USD1.26bn for African electricity highway

GOVERNMENT

|
Image: By BiztechAfrica
USD1.26bn for African electricity highway

The Board of the African Development Fund has approved USD348 million in funding for a USD1.26-billion electricity highway project between Kenya and Ethiopia.

Due for commissioning in November 2017, the project involves the construction of a 1,068-kilometre high-voltage direct current 500 kV transmission line between the two countries. It also includes putting up of associated converter stations at Wolayta-Sodo (Ethiopia) and Suswa (Kenya), with a power transfer capacity of up to 2,000 MW.

The project is intended to promote power trade and regional integration, contribute to the Eastern Africa Power Pool (EAPP) countries’ social and economic development, and reduce poverty in those countries.

“With the approval of this project, we have solidified our position as the key strategic partner for East African countries in the power sector,” said Gabriel Negatu, AfDB’s Regional Director in charge of East Africa.

“Our involvement in the project has included a leading role in the preparation of the project and financing some of the feasibility studies required to appraise the project and make it bankable. We have mobilized funds from other development partners in a timely and efficient manner. The project is also perfectly aligned with the climate change mitigation and adaptation strategy of the Bank, as it has the potential to replace some fossil-fuelled thermal generation in the East African region.”

The project has been co-financed with the World Bank, the French Development Agency (AFD) and the Governments of Kenya and Ethiopia. This key inter-country power link comes at a time when demand for electricity in the East African region has steadily risen relative to supply, leading to occasional severe power shortages. To alleviate this situation, East African countries have had to resort to exorbitantly expensive power from emergency generators. However, the region is blessed with a great variety of natural resources, in particular hydropower, mainly concentrated in Ethiopia.

The integration of the power systems of the EAPP will enable the development of Ethiopia’s large hydropower resources for the export market and address power shortages throughout the region. The project will position Ethiopia as the main powerhouse and Kenya as the main hub for power trade in the East African region. However, it is anticipated that power will flow in both directions: from Ethiopia to East African countries all the way to the Southern African Power Pool in the short term, and/or from the Eastern and Southern power pools to Egypt and Sudan in the long run.

In Kenya alone, the additional power injected into the national grid will enable the supply of electricity to an additional 870,000 households by 2018, and a cumulative total of 1.4 million additional households by 2022, of which 18% will be located in rural areas. Businesses and industries will also benefit, with around 3,100 GWh of additional energy by 2018, increasing to around 5,100 GWh by 2022.

“The East African region is blessed with abundant energy resources which have remained untapped for some time, in particular hydropower and geothermal. With the implementation of this flagship project, which is meant to be an anchor link in establishing the backbone of the EAPP, energy resources can be pooled at the regional level to create a regional electricity market through power trading,” said Thierno Bah, AfDB’s Senior Power Engineer.

“Power trading will ensure enhanced power security for the EAPP countries and result in cost savings for the electricity companies and ultimately lower tariffs for end users. The two electricity companies, Ethiopian Electric Power Corporation (EEPCO) in Ethiopia and Kenya Electricity Transmission Co. Ltd. (KETRACO) in Kenya, will also benefit from additional revenues from carbon credits with the innovative Clean Development Mechanism (CDM) methodology developed by the Bank and recently approved by the CDM methodology panel,” he added. 



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE GOVERNMENT NEWS

NCA cushions consumers from future interconnection hikes

The Ghana National Communication Authority (NCA) has revealed that in order to safeguard consumers from interconnection price hikes, it has enforced that operators maintain their current rates from now until January 2018 in spite of operations of the Interconnect Clearing House (ICH) in Ghana. Read More

Microsoft, Johannesburg to train a million on digital literacy

Johannesburg, South Africa, has become the first African city to close a workforce development deal of to train a million disadvantaged residents on digital literacy skills that include Microsoft Office. Read More

NITDA’s Taraba Smart City project receives global recognition

The Jalingo City’s Smart IDP Tracking and Monitoring project, designed and implemented under the NITDA Nigeria Smart City Initiative, has won global recognition. Read More

NCA Chairman calls for strong ties between Africa’s telecom regulators

The Chairman of Ghana’s National Communications Authority, Eugene Baffoe Bonnie, has emphasised the need for regulatory bodies in the African telecommunications industry to close ranks to ensure a stronger collaborations. Read More

Cybercrooks steal N127b annually in Nigeria, says ComTech minister

Nigeria’s ComTech Minister, Barr Adebayo Shittu, has lamented that Nigeria loses N127 billion annually to cyber thieves, warning that if it is not addressed, it posed a great deal of threat to the national economy. Read More

Nigeria's ComTech minister restates need for ICT University

Nigeria’s Minister of Communications, Adebayo Shittu, has restated the need for the establishment of an ICT University in Nigeria, the first of its kind in Africa. Read More

Nigeria tax chief to go after telcos, others

The Executive Chairman of Nigeria’s Federal Inland Revenue Service (FIRS), Mr Tunde Fowler, has said the focus of the service this quarter, was to recoup taxes owed by telecoms firms, airlines, and deposit money banks (DMBs).   Read More

NCA to mark 20th anniversary with Symposium on Regulations

Ghana’s National Communications Authority is set to hold a two day symposium in Accra as part of events to mark its 20th anniversary as a regulator. Read More

NCC pays N1.4 tr into Federation Account, says Dambatta

The Nigerian Communications Commission (NCC) has paid over N1.4 trillion to the Federation Account, the CEO of the regulatory body, Prof Garba Dambatta has said. Read More

NCC pays N70b to Nigeria Govt

The Nigerian Communications Commission says it has remitted N70 billon to the Federation Account in the last one year of Prof Umar Danbatta’s appointment as executive vice chairman and CEO. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

First-ever Africa Barclays Accelerator programme concludesFirst-ever Africa Barclays Accelerator programme concludes

Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.

 

Advertisement

IN DEPTH

Ethical Hacking students can’t get a heck of a jobEthical Hacking students can’t get a heck of a job

Botswana ethical hacking students report that they are failing to break into the local job market. 

COMPANY NEWS

The Tech Revolution: Sage Sets out the Vision for African Businesses

Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, ...