Powering Progress

Baidoa Electric Company (BECO)

Baidoa Electric Company (BECO) has provided reliable, affordable electricity to Baidoa in Somalia’s South and Central regions for over a decade, and aims to serve as a model for other communities.

The progression of the energy landscape of this community has been anything but straightforward. Through innovation, collaboration, and investment, BECO has made remarkable strides in job creation, economic growth, and sustainable energy solutions, thanks in large part to support from One Earth Future’s Shuraako program.

From Fragmentation to Unification

Founded in 2012, BECO emerged from the consolidation of five smaller electricity suppliers, each operating independently in various neighborhoods of Baidoa. Initially reliant on private diesel generators with limited service hours, BECO took on the challenge of providing 24-hour electricity. This shift was driven by increasing demand as the city expanded and the population grew. However, the reliance on costly diesel fuel and the challenges of supply disruptions due to insecurity or poor weather posed significant hurdles.

Shuraako’s Pivotal Investment

Recognizing the need for innovation and sustainability, BECO partnered with Shuraako to secure a $749,990 loan through the Nordic Horn of Africa Opportunities Fund (NHAOF). This investment allowed the company to transition to renewable energy by installing thousands of solar panels, reducing dependency on diesel fuel. The shift to a hybrid solar-diesel system significantly decreased fuel costs, cutting expenses by $1,000 to $1,200 daily and saving up to 12 barrels of fuel per day on sunny days.

The environmental impact was equally impressive. By reducing diesel consumption, BECO also minimized its carbon emissions, contributing to a cleaner and more sustainable future for Baidoa.

Economic Growth and Job Creation

With the support of One Earth Future's Shuraako program, BECO expanded its services, providing electricity to 20% of Baidoa residents who previously lacked access to power. This expansion has spurred economic growth, enabling businesses to operate more efficiently and supporting the overall development of the region.

The investment also led to a 40% growth in BECO’s workforce over the past three years. The company now employs a diverse team of engineers, technicians, and administrative staff, creating both temporary and permanent jobs for the local population.

Innovation and Market Expansion

BECO’s adoption of solar energy has paved the way for introducing new and improved services. The company now generates one megawatt of clean energy through its solar system, ensuring consistent electricity supply even during less sunny conditions.

Looking ahead, BECO is exploring further market expansion, with plans to extend electricity services to every neighborhood in Baidoa. The company is also actively seeking additional investments to fully transition away from diesel fuel and enhance its renewable energy capacity.

A Brighter Future for Baidoa

The success of Baidoa Electric Company demonstrates the power of collaboration and innovative financing in transforming communities. Shuraako’s investment not only provided the financial resources needed for expansion but also empowered BECO to adopt sustainable energy solutions, reduce operational costs, and create jobs.

BECO’s story highlights the power of renewable energy in driving economic growth and improving quality of life.