The document summarizes the electricity production and distribution in Mogadishu, Somalia. It notes that the current installed power capacity is 10-15 MW from diesel generators, with fuel imported from UAE. Electricity can only be distributed within a 3km radius due to limited infrastructure. End user prices are high at $1.20-1.30/kWh due to reliance on expensive diesel fuel and isolated distribution system. The document concludes that significant investment is needed to develop sustainable electricity production and distribution as demand is expected to grow with returning residents and potential industrial activity.

1. Hienopallo Energia Ky
Mogadishu - August 2012
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2. Salient features (1/3)
• Installed powerbase in MGD in
the region of 10 – 15 Mw
(excluding household
generators and corporate
generators, e.g. Hormut)
• All production currently Diesel
based, fuel imported primarily
from UAE. Accordingly subject
to significant base price
fluctuation.
• Power companies operate full
cycle (from production to end
connection point distribution
and gauging meters).
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3. Salient features (2/3)
• Currently only one step-up/step-down
transformator operation in Mogadishu.
• Hence, electricity cannot be distributed long
distances, give or take only within a circa 3km
radius from the producing generator.
• End user price is high at circa 1.2-1.3 USD/KWh.
Having one 60W light bulb on for 10 hours will
cost 72USc!
• The high energy price is keeping sophistication of
electronic appliances low. Not to speak of
availability of Internet.
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4. Salient features (3/3)
• Information on average production costs not
readily available (e.g. due to fluctuation in base
fuel cost) but it may be in the region of 70-80c
per KWh.
• Cost of distribution similarily difficult to assess.
• All in all it does appear as if power companies are
making a meager profit.
• Efficiency (measured as electricity produced
compared to electricity delivered) is in the region
of 70%, but this is a difficult figure to diligence.
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5. To state the obvious
• The need for more sophisticated and powerful means
of electricity production, distribution and pricing is
appearant.
• Per some estimates, at the end of 90s the capacity was
at 65 Mw in 1990. With Somali residents returning and
(hopefully) some scale of industrial activity the need
for electricity will grow exponentially.
• This presents an opportunity to ”do it right” from the
start, i.e. build suistanable energy production as
opposed of expanding diesel generator base.
• This will require a significant initial investment and
confidence in a prevailing and developing peace.
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