Kenya Signs Power Purchase Pact with Ethiopia

Kenya Power Company has signed a Power Purchase Agreement (PPA) with Ethiopian Electric Power (EEP) to commence power trade from November 1. Under the pact, Kenya, in the first three years, will get a maximum firm capacity of 200 megawatts(MW) and thereafter a maximum firm capacity of 400 MW for the remainder of the 25-year PPA.

EEP will be the second largest power supplier to Kenya Power after the KenGen Hydros Eastern Cascade, with a contracted 600MW capacity. To enhance and speed up reforms in the energy sector, the President appointed a task force that handed its report in September 2021 with recommendations to review Power Purchase Agreements (PPAs) signed with Kenya Power to lower power costs.

As part of the ongoing reforms in the energy sector, the government, a week ago, effected a 15% reduction in power tariffs. The decline is part of a 30% reduction promise and will cover the period between January and December 2022, reflecting bills covering the December 2021 period.

Rwanda, Burundi Connect Joint Electricity Network

Burundi has launched a joint electricity network with Rwanda. The project, which will also allow for the electrification of several localities, is co-financed by the African Development Bank (AfDB) and the European Union (EU).

The project consists of the construction of a 220 kV line from the Burundi-Rwanda border to the capital Gitega via Ngozi in Burundi, where a high and medium voltage transformer station will be installed. The localities located along the project route benefit from a component dedicated to rural electrification.

These are Mivo in the province of Ngozi, Muhanga in Kayanza and Mutaho in the province of Gitega. The Burundi Water and Electricity Production and Distribution Board (REGIDESO) has entrusted the work to a consortium formed by the Indian company Transrail Lighting and the Korean company Hanbaek.

The Rwanda-Burundi electricity interconnection project will require an investment of €24.4 million. The governments of Rwanda and Burundi are receiving €15.7 million in funding through the EU-AfDB Co-Financing Facility. The pan-African bank is providing an additional €8.69 million in funding.

Libya Hits 1.2mbpd Oil Production As Political Deadlock Simmers

Oil production in Libya has hit 1.2 million barrels per day, the level the country was producing prior to its declaration of force majeure in April, according to the new leadership of the National Oil Company (NOC).

Production was said to have reached 1.13 million bpd by July 27.  It remains unclear whether the 1.2 million barrels per day Libya is allegedly producing now is referring to only crude oil or crude oil plus condensate.

The return to normalized production levels comes as the country remains in a political deadlock that has seen intermittent clashes erupt among various rival militias in the capital, Tripoli. The deadlock pits the GNU’s interim prime minister Abdul Hamid Dbeibah in Tripoli against those loyal to the new prime minister named by the eastern-backed Parliament, Fathi Bashagha.

Last week, reports emerged that oilfield services giant Halliburton was exiting Libya due to rising tensions and anticipation of renewed clashes among militias in Tripoli.

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