Ethiopia has successfully concluded its six-month trial period for supplying 100 megawatts (MW) of electricity to Tanzania through Kenya. However, a comprehensive final commercial agreement—addressing vital details such as precise purchase volumes, tariffs, and long-term operational terms—remains under active negotiation, according to Engineer Ashebir Balcha, CEO of Ethiopian Electric Power (EEP).
Speaking to The Reporter, Ashebir emphasized that the pilot supply arrangement to Tanzania operates entirely independently from Ethiopia’s established 200 MW power export commitment to Kenya. It is also separate from ongoing plans to scale up exports to the Kenyan market to 400 MW under a distinct bilateral power purchase agreement (PPA).
Transitioning the Tanzania arrangement from an experimental trial phase into a sustainable, long-term commercial trade framework requires formal consensus among all participating nations regarding supply volumes, applicable wheeling tariffs, and rigorous technical protocols. Furthermore, physical capacity bottlenecks across both the Ethiopia–Kenya transmission corridor and the interconnected infrastructure linking Kenya and Tanzania must be thoroughly addressed and resolved before cross-border power flows can be reliably expanded.
Addressing potential misconceptions about resource allocation, EEP noted that power earmarked for Tanzania cannot be diverted from Kenya’s pre-allocated quota. Power exchanges with Kenya continue to be governed by a separate three-year commitment providing 200 MW, which is slated to scale up to 400 MW.
To safeguard regional grid stability, a joint technical team has been established to monitor system testing and technical readiness prior to any escalation in electricity transmission. While Ashebir declined to disclose granular details regarding specific grid evaluations—citing the sensitivity of ongoing multilateral talks—he underscored the strategic importance of the initiative.
The ambitious power wheeling arrangement was originally conceived to transmit 100 MW of clean Ethiopian energy across Kenya’s high-voltage transmission backbone directly to northern Tanzania. This framework represents a critical stepping stone in EEP’s broader strategic vision to seamlessly link the East African Power Pool (EAPP) with the Southern African Power Pool (SAPP), of which Tanzania is an active member. Ultimately, the initiative aims to wheel electricity markets as far south as South Africa, fostering deeper continental integration and economic cooperation.
Under the current financial model, Tanzania is expected to cover all outstanding wheeling charges owed to Kenya for utilizing its expansive grid infrastructure. Nevertheless, with transmission limits undergoing continuous technical assessment, EEP has not yet announced a definitive timeline for when final negotiations with Tanzanian power authorities will conclude.
