By Abdul Rahman Bangura-
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– In rolling out the proposal that is anticipated to boost a reduction in power bills for businesses and households, the 25-year import deal with Ethiopia, will discern Kenya Power assume a maximum capacity of 200 megawatts in the first three years, soaring to 400MW for the remaining period.
Energy and Petroleum Regulatory Authority (Epra) Director General – Daniel Kiptoo announced, Kenya Power took up 75 megawatts on past Thursday, with extra capacity to be worked in coming next the official commissioning of the import plan.
Kenya is purchasing the Ethiopia power at 6.50 US cents per kilowatt hour, which is considerably lower than the tariffs charged by Independent Power Producers. The lower tariff is anticipated to enhance proficiency of Kenya Power to offer lower retail payments to consumers.
“We went live on Thursday and had 75 megawatts flowing from Ethiopia through Suswa. We are still in the process of commissioning,”Kiptoo announced on Friday.
The Ethiopian hydropower is barely expensive than that given by Kenya Electricity Generating Company (KenGen) from its seven forks dams, which is priced at Ksh5.30 ($0.043) per kilowatt-hour on average.
The two are, nonetheless, considerably cheaper than the thermal power from IPPs, which is priced as high as Ksh195 ($1.60) per kilowatt-hour. Kenya Power will seek a review of the Ethiopia power charge in 2027, in chain with the agreement’s terms, requesting it a chance to improve lower the costs and bring them closer to KenGen’s tariff.
The space to renegotiate lower tariffs is key to substantiating cheaper electricity, alleviating burden on homes, offering to invest the rs attractive taxes as a way to make local products more competitive, and maintaining big businesses t, that are increasingly exploring ways to produce their power.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent