Djibouti Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Djibouti

  1. ClimateTop, d., (nd),  Sunshine & Daylight Hours in Djibouti, Djibouti, Retrieved on November 4, 2024, from https://www.climate.top/djibouti/sunlight/.
  2. Soalrgis, d., (nd), “Solar Irradiation in Djibouti, Retrieved on November 3, 2024, from https://solargis.com/resources/free-maps-and-gis-data?locality=djibouti.
  3. AfricanNews, d., (August 2024), Djibouti slashes electricity prices in a bid to power growth, Retrieved on 10 Nov,2024 from https://www.africanews.com/2016/04/06/djibouti-slashes-electricity-prices-in-a-bid-to-power-growth/.
  4. Ourworldindata, d., (nd), Djibouti: Energy Country Profile, Retrieved on 14 November, 2024, from  https://ourworldindata.org/energy/country/djibouti.
  5. EDD official Website, d., (January 2022), Home page, Retrieved on 11 November, 2024 from https://web.archive.org/web/20211203184330/https:/www.edd.dj/index.html.
  6. IRENA, d., (2024), RENEWABLE ENERGY STATISTICS 2024, Retrieved on 10 November, 2024 from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf.
  7. ScienceDirect, d., (January 2022) ,Grid connected hybrid renewable energy systems for urban households in Djibouti: An economic evaluation, Retrieved on 12 November, 2024 from  https://www.sciencedirect.com/science/article/pii/S1026918522001019.
  8. UNIDO, d., (nd), Fact sheet for geothermal development to promote Public-Private Partnerships in East Africa Djibouti, Retrieved on 14 November 2024 from https://downloads.unido.org/ot/32/09/32096050/Geothermal%20fact%20sheet%20for%20promoting%20PPP%20-Djibouti.pdf.
  9. Redseapower, d., (nd), 60MW Red Sea Power Wind Farm Project in Ghoubet Djibouti, Retrieved on 9 November 2024 from https://redseapower.dj/.
  10. African Business, d., (nd),  “Renewable Energy Goal of Djibouti,” Retrieved on  November 3 2024, from https://african.business/2024/05/dossier/how-djibouti-will-produce-100-green-energy-by-2035.
  11. Tommy tyaro, d., (nd), Solar energy, an untapped resource in Djibouti, Retrieved on 13 November, 2024 from https://www.tommytayoro.com/fr/solar7.
  12. Worldsalaries, d., (2024), Average Solar Engineer Salary in Djibouti for 2024, Retrieved on 10 November, 2024 from (https://worldsalaries.com/average-solar-engineer-salary-in-djibouti/.
  13. World salaries, d., (2024), Average Solar Photovoltaic Installer Salary in Djibouti for 2024, Retrieved on 10 November, 2024 from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-djibouti/.
  14. Worldometer, d., (nd), Djibouti Population, Retrieved November 4, 2024, from  https://www.worldometers.info/world-population/djibouti-population/.
  15. ICRIC, d., (2023), DJIBOUTI FREE ZONE – INVESTMENT GUIDE, Retrieved on 14 November, 2024 from https://icricinternational.org/wp-content/uploads/2023/11/investment-laws-Djibouti.pdf.
  16. EDD Official, d., (April 2022),  Electricité de Djibouti Retrieved on 13 November, 2024 from https://web.archive.org/web/20220114073919/https:/www.edd.dj/edd.html.
  17. EDD , d., (2018), Electricité de Djibouti, Retrieved on 10 November, 2024 from https://web.archive.org/web/20220114073919/https:/www.edd.dj/edd.html.
  18. Energy-Utilities, d., (September 2023), New solar, wind projects to push Djibouti’s energy transition, Retrieved  November 3, 2024, from  https://energy-utilities.com/new-solar-wind-projects-to-push-djibouti-s-energy-news122191.html.
  19. DailyNewsEgypt, d., (October 2024),  Egypt and Djibouti sign agreement to build solar power plant,  Retrieved on November 3, 2024, from  https://www.dailynewsegypt.com/2024/10/15/egypt-and-djibouti-sign-agreement-to-build-solar-power-plant/.

