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Development of a legal framework and strategy for the electricity sector in Djibouti

Development of a legal framework and strategy for the electricity sector in Djibouti

State 

completed

Date 

1 November, 2012 to 30 November, 2014

Country 

Djibouti

Region 

East Africa

Summary

This type of activity was part of the RECP start-up phase and is now being offered under the Service Line SEADS.

Djibouti has a great potential for renewable energy, particularly geothermal, wind and solar power. However, currently all electricity produced in Djibouti by the national electricity utility, Électricité de Djibouti (EDD), is generated from thermal generators powered by heavy fuel oil and diesel. In addition, Djibouti imports 80% of the electricity consumed from Ethiopia. EUEI PDF received a request from the Ministry of Energy in charge of Natural Resources (MERN) Djibouti for assistance in developing a legal framework for the electricity sector.

The goal of this project was to assist the MERN in formulating a National Strategy and Action Plan for the electricity sector, as well as preparation of a draft electricity law. This has been done in collaboration with other stakeholders in the sector and the rural electrification subsector (ie other ministries, Electricité de Djibouti - EDD, the Agence Djiboutiienne de Developpement Social - ADDS, the private sector, the Centre de Eétudes et de Recherche de Djibouti - CERD, technical and financial partners, donors, etc.).

In order to inform the setting of targets for the Electricity Strategy and estimate investment requirements, four energy scenarios were developed in Phase I of the intervention:

  1. renewable energies are not introduced into the energy mix (“business as usual”)
  2. geothermal energy competes with conventional energy sources and imports from Ethiopia (high fossil fuel prices)
  3. geothermal energy competes with conventional energy sources but with low fossil fuel prices (robustness check of scenario 2)
  4. geothermal energy is no longer an alternative, but other renewable sources such as wind and solar compete with conventional sources.

The results of the analysis showed that the introduction of renewable energies remains the most economic option for Djibouti. 

Phase II had two main products: on one hand a draft electricity law which permit the modernisation of the sector and on the other hand the strategy (long term) and action plan (short – medium term) to achieve the desired scenario.

The Strategy and Action Plan fed into and contributed to the Government’s intention to develop a Sustainable Public Policy in the Energy Resource use. Furthermore, the strategy developed was the basis for a draft electricity law which is now awaiting parliamentary approval to become law.

Further an energy business dialogue event accompanying the project in Djibouti took place in May 2013 focusing on the national private sector, academia and civil society and incorporating regional experiences.

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