Will AMEA power build a solar PV plant in Djibouti?

UAE-based independent power producer (IPP) Amea Power has signed agreements to build a 30 MWp solar PV plant in Djibouti. This will be done in the framework of a public-private partnership (PPP). Amea Power continues its expansion in Africa.

Does Djibouti have solar energy?

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.

How can Djibouti achieve its energy goals?

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.

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.

Will AMEA Power Invest in Djibouti's first IPP project?

The solar plant is the country's first IPP project and will be developed under a BOOT model. “The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder,” AMEA Power said, without providing additional details.

How does Djibouti produce electricity?

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.