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Sunshine Duration: Djibouti has a desert climate with an average of 9 hours of sunshine per day and around 3,285 hours per year. 1

Direct Normal Irradiation (DNI): The average DNI, Djibouti receives is about 5.0 kWh/m² per day, and approximately 1,825 kWh/m² per year. 2

Global Horizontal Irradiation (GHI): The average GHI Djibouti receives is about 6.0 kWh/m² per day, and approximately 2,190 kWh/m² per year. 2

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kWh per kWp installed

The average PV Output in Djibouti is about 4.8 kWh/kWp per day and approximately 1,752 kWh/kWp per year. 2

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Average cost per kWh from utility company

The average cost of electricity in Djibouti is 0.234 USD/kWh.3

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Reliability of electrical power supply grid

Until 2021, Djibouti provided only 66% of its population with electricity.4

In 2019, Djibouti System’s Average Interruption Frequency Index (SAIFI) was 13.93 interruptions per customer.5

In the same year, the System Average Interruption Duration Index (SAIDI) reached 9 hours 22 minutes on average for each customer.5

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Detailed Information

  • All figures have been converted into USD

    • Total solar panel production capacity (installed)

    The International Renewable Energy Agency (IRENA) estimated that the total installed Solar Panel Production Capacity in Djibouti was 0.36 MW (off-grid Solar Energy only) in 2023.6

    Total solar panel production capacity (projected)

    It is estimated from all sources that almost 25.5 MW of solar capacity is under construction in Djibouti.

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    Thermal Energy: $0.32/kWh 7

    Solar Energy:  $0.002/kWh 7

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    89

    Most of the electricity is produced by Thermal power or Wind Energy (recently installed in 2023). 42 MW is imported from Ethiopia.(2019)

    Power Source Installed Capacity (MW)
    Thermal power (HFO and Diesel) 126
    Solar power plant 0.3
    Hydro-electricity (Imported) 42
    Wind Energy 60
    Total 228.3

    Projected Renewable Energy: 10

    • Djibouti aims to produce 100% of its electricity from renewable sources by 2035.
    • The country has committed to reducing CO2 emissions by around 40% by 2030 under the Paris Agreement.

    Average daily availability of electricity from the national grid (measured in hours)

    This data is not publicly available.

    Number of residential solar panel installations

    A company named Solar7 has provided 500 autonomous domestic solar kits in homes and working-class neighborhoods. 11

    Total number of solar farms (installed and projected)

    Installed:

    Currently, 0 solar farms are operating in Djibouti.

    Projected:

    It is estimated from the research that 2 solar farms are under construction in Djibouti.

    Off-grid market demand for solar panels (current and projected)

    The International Renewable Energy Agency (IRENA) estimated that the total installed Solar Panel Production Capacity in Djibouti was 0.36 MW (off-grid Solar Energy) in 2023.6

    Projected: This data is not publicly available

    On-grid market demand for solar panels (current and projected)

    According to IRENA data, 0 MW of On-grid Solar panel capacity is currently installed in Djibouti.6

    Projected: This data is not publicly available.

    Average monthly income of workers in solar industry (labor cost)

    • The average monthly salary of a solar Engineer in Djibouti is 1462 USD.12
    • The average monthly salary of a solar Installer in Djibouti is 922 USD.13

    Population of the country

    The current population of Djibouti is approximately 1,173,946 as of Sunday, November 3, 2024.14

    Average overhead costs of solar panel production (with a brief breakdown)

    15

    Estimate for Factory Rent:

    In Djibouti, the rental rate for factory space in the Free Zone is 13.5 USD/m2/month, with annual payments in advance. The lease term is five years and renewable.

    Industrial Electricity Rates: 0.42 USD/kWh

    Water Costs: 1.41 USD/m3

    Garbage Disposal: 85 USD/month (yearly basis)

    Key Components of Administrative Costs

    Salaries and Wages:

    • The average monthly salary of a solar Engineer in Djibouti is 1462 USD.12
    • The average monthly salary of a solar Installer in Djibouti is 922 USD.13

    Rent for Office Space: 30 USD /m2/month. 15

    A summary of the energy infrastructure

    Total installed electricity generation capacity: 130MW

    Total generation: 0.13TWh.4

    Per capita generation: 116 kWh. 4

    Generation mix: 89

    Most of the electricity is produced by Thermal power or Wind Energy (recently installed in 2023). 42 MW is imported from Ethiopia.(2019)

    Power Source Installed Capacity (MW)
    Thermal power (HFO and Diesel) 126
    Solar power plant 0.3
    Hydro-electricity (Imported) 42
    Wind Energy 60
    Total 228.3

    Leading players: 916

    The electricity sector in Djibouti is controlled by several entities, including:

    Electricité de Djibouti (EDD)

    The state-owned utility that generates, transmits, distributes, and sells electricity in Djibouti. EDD is a monopoly for electricity transmission and distribution, but the market for generation has been open since 2015.

