Latest news with #EthiopianElectricPower
Zawya
08-05-2025
- Business
- Zawya
Why Kenya depends on Ethiopia, Uganda for power?
Kenya's electricity imports from Ethiopia and Uganda rose by 66.7 percent in 2024 as Nairobi deepened reliance on the two countries to stabilise its power supply, amid rising demand and increased transmission and distribution losses. The latest Economic Survey 2025 shows that Nairobi increased its imports of electricity from the two countries to 1,532.6 GWh in 2024, from 919.3GWh in 2023, at a time when its total installed electricity capacity declined to 3,235.5MW, from 3,243.6MW due to the expiry of Imenti Tea Factory's power purchase agreement and the lower capacity of Muhoroni Gas turbine caused by depreciation. Kenya's local electricity generation remained relatively unchanged at 12,467GWh in the past four years (2021-2024), with transmission and distributive losses accounting for 23.5 percent (3,307.4 GWh) of total supply in 2024, according to the report.'Electricity imports rose by 66.7 per cent to 1,532.6GWh in 2024 due to increased imports from Ethiopia,' the report says. Ethiopian Electric Power (EEP) and Kenya Power signed a power purchase agreement (PPA) for the sale and purchase of electricity in July 2022. Under the deal, Kenya gets a maximum firm capacity of 200MW in the first three years and thereafter a maximum firm capacity of 400MW for the remainder of the 25-year PPA. Kenya Power started importing 200MW of hydropower from Ethiopia in November 2022, with the Ethiopian power constituting 11 percent of the electricity consumed by Kenyans daily. Last month, Kenya Power said that formal talks had started with EEP to allow importation of an extra 50-100MW, underlining Nairobi's reliance on electricity imports to secure its power needs. According to the report, Kenya's total electricity generation and imports increased in 2024, with hydroelectricity generation rising by 36.2 per cent to 3,630.7GWh, due to favourable rainfall in 2024. Thermal declined by 13.5 percent to 1,129.5GWh in 2024, while wind decreased by 10.5 percent to 1,797.7GWh. Geothermal and solar production dropped by 8 percent and 6.3 per cent to 5,551GWh and 460.4GWh, respectively. Read: Kenya's power imports from Uganda rise 18pc in January on high demandDuring the year, 91 percent of electricity was generated from renewable sources -- hydro, geothermal, wind, and solar. Geothermal contributed 44.2 per cent of the total local electricity produced, followed by hydro generation at 28.9 percent. Wind generation accounted for 14.3 percent while solar accounted for 3.7 percent of the total electricity generated. Thermal oil was the only non-renewable energy source, accounting for 8.9 percent. Kenya's total electricity demand increased by 5.1 per cent to 14,101.9GWh in 2024, with domestic demand rising to 10,751.7GWh from 10,320.6GWh in the period. Demand in all categories, save for street lighting, grew during the year. The demand by large and medium (commercial and industrial), and domestic and small commercial categories increased by 4.1 percent and 4.9 percent to 5,515.2GWh and 4,459.1GWh, respectively. Demand for rural electrification increased by 3.9 percent to 684.79GWh while e-mobility consumed 2.8GWh. Meanwhile, Kenya has also been exporting electricity to Uganda and Tanzania with exports to the two neighbouring countries increasing by 26.62 percent to 42.8GWh in 2024, from 33.8GWh in 2023. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
19-02-2025
- Business
- Zawya
Ethiopia signs memorandum of understanding with ATIDI to support PPP renewable energy projects
Addis Ababa, Ethiopia: The Federal Democratic Republic of Ethiopia, represented by the Ministry of Finance and Ethiopian Electric Power (EEP), has signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI), a leading pan-African multilateral trade and investment insurer. This milestone agreement is designed to accelerate Ethiopia's transition to clean energy by attracting foreign investment into renewable energy projects through ATIDI's Regional Liquidity Support Facility (RLSF). The MoU establishes a framework for collaboration between Ethiopia and ATIDI, ensuring that Independent Power Producers (IPPs) or Public Private Partnerships can leverage RLSF, a liquidity support mechanism developed by ATIDI in partnership with KfW Development Bank and Norad. RLSF provides financial protection to IPPs/PPPs by availing and accelerating payments owed by state-owned utilities, addressing a key challenge in the energy sector by enhancing payment security and financial stability. In his key message H.E. Ahmed Shide, Ethiopia's Minister of Finance, said 'through this partnership, Ethiopia aims to facilitate timely payments to developers, mitigate financial risks, strengthen the bankability of power purchase agreements (PPAs), and enhance the creditworthiness of EEP'. His Excellency further strengthened his message by stating that 'these efforts will create a more attractive investment environment for renewable energy projects'. Ethiopia becomes the 11th ATIDI member state to sign the RLSF MoU joining Benin, Burundi, Côte d'Ivoire, Ghana, Kenya, Madagascar, Malawi, Togo, Uganda and Zambia. Since its inception, guarantees worth USD24.7 million have been approved under the RLSF portfolio; in turn facilitating investments totaling USD373.1 million and the development of 181.95 MW of installed renewable energy capacity across Africa. Ethiopia has made significant strides in expanding its energy sector, primarily relying on hydropower as the backbone of its electricity generation. The Ethiopian government aims to diversify this energy mix by leveraging its vast renewable resources including wind, solar, and geothermal energy to enhance reliability and sustainability. This collaboration marks a significant step towards a more resilient and investor-friendly renewable energy landscape in Ethiopia. With ATIDI's support, the country is poised to achieve its energy transition goals while ensuring financial stability for its power sector stakeholders. Quote from Manuel Moses, CEO, ATIDI "We are honored to partner with the Government of Ethiopia and Ethiopian Electric Power to support the development of the country's renewable energy sector. Through our liquidity support, this collaboration will not only reduce financial risks but also attract more investment into Ethiopia's energy infrastructure. We believe that this partnership will help accelerate the growth of Ethiopia's renewable energy capacity and contribute to the broader goal of sustainable development across the African continent." H.E Minister Ahmed Shide, Minister of Finance, Federal Democratic Republic of Ethiopia 'Ethiopia has embarked on a comprehensive economic reform agenda known as the Homegrown Economic Reform Agenda (1&2). This initiative aims to address structural challenges and promote sustainable economic growth. The key aspects of the reform are creating Macroeconomic Stability; Investment and Trade. Efforts are being made to enhance the investment climate and promote trade by simplifying regulations, improving infrastructure, and encouraging private sector participation. The Regional Liquidity Support Facility (RLSF) is expected to play great role by enhancing the bankability of PPP projects and the sustainable implementation of such projects. The reform also aims to boost productivity in key sectors such as agriculture, manufacturing, and services to drive economic growth and create jobs. Investment Attraction too focuses on creating improved investment climate that has already attracted foreign direct investment, particularly in sectors like energy, manufacturing, and agriculture. We look forward to expanding this positive collaboration with ATIDI to cover additional sectors other than energy.' About ATIDI ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an 'A/Stable' rating for Financial Strength and Counterparty Credit by Standard & Poor's (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody's, which has now been revised to A3/Positive. More about ATIDI: Media registration link: About the Regional Liquidity Support Facility (RLSF) RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities, located in ATIDI member states that have signed the RLSF Memorandum of Understanding. RLSF was launched in 2017 by ATIDI and the German Development Bank, KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ); in 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards its continued implementation. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
