Egypt Signs Landmark Deal to Build Solar Power Plant in Djibouti
In a significant move to deepen regional energy cooperation and advance sustainable development in the Horn of Africa, Egypt has officially signed a contract to construct a 3-megawatt solar power station in Djibouti.
The project will utilize off-grid photovoltaic (PV) systems, supplemented with a battery energy storage solution totaling 1129 kilowatt-hours, ensuring stable electricity supply in remote areas.
The contract was signed on Sunday in Cairo, marking a milestone in Egypt's growing role as a clean energy partner in Africa. The initiative is being jointly implemented by the Arab Renewable Energy Authority—affiliated with the Arab Organization for Industrialization (AOI)—serving as the main contractor, and Egypt's New and Renewable Energy Authority (NREA), which will act as the technical consultant.
Speaking on the condition of anonymity, a senior official involved in the deal told this publication, 'This project is more than just a solar station—it is a strategic foothold in East Africa and a testament to Egypt's commitment to exporting clean energy expertise across the continent.'
The agreement includes immediate mobilization, with a civil engineering firm already commissioned to begin foundational work at the project site in Djibouti. Sources familiar with the project logistics confirmed that groundwork is expected to start within days.
The power station will utilize advanced photovoltaic systems designed specifically for off-grid applications, which are critical in countries like Djibouti where vast areas remain disconnected from central power infrastructure. The addition of a robust battery storage unit will allow energy generated during the day to be stored and distributed during night hours or cloudy conditions, enhancing energy resilience.
The Egyptian government has made renewable energy diplomacy a cornerstone of its foreign policy, particularly in Africa. This project aligns with Egypt's broader strategy to expand its technical and industrial influence in the region while contributing to global climate action goals.
Energy analysts view this development as a potential precursor to a series of similar projects, with Egypt positioning itself as both a clean energy hub and a key infrastructure partner for African nations.
This venture not only supports Djibouti's energy transition but also bolsters Egypt's political ties in a geopolitically vital region near the Red Sea. Djibouti is home to several international military bases and plays a key role in maritime logistics between Africa, the Middle East, and Asia.
'Soft power through sustainable infrastructure is the new frontier of diplomacy,' said Dr. Leila Haroun, a North African energy policy expert. 'Egypt is using renewable energy projects to build trust, create alliances, and open up markets for its technology and expertise.'
As the world shifts away from fossil fuels, such partnerships may determine the next chapter in Africa's energy future—and Egypt appears keen to lead.
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