Where does Djibouti's energy come from?

Most of Djibouti's energy supply, around 80%, is sourced from neighboring Ethiopia. At the end of 2023, Djibouti was among the select few countries throughout the world that had yet to install any PV capacity, according to the International Renewable Energy Agency (IRENA).

Will AMEA power build a solar photovoltaic plant in Djibouti?

Emirati independent power producer (IPP) AMEA Power has signed agreements to build a solar photovoltaic plant in Djibouti. With a capacity of 30 MWp, the construction of the solar plant will be done in the framework of a public-private partnership (PPP).

Why is Djibouti relying on IPPs?

According to Power Africa, Djibouti has an installed capacity of only 126 MW. Out of this just 57 MW are reliably available to serve a population of nearly 988,000 and its main industries. However, the government is relying on IPPs to exploit Djibouti’s renewable energy potential. The government is ramping up its renewable energy capacity.

What is a power purchase agreement (PPA) in Djibouti?

Amea Power has secured a power purchase agreement (PPA) for a 25 MW solar-plus-storage project in Djibouti. It will be the country’s first independent power producer (IPP) project and is now in development under a build-own-operate and transfer (BOOT) framework.

Will AMEA Power Invest in Djibouti's first IPP project?

The solar plant is the country's first IPP project and will be developed under a BOOT model. “The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder,” AMEA Power said, without providing additional details.

What challenges does Djibouti face?

The African Development Bank Group published the 2016-20 Country Strategy Paper on Djibouti, revealing that the nation faces challenges such as insufficient distribution networks and high electricity prices. Most of Djibouti's energy supply, around 80%, is sourced from neighboring Ethiopia.