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Yunnan Nanyue Electric Power Equipment Co., Ltd.
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Gold Index: 40381
NAIROBI (Xinhua) -- Kenya's electricity distributor, Kenya Power, on Tuesday inked an agreement to sell 30MW of power to Rwanda. The electricity firm also signed another agreement with Uganda Electricity Transmission Company Ltd (UETCL) and Rwanda Energy Group Limited (REG) to help facilitate the trade after the completion of negotiations. Speaking during the signing ceremony for the two agreements, Kenya Power CEO Ben Chumo said the agreements were a culmination of a Memorandum of Understanding (MoU) that Kenya, Uganda, and Rwanda entered into in 2013.
He said the sale of 35MW, expected to commence by July 2015, will be effected through the three entities' already interconnected transmission grid, following the signing of a wheeling agreement between Kenya Power, UETCL and REG on the one hand, and a Power Purchase Agreement between Kenya Power and REG. A wheeling agreement provides for the conveying of power through another entity's transmission line network to a customer. Under the MoU, the three East African countries agreed to share cheaper generation capacity as it becomes available. It was also agreed that Kenya and Uganda would reinforce their respective transmission grids to facilitate the initial power sale of 30MW by Kenya to Rwanda to be wheeled through Uganda transmission infrastructure by July 2015.
Additionally, enhanced grid connectivity will open up the region to electricity trade in future, ultimately promoting sustainable economic development. |