The African Development Bank (AfDB) is providing $49.92 million in financing to Eritrea. The funds are for the construction of a 30 MWp solar photovoltaic power plant with storage near the town of Dekemhare.
News about the Dekemhare solar project in Eritrea. It will be financed with $49.92 million by the African Development Bank (AfDB). Of this funding, $30.42 million is allocated under the Transition Support Facility (TSF) and $19.5 million from the African Development Fund (ADF). The project will increase Eritrea’s installed power capacity from 185 MW to 365 MW.
The work will involve the construction of a 30 MWp solar photovoltaic power plant near the town of Dekemhare, 40 km south of the Eritrean capital Asmara. The Eritrean government is also planning to build a 33/66 kV substation and a 66 kV transmission line to connect to the existing line between East Asmara and Dekemhare, located about 1 km from the project site.
Building local capacity
According to the AfDB, the project is expected to contribute to closing the energy gap while reducing emissions by 42,910 tons of CO2 equivalent per year, and reducing the cost of electricity generation to 18.5 cents per kilowatt hour. Such an investment should also help reduce dependence on fossil fuels. The Dekemhare solar power plant will also increase the share of renewable energy in Eritrea’s energy mix from 3% to 23%.
The East African country is 90 percent dependent on fossil fuels, including diesel for power generation, according to the 2015 International Energy Agency (IEA) report. Part of the AfDB’s funding is for institutional capacity building. This includes support for technical studies for other renewable energy projects.
The project also includes capacity building in network planning and design, performance improvement, financial, legal, operational and environmental aspects. The technical assistance also aims to support the Renewable Energy Center.
Jean Marie Takouleu