What is the potential for development in the energy sector in Djibouti?

The potential for development in Djibouti's energy sector remains high. The page below gives an overview of the energy sector in Djibouti.

Why is Djibouti constructing a solar farm?

Djibouti's $390 million solar farm is under construction in southern Djibouti as a result of a public-private partnership between Djibouti’s Ministry of Energy and Natural Resources and Green Enesys, a German renewable energy firm. Construction began in 2018 after $50 million in funding was secured by the World Bank and other financiers.

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).

Who is developing a wind farm in Djibouti?

The wind farm project is being developed by the Africa Finance Corporation, FMO (the Dutch Development Bank), Climate Fund Managers and Great Horn Investment Holdings through Red Sea Power, a company incorporated in Djibouti to develop, construct, own and operate the project.

How many people in Djibouti have electricity?

In Djibouti, only 60 percent of the population has access to electricity. There is a large disparity in access between urban and rural areas, with far more city dwellers connected to the grid than those in rural areas. Therefore, approximately 490,000 people in Djibouti do not have electricity.

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.