Project Background

Baidoa, located in Somalia’s South West State is a strategically important city and economic center in southern Somalia, located along a key trade corridor that connects the city to the seaport in the capital Mogadishu.

The political situation in South West State, including Baidoa, is currently considered stable. However, in 2009 Baidoa was captured by the militant extremist group al-Shabaab. Somali forces retook control in 2012. Since then an African Union peacekeeping operation (currently the African Union Transition Mission in Somalia or ATMIS) - deployed alongside the Somali National Army and assisted with operational support from the United Nations Support Office for Somalia (UNSOS) - have ensured the security of the city.

According to UNDP, 65% of the population in Somalia does not have access to electricity, and those who do have access to electricity rely on diesel generators for power as modern electricity infrastructure does not exist.

In December 2023, a 2.8MWp solar photovoltaic power plant with 4.8 MWh of battery storage, owned and operated by CrossBoundary Energy and Kube Energy, will be commissioned in Baidoa. The system - located within the secure “green zone” on the outskirts of Baidoa, near the airport and the United Nations compound - will soon supply electricity to UNSOS, the Government of South West State, and the population of Baidoa.

Financing and construction of the power plant is a pioneering achievement; it is the first example of a power purchase agreement (PPA) between a private sector renewable energy developer and United Nations peace operation that enabled the former to finance the power plant while allowing the latter to transition away from diesel as its principal source of power generation in favor of renewable energy. Based on a separate agreement with the state government, ownership of the plant will be transferred to South West State after 15 years and will form part of Baidoa’s permanent energy infrastructure. In the meantime, electricity will be supplied to the local population once an agreement with a local distributor is negotiated.

Role of P-REC and project impacts

The majority of the revenue from the sale of P-RECs from the new 2.8MWp solar plant will be used to install electricity distribution lines and supply power from the solar system to Bay Regional Hospital, Baidoa’s main health facility. This will increase the hospital’s energy security by improving the reliability of its electricity supply, decrease its dependence on diesel generators for power, and reduce its energy costs. The hospital will also be able to run essential health equipment more reliably and increase the quality of care to patients overall.

The remainder of the revenue will be used to support the operating costs of the 2.8MWp solar plant, which is projected to reduce the fuel consumption of UNSOS by over 1 million liters per year and reduce CO2 emissions by 2,800 tons per year.

This project is expected to contribute to the following SDGs: