The World Bank has
approved funding for a 1,000km high voltage transmission power line between
Ethiopia and Kenya. According to Reuters the power line is
part of a bigger US$1.3 billion funding programme that will create a power pool
linking countries within East Africa and transmit 300MW of power from Ethiopia
to Kenya.
Ethiopia has surplus
power due to its abundance of hydroelectric generation capacity. Though
according to studies, 80% of its population remains without domestic
electricity.
Kenya is set to gain
from a more sustainable electricity source, considering its 1,300MW capacity
fluctuates due to the effects of climate change as its rivers dry during
recurrent droughts. Kenya’s hydro power generation is slightly above 50% at
maximum capacity and declines significantly during droughts necessitating the
uptake of power from thermal plants that use diesel and fuel oil. Which are
both expensive and environmentally unfriendly.
Other than transmitting
power, the transmission line is to form part of the East Africa Power Pool
connecting the countries of Kenya , Uganda, Tanzania, Ethiopia, South Sudan and
Rwanda. This will increase power trading between these countries enabling
countries with surplus to sell to those in deficit, reducing occurrences of
black outs and power shading.
The power line is also
set to pass through the Marsabit region of northern Kenya, which has one of the
highest wind speeds in the region. This will enable the three planned wind
power projects in that area to commence. As the main hindrance to these
projects taking off was a lack of access to the national grid. This should
further boost Kenya’s renewable energy generating capacity in the medium term.
The people of northern
and north eastern Kenya, historically marginalized, and who mostly do not have
access to domestic electricity are likely to be connected to the grid as the
electricity will most likely be supplied to them first as a priority.
However, my thoughts are
that though the Kenyan grid will become more stable with more consistency in
electricity supply, the cost of power isn’t likely to go down in the medium
term. This is because these projects and others associated to it will have to
be financed by borrowed international funds which have to be repaid through a
surcharge on power bills, before cheap power can be available to Kenyans.
Therefore, the wait for cheaper electricity should take a bit longer.
As for Ethiopia, this
project will mean stronger political and economic ties to its southern friendly
neighbor, Kenya, as it continues to posture with its hostile neighbors to the north
and north east.
the key to unlocking all this capacity is to learn from the emerging markets that have gone through these phases, avoiding the mistakes they made and emulating the pluses...
ReplyDeleteon another note, we ought to be thinking of improving Kenya's Power capacity beyond 5,000MW or even more. some of the smaller projects adding to the existing 1200~1300MW capacity will be short lived even after spending so much resources to install.