Djibouti Launches Maiden Wind Farm with 60 MW Capacity

Djibouti, located on the Horn of Africa, has launched its maiden wind farm- the 60 MW Red Sea Power (RSP) project.

This is the key international investment in Djibouti’s energy. The project, valued at US$122 million, has put in place Djobouti’s first Independent Power Producer (IPP). The investors responsible for the said project are mulling an additional capacity of 45 MW of renewable energy.

The site  has 17 turbines from Siemens. Each of these generate 3.4 MW capacity. The electricity produced is to be sold under a PPA with national state-owned utility Electricité de Djibouti (EDD).

The infrastructure solutions providers include Africa Finance Corporation (AFC); the Dutch entrepreneurial development bank FMO; blended finance fund manager Climate Fund Managers (CFM); and Great Horn Investment Holding (GHIH), an investment firm owned by a unit of the Djibouti Ports & Free Zones Authority and Djibouti Sovereign Fund.

Energy Challenges for Djibouti

Djibouti is predominantly dependent on imports to meet its energy needs. It relies heavily on energy from imported fossil fuels and hydrogen power imported from Ethiopia.

Presently, the East African country, boasts domestic installed capacity of 123 MW. Of this, less than half is operational because of outdated diesel plants.

Against such a backdrop , the project is significant as it will stir industrialisation, create jobs while contributing to economic stability.

Potential in Energy Market

Djibouti’s favourable strategic location is extremely promising. It has a long coastline with port facilities that are along the Red Sea and the Gulf of Aden. Besides, it has ample wind, solar and geothermal resources to take up the total capacity to at least 300MW.

The 60 MW project serves as a template and is being employed by Government of Djibouti for other plants for more geothermal and solar capacity.

Francois Maze, Chief Executive of Red Sea Power, said, “Access to electricity is vital for business growth, job creation, education, healthcare, social services, and infrastructure. In a country currently served entirely by fossil fuels and electricity imports, large-scale renewable energy solutions are urgently needed to mitigate and increase resilience to climate change. Today’s inauguration is an important milestone in Djibouti’s aim to be entirely served by renewable energy sources by 2035.”

Last year, a Memorandum of Understanding (MoU) was signed between renewable energy developer CWP Global and the government of Djibouti for the development of a 10 GW renewable energy and green hydrogen project in Djibouti.