Energy & Utilities
From The Report: Djibouti 2023
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As Djibouti’s demand for energy grows, the country is undergoing a transition towards renewables given its lack of domestic hydrocarbons reserves, while also aiming to reduce its carbon footprint and promote sustainable development more broadly. Various projects are underway to strengthen electricity links with neighbouring countries such as Ethiopia, fostering regional cooperation. Djibouti is also working to reduce its dependence on imported power by investing in domestic production and diversifying its energy mix. The government has ambitious plans to become the first country in Africa to fulfil 100% of its electricity demand from clean energy sources while also extending the power grid to reach 100% of the population.

This chapter contains interviews with Dabar Adaweh Ladieh, Director-General, International Hydrocarbons Company of Djibouti; and Yonis Ali Guedi, Minister of Energy and Natural Resources.

Articles from this Chapter

Overview

Long-term supply: Redesigning the energy mix to build independence and increase installed power generation capacity
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As Djibouti continues to expand its transport infrastructure and further positions itself as a trading centre in the Horn of Africa, the demand for a robust energy network is increasing. Djibouti has long relied on trade to supply a significant part of its energy needs due to its lack of hydrocarbons reserves. In recent years it has tapped clean hydropower from neighbouring Ethiopia via interconnected electricity infrastructure. Indeed, Ethiopian energy is used to meet more than half of Djibouti’s…

Interview

Renewed opportunities: Yonis Ali Guedi, Minister of Energy and Natural Resources, on renewables and ensuring energy autonomy
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Interview:Yonis Ali Guedi To what extent is the goal of 100% renewable electrification by 2035 achievable? YONIS ALI GUEDI: Reaching 100% electrification from renewables by 2035 is achievable, as demonstrated by the upcoming commissioning of the 60-MW Ghoubet wind farm and the construction of the 25-30-MW Gran Bara solar power plant. It is also shown through the upcoming geothermal power plant following the confirmation of geothermal resources, particularly in the Asal-Fialé and Gala‘le…

Interview

Ensuring supply: Dabar Adaweh Ladieh, Director-General, International Hydrocarbons Company of Djibouti (Société Internationale des Hydrocarbure de Djibouti, SIHD), on developing regional capacity
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Interview:Dabar Adaweh Ladieh How do you assess the key projects underpinning the growth of the hydrocarbons sector? DABAR ADAWEH LADIEH: Djibouti is located on the world’s third-busiest sea route for oil tankers, between the Red Sea and the Gulf of Aden. However, ensuring an adequate supply of fossil fuels has been challenging due to global supply constraints. The country’s hydrocarbons priorities are three-fold: to develop multi-product storage that will meet demand in Djibouti and neighbouring…

Analysis

Regional linkages: A second electricity interconnection link with Ethiopia marks another step towards regional integration
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In recent years Djibouti and Ethiopia have aligned bilateral cooperation efforts to grow their economies. Despite having a significantly smaller land area and lack of sizeable natural resources, Djibouti has used its access to trading routes on the Indian Ocean and the entrance to the Red Sea to become a trans-shipment nexus for its landlocked neighbour. Ethiopia’s hydroelectric dams have been key to such efforts to position Djibouti as a critical link in maritime trade. Djibouti receives electricity…

Analysis

Going green: Localising and diversifying the energy mix away from fossil fuels is crucial for achieving energy security
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As Djibouti continues to expand transport infrastructure to leverage its geographic position, rising energy consumption has required additional investment in energy infrastructure to increase supply. Beyond securing enough electricity to support economic growth and an expanding population, Djibouti has taken on the more challenging endeavour of deriving 100% of its power supply from renewable sources. As of late 2022, between 60% and 80% of Djibouti’s electricity comes from Ethiopia through a transmission…

Analysis

Water works: Ongoing sanitation and water projects seek to ensure safe supply
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Located in the Horn of Africa, Djibouti is one of the hottest and driest countries in the world, with annual rainfall at around 220 mm and an average temperature of 28.5°C. As climate change brings more extreme temperatures and increases the risk of water scarcity, ensuring sustainable access to water is a policy imperative. Given the added importance of clean water in decreasing the spread of diseases like cholera, hepatitis A, typhoid and polio, water and sanitation infrastructure has taken centre…

Analysis

Moving forwards: Desalination is seen as a reliable solution to water shortages, particularly as the technology becomes more economical
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Desalination is considered an expensive and energy-intensive process. However, mega-projects are seeking to tap renewable resources to limit the cost and environmental concerns associated with this crucial process. In June 2022 ENOWA, the energy, water and hydrogen subsidiary of Saudi Arabia’s NEOM mega-project, signed a memorandum of understanding with French energy company Veolia and Japanese trading company Itochu to develop a reverse osmosis (RO) water desalination facility fully powered by…

Analysis

Transition planning: Alternative energy demand and production is picking up pace in line with the transition away from hydrocarbons
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The energy transition continued apace in 2022 despite Russia’s invasion of Ukraine in February of that year, ongoing disruptions to supply chains and inflationary pressures – all of which translated into high energy prices around the globe. However, sustained high prices may mark an inflexion point in shifting the global energy system away from a dependence on hydrocarbons and towards lower-cost clean energy resources. Hydrocarbons are unevenly distributed around the world, require supply chains…