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As Djibouti wakes up to the potential of geothermal and wind, and looks to the P2X potential of green hydrogen, its small and fossil-fuel dependent power sector could be on the brink of major change. An update of planned generation projects by African Energy Live Data identifies the most important plants and raises questions about how the government’s ambitious net zero ambitions can be achieved, write Camilla Nytun and John Hamilton.

Financing from Saudi-based International Islamic Trade Finance Corporation is part of a $600m three-year deal signed in May 2023 and will pay for imports of petroleum products needed for electricity generation.

UAE-based players have used COP28 to commit – and recommit – to projects that could supply over 12GW of renewables capacity across Africa. Emiratis argue this displays a willingness to push projects forward and shoulder risk, while others have failed to deliver – and if critics complain they are also prominent in the oil lobby, Abu Dhabi can counter that the UAE has assumed a leading role in enabling Africa’s energy transition.

The Red Sea Power (RSP) Ghoubet wind plant has been commissioned. The $122m project is Djibouti’s first utility-scale independent power producer (IPP) and its first on-grid renewable energy plant. African Energy takes a look at the potential impact of the plant, which represents the first steps towards achieving the government’s energy transition goals.

Amea Power has signed a power purchase agreement (PPA) with state utility Electricité de Djibouti (EDD) that will see the Dubai-based compnay become the first independent power producer (IPP) to develop a solar project in Djibouti.

The European Investment Bank (EIB) has committed funds to double capacity at the Doraleh desalination plant near Djibouti City, develop a solar PV plant to meet the higher power demand and expand wastewater treatment plants at Doraleh, Balbala and Douda.

Lagos-headquartered multilateral the Africa Finance Corporation (AFC) has set out its stall as a financier and partner for the continent’s energy transition, with a strategy to support renewable energy and critical minerals projects around the continent, as well as the development of battery manufacturing supply chains. The AFC also plans to continue supporting short- to medium-term energy needs by backing upstream and midstream gas projects and gas-to-power (GTP) developments. Marc Howard spoke to AFC executive director and chief investment officer Sameh Shenouda during the recent Africa Energy Forum in Nairobi.

The pioneering Ghoubet wind IPP, which is nearing completion, will bolster Djibouti’s grid and supply electricity to an associated desalination project, in a pilot project that may point towards a potentially huge Power-to-X offtake demand.

Kenyan President William Ruto visited his Djiboutian counterpart Ismail Guelleh on 11 June, signing four MoUs. One MoU was for the proposed Hanle Garabbayyis geothermal development.

Green hydrogen (GH2) pioneer CWP Global’s proposed project in Djibouti – with a possible extension into Ethiopia – highlights the Horn of Africa’s potential to become one of the continent’s future fuel hotspots, alongside Egypt, the Atlantic north-west running from Morocco to Mauritania, and the south-west margin from Namibia to South Africa.

Global Alliance for People and Planet and the Norwegian government have pledged more funding to support the development of solar power in Sahel countries.

The World Bank Group board has approved a $55m loan financing for Electricité de Djibouti’s portion of a new interconnection with Ethiopia, in a project also supported by the African Development Bank, as Djibouti tackles the infrastructure demands of the port city’s accelerated growth. Djibouti is also looking to raise its renewables generation, with wind, geothermal and other projects moving ahead after delays

China under President Xi Jinping has shifted markedly from its position of not intervening in foreign conflicts – even in a multilateral context – and positioning its forces far from the People’s Republic. Beijing has stepped up its military presence in Africa over the last decade, in large part through its contributions to United Nations peace-keeping missions.

Engineering, procurement and construction contractor Siemens Gamesa has told African Energy that ten of the 60MW Ghoubet wind plant’s 17 SG3.4-132 turbines have been installed; full installation is expected by early October.

The African Development Bank (AfDB) board has approved two grants worth a combined $83.6m to build a second transmission line between Ethiopia and Djibouti. The grants were secured from the AfDB’s African Development Fund, with $69.65m for Ethiopia and $13.95m for Djibouti.