African Development Bank Funds $19.5M Minigrid Project in Eritrea

March 27, 2025
The 12 MW Desert to Power Eritrea Minigrid Project will power homes, small-scale farms, agricultural processing zones and water supply systems, improving electricity access for nearly a quarter of a million Eritreans.

The African Development Bank (AfDB) is funding a 12-MW minigrid project in Eritrea. The $19.5 million grant from AfDB’s Transitional Support Facility will support the rollout of minigrids as part of the Desert to Power Eritrea Minigrid Project.

Minigrids will be deployed in three regions. A 6-MW system will be installed in the southwestern city of Teseney. The centrally located cities of Kerekebet and Barentu will receive 3 MW systems.

Located in northeast Africa on the Red Sea coast, Eritrea borders Sudan, Djibouti and Ethiopia, from which it gained independence in 1993. The country is one of the poorest on the continent and nearly half of its 6.3 million residents don’t have access to electricity.

The minigrids will power homes, small-scale farms, agricultural processing zones and water supply systems, improving electricity access for nearly a quarter of a million Eritreans. More than 160 schools and 90 health centers will also benefit from the minigrids.

“We are proud to say that Africa is working with Africa to bring change to Africa,” said Ghiorghish Teklemichae, Eritrea’s Minister of Finance and National Development. “This is for the good of our people.”

Meeting energy objectives with minigrids

Minigrids are increasingly changing the energy landscape in many of Africa’s poorest and most isolated regions. Sometimes referred to as remote microgrids or metrogrids, minigrids are typically built and operated in areas without access to a central electric grid. Microgrids, on the other hand, are typically grid connected systems capable of disconnecting from the central grid during outages or for economic reasons.

Minigrids vary in size and can serve a single location, an entire village, or even a large remote community.

Minigrid systems use software to control distributed renewable energy resources like solar panels and battery storage, providing remote communities with reliable, clean and affordable power.

The Desert to Power Eritrea Minigrid Project will help the country achieve its objectives of improving electrification rates and generating 20% of its electricity from renewable resources by 2030.

It is expected that the hybrid minigrids will include solar and battery energy storage systems, as well as backup diesel generators.

Around 3% of the nation’s electricity is generated by renewables currently, primarily solar. The vast majority of the country’s electric grid is powered by imported oil.

Local companies to maintain minigrids

The minigrid project will be implemented by Eritrea’s Ministry of Energy and the Eritrea Electricity Corporation, the country’s national utility.

A design and engineering technical consulting firm will provide project supervision and guidance. That firm has yet to be selected.

In addition to building the minigrids, a portion of the grant funds will be used to train and equip 25 local companies with the skills, tools and machinery needed to maintain the systems and build local capacity.

“Capacity building and knowledge transfer are critical to the success of the project’s implementation,” said Léandre Bassole, deputy director general of the AfDB. “This will be a continuous process.”

AfDB supports minigrid projects across Africa

The AfDB has funded several other minigrids across the continent in recent years, including projects in Ethiopia, Nigeria and Mauritania.

Earlier this year the organization joined with the World Bank and a host of other partners to launch Mission 300, an initiative that aims to expand access to reliable, affordable and sustainable electricity to 300 million people in Africa by 2030.

About the Author

Kathy Hitchens | Special Projects Editor

I work as a writer and special projects editor for Microgrid Knowledge. I have over 30 years of writing experience, working with a variety of companies in the renewable energy, electric vehicle and utility sector, as well as those in the entertainment, education, and financial industries. I have a BFA in Media Arts from the University of Arizona and a MBA from the University of Denver.

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