India's Adani Secures $736M Contract for Kenya Power Transmission Build-out
New power transmission work in Kenya is much needed to help meet growing demand.
Photo courtesy KENTRACO
India conglomerate Adani Group has signed a $736-million 30-year public-private partnership contract to finance, construct, operate and maintain 171 miles of power transmission lines and three substations in East Africa.
The agreement was signed by Adani's power transmission subsidiary Adani Energy Solutions Ltd. and the Kenya Electricity Transmission Co., a state-owned firm that plans, designs, constructs, owns, operates and maintains 2,564 miles of electricity transmission infrastructure across Kenya.
"This agreement marks the beginning of transformative initiative to develop, finance, construct, operate and maintain key power transmission lines and substations across Kenya," Opiyo Wandayi, Kenya cabinet secretary for energy and petroleum, said last month.
In one of the first major projects under the contract, Adani will construct the 128-mile, 400-kV Gilgil-Thika-Malaa-Konza power transmission line to serve areas around Kenya's capital, Nairobi.
The transmission line is split into three phases along the 70-mile Gilgil-Thika, 13-mile Thika-Malaa and 40-mile Malaa-Konza segments. The project also includes construction of the 132-kV Thurdiburo substation and another 400/220/132kV station at Rongai. A construction start date has not been announced.
When completed, the new transmission lines would enhance Kenya power supply reliability, reduce transmission loses, address low voltage cases and enhance East Africa's regional power market.
Adani Energy Solutions will also develop the 43-mile, 132-kV Menengai-Olkalou-Rumuruti double-circuit transmission line that will provide a grid connection for the Menengai geothermal power project that has an estimated generating potential of 1,600-MW. Begun in 2009, it is being delivered in five phases by Geothermal Development Co., a state-owned agency that develops geothermal sites and sells power to state utility Kenya Electricity Generating Co. PLC and private investors.
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Development Bank Advances Other Transmission Work
Separately, Kenya Electricity Transmission tapped Africa50, the infrastructure arm of the African Development Bank, to develop, finance, build and operate two other power transmission projects—the 110-mile, 400-kV Lessos–Loosuk line and 40-mile 220-kV Kisumu–Musaga line.
The government of Kenya approved the development of both lines earlier this year.
"Once completed, the project will be the first independent power transmission in Kenya and set a reference point in Africa as the first financing of transmission lines on a PPP basis," Africa50 said in a statement.
Africa50 in 2022 announced a joint development agreement with India-based Power Grid Corp. of India Ltd. to develop two transmission lines in the Kenya Transmission Project under a public-private partnership basis. It will develop associated infrastructure such as a 400-kV substation at Loosuk, a 220/33kV facility at Kakamega and substation extensions at Lessos, Musaga and Kibos.
Kenya, which has experienced frequent electricity blackouts, expects a spike in peak load demand of 21,075 MW by 2033 from the 1,606 MW reported in 2013. The government needs to boost generation capacity by about 22,000 MW by the end of 2033, according to official reports.