Kenya and Tanzania are both working on a $1.1 billion to increase the market share of their hard-commodity market, notably their energy market.
The $1.1 billion project, set to reshape Kenya and Tanzania's energy market, is the construction of a 400kV high-voltage direct current (HVDC) transmission line between the two countries. The project is being funded by the World Bank and the African Development Bank, and is expected to be completed in 2025.
High-voltage direct current (HVDC) transmission is a technology for transmitting electricity over long distances with lower losses than alternating current (AC) transmission. HVDC is particularly well-suited for transmitting electricity from renewable energy sources, such as solar and wind power, which are often located in remote areas.
The HVDC transmission line will allow Kenya and Tanzania to share electricity more efficiently, and will also help to integrate renewable energy sources into the grid. The project is expected to have a significant impact on the energy market in both countries, by reducing the cost of electricity, improving reliability, and increasing access to clean energy.
Kenya and Tanzania are both developing their HVDC transmission networks. In 2018, Kenya commissioned a 500kV HVDC transmission line connecting it to Ethiopia. The line has a capacity of 2,000 megawatts (MW), and is the longest HVDC transmission line in East Africa.
In 2023, Kenya and Tanzania began construction on a 400kV HVDC transmission line connecting the two countries. The line is expected to be completed in 2025, and will have a capacity of 2,000 MW.
The HVDC transmission line will be the first of its kind in East Africa, and is expected to be a model for other countries in the region. The project is also expected to boost economic growth and create jobs in both Kenya and Tanzania.
The project of the HVDC transmission will provide some major benefits. First, it will reduce the cost of electricity. The HVDC transmission line will allow Kenya and Tanzania to share electricity more efficiently, which will lead to lower electricity prices for consumers.
Second, it will improve reliability. The HVDC transmission line will provide a more reliable source of electricity for both countries, which is essential for economic growth.
Third, it will increase access to clean energy. The HVDC transmission line will help to integrate renewable energy sources into the grid, such as solar and wind power. This will help to reduce reliance on fossil fuels and create a more sustainable energy future for both countries.
Fourth, it will boost economic growth. The project is expected to create jobs and boost economic growth in both Kenya and Tanzania.
And fifth, it is set to be a model for other countries. The HVDC transmission line will be the first of its kind in East Africa, and is expected to be a model for other countries in the region.
The HVDC transmission networks in Kenya and Tanzania are still in their early stages of development, but they have the potential to have a significant impact on the energy market in both countries. They are a major investment in the future of both countries, and are expected to play a key role in their economic development.
Overall, HVDC transmission is a promising technology for Kenya and Tanzania. It can help to reduce the cost of electricity, improve reliability, increase access to clean energy, boost economic growth, reduce greenhouse gas emissions, and improve energy security.