Companies

Power Grid to set up transmission project in Kenya

Rishi Ranjan Kala | | Updated on: Jan 13, 2022
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State-run Power Grid Corporation of India has signed a joint development agreement to develop a power transmission project in Kenya on a public-private partnership basis. It will also improve the supply and reliability of power transmission in Western Kenya.  The agreement was inked with Africa50, which is an infrastructure investment platform that contributes to Africa’s economic growth by developing and investing in bankable infrastructure projects, “The project entails the development, financing, construction, and operation of the 400 kV Lessos – Loosuk and 220 kV Kisumu – Musaga transmission lines under a PPP framework. Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya and will set a reference point in Africa as the first financing of transmission lines on a PPP basis,” the Power Ministry said in a statement. This project will also improve both the supply and reliability of power transmission in Western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap, it added.

Technical and operational know-how

The leading Indian transmission company will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors. Transmission plays an important role in bringing efficiency in the entire electricity supply chain. A robust transmission network not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers which spurs the competition that results into competitive electricity prices to ultimate consumer, Power Grid CMD K Sreekant said. Africa50 CEO Alain Ebobissé said that in the last few years, a lot of emphasis has been placed on attracting private investments in energy production infrastructure in Africa. It is time to also focus on catalysing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities.

Published on January 13, 2022

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