Ethiopia and Kenya have signed an electricity supply agreement.
Ethiopia and Kenya have entered into a new electric power supply agreement designed to enhance electricity trade between the two nations and to further solidify regional energy connectivity.
On Friday, an agreement was signed between the Ethiopian Electric Utility (EEU) and Kenya Power and Lighting Company, under which Ethiopia will provide electric energy to Kenya’s state-owned distributor at a rate of approximately 24.07 birr (around 0.15 U.S. dollars) per kilowatt-hour, according to a statement from the EEU.
The new accord primarily seeks to enhance bilateral electricity trade, broaden the reliable power supply along the shared border, and further advance East Africa’s energy connectivity, it was noted.
It is anticipated to enhance shared regional economic growth by providing reliable power and improved quality of services.
During the signing ceremony in Addis Ababa, Ethiopia, EEU Chief Executive Officer Getu Geremew expressed that the agreement will help achieve the common vision of a more interconnected East Africa, highlighting that energy serves not only as a source of wealth but also as a pathway to sustainable development.
The increasing regional demand for Ethiopia’s electric energy is fueled by the nation’s rapidly expanding power generation capacity.
Official figures indicate that Ethiopia’s installed capacity has more than doubled in the past seven years, rising from 4,462 to 9,752 megawatts.
Ethiopia is presently exporting electricity to Djibouti, Kenya, Tanzania, and Sudan.
New agreements are in progress with South Sudan, and Somalia has shown interest in future supplies, as reported by Ethiopian Electric Power.
Ethiopia aims to expand its reach into the broader African energy market by leveraging third-party transmission networks, with the potential to extend its influence into Southern Africa.
Recent years have seen the commissioning of significant energy projects throughout the country, notably the Grand Ethiopian Renaissance Dam, which was inaugurated in September last year as Africa’s largest hydropower project. These initiatives have been crucial in enhancing Ethiopia’s energy production capacity.
