Kenya’s New Energy Vision: A Power Revolution in the Making
Kenya has launched bold plans to revolutionise its electricity sector, promising cheaper and more reliable energy for millions. The country is set to benefit massively from the East Africa Power Pool (EAPP), a collaborative initiative spanning 13 member states, aimed at fostering cross-border energy trade and renewable energy solutions.
During the EAPP regional conference, which kicked off on 9 December, leaders unveiled a centralised “Day Ahead Market” (DAM). This market will allow countries to trade energy at competitive rates for next-day delivery, leveraging shared infrastructure and regional interconnections. The initiative, expected to go live by late 2024, is projected to benefit over 600 million people across Eastern Africa by 2025​.
The power pool has already shown impressive growth, with regional electricity trade increasing from 504 GWh in 2005 to over 3,400 GWh annually. Countries like Ethiopia, a major power exporter, will play a pivotal role, although challenges remain for unconnected nations such as South Sudan and Somalia. To address these gaps, the EAPP is pushing forward significant investments in solar, wind, and hydropower, alongside the development of cross-border transmission lines​.
Challenges and Big Moves
The announcement comes shortly after President William Ruto cancelled a controversial Ksh 95 billion power transmission deal with India’s Adani Group. This project aimed to construct high-voltage lines across Kenya, but the government appears more focused on regional cooperation through the EAPP initiative. Recent successes, like the completion of the Kenya-Tanzania electricity interconnection, show the potential for transforming regional energy security.
Broader Impacts
This initiative isn’t just about energy; it’s about economic integration and sustainable development. The system promises transparency and efficiency while ensuring fair energy prices through robust competition. Moreover, it highlights the growing importance of renewable energy as a cornerstone for future power needs across Africa​.
Kenya’s energy transition, supported by key stakeholders like the World Bank and the African Development Bank, marks a critical step towards universal electrification and clean energy leadership in the region. The country is poised to be a hub for regional energy trade, bringing light—literally and figuratively—to millions.