African Development Bank Approves $58 Million Solar Mini-Grid Project To Expand Clean Energy Access In Eritrea

The African Development Bank has approved a major grant to support the expansion of solar power and the modernization of the national electricity grid in Eritrea. The funding package, valued at approximately $58 million, is aimed at improving access to reliable and clean electricity in the southwestern Gash Barka Region, which is widely known as the country’s agricultural “breadbasket.”

The investment will finance the development of a 34-megawatt solar-powered mini-grid system designed to supply electricity to several towns and surrounding rural communities. The project will specifically serve the towns of Tesseney, Kerkebet, and Barentu. By combining solar power with battery storage systems, the initiative aims to provide a stable and continuous electricity supply while reducing dependence on diesel-based power generation, which is both expensive and environmentally harmful.

In addition to installing solar generation capacity, the project will include significant improvements to the local electricity distribution network. More than 500 kilometers of new and upgraded distribution lines will be constructed to ensure that electricity produced by the solar mini-grid reaches households, farms, and businesses across the region. These upgrades are expected to strengthen the reliability of the grid and expand access to electricity in underserved communities.

The project is also designed to support economic development in the region by linking improved energy access with agricultural productivity and local enterprise growth. With a dependable electricity supply, farmers will be able to adopt modern irrigation systems and operate cold storage facilities that help reduce post-harvest losses. This is expected to improve food preservation and strengthen local food security.

Small businesses and agro-processing units in the region will also benefit from improved electricity availability. Access to reliable power will allow them to extend operating hours, improve production capacity, and potentially create new employment opportunities. According to estimates associated with the project, more than 300,000 people are expected to benefit from enhanced electricity access once the initiative becomes operational.

The funding forms part of the African Development Bank’s broader regional program known as Desert to Power. This initiative aims to harness the vast solar potential of the Sahel region to provide electricity to around 250 million people across 11 African countries. For Eritrea, the project represents an important step toward increasing the share of renewable energy in its national energy mix while reducing reliance on fossil fuels.

Beyond infrastructure development, the grant will also support technical training and capacity-building programs. These efforts are intended to equip local engineers and technicians with the necessary skills to operate, maintain, and manage solar installations and grid systems. By investing in both energy infrastructure and human capacity, the initiative aims to support long-term sustainability, economic development, and climate resilience in Eritrea.