The African Development Bank (AfDB) and the Eritrean government have formalized a $19.5 million grant agreement, propelling the nation’s ambitious “Desert to Power Eritrea 12 MW Mini-Grid Project” into reality.
This landmark agreement, signed by Eritrea’s Minister of Finance and National Development, Ghiorghish Teklemichae, who also serves as the Bank Group Governor for Eritrea, and Léandre Bassole, Deputy Director General for East Africa, representing the AfDB, marks a decisive stride towards sustainable energy access for hundreds of thousands of Eritreans.
The substantial financing, drawn from the AfDB’s Transitional Support Facility (TSF), will fuel the development of strategically located mini-grids, generating a total of 12 megawatts of electricity.
These critical energy hubs will be established in Teseney (6MW), Kerekebet (3MW), and Barentu (3MW), directly addressing the acute energy needs of the Gash Barka region, a vast and vital area of Eritrea.
The project’s impact is projected to be transformative, extending reliable electricity access to over 235,000 Eritreans. This includes residential households, small-scale farms, burgeoning agro-processing businesses, and crucial water supply systems.
The initiative will also electrify essential public services, including schools and healthcare centers, significantly enhancing the quality of life and fostering socio-economic development within the region.
“This agreement is a testament to our unwavering commitment to empowering Eritrean communities through sustainable energy solutions,” stated Minister Ghiorghish Teklemichae during the signing ceremony. “By harnessing the power of renewable energy, we are not only addressing immediate energy needs but also laying the foundation for long-term economic prosperity and environmental sustainability.”
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Recognizing the importance of local ownership and long-term sustainability, the project incorporates a comprehensive capacity-building component.
A cohort of 25 local companies will undergo rigorous training and be equipped with state-of-the-art tools and machinery, ensuring they possess the expertise to maintain and expand the mini-grid infrastructure.
This strategic investment in human capital will create a skilled workforce, fostering a vibrant local energy sector.
“The AfDB is proud to partner with Eritrea in this transformative project,” emphasized Léandre Bassole. “This initiative aligns perfectly with our mission to accelerate Africa’s economic and social progress by providing access to clean and affordable energy. By empowering local communities and building local capacity, we are ensuring the project’s long-term success and sustainability.”
The “Desert to Power Eritrea 12 MW Mini-Grid Project” is a key component of Eritrea’s ambitious 2018 National Energy Policy, which aims to dramatically increase electrification rates and achieve a 20% renewable energy usage target by 2030.
This project represents a significant leap towards achieving these national goals, demonstrating Eritrea’s commitment to a sustainable and resilient energy future.
The implementation of these mini-grids in the Gash Barka region will not only alleviate the current energy deficit but also unlock new opportunities for economic growth and development.
By powering agricultural activities, stimulating small businesses, and enhancing access to essential services, the project is poised to catalyze a wave of positive change across the region.
The $19.5 million agreement signals a new era of energy development in Eritrea, one powered by innovation, sustainability, and a steadfast commitment to improving the lives of its citizens.
The ripple effects of this project are expected to extend far beyond the Gash Barka region, setting a precedent for similar initiatives across the nation and the continent. The project will be watched closely, as it is a major step towards making Eritrea energy independent.
