Kenya Electricity Transmission Company Limited (KETRACO), through the Ministry of Energy & Petroleum, formalized a Ksh95.68 billion agreement with India’s Adani Holdings Limited on Friday, October 11.
The deal was announced by Energy Cabinet Secretary Opiyo Wandayi and will see Adani Energy Solutions Limited (AESL), a subsidiary of Adani, undertake the project under a Build–Own–Operate–Transfer (BOOT) model, following Schedule 1 of the Public-Private Partnership Act, Cap 430.
Under the BOOT arrangement, the Indian Conglomerate will finance, design, construct, operate and maintain the projects. The Ksh95.68 billion deal between KETRACO and AESL will cover multiple high-voltage transmission projects.
These include constructing the 400kV Gilgil-Thika-Malaa-Konza transmission line, with associated Line-In Line-Out (LILO) structures, new substations, and extensions, as well as a 132kV intertie to connect with Thika’s existing 132kV grid.
Additionally, the projects will involve the 400/220/132kV Rongai Substation, a 220kV Rongai-Keringet-Chemosit transmission line, and the 132kV Menengai-Ol’kalou-Rumuruti transmission line, alongside new substations and extensions.
The plan also includes a 132/33kV substation and LILO setups at Thurdibuoro, enhancing grid resilience and connectivity across these areas.
KETRACO Lists Benefits of Adani’s Ksh95 Billion Power Deal
KETRACO said the power transmission project by AESL is set to bring significant benefits to Kenyans, primarily by enhancing reliable power supply across host counties through strengthened connections to the national electricity grid.
With reliable electricity, the transmission company stated that education standards are expected to improve significantly. Schools will be able to extend their learning hours and power specialized subjects like woodwork and metalwork, enhancing educational opportunities.
At the same time, healthcare services will also see a boost, as facilities can consistently power critical equipment, refrigerate vaccines, and perform emergency procedures around the clock, improving patient care.
For businesses, reliable power means fewer interruptions, enabling smoother operations for industries relying on machinery, lighting, and communication.
Agriculture, a key component of food security, stands to benefit as well. Consistent power will support farm mechanization, food processing, storage, and irrigation, leading to increased yields and enabling the transition from subsistence to commercial farming.
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Social and Economic benefits of the project
Creation of job and business opportunities
During the construction and operations phase, KETRACO mentioned that AESL shall employ Kenyans taking into account compliance with local content requirements. AESL shall also source goods and services from the Kenyan market in compliance with the local content requirements. This will generate income for the locals resulting in improved livelihoods and the quality of life.
Capacity building
Throughout the project term, AESL shall transfer technology and know-how to KETRACO and Kenyan citizens, and provide industrial attachment and apprenticeship to Kenyan youths every year.
Compensation for Livelihood restoration and resettlement
All Project Affected Persons (PAPs) will be compensated for the loss of their assets, i.e., structures and any damage to crops and trees. They will also be compensated at market value for limited loss of use of land for the parcels that will be affected by the transmission lines.
In addition, any loss of business and loss of income will be compensated as part of livelihood restoration programs. Compensation shall be full, prompt and just, with all people displaced by the project being fully resettled.
Benefits of the Five Transmission Lines
(i) 400kV Gilgil-Thika-Malaa-Konza
This transmission line will increase the capacity, reliability, and stability of Kenya’s electricity grid by implementing the 400kV ring.
With its significant capacity for carrying large amounts of electricity, it will also enable the integration of new power generation projects and address the rising electricity demands in the region.
Furthermore, it will also facilitate the delivery of clean, sustainable energy to consumers and support Kenya’s goals of reducing carbon emissions and fostering environmental sustainability.
(ii) 400/220/132kV Rongai Substation
The project aims to significantly enhance the transmission and distribution network in western Kenya, fortifying the electricity grid, facilitating the evacuation of renewable energy, and providing affordable, clean energy to consumers. The substation will help balance supply and demand, manage power flow, and prevent grid failures or blackouts. Additionally, it will bolster the power exchange market within the Eastern Africa Power Pool (EAPP).
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(iii) 220kV Rongai-Keringet-Chemosit
This transmission line is designed to carry electricity from Rongai to the Keringet and Chemosit load centres. Its purpose is to enable efficient and dependable distribution of electrical power to meet consumer demand in these areas and to reduce the occurrence of power outages.
It will further enhance the electricity grid and bolster the reliability of power supply to local industries, particularly tea factories in the Olenguruone region.
(iv) 132kV Menengai-Ol Kalou-Rumuruti
It will be responsible for transmitting electricity generated by the Menengai Geothermal Power Plant in Nakuru County. This line runs through Nyandarua County and concludes at the existing Rumuruti substation in Laikipia County.
(v) 132/33kV Thurdibuoro Substation
The aim of this project is to improve the power supply quality throughout the entire South Nyanza region while meeting the increasing energy demand in surrounding areas. It will enhance voltage stability within Kisumu County and improve the reliability of power by ensuring backup supply options for the area.
Furthermore, it will strengthen the reliability of the power supply through redundancy from the Sondu Miriu Hydropower generating station.
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