Somaliland to Cut Electricity Price from $0.78 to $0.20 per kWh

The Somaliland government has announced major electricity price reductions. In Berbera, the rate has already dropped from $0.8 to $0.20 per kWh.
And it's a great thing because Berbera is a hot coastal city people use electricity a lot now is it cheaper than all the cities Djibouti Bossaso Mogadishu

Reer berbera and price change prices have decreased by 60%

Insane that it was that high in the first place

Beyle said:

Insane that it was that high in the first place

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In some cities it's $1 per kilowatt So it's crazy even though the country is poor.

moosaid said:

In some cities it's $1 per kilowatt So it's crazy even though the country is poor.

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And people wonder why investors stick to hotels and cafes , theres no hope for factories with these type of fees

I literally asked about electricity prices in another thread lol. Great news @Idilinaa

moosaid said:

The Somaliland government has announced major electricity price reductions. In Berbera, the rate has already dropped from $0.8 to $0.20 per kWh.
And it's a great thing because Berbera is a hot coastal city people use electricity a lot now is it cheaper than all the cities Djibouti Bossaso Mogadishu

President Irro Inaugurates $20 Million Electricity Expansion and Upgrading Project in Berbera City - Somali News today Live

On March 23, 2025, President Abdirahman Mohamed Abdilahi Irro initiated a significant project to enhance Berbera’s electricity infrastructure. This $20 million World Bank-funded initiative aims to add 12MW of solar power and a 36MW battery storage system, addressing the city’s power challenges...

www.ftlsomalia.com

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Electricity is artificial energy and won't help Berbera, I'm ensuring PL govt focuses on tree planting, especially selecting tree species that add more moisture in a dry climate.

Trees are far more better and longer lasting and has better impact on weather altering. Good luck Berbera with your wasted $. 20 million. Electricity is only needed as secondary back up not a primary solution.

DR OSMAN said:

Electricity is artificial energy and won't help Berbera, I'm ensuring PL govt focuses on tree planting, especially selecting tree species that add more moisture in a dry climate.

Trees are far more better and longer lasting and has better impact on weather altering. Good luck Berbera with your wasted $. 20 million. Electricity is only needed as secondary back up not a primary solution.

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Dont forget to take your pill this morning

Beyle said:

And people wonder why investors stick to hotels and cafes , theres no hope for factories with these type of fees

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Yall never rest with this Cafe Hotels Bs Loool. People invest in small businesses to supply demand and create jobs.
But most investment actually goes to Agriculture, followed by fishing, education, housing and energy. Investment are pretty diversified.



Investors have already sunk substantial capital into various factories. If there were no hope for industrialization, they wouldn’t be building them and yet some are even exporting. For factories that are profitable, the reliability and stability of the power supply matter more than its cost. High electricity prices mainly hurt businesses operating at the margin, where small increases can erase profits. Over time, as infrastructure and renewable transition improves, electricity costs will be continuously falling.



A Somali transnational conglomerate MSG group sunk 60 million into a modern large cement plant in Berbera,






Another transnational Somali conglomerate Omaar Group/Ominco invested millions to build a large Flour Mill in Berbera as well since 2020



They stand to gain substantial revenue from the export/production. All this will position Berbera as a key industrial/export hub.

Beyle said:

Insane that it was that high in the first place

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It was that high at 0.78 years ago. Before that reduction it was actually 1.20 a decade back.

They reduced it to 0.39 and then now they reduced it even more to 0.20

Zak12 said:

I literally asked about electricity prices in another thread lol. Great news @Idilinaa

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Yeah, I’ve been saying that in most places, electricity prices will drop to around 0.20 soon. In Berbera, prices have already been steadily falling over the years.

Expanding electricity access and improving reliability should be the top priority , issues of affordability can be dealt with afterward. There’s no point in having cheap electricity if it’s unreliable or if large parts of the population can’t access it.

Barkhadle1520 said:

Dont forget to take your pill this morning

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You are going to continue with that take your pills shit? Are U just angry that PL is the best and SL is just drugged out?

Barkhadle1520 said:

Dont forget to take your pill this morning

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What's wrong with SL cuqdud when anytime PL is mentioned you guys go all Buck wild about us and for spond with negativity, shit you guys even hiding in our mountains so scared we are better while we don't give a f*ck about U, U don't even exist to us and when your mentioned we r clueless or we respond with was langaabki and we treat them like minority and build up their confidence thru good words about SL.

While PL when it Hears SL, we respond with absolute

DR OSMAN said:

You are going to continue with that take your pills shit? Are U just angry that PL is the best and SL is just drugged out?

