The Chinese company constructing a high-voltage transmission line that will enable Ethiopia to export electricity to Kenya has promised to complete the project by August next year.
China Electric Power Equipment & Technology (CET), which started implementing the project last month, says it will be completed within 12 months, as scheduled.
“We are making a commitment to complete and deliver the project [in line with] the contract schedule and within the stipulated timeframe,” says CET senior representative Rong Hulin, adding that the Chinese company understands that the project is a top priority for Ethiopia, as it will yield huge economic benefits, including generating foreign currency and creating new jobs.
The 500 kV transmission line, which is being financed by the African Development Bank, has a $1.2-billion price tag and will transmit 2 000 MW.
The transmission line will be 1 045 km long, with 445 km on Ethiopian territory and the balance in Kenya.
“The line will be useful for Ethiopia because it will generate foreign currency and help our economy to develop,” says Ethiopian Electric Power transmission and substation projects programme officer Reta Nigussie.
Ethiopia has identified the high-voltage line – dubbed the Eastern Electricity Highway – as a catalyst for economic growth, as it will facilitate power trade in the East African region.
The Horn of Africa nation has already concluded an agreement with Kenya for the export of 400 MW of electricity at a cost of 0.0084 c/kWh for about 30 years.
Ethiopia is investing heavily in generation projects, with several hydropower and wind projects under construction as the country gears up to become a net exporter of electricity.
The ongoing projects include the Grand Renaissance dam, with capacity to generate 5 250 MW; the Gibe III dam (1 800 MW); and the Ashegoda wind farm (120 MW).
Besides Kenya, Ethiopia has entered into agreements to supply 200 MW to Djibouti and 200 MW to Sudan.
During the first nine months of the 2015/16 financial year, Ethiopia raked in $123-million from electricity sales and has set a target of earning $500-million a year from power exports by 2020.