Africa Finance Corporation (AFC) becomes the lead financier of the country's first independent power producer (IPP) project.

On September 10, 2023, a significant launch ceremony was held in Djibouti, a strategic country in the Horn of Africa, to inaugurate an innovative energy project. President Ismaïl Omar Guelleh held the historic inauguration of Djibouti's first wind farm, demonstrating his stated ambition to make his country the first in Africa to rely exclusively on renewable sources for its electricity by 2035.

The Red Sea Power (RSP) wind farm, located near Ghoubet Bay, will provide 60 megawatts of clean energy, increasing total capacity by 50% and annually avoiding the emission of 252,500 tons of CO2, equivalent to more than 55,000 buses. The wind farm extends over 387 hectares, equivalent to more than 700 football fields. The site's 17 Siemens turbines generate 3.4 megawatts each, are connected to a 220 megawatt ampere (MVA) substation and connected via a 5 kilometer overhead transmission line to the local grid operator and storage facilities.

This project, which represents the first major international investment in Djibouti's energy sector with a value of US$122 million, establishes the country's first independent power producer (IPP) and will serve as a model for future private investments.

The RSP-led investor consortium already expects an additional 45 megawatts of renewable energy capacity, and is comprised of infrastructure solutions provider Africa Finance Corporation (AFC) as lead developer, Dutch business development bank FMO, asset manager co-finance funds Climate Fund Managers (CFM) and Great Horn Investment Holding (GHIH), an investment company owned by a unit of the Djibouti Ports and Free Zones Authority and the Djibouti Sovereign Fund.

Article source:Financial Afrik