1st Solar IPP Project In Djibouti

• AMEA Power will build a 25 MW solar power plant in Djibouti, to be accompanied by storage capacity
• To be located in the Grand Bara region, the project will be completed on a BOOT basis
• It is expected to generate 55 GWh/year, to be sold to national utility Electricité de Djibouti for 25 years

Dubai-based renewable energy company AMEA Power has secured a 25-year power purchase agreement (PPA) with the Government of Djibouti for a 25 MW PV plant with battery storage. It says this will be the 1st solar independent power producer (IPP) project in the African nation.   

The company, that secured $75 million funding from Japan's SoftBank Group in July 2023, will fully develop the project on a build-own-operate-transfer (BOOT) basis in the country's Grand Bara region. The Sovereign Fund of Djibouti (FSD) will pick up a minority stake in the project before it achieves financial close.  

On completion, the facility will supply 55 GWh/year solar power to national utility Electricité de Djibouti. 

"East Africa is an important market for AMEA Power, as it is a region with immense potential for the development of clean, reliable, and affordable energy," said AMEA Power Chairman Hussain Al Nowais.  

In May 2023, AMEA secured a PPA for an 85 MW solar power plant in South Africa (see Africa PV News Snippets).   

Djibouti targets to bring down its carbon emissions by 40% by 2030. The country is exploring renewables at a much bigger level as well. In December 2022, it announced a memorandum of understanding (MoU) with CWP Global for a 10 GW solar and wind powered green hydrogen project at the Horn of Africa (see 10 GW Renewable Energy & Green Hydrogen Hub In Djibouti).