Somalia’s energy system did not develop around a national power company or a single connected grid. Instead, private electricity providers built small local networks after decades of conflict damaged much of the country’s public infrastructure. These businesses restored power to major cities, but the result is a fragmented system that remains expensive, unreliable and heavily dependent on imported diesel.
This makes Somalia’s energy challenge different from that of a country trying to replace large coal or gas plants. Somalia must expand electricity access while building much of its modern energy infrastructure for the first time. Solar power, wind energy, batteries and stronger local grids offer the clearest route forward, while offshore oil and natural gas exploration has introduced a separate question about the country’s possible future as a hydrocarbon producer.
Somalia’s Energy System Was Rebuilt Without a National Grid
Before the collapse of the central government in 1991, Somalia had public electricity infrastructure serving several urban areas. Much of that system was damaged or abandoned during the years of conflict that followed. Private entrepreneurs, telecommunications companies and local electricity service providers stepped into the gap.
These companies created separate power systems in Mogadishu, Hargeisa, Garowe, Bosaso, Baidoa, Kismayo, Galkayo and other cities. Most operate their own generators and distribution wires. They usually serve a limited urban area rather than forming part of a wider regional or national network.
The model proved that private businesses could provide electricity in a difficult operating environment. At least 55 electricity service providers now supply more than 90% of Somalia’s grid-connected power. However, many of their networks remain isolated from one another. A city may have several utilities operating close together without sharing generating capacity, transmission lines or technical systems. [1]
This fragmentation makes electricity more expensive. Each provider must maintain enough generation to meet its own peak demand, even when nearby providers have unused capacity. Small diesel units often operate below their most efficient level, and companies cannot easily move power from one district or city to another.
Somalia therefore has electricity networks, but not a fully integrated electricity system. Building connections between existing providers may be more practical than attempting to replace them with one centralized utility.
Diesel Keeps the Lights On—and Raises the Cost of Everything
Diesel generators remain the main source of electricity in Somalia. They are relatively easy to install, can operate without a large grid and allow private companies to add capacity in small steps. These advantages made diesel useful during reconstruction, but they also created long-term economic problems.
Somalia has not yet developed commercial domestic petroleum production. Diesel, gasoline and other refined products must therefore be imported through ports and transported to local markets. Inland cities face additional costs because fuel must travel by road through areas where transport can be difficult or insecure.
Electricity prices vary widely, but World Bank and IRENA assessments have placed many Somali tariffs between about $0.40 and $1.00 per kilowatt-hour. Some regional rates have been recorded as high as $1.30 per kilowatt-hour. These prices are several times higher than those in many neighboring power markets. [2]
High electricity costs affect more than household lighting. They raise the cost of refrigeration, telecommunications, water pumping, food processing, workshops, hotels and medical services. A Somali business that depends on electric machinery must include expensive power in the price of every product it sells.
Diesel dependence also exposes Somalia to international oil-market shocks. When global fuel prices rise, electricity providers face higher operating costs. These costs move through the economy in the form of more expensive electricity, transport and food.
Older generators and poorly coordinated operations add further costs. Many diesel units are not synchronized or automated, so they cannot respond efficiently when demand changes. Distribution losses are also high in some networks because of aging low-voltage wires, long lines, weak maintenance and unsafe connections. Estimates cited by the World Bank suggest that losses can reach 45% in parts of the system. [1]
Electricity Access Is Broader Than Reliable Electricity
Electricity access in Somalia has improved, but access statistics do not always show the quality of service. A household may be counted as connected even when it receives electricity for only a few hours a day.
A World Bank household survey conducted in 2025 found that 71% of households reported some form of electricity access. However, only 21% received more than eight hours of supply per day. This difference helps explain why electricity can be technically available while still failing to support regular business activity, study, refrigeration or household services. [3]
Access is also uneven. Urban households are much more likely to have a grid connection than rural, nomadic or internally displaced households. Private utilities naturally concentrate on places where customers are close together and can pay for electricity. Extending conventional wires to scattered settlements is more expensive.
This pattern makes decentralized energy especially important. A remote community may not need to wait for a national transmission line if it can use a local solar mini-grid, batteries or individual solar home systems. Clinics, schools, water points and telecommunications towers can also operate independent systems.
The main objective is therefore not simply to increase the number of connections. Somalia needs electricity that is available for longer hours, safe to use and affordable enough to support productive activity.
