Energy in Somaliland

$0.59

national tariff per kWh since December 2025 — down from $0.73

$0.20

what Berbera pays per kWh today — down from $0.39

60–80

MW installed in the entire country — far below demand

5.5–6.0

kWh/m²/day of solar irradiation — strong, steady sun

7–9

m/s coastal wind speeds — commercially strong

Sources listed at the bottom of this page.

All sectors

The arithmetic

Diesel Prices, Desert Sun

The gap between what Somalilanders pay and what their sky delivers is the whole investment case.

The grid today

Fragmented, diesel-fired private producers — no national grid
Electricity prices that were long among the highest in the world
60–80 MW of capacity for a nation of 5.7 million
Fuel imported by sea and trucked inland, at full price volatility

The resource overhead

Solar irradiation of 5.5–6.0 kWh/m² per day, almost year-round
Coastal and escarpment winds averaging 7–9 m/s
Flat, cheap, sun-drenched land beside port logistics
A government that cut the national tariff in December 2025

Utility-scale solar farm in the desert — Utility-scale solar in desert conditions — the model Berbera is now building.

The proof

Berbera Already Shows the Way

A World Bank-backed $20M project is building 12 MW of solar with a 36 MWh battery and new transmission lines in Berbera — and a UAE-backed $24M solar project broke ground in 2026 on top of it.

Berbera's tariff had already fallen to $0.20 per kWh by mid-2025, as the project launched — roughly a third of what the rest of the country pays. Other cities in Somaliland still pay the national rate, and could follow the same approach.

Where investors fit

Four Ways In

Each one replaces expensive diesel with cheaper sun and wind — work Israeli energy companies have long experience in.

Utility-scale solar with storage

Every project that displaces $0.59/kWh diesel power with ~$0.20/kWh solar lowers bills for customers who are already connected and paying. Berbera — already down to $0.20 — sets the template; Hargeisa, Burao, and the corridor towns are the follow-on markets.

Solar-hybrid conversion of the diesel IPPs

The sector is a patchwork of private producers running diesel generators — natural joint-venture partners for solar-plus-battery retrofits that cut their fuel bill and their tariffs at once.

Coastal wind development

Average wind speeds of 7–9 m/s along the coast and escarpments are commercially strong by any standard. Berbera pairs the resource with the port logistics needed to bring turbines in.

Commercial & industrial captive power

Factories, hotels, cold-chain facilities, and the quarantine yards of the livestock trade all pay the same steep tariffs — rooftop and captive solar is a direct way to cut those bills.

Government-to-government track: on 17 June 2026, Somaliland and Israel's Energy Ministry agreed to promote cooperation on water and energy — one of the first sectors with a government-to-government commitment behind it.

Exploring Energy? Start With an Introduction.

The Society connects solar, wind, storage and grid companies with the utilities, municipalities and partners working on Somaliland's power supply.

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