About the Project
The Red Sea Power Project involves the construction and operation of a c.60 MW Wind Farm, and interconnection facilities comprising of a 220MVA substation and 5km overhead transmission line to connect to the Electricite de Djibouti (“EDD”) substation. The Project is located 120km outside the city.
The Ghoubet substation is part of the c.74km high voltage double circuit transmission line, being constructed by Shanghai Electric Power (“SEP”) on behalf of Electricité De Djibouti.
The project is the first wind farm project in Djibouti, representing a significant milestone for the country, on its path towards achieving its goal of 100% of electricity from renewable sources by 2030.
Project Size & Location
There is good access to the site from the port via paved roads. There are 17 wind turbines all of which will be located at least 500m away from inhabited residential buildings, structures or dwellings
The Project executed a 25-year take-or-pay power purchase agreement with EDD as the sole off-taker in May 2019.
Additional Project Support
EDD’s obligations are backed by an Implementation Agreement (“IA”) executed between the Project and the Ministry of Energy in May 2019 and a Sovereign Guarantee.
The obligations of the Government are covered by Political Risk Insurance received from the World Bank Group’s Multilateral Investment Guarantee Agency (“MIGA”).
Find more information about project details.
- The Project Facility has a mean annual wind speed of around 9.75m/s. These wind speeds allow for a P90 Annual Energy Production (AEP) of c.237,000MWh/ year.
- With the high and consistent wind speeds, the plant is expected to be able to provide electricity at competitive tariffs and furthermore support the country of Djibouti in providing affordable electricity.
Project Site (Location)
- The project is located approximately one Kilometer west of Lake Ghoubet, where the RN9 and RN10 roads intersect, in the Arta region of Djibouti.
- The project site was identified through a site selection process and was favoured due to consistent, average wind speeds throughout the year, as well as the presence of a good road network to access the site from Djibouti city.
High Development Impact
- The total installed capacity within Djibouti is 134.8 MW (as of 2018), with only 100.5 MW available; all power plants are Heavy Fuel Oil (HFO)/Light Fuel Oil (LFO.) Fuelled Electricity consumption has increased by 75% in the last decade, while power generation has only increased at a rate of c.6% p.a.
- Djibouti intends to harness 100% of electricity from renewable resources by 2030. The development of wind farms produces several economic benefits such as a savings on fuel as a result of volatile oil and gas prices alongside increase employment but also environmental benefits such as a reduction in GHG emissions.
- Assuming a moderate average capacity factor of 40%, the project is expected to avoid approximately 150,000 metric tons CO2 emissions/year reinforcing the positive impact the project has on the environment.