On March 23, 2025, President Abdirahman Mohamed Abdilahi Irro initiated a significant project to enhance Berbera’s electricity infrastructure. This $20 million World Bank-funded initiative aims to add 12MW of solar power and a 36MW battery storage system, addressing the city’s power challenges and supporting its economic growth. The project also seeks to reduce electricity costs for residents, with plans to lower prices to 20 cents per kilowatt-hour starting in July.
This development builds upon previous efforts to improve Berbera’s energy sector. In 2021, a 7MW hybrid mini-grid solar power plant, funded by the Abu Dhabi Fund for Development (ADFD), was connected to the local grid, serving approximately 50,000 residents and reducing energy tariffs. Additionally, the Berbera Electricity Company (BEC) implemented microgrid technology, integrating 8MW of solar plants, a 2MWh lithium-ion storage system, and modern diesel generators to stabilize and lower electricity costs.
Despite these advancements, challenges persist. The energy market’s lack of regulation and collaboration between the government and private businesses has led to monopolistic practices, making electricity unaffordable for many residents. The current project aims to address these issues by increasing capacity and reducing costs, thereby promoting equitable access to energy and supporting Berbera’s role as Somaliland’s economic hub.