Tanzania to import 100MW of electricity from Ethiopia

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  • Tanzania's government has decided to import 100MW of electricity from Ethiopia for the Northern Zone to ensure reliable power supply and reduce outages.
  • The imported electricity costs 7.7 cents USD per unit, cheaper than domestic generation sources.
  • The power is sourced from Ethiopia via Kenya at the Namanga interconnection, circumventing high transmission costs and energy losses from southern generation hubs to the north.
  • The electricity import deal aims to improve energy supply for homes and businesses in Northern Tanzania, particularly in Kilimanjaro and Arusha regions.
  • Tanzania has a history of cross-border electricity trade, already importing power from Zambia, Uganda, and Kenya in various regions.
  • Despite importing electricity, Tanzania remains a net exporter of electricity.
  • The deal aligns with Tanzania's participation in regional power markets and the Eastern Africa Power Pool (EAPP) and Southern Africa Power Pool (SAPP) to promote electricity trade across borders.
  • Experts support the import decision, viewing it as economically sound and beneficial for regional integration and cooperation.
  • Former leaders and economists emphasize the importance of public understanding regarding electricity trade and the necessity of imports despite local generation capacity.
  • The initiative highlights the interconnectedness of power markets and the importance of diversifying energy sources to enhance energy security.

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