Solar and Wind Resources Match Somalia’s Geography
Somalia has some of the strongest solar conditions in the region. IRENA estimates that the country receives average daily solar irradiation of around 6–8 kilowatt-hours per square metre. This resource is widely available across the country rather than being limited to one province. [4]
Solar power fits the structure of Somalia’s electricity market. Panels can be added to an existing diesel mini-grid without waiting for a national transmission system. During daylight hours, solar generation reduces the amount of imported diesel that a utility must burn. Batteries can store part of this power for use after sunset and help stabilize local networks.
Several Somali electricity companies have already built hybrid systems that combine solar panels, batteries and diesel generators. The diesel units remain available when solar production is low, but they operate for fewer hours and consume less fuel.
The 2.8-megawatt solar and battery project in Baidoa shows how this model can work in a fragile setting. The plant includes 4.8 megawatt-hours of battery storage and synchronized diesel backup. It was developed partly to serve international and public institutions around the city, but the infrastructure could also support wider local electricity development. [5]
Wind power offers another major opportunity. Average annual wind speeds in Somalia are estimated at roughly 4–10 metres per second, with particularly strong resources in northern and coastal areas. The country’s long exposure to the Gulf of Aden and Indian Ocean creates possible sites for onshore wind projects, hybrid mini-grids and, over the longer term, larger coastal generation. [4]
Wind has received less investment than solar because turbines are more complex to transport, install and maintain. Detailed wind measurements are also needed before developers can finance large projects. Even so, solar and wind can complement one another because windy periods do not always match the strongest hours of sunlight.
Hydropower has a much smaller immediate role. Somalia’s dry and variable climate limits dependable large-scale river generation, although small projects and possible cross-border electricity connections may have value. Geothermal resources have also been discussed, but they require further exploration before they can become part of national planning.
Charcoal Is Still Central to Somalia’s Household Energy Economy
Electricity is only one part of Somalia’s energy story. Many households still depend on firewood and charcoal for cooking, making biomass one of the country’s most important sources of everyday energy.
Charcoal is not the same as mineral coal. It is made by heating wood under low-oxygen conditions. It is easier to transport and store than firewood, which has made it a major urban cooking fuel. However, traditional charcoal production consumes large amounts of wood and can contribute to the loss of trees and the degradation of dry rangelands.
This environmental pressure matters in a country already exposed to drought, irregular rainfall, flooding and land degradation. Trees and shrubs support grazing land, reduce erosion and provide resilience for pastoral communities. Removing them for fuel can deepen the effect of climate shocks on livestock and rural livelihoods.
Charcoal also supports jobs and informal trade, so replacing it cannot be treated only as a technical question. Cleaner options must be affordable and available to the households and small businesses that currently depend on the charcoal economy.
Possible alternatives include liquefied petroleum gas, efficient cookstoves, electric cooking, solar cooking, fuel briquettes and biogas. IRENA has identified improved biomass management and modern cooking fuels as important parts of Somalia’s energy transition. A Somali biogas facility was also reported to be expanding from 2.3 megawatts to 12 megawatts, showing that organic waste may have a larger future role. [6]
Electric cooking will remain difficult where power is expensive or available for only a few hours. However, lower-cost solar mini-grids could make efficient electric cooking more practical in some urban and rural communities.
Oil and Natural Gas Have Entered a New Exploration Phase
Somalia has discussed possible oil and natural gas resources for decades, particularly in offshore basins along its long Indian Ocean coastline. Until recently, however, the petroleum sector remained at the seismic-survey and licensing stage. Somalia had no established commercial oil or gas production.
That position began to change through energy cooperation with Türkiye. Turkish Petroleum received rights to explore several offshore blocks, and the research vessel Oruç Reis completed seismic work over 4,464 square kilometres. The data was then used to select the Curad-1 exploration well. [7]
In April 2026, the Turkish deepwater drilling vessel Çağrı Bey arrived in Somali waters to begin work at Curad-1. The well lies about 372 kilometres offshore Mogadishu in water approximately 3,495 metres deep. Plans call for a total drilling depth of around 7,500 metres and an operation lasting many months. [7]
This is an exploration project, not proof that Somalia has commercially recoverable oil or natural gas. Seismic studies can show geological structures that may contain hydrocarbons, but only drilling and testing can determine whether a discovery exists and whether it can be produced economically.
As of mid-2026, Somalia therefore remains an importer of petroleum products rather than an oil-exporting state. A successful discovery could eventually create government revenue, port activity and demand for technical services. It could also raise difficult questions about revenue sharing, environmental protection, maritime security and relations between the federal government and regional authorities.
Natural gas could theoretically be used for electricity or industry if a commercial field is discovered. At present, however, Somalia does not have a mature domestic gas market comparable to countries with major pipelines, gas-processing facilities or LNG terminals. Current electricity generation remains focused on diesel and renewable hybrid systems.
