Kenya Sends Team to Seal Ethiopian Power 200MW Power Deal
KDRTV News – Nairobi: Kenya is set to import an additional 200 MW of hydropower from Ethiopia to plug a 283 MW supply shortfall at peak hours, as a technical delegation from Kenya Power and the Energy Ministry heads to Addis Ababa to negotiate an expanded Power Purchase Agreement (PPA). This move builds on a 25-year deal signed in 2022 under which Ethiopia supplies Kenya with 200 MW at 6.5 US cents per kWh – well below Kenya’s thermal generation costs of up to 20 US cents.
The negotiating team will finalize tariff rates, delivery schedules, and grid stability measures, aiming to seal terms by mid-2025. Additional capacity will be drawn from the Grand Ethiopian Renaissance Dam (GERD) to shore up Kenya’s strained reserve margin -just 9 MW compared to the 20–35 percent buffer recommended by the International Energy Agency (IEA).
Boosting imports to 400 MW could save Kenya up to $10 million annually and prevent costly load-shedding episodes that dented industrial output and household welfare in 2024. The extra hydropower supply promises both immediate cost relief and a stopgap while Parliament resolves a moratorium on new domestic PPAs.
While regional integration offers rapid relief, experts warn of exposure to climate variability and diplomatic tensions if hydropower flows become unreliable. Nevertheless, the expanded import pact underscores East Africa’s vision of a unified power pool and provides Kenya with the breathing room needed to accelerate homegrown renewable projects.
In this article:Energy Security, Ethiopia Kenya Network, Hydro Power Imports, Kenya Energy, Regional Integration