Power Grid

The Eastern Africa Power Pool (EAPP) is set to introduce a day-ahead market in early 2025, offering Eastern African countries the opportunity to buy and sell electricity across borders. This new initiative is part of EAPP's broader plan to connect 600 million people to clean energy by 2030. The launch of this market aims to create a more integrated and efficient regional power system, benefiting the 13 member countries. It will allow nations to trade electricity multilaterally, leveraging both existing and new power interconnections within the region.

To facilitate this new market, EAPP is developing a comprehensive trading platform, market rules, and appointing a market operator. The establishment of this system will allow countries to better manage their energy resources by optimizing their energy sources, meeting demand, and improving overall market efficiency. With the introduction of a centralized platform, the region anticipates greater transparency, competitiveness, and fairness in electricity trading, paving the way for better price discovery.

Cabinet Secretary for the Ministry of Energy and Petroleum, Opiyo Wandayi, emphasized during the ongoing EAPP conference that the anticipated market would significantly enhance the energy sector in Eastern Africa. According to Wandayi, the new system will not only promote transparency and efficiency but also help the region balance its energy needs while ensuring that the prices of electricity remain fair and equitable. This move is expected to address rising power tariffs and help stabilize the region's energy costs.

Hon. Okaasai Opolot, Chairperson of the Council of Ministers, confirmed that the necessary resources will be made available by regional utilities and regulators to ensure the successful launch of the day-ahead market by 2025. While the introduction of the market is expected to reduce power tariffs in the long term, the region’s electricity prices may remain volatile in the short term as it transitions to cleaner energy sources. Nonetheless, the initiative is a significant step towards achieving greater energy security and sustainability in Eastern Africa.