The Republic of Djibouti and Iceland have just entered an agreement to replace the East African country’s current diesel-generated electricity with a geothermal power plant. The plant has a 2012 project target start-up date. Djibouti is currently seeking to turn short-term gains into long-term stability for the country which has been riddled by various conflicts since receiving independence.
Djibouti representative Mohamed Ali Mohamed signed an agreement with Iceland’s Minister of Industry, Ossur Skarphedinsson, on energy cooperation. The agreement calls for the countries to share expertise to direct the East Africans’ course towards energy sustainability. The financing structure for the Djibouti Asal Rift Geothermal Project will proceed through Iceland’s Reykjaavik Energy Invest (REI) with the Djibouti Energy Company.
The Clinton Global Initiative in New York, 2007, chaired by former US president, Bill Clinton, set the agenda for the $150 million project. Olafur Ragnar Grimsson, President of Iceland said, “The cooperation between Djibouti and Iceland will help transform the oil-based energy system of Djibouti to clean, geothermal-based energy. This cooperation could become a landmark in the clean energy future of East Africa.”
