Yingli Solar
The construction phase will create around 150 and 200 direct and indirect jobs, with 60 full-time positions available once the project reaches commercial operation

On Thursday, the President of the Republic of Djibouti, Ismaïl Omar Guelleh, initiated the development of a 300MW solar power plant by laying the first stone. The solar plant is located in Grand Bara, in southern Djibouti.

The solar plant will be developed in six phases, with each phase being installed with a 30MW capacity.

The project is being developed through a partnership between the Republic of Djibouti and Green Enesys, a German company specialising in renewable energy.

The total project cost is estimated around $390 million (ZAR7 billion) and will be financed through a programme partnership arrangement.

Community upliftment

During the construction phase, around 150 and 200 direct and indirect jobs will be created with 60 full-time positions available once the project reaches commercial operation.

The project is in line with government’s goal to reduce the cost of energy, while simultaneously working towards achieving the goal of providing all of Djibouti's energy requirements from renewable sources within the next decade.

Currently, 65% of the energy used in the Republic of Djibouti comes from a renewable source, the hydropower interconnection with Ethiopia, the government said in a statement.

Expanding clean power projects

Renewable initiatives including wind, geothermal, solar, and wave energy capabilities are all underway in Djibouti.

“The geothermal electricity generation programme is a priority for the government and its potential is acknowledged as one of the highest in the world,” the government said.

According to the Government of the Republic of Djibouti, the country’s energy demand is expected to rise significantly over the coming years as it undertakes a major investment programme in core infrastructure projects. These projects will support the east African country’s position as a maritime and regional logistics hub.

The IMF recently said that economic growth reached 6.5% in 2015 and is estimated to be the same level in 2016.