Somaliland Launches $24m Berbera Energy Project

Somaliland has launched a $24m renewable energy project in the coastal city of Berbera in a move designed to improve electricity supply, cut reliance on diesel generation and bolster the port city’s role as a commercial hub.

The project, which was unveiled on Monday by Somaliland’s Minister of Energy and Minerals, Eng. Axmed Jaamac Barre, will include a 12MWp solar power system and a 70MWh battery energy storage facility. The scheme is expected to improve the stability of electricity supply for households, businesses and industrial users in Berbera and across the wider Saaxil region.

The investment is being financed by UAE-based Global South Utilities (GSU) and is seen as part of wider efforts to expand clean energy infrastructure in Somaliland while attracting foreign capital into strategic sectors such as energy, logistics and maritime trade.

The launch ceremony was attended by Somaliland’s Minister of Livestock and Rural Development, Omar Shu’aib Mohamed, the Mayor of Berbera, Abdishakur Mohamed Hassan, senior government officials, energy sector representatives and local community leaders.

Speaking at the event, Mr Barre said the government sees Berbera as the country’s future commercial centre and is prioritising investment-led growth. He said the administration remains committed to supporting renewable energy projects that can help modernise essential services and strengthen long-term energy security.

“Berbera is becoming the country’s commercial hub. The President’s policy is based on bringing large-scale investment into the country,” he said.

“Many investors and companies are interested in Somaliland, particularly Berbera, because of its strategic commercial location,” he added.

He said the government would continue to back companies investing in renewable energy and described the project as consistent with President Abdirahman Mohamed Abdillahi Irro’s pledge to improve public infrastructure and expand access to reliable electricity.

Berbera has emerged in recent years as a key logistics and maritime gateway along the Gulf of Aden, helped by major investments linked to the expansion of Berbera Port and the Berbera Corridor, which connects Somaliland to regional markets.

The new project follows earlier renewable energy investments in the city, including a UAE-backed 5MW solar plant launched by GSU under the Green Berbera initiative. That earlier project was aimed at reducing dependence on diesel-powered electricity and improving sustainable energy access for more than 28,000 homes.

The latest expansion is expected to strengthen Berbera’s long-term economic prospects while reinforcing Somaliland’s ambitions to establish the city as a centre for trade, logistics and clean energy investment in the Horn of Africa.