Ketraco) and Ethiopia Electricity Power Company (EEPCO) to inter-connect the national power grids so that Kenya can tap from the line by 2016.
Additional electricity will enable Kenya to bolster its erratic supply. Wednesday’s pact paves way for Kenya’s import of 400MW of much needed power.
Transmission costs between Moyale and the Kenyan grid in Nairobi will cost an additional Sh2 per kwh. “At a maximum of Sh9 per kwh, the cost of hydro will still be lower than the current cost,” said Kenya Electricity Transmission Company (Ketraco) chief executive Joel Kiilu.
“The tenders for design will be ready by March, after which we will float tenders for construction. It is now upon us to start building the line and deliver power by 2016,” he said on telephone. A draft report on compensation claims for those to be displaced from the power line’s path has been completed. Construction is being funded by a coalition of financiers including the World Bank, African Development Bank, and the French Development Agency.
Power generator KenGen has rolled out plans to deliver 280MW of geothermal power in three years, while raising five-fold output from wind sources to 25.5MW next year.
Experts see the projects as critical to Kenya’s long term energy security needs. Kenya Institute for Public Policy Research and Analysis official Eric Aligula said clean, affordable, and adequate energy supplies are necessary to oil economic growth.
“The interconnection agreement is important to the extent that it helps in managing the electricity demand supply gap,” said Dr Aligula.
Hydro accounts for 62 per cent of Kenya’s energy mix but the recent drought saw this drop to 41 per cent in September.
Ethiopia is the only Eastern African country with sufficient power supply, backed by a reserve margin of more than 30 per cent double the recommended margin of 15 per cent.
Courtesy of Business Daily
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