The total installed capacity for Somalia solar energy stands at 46 MW for solar.²⁴

Exact target for solar is not available but;⁶

• Somalia’s National Development Plan (NDP) aims to increase solar energy capacity as part of its goal to raise total generating capacity to 1,043 MW by 2027.
• A solar photovoltaic system in Somalia achieved a performance ratio of 70.8%.
• By 2030, the UN aims to power all its operations with 80% renewable energy.

Diesel Generators⁷

• Somalia’s electricity generation costs are elevated because the country relies on imported diesel generators, which account for 88% of its electricity production.
• Additionally, Somalia’s dependence on imported diesel results in high generation costs, contributing to some of the highest electricity tariffs in Africa, which exceed $0.50 per kWh.

Renewable⁵

• To mitigate high costs, some companies are integrating renewable energy into their operations.
• For instance, BECO, which manages power transmission and distribution in Mogadishu and other cities, has lowered its electricity costs from $0.49 per kWh to $0.36 per kWh by incorporating solar power into its energy mix.

As of June 2023, Somalia’s electricity generation sources are:²

• Diesel generators: 87.8%
• Solar: 11.9%
• Wind: 0.3%

Exact number of hours are not available but;⁸

• Due to infrastructure Deficiencies, Somalia’s energy infrastructure is underdeveloped, resulting in frequent power outages and inefficiencies.

Current installation⁹

The World Bank reported that over 1 million people in Somalia had access to off-grid solar solutions, either through home solar systems or small solar appliances.

Projected installations¹²

The UNDP-supported renewable energy expansion aims to install solar mini grids in rural areas, potentially benefitting 66,000 households in pilot phases.

Installed Solar Farms

Currently, there are three solar farms in Somalia.¹⁰

Projected Solar Farms

• Somalia plans for 46 Solar Mini grids.¹³
• Capacity: Total of 1.6 MW of solar PV and 5.3 MWh of battery energy storage​.¹⁴

Current Off-Grid Solar Panel Potential in Somalia¹¹

• Currently, Somalia faces substantial energy access challenges, with over 70% of the population lacking any electricity connection.
• The majority of those with access rely on costly, privately owned diesel mini-grids, which serve around 30% of the population at some of the highest rates globally.
• In rural areas, where most of the population resides, charcoal and firewood are the primary energy sources, contributing to deforestation and CO₂
• Despite these challenges, there is some traction in the off-grid solar market.
• Approximately 100,000–150,000 off-grid solar products are sold annually.
• Consumer awareness of off-grid solar is generally high, but issues persist, including the prevalence of low-quality products and difficulties in accessing financing.
• These factors limit the sector’s potential and impact.

Projected Off-Grid Solar Potential in Somalia¹²

• Somalia’s off-grid solar potential is significant.
• The Somali Electricity Access Project (SEAP) is a key initiative aimed at expanding access to electricity in targeted areas. SEAP plans to improve the quality of life for thousands of Somalis by increasing access to high-quality off-grid solar products.
• The project intends to reach at least 21,500 households (approximately 113,900 people) through enhanced consumer awareness, better financing options for solar entrepreneurs, and supportive policy measures.
• Additionally, recent tenders by the Ministry of Energy and Water Resources (MoEWR) for 46 off-grid solar-plus-storage projects in Mogadishu, totaling over 5 MWh, highlight the government’s commitment to expanding solar energy capacity.
• These efforts are expected to address current energy access issues and support the growth of the off-grid solar market in Somalia.

⁹

Current Demand

Electricity Access Gap:

• Approximately 65% of people in Somalia lack access to electricity. This substantial energy access gap highlights a significant demand for solutions to improve electricity availability.
• Existing energy solutions often rely on costly and polluting diesel minigrid systems.

Current Market Dynamics:

• Many rural and underserved communities are dependent on diesel minigrids, which are expensive and environmentally harmful.
• There is a limited ability for these private Electricity Service Providers (ESPs) to scale up due to restricted access to finance.

Current Solar Market:

• The adoption of solar technology is relatively low compared to other regions. However, there are ongoing efforts to introduce and expand solar solutions through pilot projects and partnerships.

Projected Demand

AMP Somalia Project Goals:

• The AMP Somalia project aims to significantly increase solar minigrid capacity by hybridizing existing diesel minigrids and integrating new solar technologies.
• Initial pilot projects are expected to provide electricity to around 66,670 people, with a focus on women and rural communities.
• The long-term goal is to address the energy access gap and promote a transition from diesel to solar, with the potential to mitigate approximately 594,000 tons of CO2-equivalent indirect emissions.

