- The 60MW Red Sea Power (RSP) wind farm, located near Lake Goubet in Djibouti, has been commissioned.
- The US$122 million project is the first wind farm in the country and the first under a public/private model involving an Independent Power Producer (IPP).
The consortium of investors behind the project are infrastructure solutions provider Africa Finance Corporation (AFC) as lead developer; the Dutch entrepreneurial development bank FMO; blended finance fund manager Climate Fund Managers (CFM); and Great Horn Investment Holding (GHIH), an investment firm owned by a unit of the Djibouti Ports & Free Zones Authority and Djibouti Sovereign Fund.
Read more on Djibouti’s renewable energy sector HERE
Djibouti is heavily reliant on power generated from imported fossil fuels. Less than half of the 123 MW of domestic installed capacity is operational due to outdated diesel plants. The new clean energy will spur industrialisation, job creation and economic stability as Djibouti seeks to take advantage of its strategic location as a global transhipment hub.
“We congratulate the President and people of Djibouti along with our Partners on this significant milestone towards advancing energy access in Djibouti through renewable wind energy” said Samaila Zubairu, President & CEO of the Africa Finance Corporation. “The equity bridge construction finance solution that we deployed has mitigated construction and completion risks, clearly demonstrating AFC’s solutions-focused, de-risking and execution capabilities, as well as introducing a pragmatic way to fast track financial close for projects in Africa.”
The wind farm spans 387 hectares with 17 Siemens turbines installed, each with 3.4 MW capacity. The electricity generated is to be sold under a long-term power purchase agreement to Electricité de Djibouti (EDD), the national state-owned utility. Using the project as a template for future IPPs, the Government of Djibouti is already working on several other plants for additional geothermal and solar capacity.
Author: Bryan Groenendaal
