Kenya to sell electricity to Rwanda by next year

Kenya Power has entered into an agreement to sell 30 megawatt (MW) of electricity to Rwanda. Kenya Power, Uganda Electricity Transmission Company Ltd and Rwanda Energy Group Ltd, completed negotiations to facilitate the trade.

The sale, expected to commence by July 2015, will be done through an interconnected transmission grid running and connecting Kenya, Uganda and Rwanda. The agreement provides for the conveying of power through another entity’s transmission line network to another customer.

“These agreements follow a Memorandum of Understanding that Kenya, Uganda and Rwanda entered into on October 27, 2013 for promotion and sustainable development of power generation and interconnection of transmission and distribution systems and power projects within the three states,” said Kenya Power Chief Executive Dr Ben Chumo.

He made these remarks during the signing ceremony for the two agreements. Under the deal, Kenya, Uganda and Rwanda have agreed to share cheaper generation capacity as it becomes available. Kenya and Uganda also agreed to reinforce their respective transmission grids to facilitate the initial power sale of 30MW by Kenya to Rwanda, through Uganda transmission infrastructure by July 2015.

While Rwanda will reduce reliance on the more expensive thermal power, Kenya will benefit by better utilising its generation capacity, expected to hit 5,000 MW by 2017. Rwanda will also improve its power generation capacity, which currently stands at 160 MW against a demand of 160 MW.