The African Development Bank Group and the government of Eritrea have embarked on a transformative journey to enhance the country's energy infrastructure. On March 10, 2025, a landmark agreement was signed to fund the Desert to Power Eritrea 12 MW Mini Grid Project, marking a significant step towards sustainable energy development in the region.
The agreement, valued at $19.5 million, is sourced from the Bank Group’s Transitional Support Facility (TSF). It aims to establish mini-grids that will generate a total of 12 MW of electricity across three key regions: Teseney (6 MW), Kerekebet (3 MW), and Barentu (3 MW). This initiative is expected to significantly improve energy access for over 235,000 Eritreans, including 20% women and youth.
Implementation and Impact
The project will be implemented by the Eritrean Ministry of Energy, the Eritrea Electricity Corporation (EEC), and local companies, under the guidance of a technical consulting firm. The initiative is poised to benefit residential households, small-scale farms, agro-processing zones, and water supply systems. Additionally, it will support over 160 schools and 90 health centers in the Gash Barka region.
To ensure sustainability and local capacity building, 25 local companies will receive training and equipment. This approach not only fosters local economic growth but also ensures the longevity and maintenance of the energy infrastructure.
Strategic Alignment
The project aligns with the African Development Bank’s Interim Country Strategy Paper 2022-2024 for Eritrea, which emphasizes the development of sustainable infrastructure to support agricultural value chains and economic diversification. It also supports the 2018 Eritrea National Energy Policy, which aims to increase electrification rates and ensure that renewable energy contributes 20% of electric power by 2030.
Challenges and Opportunities
Eritrea's socioeconomic development has been historically impeded by conflicts and economic vulnerabilities. However, recent peace agreements and regional cooperation efforts have opened new avenues for economic growth and stability. The Desert to Power initiative represents a critical opportunity to overcome infrastructure bottlenecks and drive economic transformation.
The Desert to Power Eritrea 12 MW Mini Grid Project is more than just an energy initiative; it is a beacon of hope for sustainable development and economic resilience in Eritrea. By harnessing renewable energy, the project not only addresses immediate energy needs but also lays the groundwork for a more diversified and robust economy.
African Development Bank Group: Bank’s Interim Country Strategy Paper 2022-2024 for Eritrea
