Shanghai Electric Group Co Ltd (HKG:2727) has signed a pact to build a 60-MW wind park in Djibouti that would be the African country’s first such facility.
The Chinese group entered into a memorandum of understanding (MoU) with the Djiboutian Ministry of Energy last week regarding the wind project, which will be carried out in two 30-MW stages.
The Djibouti Electricity Authority (EDD) has already conducted feasibility and data collection studies for the scheme. The project also envisages building two 230-kV power lines in the northern part of the country.
The Republic of Djibouti, which sits at the crossroads of one of the world’s busiest shipping routes, has committed to become Africa’s first nation to source all of its energy from renewables by the next decade.
“Energy demands are high and Djibouti needs cheaper power to fund the expansion of its ports, which have seen a surge in movement of cargo particularly servicing landlocked neighbour, Ethiopia,” commented energy minister Ali Mahmoud Yacoub.
The country is also developing geothermal, solar and wave energy projects in addition to wind schemes. The government has prioritised geothermal power generation because Djibouti’s geothermal potential “is acknowledged as one of the highest in the world”, according to a press release.
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