National child project under the GEF Africa Mini-grids Program (AMP)

National child project under the GEF Africa Mini-grids Program (AMP)

About the Project

As part of the UNDP-supported, GEF-financed Africa Mini-grids Program (AMP), the AMP in Somalia seeks to “support access to clean energy by increasing the financial viability, and promoting scaled up commercial investment, in low carbon mini-grids in Somalia, with a focus on cost reduction levers and innovative business models”. The baseline situation is characterized by a low electrification rate (35%), the lack of electricity grid infrastructure, and the predominance of and reliance on diesel mini-grid systems, owned and operated by private Electricity Service Providers (ESPs), charging remarkably high tariffs. The project strategy corresponds to the unique nature of the energy sector in Somalia, and the AMP’s concentration on clean energy, by focusing on digital transformation and institutionalization of ongoing initiatives to expand the adoption of solar PV technologies, and promote hybridization of existing diesel minigrid systems as a financially viable path to driving down tariffs and reducing GHG emissions in Somalia. 

Project StatusOngoing
Project DurationJanuary 2022 - November 2026
Total Project Budget$ USD 4 million
Focus AreasResilience and Climate Change
Contributing PartnersGlobal Environment Facility (GEF)
Implementing PartnersMinistry of Energy and Water Resources (MoEWR) in Mogadishu, Ministry of Energy and Minerals (MOEM) in Hargeisa, Energy Regulatory Commission (ERC), Puntland State Authority for Water, Energy, and Natural Resources (PSAWEN) in Garowe, Somalia Bureau of Standards (SBS), Somaliland Quality Control Commission (SQCC)

Download the Project Factsheet

Our key initiatives and approaches include:
  • Stakeholder ownership in a national mini-grid delivery model is advanced, and appropriate policies and regulations are adopted to facilitate investment in low-carbon mini-grids.
  • Innovative business models based on cost reduction operationalized, with strengthened private sector participation in low-carbon mini grid development.
  • Financial sector actors are ready to invest in a pipeline of low-carbon mini-grids and concessional financial mechanisms are in place to incentivize scaled-up investment.
  • Digital and data are mainstreamed, across stakeholders, into local mini-grid market development. Increased knowledge, awareness and network opportunities in the mini-grid market and among stakeholders, including benefitting from linkages to international good practice.

Project Objectives

  • Supporting access to clean energy by increasing the financial viability, and promoting scaled-up commercial investment, in low carbon mini grids in Somalia, with a focus on cost reduction levers and innovative business models.
  • Strengthen the regulatory and policy environment to operationalize existing energy laws and policies and support inclusive mini-grid delivery models that promote private sector investment.
  • Foster digital transformation in the energy sector, including tools for site selection, tariff calculation, remote monitoring, and performance tracking, to increase transparency and efficiency.
  • Build institutional and technical capacity of public authorities, regulatory bodies, and energy service providers (ESPs) to design, operate, and manage mini-grid systems.
  • Mainstream gender equality and social inclusion, ensuring equitable participation in energy access initiatives and addressing the unique energy needs of women, youth, and minority groups.
  • Generate and disseminate knowledge on mini-grid performance, cost-efficiency, and social impact through effective monitoring, evaluation, and participation in regional Communities of Practice.

Key Achievements

  • Supported the development of National Mini-grid Policy and Regulations (licensing, tariff and consumer protection)
  • Digital Readiness Assessment (DRA) and Digital Strategy for the mini-grid sector developed
  • National dialogues and technical trainings conducted for representatives of MoEWR, the national regulator, and private sector on mini-grid regulation and tariff modelling, using the AFUR template tool.
  • Mini-grid techno-economic, Derisking Renewable Energy Investment (DREI) analysis launched to inform investment and policy decisions.
  • Dedicated DREI technical working group established to implement the recommendations and trained on DREI methodology .
  • Licensing and tariff regulations translated from Somali to English, improving regulatory transparency and accessibility.
    Conducted assessment on institutional setup for rural electrification, resulting in the identification of targeted capacity building on technical, managerial and regulatory issues.
  • Solar and hybrid mini-grid curriculum developed to support capacity development in the energy sector. 

Related Links

Climate Change
Focus Area
Resilience and Climate Change

UNDP works with the government of Somalia to help communities and institutions protect the environment, generate clean energy and prepare for climate change. All our work is carried out in line with the government’s National Development Plan and in close coordination with UN partner agencies.

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a man and a woman sitting on a bench
Focus Area
Gender Equality and Women's Empowerment

UNDP is tackling some of the most recurrent aspects of discrimination through its work on policy and advocacy and well as direct support to women in key areas such as politics and the media.

Read more