By SalifuFaridat
Amea Power, an independent power producer (IPP) based in the UAE, has inked a power purchase agreement (PPA) with Électricité de Djibouti (EDD) for a 25 MW solar power plant in the Grand Bara region.
This significant milestone marks the realization of the Grand Bara solar project, made possible through Amea Power’s commitment. The plant will incorporate a battery storage system to ensure a continuous supply of electricity, even during periods of low sunlight or inclement weather.
The solar facility is projected to generate approximately 55 GWh per annum, with the electricity being supplied to the public utility EDD under a 25-year contract. Hussain Al Nowais, Chairman of Amea Power, expressed pride in supporting Djibouti’s energy transition and highlighted East Africa’s potential for clean, reliable, and affordable energy development.
Hussain Al Nowais further noted that the solar plant would have the capacity to provide power to around 66,500 people, contributing to Djibouti’s goal of reducing carbon dioxide (CO2) emissions by 40% by 2030. Djama Ali Guelleh, Managing Director of EDD, co-signed the PPA with Hussain Al Nowais.
Djibouti currently relies entirely on fossil fuels for its installed capacity of 126 MW, according to Power Africa. Amea Power will construct the plant through a public-private partnership (PPP). Additionally, Djibouti’s Sovereign Wealth Fund (SDF) is set to join Amea Power as a minority shareholder before financial close, supporting the revival of the Grand Bara solar complex project.
While Engie had previously signed a framework agreement for 30 MW in 2019, it subsequently withdrew from the project. Despite these challenges, Grand Bara and other clean energy initiatives in Djibouti aim to meet the rising electricity demand, which is increasing by 10% annually, according to Yonis Ali Guedi, Djibouti’s Minister of Energy and Natural Resources.
Until these projects come to fruition, Djibouti continues to import electricity from Ethiopia via a 283 km high-voltage line, supplying 95 MW to the national grid. This represents 65% of Djibouti’s electricity consumption. Ethiopia, on the cusp of becoming the energy hub of the Horn of Africa with the Renaissance Dam’s 6,450 MW capacity, is poised to inject an additional 60 MW into Djibouti’s grid through a new 190 km high-voltage line currently under construction.