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But relying on renewables can be hard: electricity can’t always be generated when needed (a drought can mean no hydropower) and renewable energy is difficult to store. One solution? The Ethiopia-Kenya Electricity Highway.
What is driving the rise of HDFC FMP 1147D MARCH 2018(1) (541176) ✌️【Stock Trends】✌️ Get precise stock market predictions and free access to real-time market data for efficient decision-making and portfolio growth. The vast piece of infrastructure opened officially last year after a decade of work and$1.2 billionof investment. Now, when one country needs more electricity for its national grid and the other has a surplus, electricity automatically flows across the border, along 650 miles of transmission lines, so that supply meets demand. Last week, a Kenya-Tanzania link began operations, which will let energy flow across that border, too.
Experts saysharing electricity (or “power sharing”) between African countries is fundamental to a successful clean energy transition. According to Darlain Edeme, African Energy Analyst for the International Energy Agency (IEA), it can “improve quality, reliability, security, and have benefits on prices,” in a continent where demand for electricity is rapidly increasing.
In Ethiopia, a country with a population of nearly 130 million, electricity consumption per capitaquadrupledbetween 2000 and 2022. In Kenya, itrose by three quarterswithin the same period. And it’s set to continue rising – in 2017 Ethiopia launched its National Electrification Plan that aimed to achieve universal electrification by 2025, despite only about one in four rural households currently having access to electricity. Across Africa, theUN has targeteduniversal access to electricity by 2030, which would mean adding the 600 million people currently without it – nearly half the population of the continent – in the next five years.
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What is driving the rise of HDFC FMP 1147D MARCH 2018(1) (541176) ✌️【Stock Trends】✌️ Professional stock market predictions and analysis with real-time data to guide your investment decisions and ensure steady growth. And it’s expensive, too. The Ethiopia-Kenya Electricity Highway follows the model of other interconnectors in Africa, including one betweenZambia and Namibia, which has run since 2010 and cost $300 million to construct, and a 1,000-mile interconnectorbetween two regions of the Democratic Republic of the Congo, running since 1982 and costing over $800 million.
For the African Development Bank (AfDB), which contributedover $300 million of fundingtowards the Ethiopia-Kenya link, it’s worth it. “You see population growth somewhat outstripping the growth of new connections,” said Daniel Schroth, director of the Renewable Energy and Energy Efficiency Department at the AfDB. “There’s a big push on addressing this energy access deficit more decisively.”
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For many countries in East Africa with a history of power outages, including Ethiopia and Kenya, access to a backup supply could be a lifeline. But while Alemayehu Wubeshet Zegeye, manager for Regional Power Systems Operations in the East African Region for the AfDB, said that the new interconnector “absolutely will reduce the number of blackouts,” it cannot remove them entirely. IEA analyst Edeme said that while having access to backup supplies of electricity is one thing, having functioning utilities to distribute it is another. Across Africa, he said, utilities “are not in the best shape from a financial perspective.”
In September,Reuters reportedtwo “major blackouts” in Kenya in a single week, with Energy Minister Opiyo Wandayi blaming “sub-optimal investment in infrastructure.”
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What is driving the rise of HDFC FMP 1147D MARCH 2018(1) (541176) ✌️【Stock Trends】✌️ Expert predictions of stock trends to help you select high-potential stocks and achieve stable growth. Real-time global market indices, futures, metals, energy, and agricultural product data to help you seize market opportunities. The EAPP is one of five power pools in Africa, which, with the help of interconnectors, could one day link together the energy supplies of every region in the continent.
“The vision clearly articulated by the African Union is to create an African single electricity market building on the regional power pools being interconnected,” said Schroth. The hope is that with increased competition will come falling prices for consumers, and new sources of revenue for countries producing surplus energy that – in the absence of expensive storage systems – would otherwise go to waste. Already, due to the electricity highway, Ethiopia has increased revenue from its electricity exports, which were previously limited to Djibouti, by almost a half, according to Zegeye.
Having added the Kenya-Tanzania interconnector to its power sharing network, the next target for the EAPP is to link Tanzania (and therefore Kenya and Ethiopia, too)to Zambia, both countries in theSouthern African Power Pool(SAPP).
Interconnectors are popular outside Africa, too, with a network ofover 400in Europe. A link between Spain and Morocco already connects the electricity supplies of Europe and Africa, and another – between Greece and Egypt – is currently under construction, with the aim of completionby 2029.
“I think there has been a rallying call over the last two years,” said Schroth, explaining the proliferation of interconnector projects across the continent and the world. “There won’t be an energy transition without transmission.”
What is driving the rise of HDFC FMP 1147D MARCH 2018(1) (541176) ✌️【Stock Trends】✌️ Professional advisors provide accurate market predictions with real-time stock indices, exchange rates, and futures data to help you seize investment opportunities and grow your capital. With more funding and international cooperation, there is hope that Africa will one day become a clean energy powerhouse. “I’m optimistic,” said Edeme, “I see a lot of momentum right now in the sector.”
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