In a significant step toward enhancing Eritrea’s energy sector, the Government of the State of Eritrea (GOE) and the African Development Bank (AfDB) have signed a $20 million agreement to support the country’s renewable energy development. The funds will finance the construction of a hybrid solar and backup mini-grid project, aimed at improving Eritrea’s energy infrastructure.
The agreement was signed by Eritrea’s Minister of Finance and National Development, Dr. Giorgis Teklemikael, and Dr. Leandre Bassole, AfDB’s Deputy Director-General for East Africa.
Both initiatives are key components of Eritrea’s medium-term energy strategy, which outlines plans to install 12 modular energy plants, each with a 30-megawatt capacity, for a total of 360 megawatts nationwide. This strategic expansion aims to bolster the country’s power supply and support economic growth.
During the signing ceremony, Dr. Giorgis underscored the importance of African-led solutions to address the continent’s development challenges. He praised the AfDB for its continued support and emphasized the government’s commitment to building local expertise in energy project execution.
Dr. Bassole highlighted Eritrea’s abundant solar energy potential and reaffirmed the AfDB’s dedication to collaborating with the country to unlock this resource for economic transformation.
It is noteworthy that the $50 million Dekemhare Solar Photovoltaic Project, signed on March 23, 2023, is progressing well and is expected to connect directly to the Hirgigo power plant by 2026.
By investing in sustainable energy infrastructure, Eritrea is demonstrating its commitment to addressing power challenges while promoting economic growth and environmental sustainability. [TN]