Djibouti is set to develop a 25MW solar power plant in Grand Bara. This follows a power purchase agreement (PPA) inked between UAE-based independent power producer Amea Power with Électricité de Djibouti (EDD).
This project aligns with Djibouti’s goal to reduce carbon dioxide (CO2) emissions by 40% by 2030. It will involve construction of a battery storage system to ensure a stable supply of electricity. The power plant is expected to produce around 55 GWh of electricity annually and sold to EDD, the public utility company in Djibouti, under a 25-year agreement. It is estimated that the plant will be able to supply electricity to approximately 66,500 people.
PPP deal
Amea Power will build the solar plant through the public-private partnership, which will also include the Sovereign Wealth Fund of Djibouti (SDF) as a minority shareholder. Djibouti is experiencing a growing demand for electricity, with household consumption increasing by 10% annually. To meet this demand and reduce reliance on imports, the country is actively pursuing renewable energy projects.
Djibouti currently imports electricity from Ethiopia through a high-voltage transmission line, supplying 65% of its electricity needs. Ethiopia is also expanding its capacity to export more electricity to Djibouti through additional high-voltage lines.
“Amea Power is proud to take this step and to support Djibouti in its energy transition. East Africa is an important market for Amea Power, as it is a region with immense potential for the development of clean, reliable and affordable energy,” said Hussain Al Nowais, Chairman of Amea Power, who signed the PPA with Djama Ali Guelleh, Managing Director of EDD.