Adani Energy Solutions to Build and Operate Electricity Transmission Lines in Kenya
Energy Cabinet Secretary Opiyo Wandayi announced today that Adani Energy Solutions, a part of Indian billionaire Gautam Adani’s conglomerate, has signed a 30-year agreement to build and operate electricity transmission lines in Kenya. This partnership with the Kenya Electricity Transmission Company Ltd (Ketraco) aims to enhance the country’s transmission infrastructure and address the ongoing power blackouts.
Enhancing Kenya’s Transmission Infrastructure
The agreement between Adani Energy Solutions Ltd and Ketraco focuses on the development, financing, construction, operation, and maintenance of critical transmission lines and substations throughout Kenya. Adani Energy Solutions Ltd will secure all the necessary funding for the project, which is estimated to be approximately 95.68 billion Kenyan shillings (approximately USD 736 million).
Importantly, the Kenyan government will not incur any costs related to this project. Adani Energy Solutions Ltd will be responsible for all aspects, including the financial investment, through a competitive bidding process managed by Ketraco and AESL.
Long-Term Ownership Transfer and Asset Management
Under the terms of the agreement, Adani Energy Solutions Ltd will operate the transmission lines for the next three decades. Afterward, ownership and assets will be transferred to Ketraco. This approach ensures that the transmission lines and substations are managed effectively and maintained to meet the country’s long-term energy demands.
A Comprehensive Project
The project involves the construction of three transmission lines and two substations, emphasizing Adani Energy Solution’s commitment to supporting the country’s electricity transmission infrastructure. This will assist in reducing power interruptions and improving reliability for both households and businesses.
Energy Cabinet Secretary Opiyo Wandayi also highlighted that Ketraco is working with other partners, including Africa 50 and Power Grid of India, for additional transmission-related projects. This collaboration signifies the Kenyan government’s dedication to strategic alliances, aligning with their development objectives and ensuring the long-term stability of the country’s energy supply.
Overall, the agreement between Adani Energy Solutions and Ketraco marks a significant step forward in enhancing Kenya’s transmission infrastructure. The partnership will not only address power blackouts but also support economic growth by improving energy reliability for individuals and businesses across the country. As Adani Energy Solutions takes the lead in engineering this vital project, Kenya can look forward to a more robust and sustainable energy future.
