Tanzania has officially sought approval to import electricity from Ethiopia through Kenya’s national power grid, marking a significant step in regional energy cooperation. The Energy and Petroleum Regulatory Authority (Epra) confirmed on Wednesday that it had received a request from Tanzania Electric Supply Company (Tanesco) and Ethiopia Electric Power (EEP) regarding the arrangement.
If approved, Tanzania will receive 100 megawatts (MW) of electricity from Ethiopia, utilizing Kenya’s electricity transmission network. This move aims to bolster the East African Power Pool (EAPP), an initiative long hindered by infrastructural challenges.
Regional Grid Integration Underway
Epra Director General Daniel Kiptoo stated that the agency is currently assessing the technical feasibility and market framework to facilitate the power trade.
“We are working on both the technical and market sides to make sure that this is possible,” Kiptoo said during a regional energy regulators’ meeting in Nairobi.
The power trade initiative comes after the completion of critical transmission infrastructure linking the three nations. Notably, Kenya and Tanzania recently inaugurated a 510-kilometer interconnector line running from Isinya through Namanga to Arusha, a project vital for enabling cross-border power exchanges.
Additionally, the Kenya-Ethiopia interconnector, spanning over 1,000 kilometers from Wolayta-Sodo in Ethiopia to the Suswa Substation in Kenya, became operational in 2022. This connection allows Kenya to import electricity from Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), a major hydropower project supplying clean energy to the region.
Wheeling Charges and Regulatory Framework
Under the proposed agreement, Tanesco will enter into a contractual arrangement with Kenya Electricity Transmission Company (Ketraco) and pay wheeling charges for utilizing Kenya’s infrastructure. The Bulk Supply and Open Access Regulations established by Epra mandate that Kenyan utilities make their transmission and distribution networks accessible to other power entities.
With these regulatory frameworks in place, Tanzania will soon be able to tap into Ethiopia’s hydropower reserves, further stabilizing its energy supply and reducing dependency on domestic power sources.
Towards a Unified East African Power Market
The growing interconnectivity between East African nations signals progress towards the establishment of a unified electricity market across the continent. Kiptoo confirmed that plans are underway to launch the East African Power Pool power markets by March this year.
“There will be a launch of the East African power pool power markets in March this year. We are on course to operationalize the power markets within the East African power pool,” he said, emphasizing the importance of harmonized regulatory frameworks to facilitate seamless energy trading.
This development aligns with Africa’s broader vision of creating a single electricity market, allowing countries to optimize power generation and distribution across borders.
Investment and Independent Regulation
Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank (AfDB), highlighted the necessity of independent regulatory bodies to attract investments in the energy sector.
“It is important that we provide capacity to our regulators and also raise awareness with our governments on what needs to be in place to have fair independent regulation because this is what attracts investment,” Shonibare stated.
Tanzania’s request to import Ethiopian electricity through Kenya represents a milestone in East African energy collaboration. As the region continues to enhance its power infrastructure and regulatory frameworks, the dream of an interconnected, efficient electricity market is becoming a reality.
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