AfDB approves US$49.9mn loan for 30 MW solar PV project in Dekemhare

The African Development Bank (AfDB) has approved a grant of US$49.92 million for the construction of a grid-connected solar farm with a battery energy storage system (BESS) in Eritrea. The grant will fund the construction of a 30 MW solar farm with a 15 MW/30 MWh BESS, as well as 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 project is expected to increase generation capacity and grid energy to 185 MW and 365 GWh per year and increase the share of renewable energy in Eritrea's power mix to 23% from 3%.

The African Development Fund is providing US$19.5 million of the total grant, while US$39.42 million will come from the Transition Support Facility. The grant will also fund technical assistance and capacity building to support 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 grant's beneficiary is Eritrea's government, and the Ministry of Energy and Mines is responsible for its implementation.

The Dekemhare solar-plus-storage system will help reduce Eritrea's power deficit and greenhouse gas emissions, as well as lower the cost of electricity. The project is a significant milestone in Eritrea's transition towards a more sustainable future and represents a significant step towards the country's goal of increasing the share of renewable energy in its power mix.