Tanzania and Ethiopia agree on 400MW power purchase deal
Aug 29, 2016: Tanzania and Ethiopia have agreed on a power purchase deal wherein Ethiopia would supply 400 MW of its hydro-power processed electricity to Tanzania.
With this, Tanzania would be the fourth African country purchasing electricity from Ethiopia.
The agreement between the two countries is likely to be finalized in the coming weeks.
Ethiopia’s national power company EEP’s Chief Executive Officer, Azeb Asnake told the state run Ethiopian News Agency that the power transaction will also create further economic integration between Tanzania and Kenya as the latter sits between Ethiopia and Tanzania.
“Because when Tanzania gets electric power from Ethiopia, it has to pass through Kenya,” she said, adding, "when two countries are integrated economically, then they have to watch out for their political relationship as well”.
Ethiopia is investing billions of dollars to construct a number of hydro-electric power plants. It also includes the construction of Grand Ethiopia Renaissance Dam (GERD), which would be Africa’s largest Dam and will have power generation capacity of 8,000 MW.
The Ethiopian government, which is investing on massive dam projects, is aiming to be a leading power exporter in the East African region hub for the renewable energy in Africa.
The country hopes to become a middle income nation by 2025. Currently, it exports hydro-power processed electricity to its neighbors: Kenya, Sudan and Djibouti.
After completion of the mega dam project, Ethiopia intends to export power to seven neighboring countries.
Azeb further said Ethiopia has also agreed on an agreement with Burundi and Rwanda and it also has plans to link its grid with South Sudan, Uganda and Yemen.
According to official estimates Ethiopia’s potential power production capacity from hydro as well as geothermal, wind and solar energy is over 60,000 MW which is roughly equal to half of Africa’s current installed capacity (147,000MW).