Somaliland Energy: Solar, Diesel and the Price of Power
Somaliland energy is a story of private firms, costly diesel and fast-growing solar. Here is who keeps the lights on, what power costs, and where the sun and wind come in.
OPPORTUNITIES · ENERGY
After 1991, Hargeisa’s lights came back one generator at a time. Fuel firms, hotels, cafés and telecoms companies ran diesel generators and sold power to nearby customers. That private, do-it-yourself start still shapes the system today. Yet the picture is changing fast, as solar farms rise outside Hargeisa and Berbera.
Somaliland declared independence from Somalia in 1991 and governs itself. Somalia regards it as part of its territory. Israel (December 2025) is so far the only UN member state to recognise it (see Somaliland’s foreign relations).
Somaliland energy at a glance
Here are the key numbers, with their sources and dates.
| Electricity demand | About 150 MW (Ministry of Energy and Minerals) |
| Power mix | About 80% diesel, 20% renewables, mainly solar |
| Access | About 50.3% of the population |
| National tariff | $0.59 per kWh from 1 December 2025, down from $0.73 |
| Main law | Energy Law No. 81/2018 |
| Regulator | Somaliland Energy Commission, set up in July 2020 |
| Sunshine | 5.5–6.0 kWh/m² a day on average |
Who keeps the lights on: the business of Somaliland energy
Power in Somaliland is mostly a private business. In Hargeisa, small providers merged over the years. By 2017, two large groups had combined into Sompower, backed by diaspora investors. Early networks were often unplanned, and a Director of Energy once put losses at up to 40%. Other towns have their own firms, and Berbera has its own electricity company.
The state also plays a role. The Ministry of Energy and Minerals leads national energy policy. Meanwhile, the Energy Commission licenses providers, sets tariffs and protects consumers.
Diesel and the price of power
For years, electricity in Somaliland was very expensive. In the early 2010s, companies charged up to $1 per kilowatt-hour, because of small equipment and rising diesel prices. Diesel still covers about 80% of demand, the ministry says.
Prices have come down, though. In November 2025, the government cut the national tariff from $0.73 to $0.59 per kWh, from 1 December. Berbera, with its own pricing, was left out. The cut came with a bulk fuel purchasing system for utility companies.
The regulator now guards that price. In September 2026, a providers’ association announced a rise in Hargeisa. The commission rejected the notice as unlawful, saying only it can approve tariff changes. Even so, $0.59 is high by regional standards. Across Somalia as a whole, the US government puts prices at 50 to 125 cents per kWh. In April 2026, the energy minister set a target of bringing the price down to 20 cents within five years.
For visitors, the practical point is simple. Ask your hotel whether it has its own back-up supply, especially if you need to charge equipment.
The rise of Somaliland solar energy
Sunshine is the obvious answer, and Somaliland has plenty of it. In October 2019, Sompower opened a 20 MW solar plant at Bacaado, north of Hargeisa, costing about $20 million. Somaliland Standard reported that it would supply about 80 per cent of the capital’s population.
Donors helped smaller firms follow. The UK-funded ESRES programme backed hybrid solar and diesel mini-grids. Mott MacDonald, which ran it, says renewables rose from 1% to 15% of the energy mix. It also reports that 85,000 households and small businesses were connected, and prices fell to $0.65 per kWh.
Berbera goes solar
Berbera, the main port, now has several solar projects. In 2020, the Abu Dhabi Fund for Development financed a 7 MW hybrid mini-grid there, for about 50,000 people. In February 2026, Global South Utilities opened a 5 MW solar plant, enough for nearly 28,000 households, Al-Monitor reported.
More is coming. In March 2026, the ministry signed a contract for a World Bank-funded 12 MWp solar plant with 36 MWh of batteries. Then, in May 2026, ground was broken on a $24 million project by the same UAE firm: another 12 MWp of solar, plus 70 MWh of storage. For the story of the town itself, read why Berbera port matters.
Beyond the grid: clinics, schools and wells
Solar also reaches places without a grid. The World Bank’s Somali Electricity Sector Recovery Project plans solar for 46 health centres and 57 education institutions. It also funds Hargeisa’s grid and a solar-and-battery plant for Borama. By early 2025, the project counted 17.37 MW of renewable capacity, against a target of 23 MW.