    Red Sea Power (RSP)

    The company that manages the design, construction, and operation of Djibouti’s first wind farm. AFC is the lead developer and project manager for RSP

    Ethiopia

    Djibouti receives electricity from Ethiopia through a 283-km interconnection link completed in 2011. As of late 2022, Ethiopian-produced electricity accounted for 60-80% of Djibouti’s annual electricity consumption.

    Transmission & Distribution:17

    Djibouti’s electrical transmission system comprises 1,457.6 km of power lines:

    • High Tension (HT) lines: 418.6 km
    • Medium Tension (MT) lines: 399 km
    • Low Tension (BT) lines: 640 km

    Major power plants:

    Thermal Power Plants: 16

    The Electricity of Djibouti (EDD) has a comprehensive electrical infrastructure, comprising:

    • Two primary systems in Djibouti City, with a total installed capacity of 113 MW, consisting of the Boulaos power plant and the Marabout power plant.
    • Two secondary systems serving the northern and southern regions, with a combined installed capacity of 10 MW, covering Ali-Sabieh, Dhikil and Tadjourah, Obock, .
    • the effective generation capacity is currently limited to 57 MW

    Other Renewable Energy sources

    • Wind energy: In September 2023, Djibouti inaugurated its first wind farm, the Red Sea Power wind farm, which is located in the north of the country. The farm has 17 wind turbines with a total capacity of 60 MW.9
    • Geothermal: Djibouti has an estimated geothermal potential of 1,000 MW, which could meet the country’s electricity demand. The Asal geothermal field is the most explored geothermal field in the country.8

    Hydropower:

    Djibouti imports hydro energy from Ethiopia to meet more than half of its electricity demand.

    Some of the government regulations surrounding solar panel production

    There is no publicly available data.

    Government initiatives in solar panel production (includes investments and subsidies)

    Djibouti has set ambitious targets to produce 100% green energy by 2035 and has launched several initiatives and investments in solar panel production to achieve this goal. This includes a 25MW solar PV project with battery storage in Grand Bara, and a renewable energy deal with Egypt to install a 276.5-kilowatt photovoltaic power plant, as well as wind and geothermal energy projects. These initiatives demonstrate Djibouti’s commitment to renewable energy and its goal of becoming a regional energy hub.1819

    Notable solar projects in the country (installed and projected)

    Currently no solar farm is operating in Djibouti.

    Projected Solar Projects:

    Grand Bara Solar PV Project

    AMEA Power, a Dubai-based clean energy company, has signed a 25-year Power Purchase Agreement (PPA) with the Government of Djibouti to develop a 25 MW to 50 MW solar PV plus battery storage system in the Grand Bara area. The solar plant is expected to generate around 55 GWh to 100 GWh of electricity annually and will be sold to the public utility EDD for 25 years. 18

    Egypt and Djibouti have also signed an agreement to build a 276.5 kilowatt solar power plant in Djibouti, funded and implemented by Egypt.19

    Some of the notable solar companies (plus brief details on what they do)

    AMEA Power: AMEA Power, a leading renewable energy company, has signed a 25-year Power Purchase Agreement (PPA) with Electricité de Djibouti (EDD) for a 25MW solar PV project with battery storage in Djibouti. The project will produce 55 GWh of electricity per year and sell it to EDD for 25 years. This marks AMEA Power’s expansion in East Africa, where they have a strong presence and several projects in operation, construction, or advanced development.

    Website: AMEA Power

    Solar Power Solutions Pvt Ltd: Offers solar panel installation, solar energy systems, and solar power plants for residential, commercial, and industrial clients. They provide comprehensive solar solutions to cater to specific client needs.

    Website: www.solarpspl.com

    Djibouti Power (DJIB POWER): Provides solar panel installation, energy efficiency solutions, and energy storage solutions for a stable and reliable energy supply. They aim to promote renewable energy and reduce fossil fuel dependence.

    Website: www.djibpower.com

    CEDEC Energie et Eau (CEDCEA): Offers solar panel installation, solar water pumping, and energy efficiency solutions for residential, commercial, and industrial clients. They focus on providing sustainable energy solutions for a cleaner environment.

    Website: www.cedceedamaal.com

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