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The National Electric Power Cooperation (NEPCO) is a private company responsible for the generation, transmission and distribution, and retail of electricity in the Mudug region of Puntland State of Somalia. NEPCO was established in 2009 and, during its short existence, the company has managed to consolidate and become the sole power supplier in the major cities of Mudug which are Galkayo, Galdogob, and Burtinle. Now it provides electricity to over 17,000 customers – consisting of residential, commercial, community buildings, local government and non-governmental organizations. The company currently supplies a total of circa 9.4 megawatts of uninterrupted electricity 24 hours a day. The entire capacity of NEPCO is diesel based and experiences high economic pressure due to increasing prices for diesel fuel as well due to increasing insecurity regarding diesel fuel supply. Therefore NEPCO intends to analyse the potential for renewable energy (RE) sources in their operating area.
Hybridization concepts targeting the substitution of diesel power generation become increasingly interesting from an economic point of view due to the dramatic cost decline of renewable energy technologies in recent years, with highest cost reductions achieved for photovoltaic (PV) modules. If solar PV and/ or wind turbines are combined with battery systems, supply scenarios with high fractions of renewables can be reached. Since the fraction of REs in Somalia is currently very low and fuel prices are extraordinary high the hybridization of energy systems with RE may represent a viable opportunity which can significantly contribute to achieving lower power generation costs and a more reliable power supply for the population.
01.03.2014 - 31.03.2014
By this analysis a high attractiveness of renewable resources is identified for the Mudug region of Somalia. Both solar and wind resources are abundant and available constantly. Subsequently, the economic feasibility of an integration of RE technologies into NEPCO’s diesel-based energy systems in Galkayo, Galdogob, and Burtinle is studied. Even with assuming conservative cost parameters for capital expenditures and operational expenditures, RE resources are economically exploitable. Projected LCOE reductions of 0.10 USD/kWh for Galkayo, 0.15 USD/kWh for Galdogob and 0.01 USD/kWh for Burtinle present the high cost reduction potential facilitated by the installation of RE technologies. The cost-optimized system configurations for each location are comprised by shares of solar PV, wind power, lithium-ion batteries and diesel generators forming a hybrid energy system.
FDL Global Ltd./NEPCO