Djibouti wind project of 60 MW gets USD 63m in funding

A 60-MW wind project in Djibouti has secured USD 63 million (EUR 58.2m) in equity financing, infrastructure investor Africa Finance Corp (AFC) said on Friday.

The investment was made by the AFC, which is the lead developer of the project, and Great Horn Investment Holdings, Climate Fund Managers (CFM) and Dutch development bank FMO. It will support the construction and operation of the power plant in the Ghoubet area of the African country.

The project has in place a 25-year “take or pay” power purchase agreement (PPA) with domestic utility Electricite de Djibouti and is expected to become operational next year. According to AFC, the “innovative financing approach” adopted for the scheme allowed construction to begin two years after its development was launched, against a typical three-five year development cycle. The development of the 60-MW project was initiated in 2017.

The World Bank’s Multilateral Investment Guarantee Agency (MIGA) has provided a financial guarantee.

According to the statement, this will be the first renewable energy project in Djibouti, the goal of which is to go 100% renewable by 2030.

(USD 1.0 = EUR 0.924)

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