📋 Tender Overview
Project ID: P173763
Region: Africa
Commitment Amount: Us$ 45.00 million
Total Project Cost: Us$ 58.92 million
The Project Development Objective (PDO) is to enhance the trade of reliable, low-cost, and clean electricity between Ethiopia and Dj ibouti.
Domestic electricity generation in Djibouti (currently dominated by fossil fuel/ thermal production) is highlydependent on international prices of petroleum products. This has a negative impact on the cost of electricity supply and the country's balance of payments. The high price of electricity is considered as one of the main factors limiting economic growth in Djibouti. The significanthydropower potential (one of the cheapest power supply options) of Ethiopia and the enormous investments made in the development of hydropower plants provides Ethiopia with opportunities to export hydropower to neighboring countries. The storage of Energy provided throughits Hydro Dams can act as a regional Battery to help smaller networks such as Djibouti’s to absorb more intermittent renewable supply than otherwise possible A first double circuit 230kV tie line between Ethiopia and Djibouti has been completed inMay 2011,which has been supplying about 80percentof total power demand in Djibouti. Some demand is suppressed (clients such as industries are self-producing) and the capacity is currently insufficient for peak demand. The starting point of the first interconnection line is the Dire-Dawa III substation, which also serves adjacent towns located in the Eastern part of Ethiopia. As it is an industrial area, power demandis increasing, and when all expected future demand (dominated by industrial facilities, irrigation and the Ethiopia-Djibouti railway) materializes, the existing Koka –Dire Dawa III 230 kV single circuit and Koka Hurso 230 kV double circuit transmission lines would no longer suffice to evacuate power, thus calling for additional High Voltage transmission line capacity. At the same time, power demand in Djibouti is growing and new sources of supply would need to be secured by 2025 (in addition to the ongoing 60 MW Ghoubet Wind and 30 MW Grand Bara Solar PV projects).
