Djibouti produced 654,062 MWh of electricity in 2021, according to figures from the Central Bank of Djibouti, representing a 4.3% increase relative to 2020. Improving domestic energy production will require the government to direct private investment towards electricity generation.
Djibouti’s substantial potential for geothermal electricity generation, along with its rising capacity to produce energy from wind and solar power plants, should help the country reach its goals in coming years. In addition to the growing need for generation capacity, the expansion of renewable energy is key for Djibouti to diversify its economy.
This is mostly supplied by thermal power plants that utilise oil and diesel as fuel. The two primary plants in Djibouti City have a combined generation capacity of roughly 122 MW, with two smaller plants located in Obock and Tadjoura.
The authorities have announced plans to transform Djibouti into the first African country to fulfil 100% of its electricity demand from clean energy sources by the close of the plan in 2035. The Ministry of Energy and Natural Resources formulates policies for the sector and regulates the electricity market.
Djibouti has significant solar energy potential, with an estimated average daily global horizontal irradiance of 4.5 to 7.3 KWh per sq metre across its territory. The construction of the first large-scale solar generation project began in November 2022 in the Gran Bara Desert, which is located in the country’s southern region.
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.