Kenya Power Company has signed a Power Purchase Agreement with Ethiopian Electric Power to actualize power trade from November 1.
The agreement was signed by the company’s acting managing Director Geoffrey Muli and Ethiopian Electric Power Chief Executive Officer Ashebir Balcha at Stima Plaza on Thursday. According to the firm, “in the first three years, Kenya will get a maximum firm capacity of 200 megawatts(MW) and thereafter a maximum firm capacity of 400 MW for the remainder of the 25-year PPA.” The agreed tariff will see Kenyans enjoy clean, reliable, and affordable power.
EEP will be the second largest power supplier to Kenya Power after the KenGen Hydros Eastern Cascade with a contracted 600MW capacity. To augment and fast-track reforms in the energy sector, the President had appointed a task force that handed its report in September 2021 with recommendations to among others, review Power Purchase Agreements (PPAs) signed with Kenya Power in a bid to lower power costs.
As part of the ongoing reforms in the energy sector, the government, a week ago, effected a 15 percent reduction in power tariffs. The reduction is part of a 30 percent reduction promise and will cover the period between January and December 2022 reflecting bills covering the December 2021 period. “The Ministry of energy hereby confirms that the Kenya Gazette of January 7 has effected a 15 per cent reduction in power tariffs. The reduction will boost livelihoods and economic growth by reducing the cost of living,” the ministry said in a statement.
Source: This news is originally published by allafrica