In the financial year 2023/2024, Kenya imported 1,199.8 GWh of electricity to offset demand and stabilize the grid.
- Imported power made up 8.77% of the country’s energy requirement during the year under review as some of the electricity supply agreements came into force.
- Between December 2023 and June this year, power imports peaked as Kenya Power honoured its power purchase agreement with the Ethiopia Electricity Power Company (EEP).
- According to the agreement, the EEP will supply the utility provider with 600 MW of electricity for the 25 years, marking the Ethiopian company as the second largest power supplier to Kenya Power after KenGen.
“The highest import occurred in January 2024, totalling 142.25 GWh. The increase from December 2023 is attributed to the commencement of full commercial operations under the power purchase agreement between KPLC and EEP, which began on 1st December 2023,” the regulator said.
For the first three years, EEP will provide 200 MW to Kenya Power and for the remaining period, ramp up the supply to 400 MW. Kenya Power’s electricity imports in FY 2023/2024 were also boosted by its energy exchange contracts with the Uganda Electricity Transmission Company Limited (UETCL).
Ethiopia remains Kenya’s most valuable market for electricity exports growing by 88% over the year. On the other hand, reliance on Uganda’s power imports have declined from 141.23 million KWh in 2023 to 106 million KWh this year.
In the financial year 2022/2023, electricity imports stood at 644 GWh. This was double the figure recorded in 2021/2022 when imports were at 337.50 GWh. From this data, it was alluded that as demand for more power rises in the near future, Kenya’s electricity imports from its neighbours will significantly rise.
Regional Performance
Kenya still outpaces its East African neighbours in the demand for electricity durijg peak hours. According to latest data from EPRA, in 2023/2024 Kenya consumed 2,177 MW followed by Tanzania and Uganda with 1,645 MW and 1,033 MW respectively. Burundi consumed the least amount of electricity with only 70 MW in the period under review.
East Africa’s installed capacity rose by 24% in 2023/2024, soaring from 6,957.8 MW in June 2023 to more than 8,000 MW in June this year. Uganda represented the highest increase in installed capacity, rising from 1,609 MW in June 2023 to 2,430 MW this year. Kenya’s installed capacity rose slightly from 3,084.65 MW in June 2023 to 3,199 MW by June this year.
“Uganda’s growth can be attributed to the commissioning of the 600 MW Karuma Hydroelectric Dam, while Tanzania’s expansion is linked to the phased commissioning of the 2,120 MW Julius Nyerere Hydroelectric Power Project,” the report added.
Uganda also led in the highest share of renewable energy production in the region, accounting for 88% of its total capacity. Kenya came second with 79.89% while Burundi came third with 78%. Both Tanzania and Rwanda lagged in renewable energy, accounting for 45% and 43% respectively.