Water is another big use. In Adaroosh, a village in southern Somaliland, UNICEF and the Ministry of Water installed a solar-powered borehole. Solar is cheaper to run than diesel, UNICEF notes, and it cut or ended the cost of pumping water.
Wind: the next frontier for Somaliland energy
Somaliland is windy as well as sunny. Average speeds are 7–9 metres per second, strongest on the coast and high ground, the ministry says. As early as 2014, a USAID project helped launch a pilot wind farm at Hargeisa airport: five turbines with 100 kW of capacity in total. At the time, DAI noted estimates that about half of Somaliland has winds suitable for power.
Research points to more. A 2024 study in the journal Heliyon found that turbines at Xumba Weyne, near Hargeisa, could produce power for no more than $0.07 per kWh. For Somalia as a whole, onshore wind potential is put at 30,000 to 45,000 MW.
The rules: the 2018 Energy Law
Somaliland’s main energy law is Law No. 81/2018. It has 31 articles. Under it, nobody may generate, distribute or sell electricity without a permit. The law also encourages many sources, from renewables and hybrid mini-grids to imported power.
The law is now being updated. In August 2025, a parliamentary committee held a consultation in Burao on amendments. The ministry also lists a planned power link with Ethiopia via Wajaale, Hargeisa and Berbera.
Opportunities in Somaliland energy
The ministry openly invites investors. It names utility-scale solar and wind, hybrid mini-grids and battery storage among the openings. Technical services, training and energy efficiency are on the list too. This is a summary of official plans, not investment advice.
For the bigger picture, read our guide to the Somaliland economy. If you are thinking of setting up there, start with doing business in Somaliland. Somaliland energy is changing quickly, and the next solar farm may already be under construction.
Sources
- Rewiring the city, Emma Lochery, Good Governance Africa, 1 October 2017.
- Unlocking Somaliland’s Energy Potential: Opportunities in Renewable Energy Investment, Eng. Sharmaarke Mustafe Ibrahim, Ministry of Energy and Minerals (undated; accessed 28 October 2026).
- Energy Law No. 81/2018, UNEP Law and Environment Assistance Platform (accessed 28 October 2026).
- About SEC, Somaliland Energy Commission (accessed 28 October 2026).
- Somaliland cuts electricity tariffs to ease energy costs, Geeska, 7 November 2025.
- Somaliland slashes electricity tariffs in bid to ease cost of living, Good Maxamed, Horn Tribune, 6 November 2025.
- Somaliland regulator blocks electricity price hike, Dawan Africa, 8 September 2026.
- Somalia – Energy and Electricity (Country Commercial Guide), International Trade Administration, US Department of Commerce, 22 January 2024.
- Somaliland: President Bihi launches solar project electrifying 80% of houses in the capital, Somaliland Standard, 30 October 2019.
- Unlocking Somaliland’s renewable energy potential (ESRES), Mott MacDonald (updated 28 October 2024).
- ADFD-funded solar project to light up Somaliland, Abu Dhabi Fund for Development, 14 January 2021.
- Unfazed by Saudi pressure, UAE unveils solar investment in Somaliland, Jack Dutton, Al-Monitor, 18 February 2026.
- Ministry of Energy and Minerals signs major contract for World Bank-funded 12MW solar power project in Berbera, Somaliland Standard, 30 March 2026.
- Somaliland unveils UAE-backed $24m Berbera energy project, Mohamed Duale, Horn Diplomat via AllAfrica, 25 May 2026.
- Somali Electricity Sector Recovery Project (P173088): Implementation Support Mission Aide-Mémoire, World Bank, mission January–February 2025.
- Solarized boreholes installed in Adaroosh village, UNICEF Somalia, 11 July 2023.
- USAID project supports construction of major wind farm in Somaliland, DAI, 5 June 2014.
- Assessment of wind energy resource in the western region of Somaliland, Batran, Jama, Yousaf, Hassan, Ghazal and Mokhlis, Heliyon, 30 June 2024.
- Somaliland House of Representatives advances electricity law reform with Burao consultation, Horn Tribune, 7 August 2025.
- Somaliland Energy Minister Sets 20-Cent Power Target, Praises Utilities and Urges Shift to Clean Energy, Horn Tribune, 27 April 2026.
Last checked 28 October 2026. Found an error or something out of date? Tell us.
