Djibouti authorities have awarded Shanghai Electric with the construction contract for the 60 MW Djibouti wind farm project, the first wind power plant to be built in the country.
Shanghai Electric's Vice President Chen Shuyu signed the contract agreement with Ali Yacoub, Djibouti's Energy Minister, on June 7th.
With a generating capacity of 60 MW, the project will be the first wind power farm in the country. Djibouti's Electricity Authority conducted the feasibility study on the infrastructure project and Shanghai Electric will now construct the site in two installation phases of 30 MW each.
The project also includes the construction of two 230 kV transmission lines in the northern part of the country. The entire endeavor is being sponsored by Djibouti's state owned power firm - Djibouti Electricity Company.
Ali Yacoub, the Djiboutian Energy Minister, expressed optimism for the success of the project which, he said, came at the opportune time to support the country's ambitions of becoming a regional and commercial hub.
Multiple feasibility studies have concluded that Djibouti is home to a large amount of wind, solar and geothermal renewable resources. However, the country produces no fossil fuel and is currently highly dependent on imported energy. Djibouti is aiming for energy independence by 2020.
Shanghai Electric has previously signed with Djibouti's Energy Ministry in 2013 for the construction of a transmission line linking the country to Ethiopia.