AfDB approves USD-49.9m grant for solar-plus-storage in Eritrea

The African Development Bank (AfDB) said on Thursday it had approved a USD-49.92-million (EUR 45.7m) grant for the construction of a grid-connected solar farm with a battery energy storage system (BESS) in Eritrea.

Of the total amount, the African Development Fund is providing USD 19.5 million, while USD 39.42 million will come from the Transition Support Facility. Eritrea’s government is the beneficiary of the grant and the ministry of energy and mines is responsible for its implementation, the bank said.

Part of the funding will be used to design and build a 30-MW solar farm with a 15-MW/30-MWh BESS near Dekemhare, a town located around 40 kilometres (25 miles) southeast of the capital Asmara. This part of the project will also include the construction of a 33/66 kV substation and a 66-kV transmission line connected to an existing transmission line between East Asmara and Dekemhare.

The second portion of the grant will go towards technical assistance and capacity building to support the country’s power company Eritrea Electricity Corporation (EEC) and the ministry of environment, particularly in matters related to solar PV and battery systems, grid planning and design, and other energy sector affairs.

The Dekemhare solar-plus-storage system is expected to contribute to increasing generation capacity and grid energy to 185 MW and 365 GWh per year, reduce the power deficit and emissions of greenhouse gases and lower to cost of electricity. Once in operation, the new power plant will enable the share of renewable energy in Eritrea’s power mix to increase to 23% from 3%, the AfDB said.

(USD 1.0 = EUR 0.916)

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