The development of renewable energy in Djibouti has become a national priority as the country aims to achieve 100% energy generation from renewable sources. Situated in the Horn of Africa, Djibouti currently relies heavily on energy imports to meet domestic demand. As energy needs rise and climate risks intensify, the government has launched major renewable energy projects to promote energy independence and long-term economic growth.

Why Djibouti Needs Renewable Energy

Djibouti faces high electricity prices due to its reliance on imported fossil fuels. The country also experiences power shortages that hinder industrial growth and daily life. According to the World Bank, only 65% of the population had access to electricity in 2022—and in rural areas, that number drops below 20%. This limited access disproportionately affects poor and remote communities, where families are forced to rely on expensive diesel generators or go without electricity entirely.

Without reliable power, small businesses struggle to operate, students are unable to study after dark and health clinics face life-threatening service disruptions. In fact, 50% of Djiboutians lack reliable electricity, contributing to significantly higher infant mortality and economic instability in off-grid regions. Djibouti’s overall poverty rate remains high, with more than 17% of the population living below the national poverty line.

To reduce costs and improve access, Djibouti’s government created the National Energy Strategy, which aims for 100% renewable electricity production by 2035. Launched in 2020, the initiative focuses on geothermal, solar and wind energy projects supported by international investors and development organizations.

Major Projects Advancing Renewable Energy in Djibouti

Several large-scale energy projects have transformed renewable energy in Djibouti from a goal into a reality:

1. Ghoubet Wind Power Plant: In 2023, the 58.9 MW Ghoubet Wind Power Plant became Djibouti’s first utility-scale wind energy facility. Developed by Africa Finance Corporation, Climate Fund Managers and Great Horn Investment Holding, it marked the country’s first privately financed independent power project. Taking advantage of the highest annual wind speeds in Africa, the plant significantly boosts Djibouti’s renewable energy generation and decreases its reliance on imported electricity from Ethiopia. The $122 million project was completed in just 24 months and supplies power at a competitive rate of $0.07–$0.08 per kWh. It is expected to improve supply reliability, strengthen the business environment and mobilize additional foreign investment. The project also supports job creation and climate resilience by avoiding the emission of approximately 154,526 tons of CO₂ equivalent per year—contributing to long-term economic and environmental gains for Djibouti’s young population.
2. Fiale Geothermal Project: Located in the Lake Assal region, the Fiale Geothermal Project has received funding from the World Bank and the African Development Bank. The project aims to generate 50 MW of geothermal power and will eventually serve more than 300,000 people. Djibouti’s geothermal resources, among the best in East Africa, have the potential to support continuous, low-cost energy production.
3. Grand Bara Solar Plant: In 2021, the government partnered with Engie and the Djiboutian Office of Development and Energy Efficiency to begin construction on a 25 MW solar facility in the Grand Bara Desert. The plant includes battery storage systems to ensure an uninterrupted supply and has already started providing clean power to underserved rural areas. Indeed, full completion is expected by late 2025, with plans to expand capacity as demand grows.

Key Benefits of Renewable Energy in Djibouti

Key benefits of renewable energy in Djibouti are:

• Increased Energy Independence: Reduces reliance on energy imports from Ethiopia
• Lower Energy Costs: Renewable energy projects will decrease electricity tariffs over time
• Job Creation: New facilities have created hundreds of construction and maintenance jobs
• Climate Resilience: Clean energy reduces emissions and environmental damage

Ongoing Challenges and Solutions

While renewable energy in Djibouti continues to expand, the country faces obstacles. These include limited technical expertise, underdeveloped grid infrastructure and high upfront costs. To address these issues, Djibouti has partnered with the United Nations Development Programme (UNDP) to train local engineers and expand grid connectivity to rural communities.

Additionally, the African Development Bank (ADB) launched the Desert to Power initiative in Djibouti to improve solar access across the region. Since 2022, it has funded mini-grid projects reaching more than 50,000 residents in remote areas.

Djibouti’s commitment to renewable energy has placed the country on a path toward energy security, economic growth and environmental sustainability. Through targeted investment and international cooperation, renewable energy in Djibouti is no longer a distant goal, but a rapidly growing reality.

– Hayden Chedid

Hayden is based in Parker, CO, USA and focuses on Technology and Global Health for The Borgen Project.

Photo: Unsplash