The World Bank is set to approve funds to begin the construction of a 400kV transmission line to interconnect Ethiopia and Somalia to enable the interchange of power between the two countries as well as with the other East African Power Pool (EAPP) countries in the region.
The proposed Investment Project Financing (IPF) project will support Ethiopia and Somalia to benefit from regional power trade under the EAPP.
The World Bank said the project will also support the Horn of Africa Initiative’s efforts to collectively augment the sub-region’s development through regional integration and cooperation.
“The proposed project will also support the HoAI concerted effort to collectively augment the sub-region’s development trajectory through regional integration and cooperation”.
The project will also support the enhancement of the institutional capacity of the EAPP to accelerate the development of the EAPP power market and help both countries prepare for interconnected grid operations.
The project will fund the construction of a 400-kilovolt (kV) transmission line stretching 350 kilometers, linking Ethiopia’s Jijiga to Somalia’s Hargeisa and Berbera.
This will be the first major electricity backbone in Somalia, allowing the country to access affordable, reliable power from Ethiopia.
The World Bank has stated that the project will cost $700 million with $230 million already committed.
Currently, Somalia relies heavily on expensive diesel generators, which are costly and harmful to the environment.
By switching to cleaner energy from Ethiopia, Somalia can reduce greenhouse gas emissions, lower electricity costs, and support its post-conflict recovery.
The project also includes building substations in key locations like Jijiga in Ethiopia and Hargeisa and Berbera in Somalia to ensure efficient power distribution.
Additionally, a National Control Center will be established in Hargeisa, equipped with advanced technology to manage the power grid effectively.
Beyond infrastructure, the project will provide technical support and training to help Somalia and Ethiopia operate the new system and participate in regional power trade.
The project, which is set to be completed in 2031, will not only improve electricity access but also create jobs and support economic growth in both countries.
It will also complement ongoing efforts, such as the Somalia Electricity Recovery Project, which is already working to rebuild Somalia’s energy infrastructure.
While Ethiopia has a largely stable electricity sector, its state-owned utility, Ethiopian Electric Power (EEP), reported a reduced loss of 10.1 billion birr (approximately $82 million) for the 2024 fiscal year amid a substantial debt portfolio.
However, Ethiopia is working to overcome its electricity challenges and accelerate geothermal development.
Projects such as Tulu Moye, Aluto-Langano, and Corbetti are expected to drive the country’s geothermal capacity beyond 3.5 gigawatt(GW) by 2050.
