Ethiopia begins historic electricity exports to Tanzania via Kenya

A historic moment in East African energy cooperation unfolded this week as Ethiopia commenced its first-ever electricity exports to Tanzania, with power seamlessly transmitted through Kenya’s robust high-voltage network. This successful pilot marks a significant milestone in regional energy trade, establishing a new corridor for power flow and solidifying Ethiopia’s burgeoning role as a regional energy supplier.

The trial transmission, announced by the Kenya Electricity Transmission Company (KETRACO) Managing Director on social media, saw electricity from Ethiopia flowing along Kenya’s critical 400kV Suswa–Isinya line before connecting to the Kenya–Tanzania interconnector. The operation successfully increased the load on the line from 225 megawatts (MW) to 262 MW, demonstrating the corridor’s operational reliability and the smooth cross-border connectivity achieved through years of strategic infrastructure development. This event is not merely a technical success; it represents a powerful step towards enhanced energy security, economic integration, and sustainable development across East Africa.

The Historic Pilot Transmission: A Technical Triumph

The successful transmission of Ethiopian electricity to Tanzania via Kenya’s grid is a testament to meticulous planning, significant investment, and the collaborative spirit of the Eastern Africa Power Pool (EAPP) member states. The journey of this power begins in Ethiopia, a nation rich in hydropower resources, and traverses hundreds of kilometers through sophisticated transmission infrastructure.

The core of this achievement lies in the operational efficiency of Kenya’s transmission backbone. The 400kV Suswa–Isinya line, a critical component of Kenya’s national grid, served as the conduit for the Ethiopian power. This high-voltage line is designed for bulk power transfer, ensuring minimal losses over long distances. From the Suswa substation, the power then seamlessly integrated with the newly energized Kenya–Tanzania interconnector. This 400kV line, completed and energized in late 2024, links Singida in central Tanzania through Babati and Arusha to the border town of Namanga, connecting to Kenya’s grid.

The increase in load from 225 MW to 262 MW during the pilot demonstrates the technical capacity of the transmission corridor to handle significant power flows. This incremental increase is crucial for testing the stability and reliability of the interconnected grids under varying load conditions. For grid operators, it confirms that the interconnector can efficiently transmit power without compromising the stability of either the Kenyan or Tanzanian national grids. This technical validation is a prerequisite for long-term, high-volume power trade agreements.

This marks the first time that Ethiopian electricity has physically reached Tanzanian consumers through this multi-country pathway. While Ethiopia has existing bilateral power purchase agreements with neighboring countries, this new corridor expands its reach significantly, creating a truly regional energy market.

Ethiopia’s Ascent as a Regional Powerhouse

Ethiopia possesses immense renewable energy potential, particularly in hydropower, making it a natural candidate to become a regional energy hub. The nation’s total electric power generation capacity is projected to reach over 60,000 MW from hydroelectric, wind, solar, and geothermal sources. As of early 2024, Ethiopia’s installed generation capacity was around 5,200 MW, with approximately 90% derived from hydropower. The government has an ambitious 10-year Development Plan to increase power generation capacity to 19,900 MW by 2030, a four-fold increase from current levels.

Central to Ethiopia’s energy ambitions is the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile River. When fully completed, GERD is poised to become Africa’s largest hydroelectric power station, with an installed capacity of 5.15 gigawatts (GW) from its 13 turbines. It is expected to generate approximately 15.76 terawatt-hours (TWh) of electricity annually. While the dam has been a subject of regional geopolitical discussions, its immense power generation potential is undeniable and critical to Ethiopia’s vision for energy self-sufficiency and export. As of October 2024, the fifth and final filling of the GERD reservoir was completed, bringing it to its full operating level. Several turbines have already been commissioned, contributing significantly to the national grid.

Ethiopia’s strategy is not just about meeting its rapidly growing domestic demand (which increases by 30-35% annually, largely driven by industrialization); it’s also about leveraging its surplus power for export. The country aims to more than double its electricity exports (from 2,803 GWh to 7,184 GWh) by 2030, targeting countries like Djibouti, Sudan, Kenya, and now Tanzania. Ethiopia already supplies around 200 MW to Kenya under a long-term agreement, and has plans to increase power exports to Djibouti up to 300 MW and has signed an MoU to export 100 MW to South Sudan. This diversification of export markets enhances Ethiopia’s foreign exchange earnings and strengthens its economic ties across the region.

