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.
Dubai-based AMEA Power has secured a 25-year PPA from Djibouti''s state-owned utility, Électricité de Djibouti (EDD), for a 25 MW solar-plus-storage plant it plans to build in Grand Bara, south of the national capital.
“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.
The African Development Bank Group published the 2016-20 Country Strategy Paper on Djibouti, revealing that the nation faces challenges such as insufficient distribution networks and high electricity prices. Most of Djibouti''s energy supply, around 80%, is sourced from neighboring Ethiopia.
At the end of 2023, Djibouti was among the select few countries throughout the world that had yet to install any PV capacity, according to the International Renewable Energy Agency (IRENA).
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Electricity can be generated in two main ways: by harnessing the heat from burning fuels or nuclear reactions in the form of steam (thermal power) or by capturing the energy of natural forces such as the sun, wind or moving water.
Unlike other energy commodities such as coal, oil and natural gas, electricity trade between countries is relatively limited as it is more technically complex and requires a direct cross-border interconnection. Such connections can help to balance out supply and demand across regions, which will be increasingly important as variable renewables like solar and wind make up a larger share of electricity generation.
Power generation, which includes electricity and heat, is one of the largest sources of CO2 emissions globally, primarily from the burning of fossil fuels like coal and natural gas in thermal power plants.
Growth in electricity demand has slowed down or even reversed in many advanced economies due to energy efficiency efforts and the shift towards less energy-intensive forms of economic activity, such as services. But it is still growing rapidly in many emerging market and developing countries, especially those where a significant fraction of the population still lacks access to electricity.
Electricity is primarily used for heating, cooling, lighting, cooking and to power devices, appliances and industrial equipment. Further electrification of end-uses, especially transportation, in conjunction with the decarbonisation of electricity generation, is an important pillar of clean energy transitions.
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