ADDIS ABABA: Ethiopia has signed a $120 million-agreement with China Electric Power Equipment and Technology for the firm to construct a high-voltage transmission line connecting the country with Kenya, part of plans to boost regional power exports.
Addis Ababa aims to become Africa’s top power exporter by tapping the numerous rivers that cascade through its highlands, and experts say Ethiopia has the potential to generate 45,000 megawatts of hydropower.
The 433-km project, signed on Friday by state-utility Ethiopian Electric Power’s Chief Executive Azeb Asnake and the Chinese firm’s vice-president Chen Wei, will stretch from Wolaita in southern Ethiopia to the border – half of a planned 1,045 km link with Kenya.
“Upon completion of this transmission line project and the macro-generation projects, power trades in the region will be enhanced and expanded significantly there by ascertaining Ethiopia’s status as a power hub for the region and beyond,” Azeb said.
Ethiopia currently exports less than 10 megawatts of power to Kenyan border towns but has a deal to sell 400 megawatts to its southern neighbour. The new transmission line will have a capacity of 2,000 MW on completion in three years.
Centrepiece to the Horn of Africa country’s bid to become a power hub is the $4.1 billion Grand Renaissance Dam being constructed along the Nile river which will churn out 6,000 megawatts once complete.
Another mega dam – the $1.8 billion Gilgel Gibe 3 – is set to start partial generation in July. Together, the dams will boost generating capacity from 2,400 megawatts now to more than 10,000 megawatts altogether.
Under a new 2015-2020 development plan subject to parliamentary endorsement, projects generating another 12,000 megawatts will be added – plans that are likely to cost the country $25 billion, according to officials.
The government says its priority is to satisfy domestic needs but given demand still remains insignificant, a large amount of electricity produced will end up being exported.
Ethiopia plans to increase the current 100 megawatts it sells to Sudan and the 50 megawatts to Djibouti this year, while it also has agreements to export 400 megawatts to Rwanda and Tanzania. Burundi is also in discussions to import a similar amount, but a deal with South Sudan and Yemen’s 900 megawatt-agreement will likely be delayed due to conflicts there.
The project signed with CET will be financed through a loan from the African Development Bank and the World Bank.
