As of 2022, Eritrea’s total estimated solar capacity was 10.807 MW. ⁶

The country is advancing its solar energy infrastructure with the development of a new 30 MW solar photovoltaic plant near Dekemhare, which will significantly enhance overall capacity and integrate battery storage into the grid. This project is expected to raise the share of renewable energy in Eritrea’s energy mix from 3% to 23% upon completion. ⁶

Eritrea’s electricity generation is predominantly from oil and diesel, accounting for over 96% of total generation. The average electricity price in Eritrea is approximately 240 $/MWh, with generation costs around 27 cents per kWh. ³

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• Oil-based: 96%
• Solar Power: 3.11%
• Wind Power: 0.89%

Approximately 70% of the Eritrean population in rural areas has limited or no access to modern energy services, while the national grid covers around 31% of the country.Top of Form. ⁵

Specific numbers of residential solar kits installed in Eritrea are not currently available.

Eritrea has one solar farm under development with 30 MW capacity in Dekemhare. This facility will be the largest PV installation in the country once completed. ⁸

Additionally, Eritrea has two hybrid mini-grids (solar-diesel) with a total capacity of 2.25 MW—one in Areza (1.25 MW) and another in Maidma (1 MW). ⁹

With support from the European Union and UNDP, the Ministry of Energy and Mines (MEM) has delivered modern, affordable, and sustainable energy to previously off-grid villages and rural towns, including Areza and Maidma in the Debub region. The project aims to serve more than 40,000 residents across 40 villages, along with over 513 small businesses, 15 schools, 2 kindergartens, 2 community hospitals, 5 health stations, and 80 organizations. ^{10 11}

The Eritrean National Energy Policy aims to increase electrification rates and supply 20% of electric power demand through renewable energy sources by 2030. This goal indicates a significant projected increase in demand for solar panels as the country seeks to expand its renewable energy capacity. ¹²

In this context, the Government of the State of Eritrea, with grant support from the African Development Bank (AfDB), is establishing a 25-megawatt Solar Photovoltaic (PV) Power Project in Village-Hadamu, Dekemhare Subzoba, Zoba Debub.

• The average monthly salary in Eritrea for 2024 is approximately $457.33. ¹³
• Solar Engineer: the average monthly salary is approximately $417.20. ¹⁴
• Solar Photovoltaic Installer: the average monthly salary is approximately $279.13. ¹⁵

The current population of Eritrea is 3,543,267. ¹⁶

Estimate for Factory Rent ¹⁷

The average price for factory land in Eritrea is approximately $500 per hectare. (specific rent costs are not available).

Industrial Electricity Rate ³

The average wholesale electricity price in Eritrea remains consistent with previous years, fluctuating around 240 $/MWh.

Water Costs ^{18 19}

Access to tap water is a significant challenge in Eritrea. As of 2020, over 80% of the population lacks basic water services, relying on unprotected sources like wells and rivers, which are often contaminated.

Eritrea has initiated several programs to improve access to affordable tap water. The One WASH (Water, Sanitation, and Hygiene) strategy, launched in partnership with UNICEF, aims to ensure adequate WASH services for all citizens by 2030. This includes efforts to end open defecation and enhance access to clean water and sanitation.

Salaries and Wages ^{14 15}

Workers of solar industry in Eritrea averagely earn between $279.13 and $417.20 monthly, depending on the position.

Rent for Office Space ²⁰

The average price for renting commercial premises is approximately $324.43 per month.

Insurance ²¹

The average property insurance premium per capita in Eritrea is approximately $3.23.

Eritrea’s energy infrastructure is characterized by significant challenges and ongoing reforms. ^{5 22}

Electricity Generation

Eritrea generates over 130 MW of electricity, mainly from imported oil and biomass. Biomass provides about 64% of the primary energy supply, with petroleum products contributing around 31%. Reliance on imported fossil fuels creates economic and environmental issues, such as carbon emissions and deforestation from unsustainable biomass use.

Transmission and Distribution

The expansion of transmission and distribution networks has been notable, with transmission lines increasing from 150 km to 400 km and distribution lines from 800 km to 1300 km since independence.

