Eritrea is set to receive a sum of US $58M to expand access to electricity in three towns. The funding which was approved by the African Development Bank Group, will support the Eritrea Energy Integrated Project, which aims to improve power supply in Tesseney, Kerkebet, and Berantu while strengthening the region’s energy infrastructure and supporting local economic activity.
The project will be funded through a US $37.31M grant from the African Development Fund and an additional US $20.73M grant from the Bank’s Transition Support Facility. The investment will be used to develop a 34-megawatt solar-powered mini-grid system that will increase energy capacity and strengthen electricity distribution networks, providing more reliable and affordable power to homes, businesses, and public institutions in the targeted towns and surrounding communities.
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Benefits
In addition to expanding electricity access, the project will support the installation of clean-energy water pumping systems, improve irrigation, and help boost agricultural production in the region. Reliable electricity is also expected to support small businesses and agro-processing activities by enabling longer operating hours and lowering operational costs. As part of the project, about 542 kilometres of electricity distribution lines will be constructed or upgraded.
The initiative is also expected to create jobs during both the construction and operational phases, while helping to build technical expertise in the renewable energy sector. Over the long term, the project is expected to contribute to lower greenhouse gas emissions and support Eritrea’s transition toward a more sustainable and climate-resilient energy system. Around 306,000 people are projected to benefit from the improved power supply.
The Eritrea Energy Integrated Project is part of the African Development Bank Group’s Desert to Power initiative, a large-scale programme designed to harness solar energy potential across eleven Sahel countries, including Eritrea. The initiative also supports Mission 300, a joint effort between the African Development Bank and the World Bank aimed at extending electricity access to 300 million people across Africa by 2030. Officials say the investment will help stimulate economic growth, create employment opportunities, and strengthen local communities.