The Eastern Africa Power Pool (EAPP): A Framework for Integration

The successful power transfer is a direct outcome of the framework provided by the Eastern Africa Power Pool (EAPP). Established in 2005, the EAPP is a 13-member initiative designed to foster regional integration in the electricity sector. Its primary objectives include:

• Optimizing Energy Resources: Facilitating the least-cost development of interconnected electrical power systems by leveraging diverse energy sources (hydro, geothermal, solar, wind) across member countries.
• Promoting Power Exchanges: Enabling cross-border power trade among utilities to address power deficits, utilize surplus capacity, and enhance overall grid reliability.
• Enhancing Power Supply Security: Providing mutual assistance in case of system failures or shortages in member countries.
• Reducing Electricity Production Costs: Achieving economies of scale through interconnected systems and increased power exchange.
• Increasing Access to Electricity: Expanding power supply to increase the electrification rate across Eastern Africa.
• Creating a Regional Electricity Market: Facilitating the long-term development of a competitive electricity market in the region.

The EAPP’s current member countries include Burundi, Djibouti, the Democratic Republic of Congo (DRC), Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Uganda, and Libya, with South Sudan and Somalia having joined recently. The EAPP Secretariat, based in Addis Ababa, Ethiopia, plays a crucial role in coordinating the development and operation of the power pool.

The EAPP’s vision is to “optimize the usage of clean energy resources available in the region to benefit the region’s society with reduced cost of electricity production and increased rate of access to electrify Eastern Africa.” The Ethiopia-Kenya-Tanzania power corridor is a tangible manifestation of this vision, demonstrating how regional cooperation can translate into practical benefits for millions.

The Crucial Transmission Infrastructure: A Network of Progress

The realization of this cross-border power trade hinges on significant investments in high-voltage transmission infrastructure. The financing for these critical interconnections has been a collaborative effort involving Kenya’s National Treasury and a consortium of prominent development partners:

• The World Bank: Through initiatives like the Eastern Electricity Highway Project under the First Phase of the Eastern Africa Power Integration Program, the World Bank has been a major financier of transmission lines aimed at connecting regional grids. Their support focuses on enhancing the capacity and reliability of these vital links.
• African Development Bank (AfDB): The AfDB has consistently championed regional power interconnections as part of its “Light up and Power Africa” High 5s strategy. The Bank’s investments aim to build robust intra- and inter-regional power systems that will underpin the development of an interconnected continental power grid, linking existing power pools and facilitating the establishment of an African Single Electricity Market. Their funding for the Kenya-Tanzania interconnector is a direct example of this commitment.
• French Development Agency (AFD): AFD is a key player in financing sustainable development projects globally, with a strong focus on energy transition in Africa. Their involvement in regional transmission projects underscores their commitment to supporting clean energy access and climate resilience across the continent.
• European Investment Bank (EIB): The EIB, the EU’s long-term lending institution, has a significant portfolio of energy projects in Africa, emphasizing sustainable infrastructure. Their financing aligns with the EU’s “Global Gateway” strategy, which aims to mobilize substantial investments for clean energy and digital transformation across Africa. The EIB’s support for the Kenya-Tanzania interconnector is part of its broader efforts to enhance regional connectivity and promote a low-carbon development pathway.

These multilateral financial institutions provide not only capital but also technical expertise, project management support, and help in establishing robust regulatory and operational frameworks, ensuring the long-term viability and sustainability of these complex cross-border projects. The interconnected grid is part of broader plans to link Eastern and Southern Africa’s electricity grids, creating a truly continental power market.

Multifaceted Benefits of Regional Energy Trade

The successful initiation of electricity trade between Ethiopia and Tanzania via Kenya brings a multitude of benefits to all involved parties and the wider region:

For Ethiopia: Economic Diversification and Revenue Generation

As a nation with abundant hydropower resources, Ethiopia stands to gain significant revenue from exporting its surplus electricity. This provides a crucial source of foreign exchange earnings, diversifying the economy beyond traditional agricultural exports. It also allows Ethiopia to fully utilize its large-scale power generation assets, which might otherwise face underutilization if solely reliant on domestic demand. This strategic export capability enhances Ethiopia’s geopolitical influence in the region.

