East Africa has taken a substantial step towards enhancing energy security, promoting renewable resources and driving economic developments across East Africa. Corporate Africa examines this progress.

The Eastern Africa Power Pool (EAPP) is on the brink of a groundbreaking development that will reshape the energy landscape of the region. Scheduled to go live with power auctioning by December 2024, the EAPP aims to facilitate electricity trade among its 13 member countries, ushering in a new era of regional collaboration and sustainable energy solutions.

Chaired by Kenya’s Cabinet Secretary Davis Chirchir of the Ministry of Energy and Petroleum, the meeting brought together members of the Steering Committee and Council of Ministers from EAC countries in Nairobi. In attendance were representations from member states along with key development partners including the World Bank, the African Development Bank (AfDB), U.S. Government-led partnership, Power Africa implemented by USAID.

One of the key developments is the transition from bilateral trade to a competitive day-ahead power market, set to go live by the end of December 2024.

The 13 countries comprise Burundi, DRC, Djibouti, Egypt, Ethiopia, Kenya, Libya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda. The EAPP has been actively working towards enhancing energy security and promoting cross-border electricity trade. According to James Wahogo, the Secretary General of the EAPP, significant strides have been made in fostering regional collaboration and advancing sustainable energy solutions.

SC & COM delegates and Govt officials visit Isinya Substation-Kenya

“The Eastern Africa Power Pool remains committed to enhancing energy security, promoting cross border electricity trade, and driving the development of renewable energy sources within our member countries,” Wahogo remarked on the corporation founded in 2005 to coordinate cross-border power trade and grid interconnection among nations.

The Impact of trading

The potential impact of the EAPP is huge, with the pool having the capacity to positively influence over 600 million people through increased electrification rates within the region. Currently trading over 3,400GWh annually, the EAPP has achieved remarkable progress since its establishment when the power transferred in the region was a mere 504GWh.

One of the key developments is the transition from bilateral trade to a competitive day-ahead power market, set to go live by the end of December 2024. This move will enable trade among all countries in the region, ensuring a regular and efficient supply of energy. Ethiopia, as one of the region’s major electricity producers, is already benefiting neighboring countries, with South Sudan and Somalia yet to be connected.

“To build on the benefits of this interconnectivity, we are striving to have the competitive day-ahead power market go live by the end of December 2024,” Wahogo said.

From bilateral trade to regional trade

The market will take the Eastern Africa region from bilateral trade to trade amongst all countries in the region, ensuring not only regular supply but efficient use of energy.

To further drive a greener and more cost-effective energy future, the EAPP is actively seeking partnerships and financing for solar and hydropower projects. In December 2023, during the 7th annual Board Meeting of the Independent Regulatory Authority (IRB) of the Eastern Africa Power Pool held in Uganda, IRB had received approval of 5.4 million U.S dollars from Africa Development Bank (AfDB) for operationalization of EAPP aimed at providing reliable and affordable electricity in the region.

In December 2023, during the 7th annual Board Meeting of the Independent Regulatory Authority (IRB) of the Eastern Africa Power Pool held in Uganda, IRB had received approval of 5.4 million U.S dollars from Africa Development Bank (AfDB) for operationalization of EAPP aimed at providing reliable and affordable electricity in the region.

The recent completion of the Kenya-Tanzania power line, a 400-kilovolt electricity line connecting the two countries, is a testament to the commitment towards increased interconnectivity. The 294.5 million US dollars project has been running for the past eight years. The line will allow cross-border exchanges of cheap and cleaner surplus power from the neighboring countries.

What awaits is the signing of the key agreements to pave the way for the exchange of excess electricity, amidst the mounting pressure by the African Development Bank who want the two countries to speed up the signing of the agreement.

The EAC Link

According to CS Chirchir, Kenya, a key player in the EAPP, has already reaped the rewards of regional integration through bilateral frameworks, such as importing 200MW of renewable energy from Ethiopia and engaging in energy exchange with Uganda. The completion of the Kenya-Tanzania power line marks another milestone, and discussions are ongoing to expedite agreements that will pave the way for the exchange of excess electricity.

Map of Kenya-Uganda interconnector

Besides Kenya-Tanzania, Kenya is linked to Uganda through a 1,200-capacity interconnector, boosting power transfer between Kenya and Uganda to 350MW. Through the Ethiopia–Kenya HVDC Interconnector, Kenya imports 11 per cent of its daily electricity from Ethiopia as of February 2024, while the Kenya-Tanzania Power Project, still under construction, will interconnect Ethiopia, Kenya, Tanzania, and others in the north and south of the continent.

Kenya-Ethiopia interconnector

The meeting also disclosed plans to expand the network to include the Egypt line, the Ethiopia-Sudan line, the Ethiopia-Djibouti line and Uganda-Rwanda line.

The discussions during the meetings focused on strengthening the organizational structure of the EAPP to enhance coordination and streamline decision-making processes. With a combined installed capacity of 90.6GW among member countries and an estimated annual demand growth of 6%, the region is poised for a robust energy revolution.

Regional plans on policies and implementation

Moving forward, collaborative initiatives will aim to fortify the EAPP’s capacity and resilience. Proposed policies, plans, and budgets are set to be approved in the coming weeks, with the support of the World Bank in formulating draft rules and developing a trading platform for the Day Ahead Market.

Officials at the Eastern Africa Power Pool meeting.

The success of the recent meetings highlights the shared vision of creating a sustainable and integrated energy framework for the Eastern African region. As the EAPP progresses towards live power auctioning, investors keen on tapping into the potential of the East African Power Pool should closely monitor developments in the region.

The ongoing efforts to admit Independent Power Producers and Independent Transmission Developers into the EAPP emphasize the importance of private players in the regional power integration program. These discussions will continue in the coming months, providing updates on the evolving landscape of energy investments in Eastern Africa.

The meeting also disclosed plans to expand the network to include the Egypt line, the Ethiopia-Sudan line, the Ethiopia-Djibouti line and Uganda-Rwanda line.

The Eastern Africa Power Pool’s journey towards a live power market presents a unique opportunity for investors to contribute to the region’s energy revolution. As the EAPP continues to strengthen its collaborative efforts, the potential for profitable and sustainable investments in renewable energy projects across Eastern Africa becomes increasingly promising.