Eastern Africa stands to gain from a $1.6 billion (Sh207.4 billion) financing package from the World Bank Group to strengthen regional power integration, improve electricity access and expand cross-border energy trade.
The financing, approved by the World Bank Group Board, will support the Regional Energy Transmission, Trade and Decarbonization programme for Eastern Africa (RETRADE-EA), a 10-year initiative aimed at delivering more affordable, reliable and cleaner electricity across the region while unlocking economic growth.
The RETRADE-EA programme will finance critical energy infrastructure alongside institutional reforms needed to facilitate efficient regional electricity trade.
Additionally, it is intended to strengthen cross-border transmission networks, improve power system resilience and integrate countries that remain outside the regional electricity grid, including Somalia.
The programme will also support the launch of the Eastern Africa Power Pool (EAPP) Day-Ahead Market, improve regional system planning and operations, harmonise energy regulations and governance, and encourage greater private sector investment through Independent Transmission Projects.
“A well-integrated regional energy market is one of the most powerful catalysts for economic growth and job creation in Eastern Africa,” said Ndiamé Diop, Regional Vice President for Eastern and Southern Africa,” Diop said.
“RETRADE will help countries trade power across borders, lowering costs and improving reliability for businesses and households. In doing so, it delivers exactly what Mission 300 is designed for: stronger energy systems that provide access at scale, drive job creation, and sharpen Africa's competitiveness.”
The programme's first phase includes the Uganda-Tanzania Interconnector Project (UTIP), which has secured $250 million (Sh32.4 billion) in concessional financing from the International Development Association (IDA).
The project will fund the construction of a new high-voltage transmission line linking Uganda and Tanzania, enabling Uganda to export its surplus clean hydropower to regional electricity markets.
The first phase also provides a $10 million (Sh1.3 billion) IDA grant and a $3.5 million (Sh453.7 billion) grant from the Energy Sector Management Assistance Program (ESMAP) to the Eastern Africa Power Pool for the Regional Power Trade and Market Project.
The initiative is expected to strengthen regional market coordination and institutional capacity, facilitating more than 5,000 gigawatt-hours of cross-border electricity trade annually by 2031 while enhancing energy security and affordability across member states.
By 2031, the Uganda-Tanzania transmission line is expected to facilitate at least 452 gigawatt-hours of electricity trade annually between the two countries.
Across the wider Eastern Africa Power Pool, increased use of Uganda's clean hydropower instead of thermal generation is projected to avoid about 25.8 million metric tons of carbon dioxide emissions, supporting the region's transition to cleaner energy while lowering electricity costs.
Comments
Sign in with Google to comment, reply, and like comments.
Continue with Google