The Establishment of an Institutional and Regulatory Framework for Renewable Energies in Djibouti

Abstract

The ambition of the Republic of Djibouti is to become the first African country where 100% of the country’s energy production is from green energy sources. Renewable energies are cleaner than the fossil fuels currently being exploited around the world. These sources are diverse and varied, ranging from solar energy to wind power to geothermal energy. The Djiboutian government's development plan provides for the implementation of projects from different sources of renewable energy, distributed as follows: wind, geothermal and solar. These projects will be implemented through public and private funding, with particular emphasis on power purchase agreements. Ownership of the resources will be marketed by the State, although the rights of use and development of a power station may be granted to an independent energy producer for a certain period of time, with the possibility of extension. The goal of the Djiboutian government is to regulate the interaction of humans with their environment so that they do not pollute, in order to make sure that the Djiboutian ecosystem can develop according to its own laws and ensure the preservation of its exceptional or historical aspects. Thus, the legal framework for geothermal energy is being established with the support of UNDP and the Government of Djibouti, and the same will apply to other renewable energies. As part of these preparations, Djibouti has already put in place a legislation in respect of Independent Power Producers (IPP’s) and is preparing to implement a regulation to apply the provisions of the IPP legislation. Furthermore, BBA, along with subcontractors Reykjavik Geothermal, ÍSOR and Verkís, have been selected to put into practice an institutional and regulatory framework for geothermal energy in Djibouti, as well as potentially for other sources of green energy, with the purpose of increasing the understanding and importance of the renewable energy sector for the country’s economy and social wellbeing.