ECONOMY

Kenya Begins to Supply Power to Tanzania Through New Transmission Line

13-member states of the Eastern Africa Power Pool have agreed to officially begin cross border transmission

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Kenya-Tanzania Power Interconnector
This new infrastructure is expected to strengthen energy ties between Kenya and Tanzania, paving the way for increased power exchange.
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Kenya Electricity Transmission Company (KETRACO) has completed and energized the 400kV transmission line linking Kenya and Tanzania, marking a major step in enhancing regional electricity trade. This new infrastructure is expected to strengthen energy ties between Kenya and Tanzania, paving the way for increased power exchange and supporting broader regional energy and economic integration.

The energisation and synchronisation of the two electricity grids was agreed upon by KETRACO, Tanzania Electricity Supply Company Limited (TANESCO) and Kenya Power.

The Kenya-Tanzania Interconnector project involved the construction of about 510km of High Voltage Alternating Current (HVAC) transmission line from Kenya to Tanzania, the extension of Isinya (Kenya), and Singida (Tanzania) substations as well as the construction of the Arusha substation. On Kenya’s side, it involved the construction of 96km of 400kV transmission line from Isinya substation to the Namanga boarder and the extension of the 400/220kV Isinya substation.

The Tanzanian part involved the construction of a 414km 400kV transmission line from Namanga boarder to Singida, construction of the 400kV Arusha substation as well as the extension of the 220/33kV Singida substation. The interconnector forms part of the Eastern Electricity Highway which will facilitate trade in the region.

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This development comes at a time when 13-member states of the Eastern Africa Power Pool (EAPP) have agreed to officially begin cross border transmission and trade in other energy platforms from March 2025.

Speaking during the EAPP conference, which focused on strategies for energy integration, KETRACO Managing Director, Dr. Eng. John Mativo, highlighted key outcomes and benefits of the regional integration.

“This regional interconnector will enhance the reliability of the interconnected power system, ensuring more sustainable and dependable electricity access. It will also create opportunities for large-scale, efficient renewable energy projects across the region, while helping reduce greenhouse gas emissions by exporting affordable renewable power to countries reliant on fossil fuels.” said Mativo.

He added that the project will facilitate power exchange between Ethiopia, Kenya, Tanzania, the Southern Africa Power Pool and Sudan and Egypt in the north as well as enhance access to cheap electricity through the East African power pool by economic merit order dispatch.

The Kenyan component of the interconnector project was financed by the Government of Kenya (GoK) and the African Development Bank (AfDB) at a cost of approximately Ksh1.9 billion and Ksh3 billion respectively. The contractor for this project was North China Power Engineering Company Limited, while the total cost of the project was approximately $309.26 million.

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The EAPP power trade has been approved and all the required regulations and tariffs are in place to ensure full transparency and implementation. The Kenya-Tanzania line will harness renewable energy mix in the region.

Additionally, the Power Purchase Agreement (PPA) between Ethiopian Electric Power (EEP) and TANESCO outlines a power trade between Ethiopia and Tanzania, transmitted through Kenya’s transmission network. TANESCO plans to purchase 100MW from EEP, with the amount set to increase to 200MW over the next three years. To facilitate this power trade, KETRACO and TANESCO have agreed on a wheeling arrangement, allowing KETRACO to earn revenue for providing the transmission service through the Ethiopia-Kenya-Tanzania (EKT) power transaction.

Kenya has signed a power exchange agreement with Tanzania to support this transaction. The EKT power transaction will be the first wheeling transaction within the EAPP and will serve as a case study for developing the EAPP power market transmission pricing methodology, set for early 2025.

 

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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