For Kenya: A Strategic Energy Transit Hub

Kenya solidifies its position as a critical energy transit hub in East Africa. By hosting the high-voltage transmission lines that facilitate cross-border power flow, Kenya enhances its strategic importance in regional energy security. While already importing power from Ethiopia, acting as a transit country for power destined for Tanzania strengthens its grid stability and offers potential for future revenue streams from transmission fees. It also showcases Kenya’s advanced transmission infrastructure and its commitment to regional integration.

For Tanzania: Access to Affordable, Clean Energy

Tanzania, which has faced its own energy demand challenges, gains access to a new, reliable, and potentially more affordable source of clean hydropower. This reduces its reliance on thermal power plants (often fueled by expensive and polluting fossil fuels), contributing to a cleaner energy mix and lower electricity costs for consumers and industries. Increased access to stable power supports Tanzania’s industrialization efforts, boosts productivity, and improves the overall quality of life for its citizens. It also provides a crucial buffer against domestic power generation shortfalls, enhancing energy security.

For the Eastern Africa Region: Collective Prosperity

The broader regional benefits are profound:

• Enhanced Energy Security: By diversifying sources and enabling mutual assistance, the interconnected grid reduces the vulnerability of individual countries to power shortages or generation failures.
• Reduced Power Deficits: Countries facing energy deficits can import power from those with surpluses, ensuring more consistent supply.
• Lower Electricity Costs: Leveraging the least-cost power generation sources across the region can lead to lower overall electricity tariffs for consumers and businesses, making industries more competitive.
• Environmental Sustainability: Prioritizing clean hydropower and other renewables in cross-border trade contributes significantly to reducing the region’s carbon footprint and combating climate change.
• Fostering Regional Economic Integration: Interconnected energy grids are powerful drivers of economic integration, facilitating trade, investment, and the free movement of goods and services across borders. It creates a more attractive environment for regional and international investors.

Challenges and the Path Ahead

While the pilot is a resounding success, the path to a fully integrated and efficient regional power market is not without its challenges:

• Technical Harmonization: Ensuring seamless operation requires continuous technical coordination, grid code harmonization, and robust maintenance protocols across national utilities. Managing voltage stability, frequency control, and power flow across multiple interconnected grids is complex.
• Financial Sustainability: Establishing fair and transparent tariff structures for power trade, ensuring cost recovery for transmission infrastructure, and attracting further investment for grid expansion remain critical.
• Political and Regulatory Frameworks: Cross-border power purchase agreements require strong legal and regulatory frameworks, dispute resolution mechanisms, and consistent political will. Harmonizing energy policies and regulations across diverse national contexts can be challenging.
• Environmental and Social Considerations: Large-scale hydropower projects, while providing clean energy, can have significant environmental and social impacts (e.g., displacement, ecosystem changes) that require careful management and mitigation.
• Climate Variability: Reliance on hydropower can be vulnerable to climate change-induced droughts, necessitating a diversified energy mix that includes solar, wind, and geothermal.

Despite these hurdles, the long-term vision remains clear: a fully integrated African power market. The success of the Ethiopia-Kenya-Tanzania power corridor provides a powerful blueprint for future interconnections, potentially linking the EAPP with the Southern African Power Pool (SAPP) and other regional pools. Such a continental grid would unlock Africa’s vast energy potential, drive industrialization, and significantly improve the quality of life for hundreds of millions.

Conclusion: A New Dawn for East African Energy

The commencement of electricity supply from Ethiopia to Tanzania via Kenya’s grid marks a truly transformative moment for East Africa. It is a testament to Ethiopia’s strategic vision for leveraging its abundant hydropower, Kenya’s critical role as a transit nation with advanced infrastructure, and Tanzania’s commitment to securing clean and affordable energy.

This pilot, facilitated by the Eastern Africa Power Pool and supported by major multilateral development banks, is more than just a technical achievement. It symbolizes a new era of regional cooperation, where shared resources and interconnected infrastructure pave the way for enhanced energy security, economic growth, and sustainable development across the continent. As the power flows across borders, it carries with it the promise of a brighter, more electrified future for East Africa.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

1st July, 2025