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The $1 Billion Electricity Highway Linking Ethiopia and Kenya

Ethiopia and Kenya are pioneering cross-border renewable energy sharing through the Ethiopia-Kenya Electricity Highway, a $1.2 billion infrastructure project that allows electricity to flow between the two nations based on supply and demand.

Ethiopia generates its electricity entirely from renewable sources, including the Grand Ethiopian Renaissance Dam, Africa’s largest hydropower plant. Meanwhile, Kenya derives around 90% of its electricity from renewables, with a strong focus on geothermal energy from the Olkaria region. However, reliance on renewable sources presents challenges, as electricity generation fluctuates with weather conditions.

To address this, the Ethiopia-Kenya Electricity Highway was officially launched last year after a decade of development. Spanning 650 miles, the transmission lines ensure that when one country has an energy surplus and the other faces a shortage, power flows seamlessly across the border. A newly operational Kenya-Tanzania interconnector extends this regional energy-sharing network.

Power Sharing: A Key to Africa’s Energy Transition

Experts emphasize that interconnectors like this highway are crucial for Africa’s clean energy future. Darlain Edeme, an African Energy Analyst for the International Energy Agency (IEA), highlights that power-sharing improves electricity reliability, security, and affordability—critical in a continent where demand is soaring.

Ethiopia’s electricity consumption per capita quadrupled between 2000 and 2022, while Kenya’s grew by 75% over the same period. Ethiopia aims to achieve universal electrification by 2025, yet only one in four rural households currently has access to power. Across Africa, nearly 600 million people remain without electricity, and the UN has set a goal to achieve universal access by 2030.

With a growing energy deficit, pooling resources makes economic sense. However, power-sharing requires advanced transmission infrastructure, such as interconnectors, which are costly. The Ethiopia-Kenya Electricity Highway follows the model of other African projects, including the Zambia-Namibia interconnector (costing $300 million) and the Democratic Republic of Congo’s 1,000-mile transmission line ($800 million). The African Development Bank (AfDB), which contributed $300 million to the Ethiopia-Kenya link, sees these investments as essential for bridging the energy gap.

Boosting Energy Security in East Africa

Since its launch, the Ethiopia-Kenya interconnector has provided a crucial backup for Kenya, which imports 200 megawatts (MW) of electricity daily—about 10% of its peak demand. The infrastructure has the capacity to transfer up to 2,000 MW, offering stability in a region historically plagued by power outages.

Alemayehu Wubeshet Zegeye, AfDB’s Regional Power Systems Operations Manager, confirms that the highway will significantly reduce blackouts, though challenges remain. IEA’s Edeme points out that even with backup supplies, many African utilities struggle financially and lack the capacity to distribute power efficiently.

A Vision for Continental Energy Integration

The Ethiopia-Kenya Electricity Highway is part of a broader initiative under the Eastern African Power Pool (EAPP), a coalition of 13 countries working to enhance electricity access and reliability. EAPP is one of five regional power pools in Africa, and with more interconnectors, the goal is to unify the continent’s energy network.

Globally, interconnectors are a proven solution, with over 400 in Europe alone. Africa and Europe are already linked through a power line between Spain and Morocco, with another under construction between Greece and Egypt, set for completion by 2029.

Daniel Schroth, AfDB’s Renewable Energy Director, emphasizes the urgency of expanding transmission infrastructure, stating, “There won’t be an energy transition without transmission.”

With sustained investment and international collaboration, Africa has the potential to become a clean energy powerhouse. “I’m optimistic,” says Edeme. “There is real momentum in the sector right now.”

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