KETRACO Sh94B Power Deal With Adani Will End Frequent Power Outages

The Kenya Electricity Transmission Company (KETRACO) is in the final stages of negotiating a privately initiated proposal with Adani Energy Solutions and Africa50 to construct a 625-kilometre high-voltage transmission line.

If the proposal is adopted, KETRACO proposes to increase electricity tariffs to service the 30-year loan from Adani Energy Solutions and Africa50.

This comes on the backdrop of three widespread power outages that have been experienced this month. The blackout occurred after the Suswa high-voltage line tripped, disrupting the evacuation of 200MW of power from Ethiopia.

Energy Cabinet Secretary Opiyo Wandayi attributed the frequent blackouts to aging transmission infrastructure and inadequate investment in power transmission.

KETRACO is now seeking $5 billion through public-private partnerships to revamp and expand the electricity transmission network by 10,000 kilometers as well as address system reliability and technical losses.

KETRACO is evaluating ten projects under privately initiated proposals. Two foreign firms, Adani Energy Solutions and Africa50, have expressed interest in developing and managing a 625-kilometre high-voltage transmission line for the next 30 years.

Though negotiations are ongoing, Adani is proposing to build 388 kilometres of transmission lines and substations at Ksh 94.4 billion, with a coupon rate of 9.5pc.

Africa50 is also seeking to construct 388 kilometers of the line through a privately initiated proposal. To service the loan, KETRACO is proposing an increase in electricity tariffs.