Djibouti’s energy mix is rapidly transitioning from heavy reliance on imported fossil fuels toward renewable energy, with roughly 80% of electricity now sourced from clean energy, primarily hydroelectricity imported from Ethiopia. The remaining domestic generation relies on diesel, while ongoing projects in wind, solar, and geothermal aim for 100% renewable energy by 2035.

The country’s most important economic asset is its strategic location, connecting the Red Sea and the Gulf of Aden. As such, Djibouti’s economy is commanded by the services sector, providing services as both a transit port for the region and as an international transshipment and refueling center. Accordingly, Djibouti aims to position for the future to supply hydrogen fuel to the numerous ships passing through the Bab El Mandeb Strait.

As of 2026 Djibouti has not yet crystalized its goal of producing green hydrogen, but it may do so in the near future.