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Feasibility Study Set to Spur Investment in Productive Use of Renewable Energy (PURE) Sector in Puntland

Storyline:Business

PUNTLAND, SOMALIA: Earlier in the year Solar Energy Consultant and Construction Company (SECCCO) partnered with Norwegian Agency for Development Cooperation (Norad) to carry out a feasibility study on Solar PV irrigation and freezers in Puntland.  The feasibility study which involves data collection via surveys on focus group discussions and and key informant interviews is exploring how solar power can improve agricultural production. Focusing on solar installations in the fisheries cold-chain solutions and agricultural solar water pumps for improved yield. The data collected from stake-holders and farmers will shape the future and tailor make projects aimed at improvement of food security, job creation and environment management in Puntland.

Feasibility team training

Access to electricity in Somalia remains relatively low, the survey recognizes that improving access to affordable and reliable energy is an important step in promoting growth and stability in the region, which currently lack a national grid system and experience high fuel costs. This limits many sectors of economy from reaching their full potential while also perpetuating poverty and insecurity at a household level. The growth of electricity access should be correlated with electricity consumption which is not a thing in most Somalia communities an indicator of lagging economic development.

In a region with up to 3,100 hours per year of sunlight and one of the highest daily averages of solar radiation in the world, Somalia is a prime location for solar energy systems. Mini-grid designs can be adapted to discourage existing diesel infrastructure in a hybridized system tailored to the needs of non-electrified rural communities and peri-urban stakeholders that are seeking solar as a more affordable solution to diesel power.

Solar installation at a farm to adopt PURE for crop farming

Over the last decade, the appetite for solar energy has increased rapidly in the Somali region among fisheries, and agricultural sectors. Productive Use of Renewable Energy, or PURE, invests in expanding access to energy in areas that help generate more revenue for rural communities, while spurring demand for clean electricity. Done right, PURE is a virtuous cycle that not only boosts clean electricity use, but supports low-carbon economic growth, creates employment opportunities for growing youth populations, and increases income for rural communities. Investment in expanding solar-powered irrigation, as well as equipment that adds value in agricultural processing, fish packaging and processing for export are some of the technologies that would increase local electricity demand.

PURE Opportunities, increase in innovation

Where PURE has been deployed, results are impressive. SECCCO has been deploying agriculture and fishing projects across the region with help from partners for some time now with the aim of demonstrating the economic, social and environmental benefits of decentralized renewable energy. “Farmers increased production by over 90% while also improving their resilience and incomes by allowing intercrop with high-value crops and soil testing to manage an all-year-round quality production. Now they can better afford to use the clean power they have access to and can afford. Says Said Mohamoud SECCCO Business Development Manager.

On the feasibility study, project manager Mr. Mohamed Khalif had this to say “in my experience while visiting the region while doing the study the needs of the communities are similar, like the wider clean energy sector, access to finance is a major bottleneck for PURE. Cost of productive use appliances, coupled with rural entrepreneurs’ risk aversion due to low-income levels, are major impediments. Additionally, the market for PURE solutions is still nascent; investors and financing institutions have not yet been able to identify and appreciate the full scope of opportunities. And many communities have limited capacity for running rural commercial enterprises and lack access to profitable markets.

Feasibility study further seeks to:

  • strengthen rural economic activity
  • increase small and medium sized enterprises’ productivity
  • increase job creation
  • mobilize increased resources for economic and social development

Focus group meetings

Actions that could push PURE to the forefront of the electricity access expansion

  • Investor awareness of productive use existence- This includes accurate data provision of location, size and ability of end-users to pay for energy would play a big role in growing finance for PURE.
  • Unlock finance for investment in the PURE sector -High risk perceptions by financiers, steep upfront investment costs, expensive technology, and an absence of end-user financing are some of the major challenges. Therefore, innovative financing mechanisms can help mobilize funding from domestic and international sources.
  • Empower local communities to pursue existing opportunities -Communities can pursue PURE opportunities on their own, but they often lack knowledge in how to operate productive use technologies like solar-powered irrigation systems. Village savings and loan groups and community cooperatives have historically been successful in rallying communities behind economic empowerment initiatives.


SECCCO and Norad project will ultimately produce a report that will offer a sustainable solution to these energy challenges. In the region from Garacad  to Bosaso to Eyl communities experience erratic rainfall patters therefore depend on irrigation for agriculture production and cold-chain solutions for fisheries sector to preserve their catch for local and regional markets.