Kenya/Ethiopia: Interconnection agreement under review

Kenya and Ethiopia are reviewing an agreement signed in January 2012 for Kenya to buy 400MW of hydropower from Ethiopia. Implementation has been hit by delays in completing the 1,045km interconnection line.“We’re currently in negotiations with Ethiopia on revising the PPA [power purchase agreement]. Details will be provided later on once we finalise,” Kenya Power acting managing director Jared Othieno told African Energy.The 2012 agreement obliges Kenya Power to buy 400MW at a fixed tariff of $0.07/kWh for onward sale to homes and businesses in Kenya.