Tanzania seeks nod to import Ethiopian electricity through Kenya

Tanzania has sought approval from local energy authorities for the import of electricity from Ethiopia using the Kenyan power grid. 

The Energy and Petroleum Regulatory Authority (Epra) on Wednesday said it had received a request from Tanzania and Ethiopia electricity utilities, in which the Tanzania Electric Supply Company (Tanesco)  will buy electricity from Ethiopia Electric Power (EEP) and use the Kenyan national electricity grid for transmission to Tanzania.

The local energy regulator said it is now considering the capability of the local grid to handle the transmission. 

The three countries recently completed the construction of major power lines that will enable their utilities to buy electricity from each and propel the East African Power Pool that has been in the making for years but has been held back by lack of infrastructure.

“Epra has received agreements between Tanesco and the Ethiopian utility in which they are seeking to wheel 100 megawatts (MW) from Ethiopia to Tanzania through the Kenyan system,” said Epra Director General Danie Kiptoo.

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“We are working on both the technical and market sides to make sure that this is possible.”

Mr Kiptoo spoke at a regional energy regulators' meeting in Nairobi.

He added that Epra has developed the regulatory framework that allows power trade in the region, including the Bulk Supply and Open Access Regulations.

The regulations require Kenyan utilities to open up their transmission and distribution networks to other users.

In this case, Tanesco would get into an agreement with Kenya Electricity Transmission Company (Ketraco) and pay it wheeling charges for the use of its infrastructure for power transmission from the border with Ethiopia to Tanzania.

Trade between the two countries follows the completion of key transmission projects connecting the three countries.

Kenya and Tanzania in 2024 commissioned a 510-kilometre electricity interconnector line running from Isinya through Namanga to Arusha.

The line is key for the operationalisation of the regional power pool allowing power utilities in the region to buy and sell electricity from each other.

Earlier in 2022, the Kenya-Ethiopia interconnector, which is over 1,000 kilometres and runs from Woloyta-Sodo in Ethiopia to Suswa Substation, started operations and has enabled Kenya to import electricity from Ethiopia’s Grand Ethiopian Renaissance Dam (Gerd). 

Mr Kiptto noted that infrastructure will improve power trade among regional countries.

“There will be a launch of the East African power pool power markets in March this year. We are on course to operationalise the power markets within the East African power pool,” he said, adding the goal is to have a single electricity market across Africa.

He added that different regulatory authorities would need to harmonise laws and policies to ensure interoperability between the power pools and eventually the whole continent.

Director of Energy Financial Solutions, Policy and Regulation at the Africa Development Bank (AfDB) Wale Shonibare pointed out the critical nature of the independence of energy sector regulators.

“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,” he said.