- Kenya saved USD 10 million in its first year by importing 200 MW of renewable energy from Ethiopia via a 1,045 km HVDC transmission line.
- The Ethiopia-Kenya connection supports regional power stability and could attract more renewable energy investments across East Africa.
- The USD 1.26 billion HVDC project is expected to generate up to USD 100 million annually for Ethiopia over 25 years.
Kenya saved USD 10 million in its first year of electricity imports from Ethiopia. The two countries connected their power grids through a 1,045 km High Voltage Direct Current (HVDC) transmission line. The line links Suswa in Kenya to Wolayta-Sodo in Ethiopia and began operating in late 2022. It enables Kenya to import 200 MW of renewable energy from Ethiopia.
Panelists highlighted this energy supply during a discussion at the World Bank and IMF annual meeting in Washington, DC, from October 21 to 26. Wendy Hughes, World Bank Regional Director for Infrastructure in Eastern and Southern Africa, stressed the importance of regional power trade. She explained that it could lower electricity costs and improve supply reliability.
Hughes said regional cooperation and harmonising transmission pricing would help countries access affordable and reliable electricity. She added that the HVDC line helped Kenya save USD 10 million in its first year. “These savings can directly reduce consumer electricity costs,” she stated.
Moges Mekonnen, head of public relations for Ethiopian Electric Power (EEP), praised the project as a critical step in fulfilling the African Union’s 2063 development vision. He pointed out the broader regional impact, noting that Djibouti, which once relied on diesel power, now uses clean energy from Ethiopia. Mekonnen also mentioned ongoing renewable energy projects in the region.
The Ethiopia-Kenya connection plays a crucial role in stabilising the power supply in East Africa. The African Development Bank has noted that the link could attract more investment in renewable energy. According to the agreement, Kenya will increase its electricity imports over the next few years, importing up to 400 MW from Ethiopia by the fourth year.
Mekonnen also revealed that Tanzania will soon begin importing electricity from Ethiopia. The HVDC line can carry up to 2,000 MW, and countries like South Africa have expressed interest in Ethiopian energy. The connection could support a broader regional power pool.
The total cost of the HVDC project amounts to USD 1.26 billion. The World Bank, the African Development Bank, Agence Française de Développement, and the governments of Kenya and Ethiopia funded it. The two countries signed a 25-year agreement to sell electricity, which could generate up to USD 100 million annually for Ethiopia.
Ethiopia currently exports electricity to Sudan, Djibouti, and Somaliland and plans to supply power to South Sudan. The HVDC link supports Ethiopia’s strategy to become a leading energy provider in the region.
This partnership between Ethiopia and Kenya highlights the growing trend of African regional energy cooperation. The project shows how countries can collaborate to ensure a reliable, affordable, and sustainable power supply. As the region continues to integrate its energy systems, the success of this initiative could lead to more cross-border energy projects across Africa.