In the latest news, Siemens Gamesa Renewable Energy SA (BME:SGRE) has announced to build a wind farm in Djibouti. It will be the company’s first project with an African investor. Sources report the new development will double the country’s presently installed power generation capacity.
Furthermore, the project will also help curb the cost of electricity, will augment energy independence and reduce the country’s CO2 emissions.
Electricity costs in Africa are the highest and energy access rates and reliability are the lowest in the world. The latest and first project of Siemens Gamesa in the Republic of Djibouti will further promise cleaner and more affordable and reliable energy in Africa.
In the wake of the new development, Markus Tacke, CEO of Siemens Gamesa said, “Access to affordable energy is key to supporting long-term sustainability and economic growth. Industrialization, agricultural improvement or even the expansion of municipal water systems depend on reliable and cost-effective energy access. This project is another step in Siemens Gamesa’s commitment to shaping a sustainable future for Africa.”
The project is a consortium of four entities, these include, Africa Finance Corporation, the Dutch development bank FMO, Climate Investor One (Dutch investment funds in green energy in Africa, Asia and Latin America) and local company Great Horn Investment Holdings SAS. Furthermore, the project is supported by MIGA, the World Bank’s Multilateral Investment Guarantee Agency.
Sources reveal, Africa Finance Corporation (AFC) will invest USD 63 million (EUR 58m) in the installation alongside Great Horn Investment Holdings (GHIH), the investment vehicle wholly-owned by Djibouti Ports and Free Zones Authority (DPFZA).
The wind-farm project is scheduled to begin its operations in mid-2021. Siemens Gamesa will reportedly install 17 units of SG 3.4-132 wind turbines at a site spanning 395 hectares (976 acres) in the Ghoubet area near Lake Assal.