Kenya to Spend $1.2 Billion Doubling Power Grid, Building Wind-Farm Link

Kenya Electricity Transmission Co., the state-owned power-grid operator, plans to spend $1.2 billion by 2014 expanding the network to import energy from neighboring Ethiopia and provide a link to a wind farm in northern Kenya.

The project, which mainly will involve the installation of high-voltage lines, will more than double the size of the national grid, Joel Kiilu, chief executive officer of Ketraco, said in an interview from Nairobi, the capital, yesterday.

“The capital requirements and planning required to build transmission lines as demand increases is massive,” Kiilu said. “We are working to get access to as many people as possible, at the cheapest rates.”

Ketraco was created by Kenya’s government in December 2008 to build and maintain new electricity-transmission lines as East Africa’s biggest economy looks for ways to provide power to areas where it’s in high demand and short supply. The company took over the job from Kenya Power and Lighting Co., the monopoly distributor that still controls 3,400 kilometers (2,113 miles) of power lines built before Ketraco was set up.

Kenya, with a population of 39 million, aims to increase installed power capacity by almost nine-fold to 9,000 megawatts over the next 20 years, while targeting a sustained annual economic growth rate of 10 percent. The government expects to grow by at least 4.5 percent in 2010 from 2.6 percent a year earlier. Nairobi generates more than 60 percent of the country’s gross domestic product.

South Africa, the continent’s biggest economy, has the capacity to generate about 40,000 megawatts.