By Business Insider Reporter
Tanzania has officially started receiving electricity from Ethiopia through a newly launched regional cross-border transmission system, marking a major milestone in East Africa’s efforts to build an integrated electricity market.
The East African Power Pool (EAPP) confirmed on Wednesday that Ethiopia is currently exporting 300 megawatts (MW) of electricity to Kenya, with 100 MW of that power now being wheeled onward to Tanzania using Kenya’s national transmission infrastructure.
This is the first time in East Africa’s history that electricity generated in one country has been transmitted through a second country to a third – a complex cross-border arrangement known as electricity wheeling.
“This successful trial is a step toward integrated power trading and a clear indicator that the region is ready for a fully functioning electricity market,” said the EAPP in a statement.
Strategic benefits for Tanzania
For Tanzania, the new power flow comes at a critical time. With rapid industrialisation, rising urbanisation and growing pressure on domestic energy resources, the country is looking for reliable and affordable power sources to stabilise its grid and support long-term economic development.
“This is a strategic milestone for Tanzania,” a senior official at the Ministry of Energy told Business Insider Tanzania. “Tapping into Ethiopia’s clean hydroelectric surplus will strengthen our national energy security and enhance our industrial competitiveness.”
The 100 MW of power is being delivered through a series of interconnected high-voltage lines:
- The 500 kV Ethiopia–Kenya HVDC transmission line
- The 400 kV Suswa–Isinya line within Kenya
- The 400 kV Kenya–Tanzania line, which links Kenya’s southern grid with Tanzania’s northern network
Infrastructure and regional cooperation
The cross-border wheeling has been made possible by years of infrastructure development and coordination among East African utilities.
The Kenya Electricity Transmission Company (KETRACO) noted this is the first time its infrastructure has been used to transit power between two foreign countries.
“Voltage levels have remained stable throughout the trial, which proves the reliability of the system,” said KETRACO Managing Director John Mativo.
The power transmission project has been supported by a consortium of international financiers, including: World Bank, African Development Bank, Agence Française de Développement, and European Investment Bank.
Economic impact on Tanzania
The additional electricity from Ethiopia is expected to help reduce Tanzania’s power shortages, especially in the northern regions and lower the cost of electricity for industrial and commercial users
The power will also boost development in special economic zones (SEZs) and industrial clusters as well as strengthening investor confidence in Tanzania’s manufacturing and energy sectors.
According to energy analysts, reliable access to affordable electricity is one of the key enablers of Tanzania’s Vision 2025, which aims to transform the country into a semi-industrialised economy.
A new era for East Africa power market
The success of this power wheeling operation signals the start of what could become a continent-wide energy trading system.
Tanzania, Kenya, Ethiopia and other members of the EAPP are laying the groundwork for a fully liberalised regional power market, where electricity can be bought and sold across borders depending on supply and demand.
“Tanzania is now part of a larger energy network,” said the Ministry of Energy official. “This gives us greater resilience, flexibility, and opportunity to expand our energy economy.” As the trial phase continues and wheeling volumes increase, Tanzania stands to benefit not only from increased supply, but also from becoming a key transit hub and future energy exporter in the East African region.
