Eritrea has taken a decisive step towards enhancing its energy security and sustainability by awarding a major contract to China Energy Engineering Group Shanxi Electric Power Construction Co., Ltd. for the development of a landmark 30 MW Solar PV project. Announced in March 2024 by Eritrea’s Ministry of Energy and Mines, the contract is a cornerstone of the nation’s strategy to address its significant energy deficit.
A Multifaceted Approach to Energy Independence
The Dekemhare Solar PV Project, located approximately 40 km southeast of the capital, Asmara, is far more than just a solar farm. The comprehensive initiative includes the construction of the 30 MW grid-tied solar PV plant, a 15 MW/30 MWh battery energy storage system to ensure a stable power supply, and a new 33/66 kV substation. To integrate this new power source into the national grid, a 66 kV transmission line will also be constructed, connecting the facility to the existing East Asmara-Dekemhare line.
Financing for the approximately $59.21 million project is primarily secured through the African Development Bank (AfDB). The bank is covering 91% of the cost via grants from its African Development Fund and Transition Support Facility, with the Eritrean government contributing the remaining 9%.
Timeline and Strategic Impact
The construction phase is slated to last 24 months, with a one-year defect liability period to follow. While the original schedule aimed for a March 2024 start, some projections place the commencement of construction in 2025, with the facility reaching commercial operation in 2026. Once operational, the Dekemhare solar PV plant will dramatically alter Eritrea’s energy landscape.
The project is set to increase the country’s grid generation capacity to 185 MW and will catapult the share of renewable energy in the grid’s mix from a mere 3% to 23%. This shift away from fossil fuels is projected to reduce annual greenhouse gas emissions by an estimated 42,910 tCO2-eq and lower the cost of electricity from 20 US cents/kWh with diesel to a more affordable 18.5 US cents/kWh with solar power.
Building a Sustainable Future
Eritrea currently faces a severe power shortage, with an available capacity of just 35 MW against a peak demand of around 70 MW, leading to widespread load-shedding. This project directly addresses that gap and aligns with the nation’s 2018 National Energy Policy and Vision 2030, which aim to increase electrification and achieve a 20% renewable energy share by 2030.
Beyond power generation, the project incorporates a vital technical assistance and capacity-building component. This will train Eritrean energy professionals in network planning, performance improvement, and the assessment of future large-scale clean energy initiatives, fostering long-term self-sufficiency in the sector.
Sources for the 30 MW Solar PV Plant in Eritrea Awarded to Chinese Firm
- China Energy Group Wins Contract For 30 MW Solar PV Plant In …
- Power plant profile: Dekemhare Solar PV Park, Eritrea
- Dekemhare 30 MW Solar PV Project Report – Scribd