Coal and Nuclear Power Sit Outside Somalia’s Current Energy Path
Mineral coal has little practical importance in Somalia’s present electricity system. The country does not operate a large fleet of coal-fired power stations, and coal is not central to current power-sector investment. Imported diesel, solar power, wind energy and traditional biomass are far more important.
The distinction between coal and charcoal is especially important in Somalia. Searches for “Somalia coal energy” may lead to discussions of charcoal, but the two fuels have different sources and uses. Mineral coal is a fossil fuel extracted from the ground. Somali charcoal is mainly a processed wood fuel used for cooking.
Nuclear power also has no current operational role. Somalia has no nuclear power station, and present government and international energy assessments focus on expanding basic electricity access, improving local grids, reducing diesel use and developing solar, wind, batteries, bioenergy and possible geothermal resources. [4]
A nuclear programme would require a much larger and more stable power system, an independent safety regulator, specialist institutions, long-term finance and extensive technical capacity. Somalia’s immediate needs can be addressed more quickly through modular renewable projects, safer distribution networks and better coordination between existing utilities.
Ports, Water, Livestock and Telecommunications Shape Energy Demand
Somalia’s geography and economy determine where energy investment can have the greatest effect. Ports such as Mogadishu, Berbera, Bosaso and Kismayo require electricity for cargo handling, cold storage, lighting, security and nearby industries. Reliable port power could support fisheries, livestock exports and wider trade across the Gulf of Aden and Indian Ocean.
The livestock economy also depends on energy. Solar-powered water pumps can provide water for people and animals without requiring regular diesel deliveries. Refrigeration and cold chains can reduce food losses and support the export of meat, milk and fish.
Telecommunications companies are another important part of the energy market. Somalia has developed strong mobile communications and digital payment systems despite weak public infrastructure. Towers and data facilities need constant electricity, which has encouraged companies to use captive generators, solar panels and battery systems. Surplus power from these facilities can sometimes support nearby users.
Energy access also matters for displaced communities and humanitarian operations. Camps and public institutions often rely on diesel generators because they need dependable electricity immediately. Replacing part of this demand with solar and batteries can lower fuel costs while leaving behind infrastructure that may later serve surrounding communities.
These uses show why Somalia’s energy development cannot be measured only by total generating capacity. A small solar system powering a borehole, health clinic or cold-storage facility can have a greater economic effect than a larger project that does not serve productive demand.
The Government Is Re-entering a Market Built by Private Utilities
Somalia’s private electricity providers developed during a period when public institutions had limited control over the sector. The government is now trying to establish rules without destroying the private investment that kept electricity available.
The Electricity Act adopted in 2023 created a legal basis for licensing, tariff regulation, technical standards and stronger public oversight. The challenge is turning the law into working institutions that can regulate providers across a complex federal system. [4]
The World Bank-backed Somali Electricity Sector Recovery Project is supporting this process. Its work includes distribution-network rehabilitation, generator synchronization, solar and battery installations, and improvements in major load centres such as Garowe, Galkayo, Kismayo, Baidoa, Berbera and Borama.
By February 2026, renewable capacity constructed under the project had reached 8.1 megawatts. The revised target is more than 55 megawatts by June 2028. The programme also supports solar installations at health and education facilities and aims to improve licensing and tariff-setting systems. [8]
The long-term goal is not necessarily to remove private companies. It is to make them operate within common technical and commercial rules. Providers need standards for voltage, metering, safety, interconnection and service quality. Customers need clearer tariffs and protection from unsafe wiring or unfair practices.
Connecting neighboring providers could reduce reserve requirements, improve generator efficiency and allow renewable power to move between networks. Larger regional grids could follow once local systems can operate under compatible standards.
Somalia’s Energy Future Depends on Connecting What Already Exists
Somalia does not need to copy the energy system of a heavily industrialized country. Its strongest opportunity is to build outward from the mini-grids, private utilities and decentralized technologies already operating across the country.
Solar panels and batteries can reduce diesel consumption now. Wind projects can serve coastal and northern demand where resources are strongest. Better wires, transformers, meters and control systems can improve reliability before a complete national grid exists. Cleaner cooking fuels can reduce pressure on forests and household spending on charcoal.
Oil and natural gas exploration may eventually create a new industry, but commercial success is not guaranteed. Even a major discovery would take years to develop and would not remove the immediate need for affordable electricity.
The central question for Somalia is therefore not which single fuel will dominate. It is whether the country can turn separate private networks into a coordinated system while expanding power to rural communities, businesses and public services. If that process succeeds, Somalia could move from one of the world’s most expensive diesel-based electricity markets toward a more local, flexible and renewable energy economy.