Kenya and Uganda have signed a new power purchase agreement (PPA) that facilitates bilateral power trade and takes into consideration new dynamics in the energy sector, including increased generation capacity.
The agreement, which is designed to facilitate two-way electricity imports and exports between the two countries, marks the end of the previous pact that only focused on Kenya’s imports from Uganda, and limited supply to emergency situations.
The signing of the PPA last month was made compulsary by investments by both countries in electricity generation facilities resulting in excess capacity, a development that has prompted a downward revision of tariffs.
“The new PPA that has been negotiated with Uganda is good for Kenya because the tariffs have decreased drastically,” Jared Othieno, the acting managing director of Kenya Power, told The EastAfrican.
He added that under the new agreement, Kenya intends to import a maximum of 50MW from Uganda annually. This agreement was signed by Kenya’s Energy and Petroleum Regulatory Authority and Uganda’s Electricity Regulatory Authority (ERA).
