Somalia is accelerating efforts to expand renewable energy as it seeks to curb some of the highest electricity costs in Africa and reduce its heavy dependence on diesel-powered generation.
A government-issued tender to install off-grid solar systems at 22 health centres across the country is due to close on Thursday, January 15. Issued in November, the tender underscores a broader strategy to lower power costs, improve energy access and strengthen essential public services through renewable energy deployment.
Somalia’s electricity sector remains largely fragmented and dominated by private diesel generators, which account for more than 80% of power generation, according to the World Bank. In 2023, installed generation capacity was estimated at between 350 and 400 megawatts (MW), with cumulative solar capacity below 100 MW and wind power limited to small-scale projects, data from the International Renewable Energy Agency (IRENA) show.
Despite gradual gains, access to electricity remains low. About 49% of Somalia’s population had access to power in 2023, according to Africa Energy Portal data, with rural access lagging significantly at just 30.6%.
The Ministry of Energy and Water Resources is pushing to expand renewable energy both through grid-connected projects in major cities and off-grid systems in underserved areas. Authorities see decentralised solar power as a faster and more cost-effective way to extend electricity access, particularly in rural communities and public facilities such as health centres.
Several projects are already under development. A 55 megawatt-peak (MWp) hybrid solar plant with battery storage is planned for Mogadishu, aimed at supplementing existing diesel-based generation and improving grid stability. In the northeastern port city of Bosaso, the African Development Bank approved $23 million in 2023 to finance a clean electricity programme combining solar generation, grid expansion and upgrades to distribution infrastructure.
The renewed focus on renewables is being driven in large part by high electricity tariffs. The World Bank estimates that the average cost of electricity in Somalia stood at about $0.61 per kilowatt-hour in 2023, among the highest on the continent. In some areas supplied entirely by private diesel generators, prices exceeded $1 per kilowatt-hour, according to the Somalia Electricity Sector Recovery Project report published in 2024.
By comparison, average grid tariffs in neighbouring Kenya are around $0.15 per kilowatt-hour, while Ethiopia’s average is about $0.06, according to 2024 figures published by the U.S. Department of Commerce. The World Bank attributes Somalia’s higher costs to its reliance on imported fuels, small-scale generation and the absence of a unified national grid.
More Read
Authorities argue that Somalia’s renewable resource potential could help narrow that gap. IRENA estimates that the country receives average solar irradiance of more than 6 kilowatt-hours per square metre per day, placing it among the strongest solar markets globally. Somalia also has significant wind resources along its long coastline, though large-scale wind projects have yet to materialise.
The government has set an ambitious target to increase the share of renewable energy in the electricity mix to 50% by 2028, according to government documents cited by local media in 2024. Officials say achieving that goal will require sustained investment, regulatory reforms and continued support from development partners.
While challenges remain, including security risks and weak transmission infrastructure, Somalia’s growing pipeline of solar and hybrid projects signals a gradual shift away from diesel and toward cleaner, cheaper power in one of Africa’s most fragile energy markets.
