A Regional Electricity Market Will Unlock Electricity Stability and Affordability
By Daniel Kiptoo Bargoria,
An interesting development is happening in the Eastern Africa Region. For a long time, countries in the region have developed intra-trade relationships that have extended to the trade of agricultural products, livestock and animal products, manufactured goods, mining and natural resources, energy and petroleum products, among others.
Looking at the energy and petroleum sector, we have seen cross-border trade in refined petroleum products, transit of goods through the Mombasa and Dar es Salaam ports, regional collaboration on energy security and standards, and shared infrastructure for transmission and distribution.
This year, we expect trade relations in the energy sector to go a notch further with the launch of an electricity market by the Eastern Africa Power Pool (EAPP). This is commendable for the region because it will finally allow countries to trade power seamlessly through an interconnected grid. For countries within the market, it means improved electricity reliability for citizens, lower costs, and strengthened regional energy security. This power pool will link national electricity systems and enable the EAPP countries with surplus generation to export to neighbours facing shortfalls or higher electricity production costs.
As a result, it will enhance energy security, improve grid stability and encourage efficient use of the region’s diverse energy resources. A functional power market also supports long-term planning, as governments can invest more strategically in generation and transmission infrastructure, knowing they are part of a larger, integrated system.
The EAPP, established in 2005, has so far put in place measures to support the operationalization of the power market. Some of the progress made include the development of cross-border transmission infrastructure, which has enabled its member countries to exchange electricity. For instance, Kenya imports 200 MW of electricity from Ethiopia and has energy exchange contracts with Uganda and Tanzania. In 2025, Tanzania also began importing power from Ethiopia through the Ethiopia-Kenya- Tanzania interconnector. This marked a significant milestone in the Eastern Africa Power Trade.
Another milestone by the EAPP is the setting up of the Independent Regulatory Board (IRB), which has spearheaded the harmonisation of regional regulatory framework. The framework is essential to the success of the electricity market. The framework creates a predictable, efficient, and fair operating environment for all participating countries. This reduces administrative barriers when nations apply uniform standards on issues such as grid codes, market operations, tariffs, safety, and dispute resolution
A regional power market is therefore a logical next step for Eastern Africa’s energy transition. By pooling diverse national strengths in hydropower, geothermal, wind and solar, countries can lower costs, improve reliability and reduce system-wide risks that no single market can manage alone. Harmonised regulation, anchored in proven national frameworks provides the foundation for trust, investment and efficient power flows across borders.
In this context, regional electricity integration becomes a powerful development tool that turns national assets into shared resilience, accelerating energy access, and delivering affordable, reliable power for the region’s long-term growth."
The writer is the Director General of the Energy and Petroleum Regulatory Authority and the Chairman of the Independent Regulatory Board of the Eastern Africa Power Pool (EAPP)
