-
Tanzania has requested Kenya’s consent to bring in 100 megawatts of power from Ethiopia via Kenya’s transmission system.
-
The Director General of EPRA, Daniel Kiptoo, acknowledged receipt of the application and mentioned that the evaluation of the transaction is currently in progress.
-
Kenya plans to impose a wheeled fee on Tanzania for utilizing its transmission lines to transfer the electricity.
Elijah Ntongai, who works for .co.ke as a journalist, possesses over four years of experience in researching and reporting on finance, business, and technology. He offers valuable perspectives on both local Kenyan developments and international patterns.
Nairobi – Tanzania has requested permission from Kenya to bring electricity into their country from Ethiopia using Kenya’s power grid facilities.
In response to .co.ke, the Director General of the Energy and Petroleum Regulatory Authority (EPRA), Daniel Kiptoo, verified that the organization had received the application and was currently in the midst of evaluating the transaction.
Kiptoo stated that EPRA has received an application for transmission to transport electricity from Ethiopia to Tanzania.
“I would like to verify that we have received an application concerning something known as ‘wheeling,’ which involves the transfer of electricity from one location (point A) to another (points B), and this process needs regulatory approval—specifically from EPRA. The request pertains to the movement of electrical power originating in Ethiopia. This involves three entities: Ethiopian Electric Power, which manages the transmission lines; KETRACO, the company owning these lines; and TANESCO, the utility provider in Tanzania responsible for receiving the transferred energy. In summary, the application seeks permission to transmit 100 megawatts of electric power from Ethiopia directly into Tanzania,” explained Kiptoo.
Kiptoo mentioned that EPRA is handling the application with plans to conclude their assessment and reach a decision by the end of March, taking into account the economic and technical aspects of the agreement.
“We are currently examining both the technical and economic aspects. This information is already available publicly. The minister from Tanzania has mentioned their agreement with the Ethiopian government, which involves approximately 37 US cents,” Kiptoo stated.
He pointed out that KETRACO will impose a wheeling fee on Tanzania for utilizing Kenya’s transmission lines to deliver the electricity to Tanzania.
What remarks did the president of Tanzania make?
On March 10, the Tanzanian authorities explained their choice to bring electricity into the country from Ethiopia through Kenya as a means to tackle ongoing electrical issues in the Northern Zone. These recurrent disruptions result in annual financial losses exceeding TZS 32 billion.
President Samia Suluhu Hassan stated that the choice was driven by technical and economic factors, since transporting power from the Southeast to the North leads to considerable energy loss, thereby undermining the reliability of local supplies, according to The Citizen.
The Government Spokesperson Gerson Msigwa additionally highlighted that importing electricity from Ethiopia will aid in reducing common power disruptions and decreasing energy loss experienced during lengthy transmissions.
Moreover, Msigwa pointed out that Tanzania is part of the North African Power Pool, an organization designed to promote cost-effective electricity trading between member countries. It is anticipated that importing electricity from Ethiopia will be less expensive compared to certain local power generation options within Tanzania because these alternatives are located far away in the northern regions near Kenya.
Kenya Power cautions that power prices might rise.
Additionally, Kenya Power has cautioned about a possible 30% rise in electricity rates should the suggested wayleave fee of KSh 200 per meter for power facilities be enforced.
Joseph Siror, CEO, stated that this would lead to an additional yearly cost of KSh 63.8 billion, which would ultimately be borne by customers.
Kenya Power, responsible for overseeing more than 319,000 kilometers of electrical lines, asserted that implementing wayleave fees would conflict with Section 223 of the Energy Act 2019. This section forbids charging levies on public energy infrastructure unless such charges have received regulatory consent.
