Dubai-based AMEA Power has secured a 25-year PPA from Djibouti's state-owned utility, Électricité de Djibouti (EDD), for a 25 MW solar-plus-storage plant it plans to build in Grand Bara, south of the national capital.

The solar plant is the country's first IPP project and will be developed under a BOOT model.

“The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder,” AMEA Power said, without providing additional details.

The African Development Bank Group published the 2016-20 Country Strategy Paper on Djibouti, revealing that the nation faces challenges such as insufficient distribution networks and high electricity prices. Most of Djibouti's energy supply, around 80%, is sourced from neighboring Ethiopia.

At the end of 2023, Djibouti was among the select few countries throughout the world that had yet to install any PV capacity, according to the International Renewable Energy Agency (IRENA).