Djibouti secures first renewables project

Africa Finance Corporation (AFC), Climate Fund Managers (CFM), FMO and Great Horn Investment Holdings (GHIH) have invested in a 60MW wind project in the Ghoubet area of Djibouti. The project is being 100% equity financed and will likely be followed by a post-construction debt refinancing. The scheme is Djibouti's first renewables project.

The project - near Lake Assal  - is owned and operated by Red Sea Power Limited, a Djibouti-based limited liability company, and is expected to have its commercial operations start in 2022. 

AFC took the lead developer and project manager role. CFM took the co-developer and the technical lead role, while FMO has been responsible for insurance and ESG. GHIH provided local support in terms of engagement with the government.

Djibouti aims to transition towards 100% renewable energy-based electricity production and reduce its emissions by 40% by 2030.<