Posted on :Thursday , 29th August 2024

Ethiopia's planned electricity exports to Tanzania, which will likely start next month, have the potential to revolutionize the energy industry. On August 23, 2024, Engineer Ashebir Balcha, CEO of Ethiopian Electric Power, made a widely described announcement stating that the first power transmission will start by mid-September. This event, which was carefully planned for, is expected to represent a major advancement in Ethiopia's energy policy. Ethiopia's commitment to increasing energy access throughout East Africa will be highlighted by this first export, which will also increase its earnings and solidify Ethiopia's position as a regional energy powerhouse.

This important move fits into Ethiopia's larger plan to enhance its electricity export earnings, which have already topped $140 million this year alone—a 6% rise over last year. Presently, the nation provides electricity to Djibouti, Sudan, Kenya, and Tanzania will shortly join this expanding list. Ethiopia's growing regional energy network is highlighted by the upcoming shipments of electricity to Tanzania. "We are committed to extending our power grid beyond our borders," Balcha said. "Our goal is to enhance regional cooperation and contribute to a more integrated energy market in East Africa."

Ethiopia is continuing to work to improve regional energy ties, which is why it is exporting electricity. Using the current power line to Kenya as a conduit, the nation intends to expand its electrical grid to include South Sudan and Somaliland. Ethiopia is strategically focused on utilizing its renewable energy resources to support regional energy integration, as evidenced by this expansion.

Ethiopia is also encouraging the Kenya-Tanzania power line project, which is scheduled to be finished by November 2025, in addition to the forthcoming Tanzanian exports. With this infrastructure development, East Africa's energy interconnection is expected to increase and the regional energy network would be strengthened. It is expected that the Kenya-Tanzania line will be essential to enabling stronger energy exchanges in the area.

An important milestone in Ethiopia's position in the East African energy market has been reached with the start of power exports to Tanzania. Regional cooperation and economic growth are anticipated to be significantly impacted by the nation's expanding energy infrastructure and export capacities. "This export deal is not just about selling electricity; it’s about strengthening ties and fostering economic growth throughout the region," Balcha stated.

Tanzania is importing energy despite of its ambitious goals, which begs the important issue of why Ethiopia has achieved so much while Tanzania has struggled? Setting a high standard for the region, Ethiopia and Kenya have shown notable advancements in the production and export of energy. Ethiopia's successful entry into regional electricity markets provides Tanzania with important lessons as it works to improve its energy infrastructure.

Ethiopia creates a strong example for regional collaboration and economic integration as it develops its energy infrastructure and export capacities further. The nation's energy-related accomplishments both underscore its strategic vision and underline how crucial it is to keep up investment and cooperation in order to meet regional energy objectives.

Tanzanian management consultant and technologist Charles Makakala drew attention to the differences in energy production between the countries, pointing out that South Korea, for example, produces twice as much electricity than all 48 Sub-Saharan African countries put together, despite its tiny size. He compared Tanzania's energy problems negatively to South Korea's effective energy sector and attacked Tanzanian officials for their rhetoric and lack of real action.

Tanzania wants to improve its electricity supply and diversify its sources, which means Ethiopia's proposal to export electricity to Tanzania signifies a substantial change in the regional energy dynamics. However, emphasizing imported electricity may ignore a vital component of Tanzania's energy plan, given the underused gas capacity at Ubungo and Kinyerezi and further possibilities from existing pipelines.

Tanzania should concentrate on making the most of its gas resources in order to maintain energy security and increase its regional influence. Successful nations like Qatar and Norway have shown how efficient natural gas management may result in both economic expansion and energy independence. Tanzania can have comparable success in the energy sector by taking note of these experiences.