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).
AMEA signed an implementation agreement (IA) and a joint development agreement (JDA) for the development of the solar PV project. AMEA Power will develop the project in partnership with the Sovereign Wealth Fund of Djibouti (FSD). The electricity produced will be sold to Djibouti’s public utility Électricité de Djibouti (EDD), under a long-term power purchase agreement.
The official signing ceremony was held in the presence of President Ismail Omar Guelleh. The IA was signed by Hussain al-Nowais, Chairman of AMEA Power, and Yonis Ali Guedi, Djiboutian Minister of Energy and Natural Resources. Whereas, the JDA was signed by Djama Ali Guelleh, CEO of the national utility EDD, Slim Feriani, CEO of FSD, and Hussain Al Nowais.
Hussain Al Nowais, said, “Djibouti has set an ambitious target for renewable energy and AMEA Power is pleased to help the nation increase the share of renewable energy in its electricity mix. East Africa is an important market for AMEA Power, as it is a region with great potential for the development of clean, reliable, and affordable energy.”
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. The solar project will be Djibouti’s first solar farm developed by an IPP and the country’s second move into modern renewables. Last year, Siemens Gamesa started the construction of a 60 MW wind power project in the Ghoubet area, near Lake Assal.
The first wind farm in the country is owned by Red Sea Power Limited, a special purpose vehicle created by Africa Finance Corporation (AFC), Climate Fund Managers (CFM), Great Horn Investment Holding (GHIH), and the Dutch Development Finance Company (FMO).