Electricity Transmission Inter-connection between Ethiopia and Djibouti

Ethiopia and Djibouti signed an agreement for a USD 2 billion second transmission inter-connector between the two countries which will allow Ethiopia to export additional electricity to Djibouti. The transmission line, which covers areas from Semera, in Ethiopia’s Afar regional state, to Jaban in Djibouti, is rated at 230 kV which is similar to the first transmission line connecting the two countries. It will allow Djibouti to import between 35MW and 70MW from Ethiopia. The new transmission line will meet 60% of Djibouti’s power demand, with Ethiopia earning up to USD 1.5 million dollars a month from the exchange.

Objective and rationale for the project

The development objective of the project was to improve electricity access in Ethiopia and Djibouti at affordable prices through regional co-operation in power trade. The project will promote cross-border trade in energy in the region and facilitate connection of affordable power to households in Ethiopia and Djibouti.

The project will generate employment opportunities for jobs and transfer of skills to sub-contractors in Djibouti and Ethiopia. In Djibouti, importation of the low-cost hydropower will help to suppress the costly thermal generation resulting in cost savings through reduced oil import. The interconnection will enable the two systems to support each other during emergencies

PROJECT LOCATION

Djibouti and Ethiopia