The Eastern Africa Power Pool (EAPP) is set to transform the energy landscape in the region with its plan to launch a centralized energy market in early 2025.
The initiative, which includes the establishment of a Day Ahead Market (DAM), aims to facilitate cross-border electricity trading among its 13 member countries, including Kenya, Uganda, Ethiopia, and the Democratic Republic of Congo.
The goal is to enhance regional cooperation and optimize the use of available energy resources, ultimately providing affordable and reliable electricity access to millions.
At a recent conference in Mombasa, Cabinet Secretary for Energy and Petroleum Opiyo Wandayi highlighted the economic benefits that could arise from deeper integration of the power sectors within the EAPP.
The DAM will allow customers to buy and sell electricity at binding prices for the following day, enabling both sellers and buyers to benefit from increased regional power trade.
The system is expected to improve price discovery and efficiency in energy transactions, making it easier for countries to manage their electricity supply and demand.
Member countries have recognized the need for national reforms to create a conducive environment for increased power trade.
They pledged to support their respective national utilities in implementing regional interconnectors and complying with the Interconnection Code.
This commitment reflects a shared understanding of the importance of collaboration in addressing the challenges of energy access and sustainability across the region.
The EAPP currently comprises 13 member states that have signed an Inter-Governmental Memorandum of Understanding (IGMOU) aimed at coordinating cross-border power trade and grid interconnection.
These countries include Burundi, Djibouti, Rwanda, Egypt, Ethiopia, Kenya, Sudan, Tanzania, Uganda, Libya, South Sudan, and Somalia.
HAVE YOU READ?
How Safaricom’s Money Market Fund Can Drive Kenya’s Clean Energy Transition
The EAPP’s General Secretariat is based in Addis Ababa, Ethiopia, where it oversees the development and operation of the power pool.
The anticipated launch of the DAM is seen as a critical step toward achieving affordable universal electricity access in Eastern Africa.
With rising energy demands driven by population growth and industrialization, many countries in the region face challenges in meeting their electricity needs.
The centralized market will enable countries with surplus energy to export it to those experiencing shortages, thereby optimizing resource utilization and enhancing energy security.
Wandayi noted that Kenya has been at the forefront of efforts to establish the EAPP since its inception in 2005.
The country has invested heavily in constructing interconnectors with its neighbors, such as the high-voltage direct current transmission line connecting Kenya and Ethiopia.
These interconnections are essential for facilitating cross-border electricity trade and ensuring a stable supply of power throughout the region.
As part of its preparations for launching the centralized market, EAPP is working on developing market rules and appointing a market operator responsible for overseeing transactions within this new trading framework.
This operator will play a crucial role in ensuring transparency and efficiency in electricity trading among member states.
By enabling cross-border electricity trading and promoting regional cooperation, this initiative has the potential to improve energy access for millions while driving economic growth across member countries.
As stakeholders continue to work together toward this common goal, they are laying the foundation for a more sustainable and resilient energy future in East Africa.
