Ethiopia is emerging as a regional leader in power integration, leveraging its abundant water resources and renewable energy potential to drive economic growth and regional cooperation. Known as the “water tower of Africa,” Ethiopia has harnessed its rivers, including the Nile, to develop the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydropower project. Despite significant international and financial challenges, Ethiopians rallied to fund the project, symbolizing national unity and determination.
GERD is now generating electricity, and Ethiopia has begun exporting power to neighboring countries such as Sudan, South Sudan, and Kenya at competitive rates. The Ethiopia-Kenya electricity highway, a 1,045-kilometer power connection inaugurated in 2023, exemplifies this integration. This initiative pools Ethiopia’s hydroelectric resources with Kenya’s geothermal and wind energy, enhancing energy security and economic collaboration in East Africa.
Ethiopia’s plans extend further, with trial power distribution linking Kenya to Tanzania. Supported by international organizations like the World Bank and African Development Bank, these efforts are expected to generate $200 million annually while promoting green electricity trading.
Prioritizing regional stability, even amidst challenges like Sudan’s unpaid bills due to civil conflict, Ethiopia underscores its commitment to fostering trust, cooperation, and sustainable development in the Horn of Africa and beyond.
Striving to become the powerhouse of the Horn of Africa and the continent at large, Ethiopia has relentlessly worked to harness its economy and natural resources. It has contributed significantly, including through its people’s sacrifices, to uplift the continent to its rightful place. Ethiopia has consistently been a frontrunner in regional and continental integration and cooperation.
Known as the water tower of Africa, Ethiopia possesses abundant water resources, including rivers, transboundary rivers, and lakes. However, the country has waited for years to transform these resources into valuable economic tools that generate steady revenue and uplift its economy.
When Ethiopia decided to utilize one of its major water resources, the Abbay (Nile) River, to build a mega hydropower project, it faced immense pressure both domestically and internationally. The nation also struggled to secure loans or support from major international monetary organizations. In response, the Ethiopian government called upon its citizens to fund the construction of the Great Ethiopian Renaissance Dam (GERD) through bond purchases. Ethiopians, both at home and abroad, answered the call, making the GERD a truly national project.
After over a decade of effort, Ethiopia is now poised to reap the benefits. The GERD, Africa’s largest hydropower dam, is nearing completion and has already started generating electricity, contributing to Ethiopia’s economy. Consistent with its commitment to integration and peaceful partnerships, Ethiopia plans to distribute electric power to neighboring countries. Sudan, South Sudan, and Kenya have already begun receiving electricity at competitive prices.
The Ethiopia-Kenya electric power agreement exemplifies this effort. According to the African Development Bank, the electricity highway between the two nations, officially opened in 2023 after a decade of planning and construction, is redefining energy connectivity in East Africa. The 1,045-kilometer connection from Wolayta-Sodo in Ethiopia to Suswa in Kenya integrates resources like Ethiopia’s hydroelectric power and Kenya’s geothermal and wind energy, enhancing both countries’ energy security.
Similarly, Ethiopia has signed a Memorandum of Understanding (MoU) with South Sudan to supply 100 MW of electricity, with plans to increase this to 400 MW. This agreement is critical for South Sudan to meet its growing energy demands while generating revenue for Ethiopia.
Ethiopia’s approach to its energy partnerships highlights its commitment to regional stability. For instance, despite Sudan’s ongoing civil war and its failure to pay electricity bills for three consecutive years—amounting to around $90 million—Ethiopia has refrained from severing the agreement. Prime Minister Abiy Ahmed (PhD) emphasized Ethiopia’s patience, showcasing the country’s dedication to harmony and reliability as an energy supplier.
The successful connection between Ethiopia and Kenya is a key milestone, laying the groundwork for broader regional integration. With its ambitious vision and commitment to cooperation, Ethiopia is steadily becoming a key player in promoting sustainable energy and economic integration across East Africa.
Such action taken by the government of Ethiopia shows that the country is always willing to live in harmony and regional integration. Besides, it sends a message that Ethiopia can be a genuine electric power supplier and its customers can rely confidently on it.
With all these ups and downs that the country has been passing through, Ethiopia has built a kind of confidence in the hearts of its customers. The country has even planned to stretch its services to Tanzania through the Electric Highway project.
Building on its success, Ethiopia plans to expand its electric power services to Tanzania via the East Africa Electric Highway project. Ethiopia has already begun trial power supply from Kenya to Tanzania, further enhancing regional energy connectivity. The project, supported by the World Bank, African Development Bank, and French Development Cooperative, positions Ethiopia as a leader in renewable energy supply and green electricity trading. Initial trading efforts are expected to generate approximately $200 million annually, providing a consistent and cost-effective power supply to the region.
The East Africa Electric Highway project, a key component of the power infrastructure initiative, is linking Kenya to Tanzania.
This milestone follows the successful establishment of the first power connection between Ethiopia and Kenya, made possible by an advanced power supply network, it was learned. The subsequent phase of the project, connecting Kenya and Tanzania, has now been completed, allowing for the initiation of trial power distribution.
This regional power connection is set to enhance cooperation among the involved nations by providing a consistent and cost-effective power supply.
“The East African Electric Highway Project’s first power connection has been implemented through the infrastructure of power supply from Ethiopia to Kenya.
“The project is part of the East African Electric Highway project which is extended to Ethiopia-Kenya power transmission line. It can be taken as an indication that the power transmission line is going to be implemented because the Ethiopian-Tanzania power sales agreement is going to be applied.”
BY DANIEL ALEMAYEHU
THE ETHIOPIAN HERALD SATURDAY 21 DECEMBER 2024
