Von
With blood and Iron will we reach the fatherland
http://www.geeskaafrika.com/18296/future-looks-like-somalias-800-million-energy-plan/
MOGADISHU (HAN) May 5. 2016. Public Diplomacy & Regional Security News. Somalia is quietly rewriting its story with an energy plan to light thousands of homes and businesses at a cost about half the size of its economy.
The Horn of Africa nation, plagued by a war past, suffers a biting shortage of electricity. The sluggish repair or modernisation of power plants and transmission lines that were destroyed in civil clashes has not improved the situation.
Somalia’s power bills are among the most expensive in the world, dampening the prospect of attracting capital inflows from investors as stability makes a return into the country. Mogadishu relies heavily on costlier electricity from diesel generators with almost lack of alternative power sources.
The country has now developed a 10-year energy plan staggered up to 2025 to revamp the sector at a cost of US$ 803 million, or about half its gross domestic product (GDP).
A portion of the cash will go towards developing a large pool of skills in the sector through training alongside rollout of alternative cooking solutions from charcoal use.
If the plan is implemented, Somalia’s installed power capacity will grow from the current 85 megawatts (MW) to 285 megawatts by diversifying its energy mix to include solar and wind farms that will potentially lead to a massive economic growth.
Increased power supply at cheaper rates look set to brighten the future of Mogadishu, given that blackouts have been a heavy millstone weighing down the economy of the estimated 12.3 million people.
“Electricity supply has suffered from over two decades of neglect, including absence of investments due to widespread insecurity and disappearance of public resources and public oversight (rule of law),” the AfDB says in a report on Somalia.
Somali homes on average spend about 30 per cent of their incomes on energy needs, highlighting the central role of the utility in people’s welfare.
At almost US$ 1 per unit, Mogadishu’s power rates are five times more than what private firms charge in neighbouring Kenya for electricity from diesel generators at US$ 0.18 per unit, with Uganda charging US$ 0.40 and Burundi at US$ 0.12 per unit.
Analysts say Somalia stands to reap huge economic dividends if it chooses to follow a similar route. The hot climate gives it a huge untapped potential in solar and wind energy. Northern Somalia has deposits of coal, while the country’s coastline stretching over 3,333km could produce wave and tide-based power.
The US$ 803 million power plan, to be implemented in three-year phases, promises to change the country’s energy landscape.
“The proposal is for donors to finance 75 per cent of investment costs with the remaining 25 per cent required of the private investor to be repaid by users through the tariff, together with operation and maintenance of the systems,” the report says.
There are, however, glaring hurdles ahead in the implementation of the energy blueprint, including rickety public institutions, insecurity and a shortage of skilled manpower.
“It is likely that a number of actions mentioned here (in the plan) will face enormous implementation difficulties…. This is because most materials and equipment must be imported and there are few ports and few international shipping lines to serve them in part because of high risks due to piracy and the impossibility of insuring ships and cargo,” the report says.
The AfDB calls for the need to strengthen Mogadishu’s capacity by training government officials and workers to create solid skills set ahead of project rollout.
Out of the US$ 803 million energy plan, US$ 580 million will be for power generation and supply, while US$ 95 million will be used to facilitate homes to switch from charcoal and firewood to alternative energy sources like cooking gas (liquefied petroleum gas or LPG).
The remaining US$ 128 million will go towards training government officials and workers, introducing off-grid energy solution in remote villages and creating an energy regulatory agency.
The government seeks to wean 700,000 homes off charcoal use and convince people to switch to forest protection jobs.
The energy plan suggests that US$ 60 million be used to introduce off-grid energy solutions like solar lamps and batteries in rural villages, partly inhabited by nomadic communities.
The AfDB estimates that the creation of Somalia Electrification Institute, the proposed energy regulator, will cost US$ 10 million.
There are, however, concerns of cost overruns due to insecurity, a shortage of skilled labour and rampant vandalism.
Somalia plans to generate up to 50 megawatts of solar power, which accounts for a quarter of the proposed 200 megawatts by 2025.
“Another risk is that the training for needed qualified personnel may be very expensive or even not available. It might also be difficult to find external experts willing to spend long periods in Somalia,” the AfDB says.
