GSU powers Berbera with new solar plant

Company executives said the 5 MWp facility is now supplying electricity directly into the local grid, providing cleaner power to households and businesses in a city that has long relied on imported fuel for electricity production. Berbera, strategically located along the Gulf of Aden, has emerged as a growing commercial hub following investment in its port and logistics infrastructure, increasing demand for reliable and affordable energy.

Global South Utilities, headquartered in Abu Dhabi, focuses on resource and utility investments across emerging markets. The Berbera solar plant represents one of its first large-scale renewable projects in the Horn of Africa. According to company officials, the installation is expected to generate enough electricity to power thousands of homes while reducing carbon emissions by offsetting diesel-based generation that has historically dominated the region’s power supply.

Energy costs in Somaliland have been among the highest in Africa, largely due to small-scale diesel generators operated by private utilities. Analysts note that the introduction of grid-connected solar capacity could ease pressure on tariffs over time, although the scale of impact will depend on further expansion and integration into existing networks. Solar irradiation levels in the region are considered favourable, offering strong potential for additional photovoltaic deployment.

The Green Berbera initiative, unveiled alongside the plant’s commissioning, outlines plans for further renewable energy investments, energy efficiency programmes and environmental stewardship projects. Company representatives described it as a platform to mobilise capital and technical expertise for sustainable urban development, with a focus on clean power, water management and climate resilience.

Officials from Somaliland’s energy authorities welcomed the project, describing it as a milestone in the territory’s transition towards diversified energy sources. While Somaliland is not internationally recognised as a sovereign state, it has maintained its own administrative structures since declaring independence from Somalia in 1991. Infrastructure development, particularly in energy and transport, has been a priority for its leadership as it seeks to attract foreign investment and expand trade links.

Berbera’s transformation has been driven in part by investment from DP World, the Dubai-based ports operator, which secured a long-term concession to develop and manage the port. The expansion has increased cargo throughput and positioned the city as a gateway for landlocked Ethiopia. Rising commercial activity has underscored the need for stable electricity supply, especially for cold storage, logistics and industrial operations.

Renewable energy specialists say the 5 MWp capacity, while modest by global standards, can have a material impact in smaller grids such as Berbera’s. Distributed solar projects are often faster to deploy than conventional power plants and can be scaled incrementally. However, integration challenges remain, including grid stability, storage requirements and coordination with existing diesel generators.

Global South Utilities indicated that the plant incorporates modern photovoltaic modules and inverters designed to withstand high temperatures and coastal conditions. Engineers involved in the project said careful site selection and grid studies were conducted to ensure compatibility with Berbera’s distribution network. Training programmes have also been introduced to build local technical capacity for operation and maintenance.

Regional energy observers point out that Gulf-based companies have been expanding their footprint in African renewable markets, driven by experience gained from large-scale solar development in the United Arab Emirates and elsewhere. Falling technology costs and improved financing structures have made projects in frontier markets more viable, particularly when paired with development-oriented initiatives.

Somaliland’s broader energy strategy includes exploring wind resources and improving regulatory frameworks to attract independent power producers. Limited access to multilateral financing, due to its political status, has historically constrained large infrastructure projects. Partnerships with private investors and companies from the Gulf and other regions are therefore seen as crucial in bridging funding gaps.

Environmental advocates argue that solar investments in cities such as Berbera can deliver dual benefits by cutting emissions and reducing air pollution associated with diesel generators. Cleaner energy can also enhance public health outcomes and improve reliability for essential services, including hospitals and water pumping stations.