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Solar developer SkyPower has announced the signing of a landmark agreement with Djibouti for the development of 200MW of solar projects to be built in four phases over the next four years. SkyPower said the project would represent an estimated investment of $440m, including corporate social responsibility investments of $11m towards education, training, research and development in Djibouti. “SkyPower’s commitment will reduce Djibouti’s dependence on energy imports and significantly increase local power generation capacity,” said executive vice-president Charles Cohen.

Djibouti
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The governments of Ethiopia and Djibouti have signed framework agreements for a 1.55bn, 550km pipeline to transport diesel, gasoline and jet fuel. The agreements were signed with Mining, Oil & Gas Services (MOGS), part of South Africa’s Royal Bafokeng Holdings, and Blackstone Group-backed Black Rhino Group. Financial close is expected in 2016, with construction scheduled for completion two years later.

Ethiopia | Djibouti
Issue 304 - 10 July 2015

Djibouti: MoU for wind farm

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Energy minister Ali Mahmoud Yacoub has signed a memorandum of understanding with Shanghai Electric for the construction of a 60MW wind farm, in line with Djibouti’s commitment to becoming the first African country to generate all its energy from renewable sources by the next decade. Feasibility and data collection studies for the project were carried out by Djibouti Electricity Authority. The wind farm will be constructed in two 30MW phases, and the project will include the construction of two 230kV power transmission lines in northern Djibouti.

Djibouti
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Electricité de Djibouti is seeking a consultant to provide technical management for a $31.2m geothermal exploration project in the Lake Assal region. The consultant will oversee the project, which will last for around three years and see four wells drilled to depths of between 2,000 and 2,500 metres in the Fialé Caldera area.

Djibouti
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Electricité de Djibouti has released the general procurement notice for the Fialé-Caldera geothermal power project in the Lake Assal area. The project aims to develop a 50MW geothermal power plant in three phases to 2018. Tender documents are expected to be released soon. The first phase will take 30 months and is expected to be completed by May 2016.

Djibouti
Free

Ethiopia and Djibouti have signed an agreement for a second power interconnection. The 230kV transmission line running from Semera in Ethiopia’s Afar region to Jaban in Djibouti will allow Djibouti to import between 35MW and 70MW, though the Addis Fortune said Djibouti was not expected to take more than 50MW. The existing 230kV line was commissioned in 2011 and supplies around 35MW.

Ethiopia | Djibouti
Issue 258 - 12 July 2013

Djibouti: Geothermal funding

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The African Development Bank (AfDB) and Sustainable Energy Fund for Africa (Sefa) – a $57m bilateral trust fund managed by the AfDB and funded by the Danish government – approved $7.5m of grant and concessional finance on 8 July for a geothermal project in the Lake Assal region. The finance is part of an AfDB strategy to mitigate the high risks associated with geothermal exploration. The project will be structured as a public-private partnership, in which the government of Djibouti will be taking the lead on the $32m first phase of exploration and appraisal drilling.

Djibouti
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The Ministry of Energy has been working with the European Union Energy Initiative-Partnership Dialogue Facility (EUEI-PDF) to develop a national strategy and action plan for the electricity sector and to prepare a renewable energy law. According to EUEI-PDF – which held an energy business dialogue meeting in Djibouti on 29-30 May, under the auspices of the Africa-EU Energy Partnership (AEEP) – Djibouti “is endowed with a high renewable energy potential, which has led the country to develop stringent targets to achieve 100% renewable energy by 2035”.

Djibouti
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President Ismaïl Omar Guelleh’s government has signed a memorandum of understanding (MoU) with China Petroleum & Chemical Corporation (Sinopec) aimed at relaunching exploration of the country’s geothermal energy potential. Speaking at the first UK-Djibouti Trade and Investment Forum in London on 8 May, ministers from Djibouti said that, after four-and-a-half years in financial limbo, the government had secured the means to proceed with development. Sinopec and the government first signed a geothermal resource co-operation framework agreement in Beijing in July 2012. Economy and finance minister Ilyas Moussa Dawaleh told the forum that Sinopec had agreed to develop, on a joint venture basis, two “high-potentiality” sites at Obock.

Djibouti
Free

The government launched an anti-corruption initiative in late April backed by the country’s inspector general, Hassan Sultan. “From the public procurement process to electoral reform and international co-operation, corruption can have a negative impact on a wide range of important functions of the state, and it is our responsibility to eradicate it wherever it is found,” he said. The launch came a few days before Sultan travelled to London for the UK-Djibouti Trade and Investment Forum.

Djibouti
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TKE-Djibouti Power Light (TKE-DJPL) has brought in Aggreko to provide 57MW of short-term power supply. A 5MW unit will be commissioned within six weeks of contract signing with the remaining 52MW scheduled for operation in May. The diesel-fuelled facility will be located next to Djibouti’s International Airport.

Djibouti
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The AfDB’s geothermal programme, initiated in the mid-2000s, is coming to fruition with the interest shown by private sector developers in the 400MW Menengai geothermal complex in Kenya, and the bank now intends to apply its new approach across the region, writes Dan Marks

Kenya | Rwanda | Comoros | Ethiopia | Djibouti | Tanzania
Issue 240 - 05 October 2012

Djibouti: High-risk play for Oyster

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Former Heritage and Candax chief Michael Wood says his new high-risk frontier play in Djibouti will take several years to mature.

Djibouti
Issue 234 - 29 June 2012

AfDB backs geothermal plans

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A team from the African Development Bank (AfDB) visited Djibouti in mid-June to discuss geothermal development plans. The AfDB has offered to plug any gap in existing donor funding.

Djibouti
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Though World Bank funding has been secured for exploration drilling, there remains considerable uncertainty over project finance and partnership arrangements to develop geothermal potential, writes Adrian J Browne

Djibouti