Djibouti launches its first-ever wind farm

The Republic of Djibouti has inaugurated its first-ever wind farm, a 60-MW facility located near Lake Goubet which increased by 50% the overall power capacity in the country.

The Red Sea Power (RSP) wind farm spans 387 hectares and has 17 Siemens turbines each producing 3.4 MW of renewable electricity. It has a 220- MVA substation and is connected to the grid by a five-kilometre (3.10 miles) overhead transmission line.

The USD-122-million (EUR 113.6m) project marked the first significant international investment in the energy sector in Djibouti. It created the country’s first independent power producer (IPP) with an already secured long-term power purchase agreement (PPA) with state-owned utility Electricité de Djibouti (EDD), according to a recent statement.

The wind farm was realised by a consortium of investors including infrastructure solutions provider Africa Finance Corporation (AFC) as lead developer, Dutch development bank FMO, the 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.

The consortium was formed in 2018 and provided equity bridge financing for the construction which started in January 2020. The group already has an expansion plan to add 45 MW of renewable energy capacity.

Apart from the wind farm, the same partners on the same day also inaugurated a solar-powered desalination plant to provide drinking water to the nearby villages.

Before the commissioning of its first wind farm, Djibouti was entirely reliant on power generated from imported fossil fuels, as well as hydrogen generated power imported from Ethiopia. It has an installed capacity of 123 MW but only half of it is operational due to outdated plants. The country has enough wind, solar and geothermal resources to triple existing capacity to at least 300 MW.

“Our aim is to be the first country in Africa to be 100% reliant on green energy by 2035,” said Aboubaker Omar Hadi, chairman of GHIH.

(USD 1 = EUR 0.931)

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