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You right we geeked up on that oromo khat

Idilinaa said:

Yall never rest with this Cafe Hotels Bs Loool. People invest in small businesses to supply demand and create jobs.
But most investment actually goes to Agriculture, followed by fishing, education, housing and energy. Investment are pretty diversified.

Investors have already sunk substantial capital into various factories. If there were no hope for industrialization, they wouldn’t be building them and yet some are even exporting. For factories that are profitable, the reliability and stability of the power supply matter more than its cost. High electricity prices mainly hurt businesses operating at the margin, where small increases can erase profits. Over time, as infrastructure and renewable transition improves, electricity costs will be continuously falling.
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A Somali transnational conglomerate MSG group sunk 60 million into a modern large cement plant in Berbera,
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Another transnational Somali conglomerate Omaar Group/Ominco invested millions to build a large Flour Mill in Berbera as well since 2020
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They stand to gain substantial revenue from the export/production. All this will position Berbera as a key industrial/export hub.

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Both of you are right tbh, cheaper electricity would definitely start an industrial boom throughout the country, Im talking .05$ or .10

Basically factories would become a more lucrative business

Also people complain how they're building hotels but we still dont got nearly enough hotels, can you imagine going to dhusamareb for business and you have to stay in a cramped up old room with barambaro crawling on the floor, Hotels are important as well but in some place hotels are still more lucrative than factories

I think Baidoa is the worst for this, if I am not mistaken it is $1 or even more. They need whatever Somaliland is doing.

Kamaaludeen Al Reewin said:

I think Baidoa is the worst for this, if I am not mistaken it is $1 or even more. They need whatever Somaliland is doing.

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Baydhabo doesnt get as much sun, but theres hydropower potential for the Shabelle and wind potential at the coast, if the whole state was free they could work on that

They also plan on building a natural gas power plant in Afgoye, the plans are from the 80s

Barkhadle1520 said:

Baydhabo doesnt get as much sun, but theres hydropower potential for the Shabelle and wind potential at the coast, if the whole state was free they could work on that

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Definitely , but corruption has a part to play i suspect. Someone is benefitting from the extortionate prices.

Kamaaludeen Al Reewin said:

Definitely , but corruption has a part to play i suspect. Someone is benefitting from the extortionate prices.

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Its not corruption its a monopoly, people have to buy electricity from these gas powered generator owners because theres no alternative, and theres no government to regulate it or provide alternatives

Kamaaludeen Al Reewin said:

I think Baidoa is the worst for this, if I am not mistaken it is $1 or even more. They need whatever Somaliland is doing.

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No Baidao now pays 0.30 from what i can tell. Since 5 years have past from the initial of 0.48



They built a 20MWH hybrid solar plant in 2020.

Kamaaludeen Al Reewin said:

Definitely , but corruption has a part to play i suspect. Someone is benefitting from the extortionate prices.

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Barkhadle1520 said:

Its not corruption its a monopoly, people have to buy electricity from these gas powered generator owners because theres no alternative, and theres no government to regulate it or provide alternatives

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It might seem like it to others but from my research , it is often times its either due to utility financing costs so its usually infrastructure related or its because heavy diesel usage that creates high costs.

So private sector companies are working really hard to improve infrastructure and transition to renewables to bring the cost down. There is no real monopolies in most places unless the public sector takes control in a certain area(Bosaso for example)

Private Somali Energy companies aren't what ignorant people online accuse them of their business model is about competing to bring prices down because the lower the cost , the more reliable efficient a service is the higher the turnover is.

They also merge together to pool capital, resources, skills and increase efficiencies.



Watch this video and they will explain this as well the cost constraints. This company is not to be confused with BECO (Benadir Electric Company). Since it's abbreviation is the same.

Barkhadle1520 said:

Both of you are right tbh, cheaper electricity would definitely start an industrial boom throughout the country, Im talking .05$ or .10

Basically factories would become a more lucrative business

Also people complain how they're building hotels but we still dont got nearly enough hotels, can you imagine going to dhusamareb for business and you have to stay in a cramped up old room with barambaro crawling on the floor, Hotels are important as well but in some place hotels are still more lucrative than factories

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Exactly, i was reading a few articles and it will be a big boost for micro/small businesses of various kinds as well as factories. This is what someone from Mogadishu said 6 years ago before BECO made electricity cheaper


Look what happened when they did solar energy expansion in Baidoa




Hotels are demand driven its driven by urban population growth and, increased consumption/trade/movement, it follows the Urban housing expansion projects happening cross regionally and the middle class expansions in major cities that demand higher quality.

Most places do not actually have adequate accommodation believe or not, so people are trying to meet that demand. Hotels also provide a lot local service sector jobs, front-office, food service, kitchen and management. It also creates local market demand for fresh food and this in turn boosts agricultural production.