Kenya saved USD 10 million in a single year due to electricity supplies from neighboring Ethiopia.
Since late 2022, Kenya has been tapping into 200MW of renewable energy through a 1,045 km High Voltage Direct Current (HVDC) line connecting Suswa, Kenya, to Wolayta-Sodo, Ethiopia.
A recent panel discussion in Washington, DC, held as a side event during the World Bank and International Monetary Fund annual meeting from October 21 to 26, highlighted the benefits of this affordable energy supply for Kenyans.
Wendy Hughes, the World Bank Regional Director for Infrastructure for Eastern and Southern Africa, stated that regional power trade is a critical reform area that can lower electricity costs and enhance supply reliability.
“Regional cooperation and harmonizing transmission pricing within power pools will help countries access reliable, affordable electricity,” the Regional Director explained during her presentation.
At the panel, which focused on affordable and sustainable power supply in Sub-Saharan Africa, Hughes noted, “Ethiopia and Kenya have interconnected their power systems through the HVDC transmission line, enabling Kenya to save up to USD 10 million in the first year of operation.”
Hughes praised the positive impact on Kenyan residents, stating, “These savings can directly reduce electricity costs for consumers.”
Moges Mekonnen, head of public relations for Ethiopian Electric Power (EEP), emphasized that this achievement highlights the importance of regional collaboration in fulfilling the African Union’s vision for development by 2063. He remarked, “This is a highly effective beginning that will expand further.”
“We initiated this project with a broad goal that extends beyond the region, all the way to South Africa,” he added.
He noted that Djibouti, which previously relied on diesel as its primary energy source, is now accessing clean energy from Ethiopia and is working on renewable projects, illustrating how regional renewable energy connectivity encourages countries to pursue green energy initiatives.
The African Development Bank stated in October that linking Kenya’s electricity system to Ethiopia could stabilize supply and attract more investment in renewable energy.
Moges highlighted that providing affordable and reliable power is one of the main strategies of EEP for promoting economic growth throughout the subcontinent.
“We will utilize their energy in case of a deficit, and we are also leveraging other infrastructure like roads and ports, making regional interconnection essential for Ethiopia as well,” he told Capital.
According to the agreement between the two nations, Kenya is set to increase its imports of electricity three years after it begins exporting power. By the fourth year, 400 MW of electricity will be available to Kenya.
Moges has stated that Tanzania will soon benefit from electricity imports from Ethiopia. “Up to 2,000 megawatts of electricity can be transmitted via the Ethiopia-Kenya line, supporting the power supply for countries as far as South Africa, which have expressed interest in receiving power from Ethiopia,” the director of communication noted.
Tanzania will require up to 100 MW of power imports from Ethiopia.
A recent report by Kenya’s Energy and Petroleum Regulatory Authority identified Ethiopia as the primary supplier due to its affordable hydroelectric power.
The goal of integrating East Africa in terms of power exchange and enabling cross-border energy commerce relies on HVDC infrastructure, which is unique in the region. The adoption of HVDC technology is a key component of this initiative, as it simplifies the transportation of power over long distances.
HVDC technology minimizes power losses and energy waste during transmission, reduces construction costs for transmission lines, and enhances the operability of connections between power grids in different nations—all while improving grid stability.
The overall cost of this project is USD 1.26 billion, with contributions from the World Bank, the African Development Bank, the Agence Française de Développement, and both nations.
The two countries have entered a 25-year agreement that includes the sale of power to Kenya, which is expected to generate up to USD 100 million annually for Ethiopia.
Currently, Ethiopia exports electricity to Sudan, Djibouti, and the border regions of Somaliland, and it has also agreed to begin supplying South Sudan.
