East African governments review contracts with power producers

In Rwanda the govt plans to use diesel-generated power to either cover peak demand or serve as a reserve to hedge against the short-term unavailability of generation capacity or imports.

In Uganda, the govt plans to review the concession model it has used to run the electricity sector over the past 15 years.

Last year, Tanzania’s President John Magufuli blamed costly diesel-fired plants operated by IPPs and emergency power producers for the exorbitant electricity charges.

In Kenya, President Uhuru Kenyatta in 2016 called for a review of the power purchase agreements with the IPPs in a bid to terminate those that are stifling plans to reduce the cost of electricity.

Full article: The East African



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