CBAM and Electricity Exports: What African Power Exporters Need to Know

CBAM and Electricity: A Special Case

Electricity is one of the six CBAM-covered sectors, but it operates differently from goods like steel or cement. Unlike manufactured goods where the embedded carbon is calculated from production processes, electricity CBAM is based on the carbon intensity of the generating source — measured in tonnes of CO₂ per MWh.

How Electricity CBAM Works

For electricity imports into the EU, the CBAM declarant must report the actual carbon intensity of the electricity (gCO₂/kWh) using verified source data. If actual data is unavailable, the EU applies a default value based on the exporting country's grid average. The CBAM certificate cost = MWh imported × carbon intensity (tCO₂/MWh) × CBAM certificate price.

African Countries with Electricity Export Potential

| Country | Grid Carbon Intensity | CBAM Advantage | |---|---|---| | Ethiopia | 20 gCO₂/kWh | Very High | | Zambia | 45 gCO₂/kWh | Very High | | Mozambique | 85 gCO₂/kWh | High | | Kenya | 180 gCO₂/kWh | High | | Namibia | 220 gCO₂/kWh | Medium | | South Africa | 580 gCO₂/kWh | Low |

The Verification Imperative

Ethiopia's grid at 20 gCO₂/kWh vs the EU default of ~400 gCO₂/kWh represents a 20× cost difference in CBAM certificates. Verification is the core commercial strategy for African power exporters.

Key Requirements for Electricity Exporters

• ▸Submit a monitoring plan to the EU competent authority before the first export
• ▸Install certified metering at the interconnection point
• ▸Maintain generation source records (hydro dispatch logs, geothermal output data)
• ▸Annual verification by an EU-accredited verifier

Register at the Digital Product Passport Registry to begin your electricity export CBAM compliance journey.