Ethiopian Electric Power and Kenya Power & Lighting Company Plc have signed a Power Purchase Agreement (PPA) for the initial sale and purchase of 200 MW of energy, with an increase to 400 MW expected in the future.

Dr. Eyob Tekalign, State Minister of Finance of the Government of the Federal Democratic Republic of Ethiopia, H.E. Uhuru Kenyatta, President of the Republic of Kenya, Ambassador (Dr.) Monica Juma, Cabinet Secretary in the Ministry of Energy of the Republic of Kenya, and Dr. Monica Juma signed the PPA.

The Kenya-Ethiopia Electricity Highway Project, also known as the Eastern Electricity Highway Project, involved the construction of a 1,068km power transmission line from Ethiopia to Kenya, with two AC/DC converter stations at both ends. The project, which began in 2016, is currently under construction.

The transmission line is 437 kilometers long in Ethiopia and 631 kilometers long in Kenya. It begins at the Wolaita-Sodo substation and travels through Ethiopia via Arba Minch, Konso, Brindar, Yabello, and Mega. It travels through Marsabit, Samburu, Isolo, Laikipia, Nyandarua, Nakuru, Seradupi, Wamba, Rumurutuli, Gilgil, and Naivasha before arriving at Kenya’s Suswa substation.

The total cost of the project was $1.26 billion. In addition to the World Bank’s $684 million loan, the African Development Bank and the French Development Agency each contributed $338 million and $118 million, respectively. The governments of Ethiopia and Kenya are each contributing $32 million and $88 million, respectively.

After a trial run in a few weeks, it is planned to begin exporting power at full capacity in November 2022.

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