Somalia’s economy is growing and needs affordable energy to continue developing. The National energy deficit in the country is considerable proving an opportunity for potential investment. As a priority enabling sector, investments to offer competitive energy prices and alternatives to current energy sources (generators, charcoal) will prove profitable for both investors and government.

According to AfDB’s assessment, the energy mix is dominated by charcoal and firewood; meeting nearly 80 to 90% of the energy needs of the whole country and undermining manufacturing and forest sustainability. Renewable energy sources are a viable and immediate way to increase affordable energy for Somalis.
Investments in renewable energy are multiplying in Africa as the costs of renewable technologies decrease. Somalia has one of the highest potentials for onshore wind power in Africa and one of the highest rates of daily total solar radiation in the world. The cost of renewable energy options are decreasing and are now often less expensive than diesel options.
Overall, the total installed and operational generating capacity in Somalia is estimated to be 80 to 85 MW and an estimated 250,000 connections.  Drops in voltage are frequent and supply is limited to 5 to 6 hours per day.