Promoting Solar Self-Consumption for Sustainable Energy in Djibouti

Celebrated on 26 January, International Day of Clean Energy illuminates the role of climate-friendly energy in securing a more sustainable world. In this blog, Mr. José Barahona, UN Resident Coordinator in Djibouti, explores a joint programme that is building a new solar energy ecosystem and bringing light and new economic opportunities in the process. With solar power, the future is both literally and figuratively bright.

Djibouti has sunshine almost every day of the year. It is one of the hottest capitals in the world and among the driest countries on the planet. Yet for decades, this natural advantage was not reflected in how electricity was produced. Power generation has long been costly and complex, resulting in some of the highest electricity prices in Africa. Families, small businesses and entire communities have paid the price through high bills, unreliable supply and limited economic opportunity.

That reality is now changing.

Working hand in hand with the Ministry of Energy, the United Nations is supporting Djibouti in transforming abundant sunlight into affordable, reliable and clean energy for all. Through the joint programme "Promoting Solar Self-Consumption for Sustainable Energy in Djibouti," supported by a catalytic seed grant from the Joint SDG Fund, we are helping build a complete solar energy ecosystem, from policy and skills to markets and infrastructure.

In Djibouti City, the country is moving from almost no rooftop solar use toward a future where households and businesses increasingly generate their own clean energy. In rural areas, solar-powered mini grids are connecting towns that had never had electricity before, transforming daily life and economic prospects.

As Resident Coordinator, I convened several partners, including the UN Development Programme (UNDP) and UN Environment Programme (UNEP), to work closely with national institutions to ensure that solar energy can take root and thrive. Technicians and engineers have been trained. The private sector has been engaged from the start to ensure services, supply chains and maintenance are in place. Solar mini grids have been installed in remote areas. At the same time, national rules, regulations and quality standards have been adopted to guarantee high performance and safe installations.

The results have been striking. In just one year, Djibouti has gone from having almost no solar installations and limited technical capacity to hosting several solar companies, trained national engineers and even a facility assembling the first made-in-Djibouti solar panels.

Sunny New Beginnings

A major milestone came on 12 November with the first National Forum on Solar Energy. The forum brought together local businesses, many of them youth-owned, and gave them a national platform to showcase their innovations. For many entrepreneurs, it was their first opportunity to engage directly with the public, national decision makers and the media at this scale.

Samatar Mohamed, a young entrepreneur who launched a solar panel fabrication and installation company in the Djibouti Free Zone, shared, “This forum is a great opportunity for us to meet new clients, network with others and feel publicly recognised for our innovations and efforts.”

More actions are already underway. Together with the Government, the United Nations is supporting the creation of green financing mechanisms to help families and businesses access credit for solar installations. With the International Renewable Energy Agency (IRENA), we are developing a Solar City Simulator for Djibouti City. Solar mini grids are also being expanded in rural areas to reach more communities.

Engines of Growth

These efforts go far beyond energy. Djibouti continues to face high unemployment. While the port generates income, it does not create enough jobs. High electricity costs raise production expenses, discourage investment and force families, especially during the intense summer heat, to limit consumption just to pay their bills.

By expanding solar self-consumption, households will save money and reinvest it in the local economy. Small businesses will be able to grow and hire. Existing companies will become more competitive. New investors will be more willing to establish operations in Djibouti, drawn by lower energy costs and the country’s strong logistical position. Increased economic activity will generate jobs, strengthen public revenues and reduce dependency on external aid.

At the same time, widespread solar adoption will significantly reduce carbon emissions and support national climate commitments.

The universalisation of solar energy for families and businesses can be a powerful accelerator of economic growth, job creation and sustainable development.

The United Nations will continue working closely with the Government and communities to ensure that solar energy powers homes and businesses and supports the private sector, making Djibouti not only a logistical hub but a centre of excellence for renewable energy in the Horn of Africa.

Note:

All joint programmes of the Joint SDG Fund are led by UN Resident Coordinators and implemented by the agencies, funds and programmes of the United Nations development system. With sincere appreciation for the contributions from the European Union and Governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, The Netherlands, Norway, Poland, Portugal, Republic of Korea, Kingdom of Saudi Arabia, Spain, Sweden, Switzerland for a transformative movement toward achieving the SDGs by 2030.

This article was originally published on the Joint SDG Fund's website. Read more about the UN's work in Djibouti on the UN team's website.