The African Development Bank has approved a major grant to support Eritrea’s expansion of solar power generation and modernization of the national electricity grid. The financing package, valued at approximately $58 million, aims to improve access to reliable, clean electricity in the southwestern Gash-Barka region, widely known as the country’s agricultural “breadbasket.”
The investment will fund the development of a 34-megawatt solar mini-grid system designed to power several towns and surrounding rural areas. The project will specifically serve the towns of Tesseny, Kerkebet and Barentou. By combining solar power and battery storage systems, the initiative aims to provide a stable and continuous power supply while reducing reliance on expensive and environmentally harmful diesel-based power generation.
In addition to the installation of solar power generation equipment, the project also includes significant improvements to the local electrical grid. More than 500 kilometers of new and improved distribution lines will be constructed to ensure that the electricity generated by the solar mini-grid reaches homes, farms and businesses across the region. These upgrades are expected to strengthen the reliability of the power grid and expand access to electricity in underserved communities.
The project also aims to support regional economic development by linking improved energy access with agricultural productivity and local business growth. A reliable electricity supply allows farmers to install modern irrigation systems and operate refrigeration facilities that reduce post-harvest losses. This is expected to improve food preservation and strengthen regional food security.
Small businesses and agro-processors in the region will also benefit from increased electricity availability. Access to reliable electricity has the potential to extend operating hours, increase production capacity and create new job opportunities. According to estimates associated with the project, more than 300,000 people are expected to benefit from enhanced electricity access once the scheme is operational.
The funding forms part of the African Development Bank’s wider regional program known as Desert to Power. The initiative aims to harness the vast solar power potential of the Sahel region to power around 250 million people in 11 African countries. For Eritrea, this project is an important step towards increasing the share of renewable energy in the country’s energy mix while reducing dependence on fossil fuels.
The grant will not only support infrastructure development, but also technical training and capacity development programs. These initiatives aim to equip local engineers and technicians with the skills needed to operate, maintain and manage solar power installations and power grid systems. The initiative aims to support Eritrea’s long-term sustainability, economic development, and climate resilience by investing in both energy infrastructure and human capacity.
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