The Kenya Electricity Transmission Company (KETRACO) has achieved a significant milestone with the completion and energisation of the 400kV Kenya-Tanzania transmission line. This interconnector spans 510 kilometers, linking Kenya’s Isinya substation to Tanzania’s Singida substation, thereby integrating the power grids of both nations. The development marks a major step forward for regional energy cooperation and sustainability in East Africa.

Project Details and Construction Scope

On the Kenyan side, 96 kilometers of 400kV transmission lines were built from Isinya to the Namanga border, while Tanzania added 414 kilometers of transmission infrastructure from Namanga to Singida, incorporating the newly constructed Arusha substation.

The project was executed in partnership with the Tanzania Electricity Supply Company Limited (TANESCO) and Kenya Power. It is part of the broader Eastern Electricity Highway initiative, which aims to facilitate cross-border energy trade and enhance the reliability of electricity supply in the region.

Economic and Regional Benefits

This interconnection project, with a total investment of $309.26 million (KSh 4.9 billion), was co-financed by the Government of Kenya and the African Development Bank (AfDB). It is expected to generate numerous economic and environmental benefits:

1. Energy Trade and Revenue Generation
   The line enables power exchanges among countries in the region, including Ethiopia, Kenya, Tanzania, Sudan, Egypt, and the Southern Africa Power Pool (SAPP). For example, a Power Purchase Agreement (PPA) between Ethiopia’s Electric Power (EEP) and TANESCO allows Ethiopia to sell 100 MW of electricity to Tanzania via Kenya, with plans to increase this to 200 MW in three years.
   Additionally, the wheeling agreement between KETRACO and TANESCO ensures that Kenya will generate revenue by facilitating the Ethiopia-Kenya-Tanzania (EKT) power transaction.
2. Renewable Energy Integration
   The interconnector will unlock the potential for large-scale renewable energy projects across East Africa, particularly in solar, wind, and hydropower. By facilitating the exchange of cheaper renewable energy, the project supports efforts to reduce greenhouse gas emissions and transition away from fossil fuel dependency.
3. Improved Grid Reliability
   According to KETRACO Managing Director John Mativo, the project enhances the stability and reliability of power systems in East Africa. This is particularly crucial in addressing frequent outages and ensuring consistent electricity supply for both households and businesses.
4. Regional Economic Growth
   The availability of affordable and reliable electricity will spur industrial growth, attract foreign investments, and create employment opportunities. Additionally, interconnected grids are expected to lower overall electricity costs, benefiting consumers and businesses alike.

Key Partners and Implementation Timeline

The project forms a critical component of the Eastern Africa Power Pool (EAPP), a 13-member organization dedicated to fostering regional electricity trade. With formal trading set to begin in March 2025, the newly energized interconnector will play a central role in achieving EAPP’s objectives.

Environmental and Social Impacts

Apart from economic advantages, the project also addresses significant environmental concerns. By enabling the transfer of clean energy from hydropower plants in Ethiopia and other renewable sources, the interconnector contributes to East Africa’s goal of reducing carbon emissions.

Socially, it has the potential to improve access to electricity in underserved rural areas, transforming lives and enabling greater productivity through enhanced access to lighting, education, and technology.

Challenges and Future Opportunities

Despite its promising benefits, the interconnector project has faced challenges, including delays in construction, high project costs, and the need to align regulatory frameworks across participating countries.

Looking ahead, the success of the Kenya-Tanzania interconnector sets the stage for:

• Expansion of the EAPP network to include additional interconnectors with countries such as Uganda, Rwanda, and Burundi.
• Development of renewable energy projects to ensure adequate electricity generation capacity.
• Enhanced focus on energy storage technologies to balance supply and demand fluctuations.

Conclusion

The completion of the 400kV Kenya-Tanzania power line is a monumental achievement for KETRACO, TANESCO, and the broader Eastern Africa region. By fostering cross-border electricity trade, enabling renewable energy integration, and improving grid reliability, the interconnector is a testament to the power of regional collaboration.

As East Africa continues its journey toward sustainable energy, projects like this will be pivotal in ensuring economic growth, environmental protection, and energy access for millions across the continent.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

16th December, 2024