Future Growth:

• Increased Investment: The project’s success will likely attract further investment in solar technologies and infrastructure.
• Market Expansion: As the project demonstrates the viability of solar mini grids, demand for solar panels is expected to rise, particularly in rural areas where energy access is most critical.
• Technological Integration: Innovations like Pay-As-You-Go models will enhance market competitiveness and affordability, potentially leading to wider adoption of solar technology.

Regional and National Strategies:

• The ongoing support from the UNDP and Global Environment Facility (GEF) aligns with Somalia’s broader energy strategies, aiming to boost the market for solar panels as part of national development goals and climate action plans.

A Solar Photovoltaic Installer in Somalia would earn approximately:¹⁵

• Typical Annual Salary: $3,323.16
• Lowest Average Salary: $1,667.22
• Highest Average Salary: $5,160.48

The current population of Somalia is 19,104,820.¹⁶

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost¹⁷

Warehouse rents in Somalia are not available but one can contact:

• Hayaan Trading & Transportation Company . https://www.hayaanttc.com/warehousing
• In partnerships, they have storage facilities at convenient locations across Somalia with a combined capacity of over 20,000 MT and a total space of more than 2,500 m².

Key Components of Administrative Costs

Salaries and Wages:¹⁵

A Solar Photovoltaic Installer in Somalia would earn approximately:

• Typical Annual Salary: $3,323.16
• Lowest Average Salary: $1,667.22
• Highest Average Salary: $5,160.48

Monthly Rents for Office Space¹⁸¹⁹

Not available

• But one can contact Sultaan Business Park, on https://sbp.so/contact-us/
• Sultaan Business Park is a remarkable building, revolutionizing the way business is conducted in Somalia.

Electricity Generation³

• Diesel Generators: Most of Somalia’s electricity comes from diesel generators, which are costly and environmentally harmful. The generators and distribution equipment are often outdated and inefficient, leading to poor-quality electricity supply.
• Absence of National Power Grid: Somalia lacks a national power grid, which hinders the development of a unified electricity network.
• High Electricity Costs: The country faces some of the highest electricity prices in Africa.
• Lack of Legal and Regulatory Framework: There is no established legal and regulatory framework governing the energy sector.

 Transmission & Distribution²⁰

• Electricity in Somalia is primarily provided by private electricity service providers (ESPs) funded by private investors, often from the Somali diaspora.
• Despite the existing generation infrastructure, there are no inter-city transmission networks or substations.
• However, limited and inefficient distribution lines exist within major cities like Mogadishu, supplying power directly from generation sites to customers.
• Larger ESPs have set up medium voltage trunk lines (11KV and 33KV) and low voltage distribution systems (240-415V) in Mogadishu and smaller towns.
• Each ESP operates its own city grid for transmission and distribution, leading to multiple independent grids in the same city.
• This has resulted in numerous closely spaced electric poles along main roads, often with substandard wiring, causing safety risks and distribution inefficiencies.

 Energy Access³

• In 2020, the World Bank estimated that at least 49% of Somalia’s population had access to electricity.
• By 2023, the Somali Household Budget Survey reported that more than half of the population (61.9%) had electricity access, reflecting progress in expanding services. However, significant disparities remain based on location.
• Most urban residents (80.1%) have electricity, while only about a third (39.4%) of rural inhabitants do.
• Access is even lower among nomads and migratory herders, with fewer than 9% having reliable electricity.

Energy Exports²¹²⁰

• Somalia neither imports nor exports electricity with its neighboring countries, Kenya and Ethiopia, and there are no official plans in place to establish such exchanges.
• Somalia’s primary exports consist of live animals (34.8%), followed by natural or cultured pearls, precious and semi-precious stones, precious metals, and metal-clad products (24%).
• Other significant exports include fish, crustaceans, mollusks, and various aquatic invertebrates (5%), along with lac, gums, resins, and other plant-derived saps and extracts (5%).

Currently there are no regulations for solar panel production but;²²

• In Somalia, the development of solar energy, particularly off-grid solar solutions, is a key focus due to the country’s largely rural and nomadic population. The government, supported by organizations like the Africa Clean Energy (ACE) Programme, is working on building a supportive regulatory and policy framework for solar energy. The current initiatives focus on setting standards and regulations for the sector, managing import barriers, promoting affordable solar technology, and ensuring consumer awareness of international quality standards.
• In particular, there is a push for solar electrification to address the needs of off-grid rural communities. This includes stand-alone solar systems (SAS) that are seen as viable alternatives for areas that cannot be connected to a central grid. The aim is to balance regulatory interventions to enable private sector involvement while avoiding over-regulation that could hinder market growth​

The Somali government, supported by international partners, has launched several initiatives to boost solar energy production and access across the country. Key efforts include:²³

