The project will be the first solar Independent Power Project (IPP) in Djibouti and will be located in Grand Bara, south of Djibouti City. The solar project is being fully developed by AMEA Power under a Build-Own-Operate and Transfer (BOOT) model and will generate 55 GWh of clean energy per year, enough to reach more than 66,500 people.
According to USAID, Djibouti consumes 100 megawatts of electricity, but only 57 megawatts are reliably available to serve the population due to underdeveloped energy infrastructure. Much of Djibouti’s remaining energy comes from its own geothermal, solar, wind and biomass sources.
To reduce electricity costs and expand access in Djibouti, important measures include regulatory reform; increasing generation capacity, especially considering renewables; regional integration of the Djiboutian transmission grid; and expansion of transmission and distribution of electricity.
The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder. The offtaker for the project will be Electricité de Djibouti. As part of its strategic plan, the Government of Djibouti aims to reduce CO2 emissions by around 40% by 2030.
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