Imports and Exports

Eritrea heavily relies on imported oil for its energy needs, which diverts financial resources from other development areas. The country does not have indigenous sources of oil, natural gas, or coal. The over-reliance on imported fossil fuels contributes to environmental degradation and health problems related to energy use.

Energy Policy and Development

Since gaining independence in 1991, the Eritrean government has prioritized the energy sector. Recent reforms include restructuring the Eritrea Electric Corporation to operate on commercial principles, establishing a regulatory body, and creating a Rural Electrification Fund to enhance access to energy services for the poor.

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• Eritrea has a draft National Energy Policy that aims to increase the electrification rate across the country and supply 20% of electric power demand through renewable energy sources by 2030.
• The National Investment Plan (NIP) in Eritrea emphasizes the development of renewable power sources and improving energy efficiency, with a particular focus on photovoltaics under the EDF 11 support. This initiative also includes the rehabilitation of crucial power grids, the expansion of wind energy projects, and efforts to unlock the potential of geothermal energy.
• The Department of Energy has taken responsibility for setting standards and issuing guidelines for renewable energy technologies, preparing draft standards for RETs based on International Standards Organisation (ISO) guidelines.
• The Eritrean Standards Institute is responsible for quality control and certification of energy technologies, but currently lacks the institutional capacity to do so.

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• The government of Eritrea has received a $49.92 million grant from the African Development Bank to fund a 30 MW photovoltaic plant in Dekemhare, which is the country’s first large-scale solar plant. The project includes a 15 MW/30 MWh battery energy storage system, a 33/66 kV substation, and a 66 kV transmission line. It is expected to increase generation capacity and grid energy to 185 MW and 365 GWh annually.
• Eritrea’s 2018 draft National Energy Policy aims to increase the electrification rate across the country and supply 20% of electric power demand through renewable energy sources by 2030. The project is aligned with Eritrea’s development priorities and objectives, including agriculture, nutrition and food security, infrastructure (including energy) and the green economy (including renewable energy).

Eritrea still lacks various policies for renewable energy: Feed-in Tariff (FiT) implementation, import tax incentives, VAT incentives, etc.

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30 MW Solar Plant in Dekemhare:

• The African Development Bank approved a $49.92 million grant in March 2023 to finance the construction of a 30 MW grid-connected solar photovoltaic power plant with a 15 MW/30 MWh battery energy storage system near Dekemhare, 40 km southeast of Asmara.
• The project is expected to increase generation capacity by 185 MW, grid energy to 365 GWh/year, and reduce greenhouse gas emissions by 42,910 Gt CO2-eq per year.

Adi-Halo: 2 MW solar-power plant: represents a significant step forward in the country’s efforts to expand its renewable energy capacity.

The study “Estimating Solar Energy Potential in Eritrea: A GIS-based Approach” employs Geographic Information Systems (GIS) estimated Eritrea’s solar energy potential at a regional level, providing insights for future large-scale solar projects. The proposed project aims to develop a grid-connected solar PV power plant to allow Eritrea to realize its enormous renewable energy potential

China Energy Engineering Group Shanxi Electric Power Construction Co

• Headquarter: Beijing, China
• Website:https://www.ceec.net.cn/
• Notable Project: China Energy Engineering Corporation (CEEC) specializes in large-scale energy projects, including the contract for the 30 MW Dekemhare solar PV project, which includes a battery storage system and is expected to enhance Eritrea’s renewable energy capacity.

DuSol Industries

• Headquarters: Dubai, UAE
• Website: https://www.dusol.ae/
• Notable Project: DuSol is a leading energy company focused on solar power projects, including significant investments in Eritrea.

Aptech Africa

• Headquarters: South Sudan, with roots in Eritrea
• Website: https://aptechafrica.com/
• Notable Project: Initially focused on solar lanterns and small solar kits, Aptech has moved into larger projects and installations, including partnerships with NGOs for solar panel installations in medical facilities. In addition to its projects in Eritrea, AP Tech Africa operates in several countries across Africa, including Kenya, Uganda, Tanzania, Zambia, Ghana, and Ethiopia.