MOGADISHU (HAN) May 5. 2016. Public Diplomacy & Regional Security News. Somalia is quietly rewriting its story with an energy plan to light thousands of homes and businesses at a cost about half the size of its economy.
The Horn of Africa nation, plagued by a war past, suffers a biting shortage of electricity. The sluggish repair or modernisation of power plants and transmission lines that were destroyed in civil clashes has not improved the situation.
Somalia’s power bills are among the most expensive in the world, dampening the prospect of attracting capital inflows from investors as stability makes a return into the country. Mogadishu relies heavily on costlier electricity from diesel generators with almost lack of alternative power sources.
The country has now developed a 10-year energy plan staggered up to 2025 to revamp the sector at a cost of US$ 803 million, or about half its gross domestic product (GDP).
A portion of the cash will go towards developing a large pool of skills in the sector through training alongside rollout of alternative cooking solutions from charcoal use.
If the plan is implemented, Somalia’s installed power capacity will grow from the current 85 megawatts (MW) to 285 megawatts by diversifying its energy mix to include solar and wind farms that will potentially lead to a massive economic growth.
Increased power supply at cheaper rates look set to brighten the future of Mogadishu, given that blackouts have been a heavy millstone weighing down the economy of the estimated 12.3 million people.
“Electricity supply has suffered from over two decades of neglect, including absence of investments due to widespread insecurity and disappearance of public resources and public oversight (rule of law),” the AfDB says in a report on Somalia.
Somali homes on average spend about 30 per cent of their incomes on energy needs, highlighting the central role of the utility in people’s welfare.
At almost US$ 1 per unit, Mogadishu’s power rates are five times more than what private firms charge in neighbouring Kenya for electricity from diesel generators at US$ 0.18 per unit, with Uganda charging US$ 0.40 and Burundi at US$ 0.12 per unit.
Analysts say Somalia stands to reap huge economic dividends if it chooses to follow a similar route. The hot climate gives it a huge untapped potential in solar and wind energy. Northern Somalia has deposits of coal, while the country’s coastline stretching over 3,333km could produce wave and tide-based power.
The US$ 803 million power plan, to be implemented in three-year phases, promises to change the country’s energy landscape.
“The proposal is for donors to finance 75 per cent of investment costs with the remaining 25 per cent required of the private investor to be repaid by users through the tariff, together with operation and maintenance of the systems,” the report says.
There are, however, glaring hurdles ahead in the implementation of the energy blueprint, including rickety public institutions, insecurity and a shortage of skilled manpower.
“It is likely that a number of actions mentioned here (in the plan) will face enormous implementation difficulties…. This is because most materials and equipment must be imported and there are few ports and few international shipping lines to serve them in part because of high risks due to piracy and the impossibility of insuring ships and cargo,” the report says.
The AfDB calls for the need to strengthen Mogadishu’s capacity by training government officials and workers to create solid skills set ahead of project rollout.
Out of the US$ 803 million energy plan, US$ 580 million will be for power generation and supply, while US$ 95 million will be used to facilitate homes to switch from charcoal and firewood to alternative energy sources like cooking gas (liquefied petroleum gas or LPG).
The remaining US$ 128 million will go towards training government officials and workers, introducing off-grid energy solution in remote villages and creating an energy regulatory agency.
The government seeks to wean 700,000 homes off charcoal use and convince people to switch to forest protection jobs.
The energy plan suggests that US$ 60 million be used to introduce off-grid energy solutions like solar lamps and batteries in rural villages, partly inhabited by nomadic communities.
The AfDB estimates that the creation of Somalia Electrification Institute, the proposed energy regulator, will cost US$ 10 million.
There are, however, concerns of cost overruns due to insecurity, a shortage of skilled labour and rampant vandalism.
Somalia plans to generate up to 50 megawatts of solar power, which accounts for a quarter of the proposed 200 megawatts by 2025.
“Another risk is that the training for needed qualified personnel may be very expensive or even not available. It might also be difficult to find external experts willing to spend long periods in Somalia,” the AfDB says.
Last edited:
