Adani Energy Solutions Ltd Secures 30-Year Pact for Electricity Transmission Lines in Kenya

Gautam Adani's conglomerate has entered into an agreement to construct and manage crucial electricity transmission lines in Kenya for three decades. This was confirmed by Opiyo Wandayi, Kenya's Cabinet Secretary for Energy. Adani Energy Solutions Ltd (AESL) has partnered with the Kenya Electricity Transmission Company Ltd (Ketraco) for this venture.

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The collaboration aims to enhance Kenya's power infrastructure, addressing frequent blackouts. AESL will develop, finance, build, operate, and maintain essential transmission lines and substations throughout the country. The project is expected to significantly improve the reliability of power supply in Kenya.

Infrastructure Development and Funding

AESL will secure all necessary funding through debt and equity, which will be repaid over the 30-year agreement period. The project's cost is estimated at 95.68 billion Kenyan shillings (USD 736 million). This figure will be finalised through a competitive bidding process managed jointly by Ketraco and AESL.

Importantly, the Kenyan government will not bear any financial burden for this project. After 30 years of operation, AESL will transfer the project and its assets to Ketraco, ensuring long-term sustainability and efficiency.

Project Scope and Strategic Partnerships

The project involves developing three transmission lines and two substations. Previously, Adani Group had discussions with the Kenyan government about operating the main airport, but this proposal was paused due to protests.

Ketraco is also collaborating with a consortium involving Africa 50, an infrastructure investment platform, and Power Grid of India for two additional transmission lines. These partnerships highlight Kenya's commitment to strategic alliances that support its development objectives.

Ensuring Future Energy Security

This initiative underscores the Kenyan government's dedication to securing the country's energy future through strategic partnerships. The collaboration with AESL ensures long-term management and maintenance of critical infrastructure assets.

Wandayi emphasised that these efforts align with Kenya's development goals, enhancing the nation's energy supply reliability while fostering sustainable growth in its power sector.