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| (Courtesy CIA.gov) |
Currently, despite sitting on potentially huge undeveloped geothermal energy, Djibouti imports 80 per cent of its electricity across the border from its neighbour Ethiopia. This has in essence rendered it dependent on Addis Ababa, with its economy’s energy needs being out of its control.
But all that is changing. The Horn of Africa nation now wants to take control of its energy security and geothermal, the low-hanging fruit, seems to provide a way out, alongside solar and wind farms.
Since geothermal projects are capital intensive in nature with long turnaround periods, the country has found concessionary funding partners in the World Bank and the French Development Agency (AFD). The AFD has equally funded a number of geothermal projects in Kenya, including Olkaria 1 and 4 in Naivasha.
Djibouti is developing one of its three major geothermal sites in the northern Lac Assal region to produce power after securing $50 million (Sh5 billion) in funding. The new plants will add 50-100 megawatts (MW) when completed next year. Presently, the country has a total installed capacity of about 120 MW, hardly enough for its economy, hence the heavy imports from Ethiopia.