Ethiopia has brokered a preliminary agreement to export its surplus electricity to Tanzania via Kenya's grid, establishing the potential foundation for energy dominance across East Africa.
Ethiopian Prime Minister Abiy Ahmed (PhD) met with Tanzanian President Samia Suluhu Hassan on March 1st to finalize an energy export agreement.
Under the terms of the deal, Ethiopia will supply its surplus electricity generated from its national grid to Tanzania via Kenya's interconnected network.
The memorandum of understanding was signed in the presence of PM Abiy and President Hassan, establishing the framework for cross-border power trade.
The deal formalizes Ethiopia's plan to utilize transmission infrastructure already in place to reach new markets.
Kenya's grid is connected to Ethiopia through a 1,058 km transmission line with a transfer capacity of over 1,000 megawatts.
Additionally, Kenya and Tanzania are working to complete a 507.5 km interconnect by upgrading lines to allow 2,000 MW of transmission between the two countries.Â
Once these regional connections are enhanced, Ethiopia will be able to deliver its hydroelectricity from its domestic generation facilities to Tanzania. Ethiopia currently produces over 4,800 MW, 90 percent from renewable hydropower sources.
The Kenyan and Tanzanian governments are in negotiations for wheeling contracts and regulations governing electricity exchange, with a plan to facilitate a competitive marketplace for surplus renewable energy across borders.
If implemented successfully, the deal could see Ethiopian hydropower support Tanzania's energy needs while further integrating infrastructure between East African nations. However, details on volumes, timelines and pricing still need resolution as projects connecting the grids are ongoing.
