President Ismail Omar Guelleh inaugurated on September 8th 2023, Djibouti’s first-ever wind farm, advancing his stated ambition to make the nation of 1.1m people the first in Africa to rely entirely on renewable sources for electricity by 2035.
Red Sea Power (RSP) will provide 60 megawatts of clean energy, boosting the country overall capacity by 50%. The plant is located near lake Goubet on a 387 hectares land (equivalent to 700 football pitches) and is composed of 17 turbines.
Until now, Djibouti has been entirely reliant on power generated from imported fossil fuels, as well as hydrogen generated power imported from neighboring country like Ethiopia. Less than half of the 123MW of domestic installed capacity is operational due to outdated diesel plants. Critically for the East African nation, the new clean energy will spur industrialization, job creation and economic stability as Djibouti seeks to take advantage of its strategic location as a global transshipment hub.
Djibouti’s new wind farm provides an opportunity for companies currently outside the grid to decarbonize and replace their diesel-generated power with clean energy.
This project is an important milestone in Djibouti’s aim to be entirely served by renewable energy sources by 2035. The country has enough wind, solar and geothermal resources to triple existing capacity to at least 300 MW.
In addition to the socio-economic impacts of the project, the innovation in the transaction structure itself has the potential to create systemic impacts by encouraging more investments in the region.