1. Somalia Electricity Access Project (SEAP): Funded by the World Bank with $7.2 million, this project aims to increase electricity access in off-grid rural and peri-urban areas by distributing solar home systems (SHS). The initiative targets over 100,000 households, focusing on renewable energy solutions to improve living standards.
2. Somalia Electricity Recovery Project: With $150 million in funding from the World Bank, this project aims to speed up access to clean and affordable energy. A significant portion, around $40 million, is dedicated to rural electrification through solar mini-grids and stand-alone solar systems. The project supports the development of solar infrastructure in underserved areas and aims to enhance energy security by reducing reliance on diesel-generated power​.
3. Somalia Power Master Plan (2019): This plan outlines a long-term vision for providing reliable, affordable, and sustainable energy in Somalia. It emphasizes both on-grid and off-grid solar solutions, with a focus on expanding access in rural regions. The plan includes measures to attract private sector investment in solar energy and develop regulatory frameworks for the renewable energy market.

Additionally, the government is working with the Africa Clean Energy Technical Assistance Facility (ACE TAF) to develop a regulatory environment conducive to solar investments, including subsidies, tax incentives, and efforts to remove import barriers for solar technologies​

¹⁰¹³¹⁴

Current Projects:

Project Name: Kube Energy Solar Hybrid Project in Baidoa

Capacity: 2.8 MW of solar PV and 4.8 MWh of battery storage
Location: Baidoa, Somalia

Details:

• Developed by Kube Energy in collaboration with the South West State of Somalia and CrossBoundary Energy.
• The project will establish the first hybrid solar power plant in Baidoa, supplying clean energy to the UN and potentially other organizations.
• Expected to displace 1 million liters of diesel fuel annually, avoiding 2,800 tons of CO2 emissions per year.
• The project will generate an estimated 4,000 MWh of electricity per year, with 90% provided by solar power.
• After 15 years, ownership will be transferred to local authorities​

Project Name: Mogadishu Solar Power Plant

Capacity: Not specified
Location: On the edge of Mogadishu, Somalia
Details:

• Established to lower electricity costs, replacing diesel-powered generators which provide some of the world’s most expensive energy (around $1 per kilowatt-hour).
• Aimed at addressing the energy crisis where 11 million people in Somalia lack access to electricity, as estimated by the World Bank

Project Name: Puntland Solar Plant

Location: Bosaso, the commercial capital of the state of Puntland, Somalia

Capacity: 3.5 MW

Details: The project involves the supply, installation, and maintenance of conversion and control units. It aims to provide consistent and affordable renewable energy, reduce carbon emissions, and support economic development in the region.

Projected Projects:¹²

Project Name: 46 Solar Mini grids

• Capacity: 1.6 MW of solar power, 5.3 MWh of battery energy storage
• Location: Mogadishu, Somalia
• Details: This project involves the development of 46 off-grid solar-plus-storage projects for education facilities. It is funded by the World Bank under the Somalia Electricity Sector Recovery Project (SESRP).

SECCCO (Somali Energy Company for Climate Change and Consultancy Organization)

Location: Garowe, Puntland, Somalia

Website: https://seccco.net/

Services and Products:

• Renewable Energy Projects: SECCCO designs and implements renewable energy projects across Somalia, ranging from small to large-scale.
• Research and Consultation: SECCCO provides expert consultation on renewable energy, guiding project design and execution.
• Training Center: SECCCO operates a training center for fresh graduates and students, offering hands-on training in renewable energy to prepare them for the job market.
• Women Empowerment: SECCCO involves women in leadership, product development, and management, with a focus on women’s roles in the renewable energy sector.

Somali Solar®

Location: HQ – Wadajir, Garowe, Somalia

Website: https://somalisolar.com/

Services and Products:

• Solar Power Purchase Agreements (PPA): As the only PPA provider in Somalia, Somali Solar helps clients reduce their electricity bills without upfront equipment costs. They focus on providing solar energy with 24/7 system performance monitoring, maintenance, and insurance coverage for repairs or replacements.
• Consultation and Installation: Somali Solar offers free consultations, site visits, and custom proposals before installing solar panels tailored to the client’s needs.
• Sustainability and Responsibility: The company delivers economically viable solar solutions while maintaining a commitment to environmental responsibility and long-term renewable energy development.

Tamarso

Website: https://www.tamarso.com/
Location: Bakaro Market, Mogadishu, Somalia

Services:

• Solar System Design
• Energy Management
• Installation & Maintenance
• Solar Lease & PPA

Products:

• Commercial and Industrial solar systems
• Mini-grids for off-grid communities
• Off-grid solar systems for MSEs
• Energy management system solutions