Somalia
With a cumulative score of 0.83, Somalia ranks number 102 among emerging markets and number 131 in the global ranking.
- Emerging markets
- Middle East & Africa
1.03 / 5
Power score
0.36 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Somalia does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Somalia in July 2021 submitted its revised Nationally Determined Contribution (NDC), a non-binding plan to achieve the goals set out in the 2015 Paris Agreement. It aims to reduce emissions by 30% below a business-as-usual scenario by 2030, contingent on international public and private support. There are no specific sectors that are targeted. Somalia has yet to submit a long-term strategy under the Paris Agreement.
Fossil fuel phase-out policy
Somalia does not have a fossil fuel phase-out policy.
Power
Power policy
Somalia’s on-grid market has very few investment opportunities. There are no power purchase agreement (PPA) award methods.
Power policies
Power prices and costs
Power prices in Somalia are fairly high compared to neighboring East African countries because most of the country is powered by privately owned diesel generators. There are no subsidies for fossil fuels, but there are taxes. However, tax evasion is common because citizens believe that their payments are diverted from making public improvements. The insurgent group Al-Shabaab also levies taxes, so citizens are reluctant to pay taxes twice.
Power market
Somalia’s energy sector was destroyed following the collapse of the central government in 1991. Residents were forced to depend on privately owned diesel generators while many were left in the dark. At this time, more than seven electricity companies operate in the country – all owned by private individuals. Consequently, the sector is not very concentrated, but there are no plans to decarbonize it. There is very little renewable capacity on the grid; most renewables have arrived via off-grid solar methods.
The off-grid sector is more active in Somalia. The country has an active pay-as-you-go (PAYG) sector. However, this is not widely integrated with solar home systems.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Somalia is a very difficult country to do business in due to multiple risk factors. Utility debt is very high and there is an absence of legal or regulatory policy. Electrification rates are still low at 50% nationally, with 70% in urban areas and 32% in rural areas. Somalia does not have any rural electrification programs.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.
EV policy
The government has yet to implement any substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The tropical climate of Somalia means the focus is on cooling rather than heating buildings. There is a lack of substantive policy support to improve the energy efficiency of such efforts. There is international support for sustainable building development in the form of grants.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector.
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
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