In the quest for reliable and affordable electricity, Somalia faces the challenges of
exorbitant prices and an outdated, unreliable grid system. Consumers contend with
some of the world’s highest electricity costs, reaching up to $0.65 per kilowatt-hour.
Against this backdrop, the National Electric Corporation of Somalia (NECSOM) is
spearheading a transformative initiative to strengthen power grids through the
integration of digital technology, renewable energy, and a commitment to climate action.
- The High Cost Conundrum:
Somalia’s consumers grapple with staggering electricity prices from private Energy
Service Providers (ESPs), operating on diesel-powered grids. NECSOM acknowledges
the pressing need to break the cycle of high costs, which not only burden consumers
but hinder infrastructure development. - The Unreliable Grid Challenge:
Isolated diesel-powered grids in Somalia contribute to an unreliable energy supply.
Frequent power outages, coupled with the environmental toll of diesel generation,
necessitate a shift towards a more sustainable and resilient power grid. - Digital Transformation for Informed Decisions:
NECSOM recognizes the pivotal role of digital technology in reshaping the energy
landscape. The absence of information on grids and consumer energy use has been a
stumbling block for ESPs. NECSOM seeks to address this by ushering in a digital
transformation that empowers strategic decision-making and targeted improvements. - Tackling Losses and Theft:
High electricity prices without proper metering have led to rampant theft and losses for
ESPs, reaching as high as 40 percent. NECSOM’s vision is to implement smarter
infrastructure with metering systems, curbing theft, and reducing both technical and
non-technical losses. - Embracing Renewable Energy:
NECSOM’s commitment goes beyond cost reduction; it embraces renewable energy as
a key strategy. The incorporation of solar and wind power isn’t merely an environmental
decision but a pragmatic move to reduce the dependence on costly diesel generation
and drive down overall energy costs.
Abdiwahab Abshir, NECSOM’s Head of Business Development, underscores the financial
impact of fuel on energy costs. Shifting away from diesel generation not only aligns with
climate action but promises a substantial reduction in the cost of energy, potentially
breaking the cycle of poor cost recovery. - The Path to Climate Action:
NECSOM’s transition to renewable energy is not just an economic strategy; it’s a
decisive step towards climate action. By reducing reliance on diesel, NECSOM aims to
contribute to a cleaner and more sustainable energy sector, aligning with global efforts
to combat climate change.
In a landscape dominated by high energy costs and outdated infrastructure, NECSOM
emerges as a beacon of change. The integration of digital technology, the embrace of
renewable energy, and the commitment to climate action define NECSOM’s journey
towards a more efficient, sustainable, and affordable energy future for Somalia. As the
nation grapples with energy challenges, NECSOM’s initiatives stand poised to
revolutionize the power sector, bringing about a transformative impact on both
economic and environmental fronts.