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Nairobi, Addis in landmark 400MW power purchase deal

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Details of the high-stakes negotiations before Kenya signed a 400MW electricity deal with Ethiopia two weeks ago are emerging, revealing that Nairobi managed to talk down the initial charges proposed by Addis Ababa as too high.

Details of the high-stakes negotiations before Kenya signed a 400MW electricity deal with Ethiopia two weeks ago are emerging, revealing that Nairobi managed to talk down the initial charges proposed by Addis Ababa as too high. 

By KENNEDY SENELWA  (email the author)
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Posted  Sunday, January 22  2012 at  15:34

The surplus electricity applicable at any time will be agreed on by the parties three months before commencement of supply, taking into account economies of scale and other relevant factors. Completion of the high voltage electricity line is expected to open avenues for big consumers such as cement manufacturers to enter into negations for supply of cheap power directly with Ethiopia.

Mr Kiilu said Ketraco is working on other interconnection facilities like the Lessos-Toro line with Uganda and Isinya-Arusha line with Tanzania to address power shortages and unreliability of supply in the region. The implementation of the Lessos-Tororo line is at an advanced stage as the project has attracted the required financing. 

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Add a comment (1 comments so far)

  1. Submitted by nesh999
    Posted January 29, 2012 11:03 PM

    Bad decisions by the idiots incharge will make us always suffer. Kenya has peotential to generate enough power for domestic use as well as for export. Our geothermal has not been well exploited and it would be better to invest the $1.2bn in this.

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