Unfazed by Saudi pressure, UAE unveils solar investment in Somaliland
The UAE also has other significant investments in Somaliland, including around $442 million in funding from logistics company DP World to modernize the port of Berbera.
Abu Dhabi-based energy firm Global South Utilities has inaugurated a five-megawatt peak grid-connected solar photovoltaic plant in Somaliland’s Berbera as the city looks to transition from a diesel-powered economy to a renewable energy hub. The development comes amid tensions between the United Arab Emirates and Saudi Arabia, which are at loggerheads over foreign policy in the Horn of Africa.
The new solar plant is a major component of the newly launched “Green Berbera Vision,” according to a GSU statement released Wednesday.
Green Berbera Vision is a transition plan for the port city’s electricity system from diesel dependence to renewable-powered generation supported by battery storage, the statement said. Roughly 80% of the city's power generation comes from diesel imports.
The Berbera solar plant is designed to generate 10,000 megawatt-hours of electricity annually, enough to power nearly 28,000 households per year.
By displacing diesel generation, the project is expected to avert approximately 6,890 metric tons of carbon emissions a year, delivering climate benefits while improving energy security and reducing fuel costs, GSU added.
Why it matters: The UAE has been increasing its investments in Somaliland, a breakaway region from Somalia that Mogadishu does not recognize. Somaliland first gained independence in 1960 from Britain before it was absorbed five days later to form the Somali Republic. It declared independence again in 1991 and operates as a de facto state with its own government.
Israel became the only state to formally recognize Somaliland in December. Although the UAE has not recognized Somaliland, the Gulf country has been working with Israel and the territory to maintain a strategic trade route between the Middle East and the Horn of Africa. Despite being one of the world's poorest territories, Somaliland has a coveted coastline of approximately 850 kilometers (530 miles) on the Gulf of Aden.
Emirati investment in the self-governing Somaliland region has drawn scrutiny from several regional powers, including Saudi Arabia and Turkey, which have publicly condemned Israel's recognition of the territory. Ties between Abu Dhabi and Riyadh have been fraying this year over Emirati foreign policy across countries including Somaliland, Libya and Yemen. Saudi Arabia has close relations with Somalia, whose government annulled all defense, security and port agreements with Abu Dhabi in January over its support for the breakaway republic.
Camille Lons, a policy fellow at the European Council on Foreign Relations, said the GSU deal marks the Emiratis trying to show that pressure from Riyadh and Mogadishu is having no impact on their relationship and investments in Somaliland.
"The Saudis have underinvested in the Horn of Africa in the past few years compared to the UAE," Lons told Al-Monitor, adding that Abu Dhabi has made more of a diplomatic push in the region in recent years.
"It's not going to be easy for the Saudis to push back against the UAE in the region, just because they don't have the same level of relationships and the same ability to invest massively," she said.
Know more: In addition to the GSU solar plant, the UAE has made several other significant investments in Somaliland. In 2021, Dubai-based logistics firm DP World committed $442 million to modernize the port of Berbera, a project that includes the management of the port and the adjacent Berbera Free Zone.
The Gulf country also has other solar investments in Berbera. In 2021, the Abu Dhabi Fund for Development provided financing for a $7.8 million seven-megawatt solar plant, which began operating in October.
