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East Africa Electric Highway Project Begins Trial Power Supply from Kenya to Tanzania

East Africa Electric Highway Project Begins Trial Power Supply from Kenya to Tanzania

Climate Business Africa

December 15th, 2024

The East Africa Electric Highway project has launched trial power supply operations between Kenya and Tanzania, marking a significant milestone in the region’s energy integration efforts. This achievement follows the successful connection of Ethiopia and Kenya through an advanced power transmission network, setting the stage for regional electricity trade.

The 510-kilometer interconnector, linking Kenya’s Isinya substation to Tanzania’s Singida substation, is a step forward for regional energy trade and cross-border power reliability.

The project saw Kenya Electricity Transmission Company (KETRACO) build 96 kilometers of 400kV lines from Isinya to the Namanga border, while Tanzania Electricity Supply Company Limited (TANESCO) extended 414 kilometers from Namanga to Singida. It also includes the addition of a new substation in Arusha, Tanzania. Funded by the Government of Kenya and the African Development Bank at a total cost of $309.26 million (Sh4.9 billion), the interconnector will enable energy transactions under a wheeling agreement between KETRACO and TANESCO.

Central to the project is a Power Purchase Agreement (PPA) between Ethiopia’s Electric Power (EEP) and TANESCO, enabling the transfer of 100 MW of electricity through Kenya. This trade is expected to scale to 200 MW within three years. The agreement also underscores the potential for the project to support industrial growth and economic integration by reducing reliance on fossil fuels and stabilizing electricity supplies.

The interconnector forms part of the Eastern Electricity Highway initiative, a broader effort to facilitate regional cross-border energy trade. With this integration, Kenya and Tanzania will contribute to power exchanges across Ethiopia, Sudan, Egypt, and the Southern Africa Power Pool, promoting access to affordable renewable energy.

Regional energy collaboration is set to deepen further when the 13-member EAPP begins formal energy trading in March 2025. The interconnector represents a key infrastructure component in advancing the EAPP’s vision of a unified electricity market in East Africa.

The project, which forms a critical component of the power infrastructure collaboration among Ethiopia, Kenya, and Tanzania, aims to provide consistent and cost-effective electricity across the three nations. By integrating power grids, the initiative is designed to enhance regional cooperation, improve energy security, and promote sustainable development.

The East Africa Electric Highway has received financial support from major international institutions, including the World Bank, the African Development Bank, and the Agence Française de Développement (AFD). These partnerships underscore the project’s importance as a model for regional energy integration and its alignment with global sustainability goals.

With trial operations now underway, the project is poised to transform East Africa’s energy landscape, offering a pathway for expanded renewable energy access and economic growth across the region.