Somalia

Population 14.3 million, GDP grwoth 4.9%, GDP Cap $434.20. Renewable and alternative energy sources such as solar and wind power, present substantive opportunities to diversify and expand the energy infrastructure

Somalia

ENERGY SECTOR OVERVIEW

Since the fall of Somalia’s central government in 1991, electricity generation and distribution has solely been a role of the dynamic Somali private sector. The current installed generation capacity is approximately 103 MW.  While most power companies rely on diesel generators for electricity generation, interest and investment is growing in hybrid systems that draw on solar and wind energy resources. According to a recent study done by AfDB, the country has the highest potential of any African nation for onshore wind power and could generate between 30,000 to 45,000 MW.  Solar power could potentially generate an excess of 2,000 kWh/m2. Only an estimated 15% of the population has access to electricity.

GENERATION CAPACITY

  • Installed Capacity: 103.9 MW
    • Diesel: 100 MW
    • Solar/Wind: 3.9 MW
  • Power Africa New MW to Date Reached Financial Close: N/A
    • Power Africa 2030 target: 500 MW

CONNECTIONS

  • Current Access Rate: 15%
    • Rural: 1% Urban: 35%
  • Households without Power: 2.4 million

INVESTMENT AND ENABLING ENVIRONMENT

Biggest Issues

  1. Limited regulation & oversight of the sector
  2. Monopoly distribution control in some areas
  3. Acute shortage of qualified staff  
  4. Generation and distribution losses due to poor infrastructure and collection (up to 40%)
  5. High tariffs due to energy company inefficiencies
  6. Insecurity and political instability

Power Africa Interventions

  1. Institutional capacity building for public energy agencies and associations
  2. Technical assistance to improve efficiency and operations of private sector energy companies
  3. Technical assistance to improve access to alternative energy solutions for targeted industries
  4. Demand/generation studies

 

POWER AFRICA’S ENGAGEMENT IN SOMALIA

ENABLING ENVIRONMENT

Somalia’s power sector faces significant challenges, including lack of sufficiently trained labor, a weak regulatory environment, high investment costs, scarcity of energy production supplies, and poor infrastructure.  Given the unavailability of traditional project finance, coupled with the local Islamic financial practices, Somalia has developed its own capital-raising mechanisms for infrastructure projects which are evolving as projects grow in size and scale.  Companies have successfully raised significant sums from diaspora in the U.S. and beyond for energy projects. Despite great strides made recently by the private sector to increase the production and distribution of electricity, the annual consumption of electricity per capita remains among the lowest in Africa.

DONOR ENGAGEMENT

Somali government agencies are slowly regaining technical capacity and resources to direct the important policy discussions and activities needed to fill existing gaps in energy sector oversight.  The Somali government has prioritized the drafting of an energy policy, strategy, and regulatory framework to facilitate more private sector investment in alternative renewable energy, and also to explore the possibility for technically viable cross-border energy trade with neighboring countries. The Somaliland Electrical Energy Act was prepared with the support of USAID and the UK’s Department for International Development, while the

Somalia National Energy Policy adopted in 2014, resulted from a European Union-funded project.

USAID/Somalia currently supports the Somali government and private sector to increase the availability of quality energy and to reduce tariffs through the provision of a wide range of technical assistance to develop the electricity supply industry.  Efforts in this regard include:

  • Provide institutional capacity building for Somali public energy agencies;
  • Provide technical assistance to private sector companies to improve the capacity and efficiency of operations;
  • Improve collaboration between private sector entities throughout Somalia, including the country’s energy association, in order to increase technical capacity within the energy sector;
  • Undertake targeted energy demand/generation studies; and
  • For targeted industries, such as fisheries and dairy, improve access to alternative energy solutions.

FACT SHEET

Last updated: June 06, 2018

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