African Development Bank (ADB) has approved a $50m loan for the construction of a 30MW solar project, plus battery, in Dekemhare, in Eritrea.
The project entails the construction of a grid-connected solar photovoltaic power plant and battery storage system near the town of Dekemhare 40km south-east of the capital Asmara.
The loan comprises $19.5m from the African Development Fund (ADF-15) and $30.42m from the Transition Support Facility.
The ADF-15 grant will finance the construction of the solar plant and a 15MW battery backup system.
Part of the cash will also be allocated to technical assistance and capacity building to improve the operational performance of the grid and ensure the sustainability of the results achieved and the overall development of the Eritrean power sector.
The project consists of the power generation phase, which includes the design, construction, supply and installation of the solar plant, the battery, a 33/66kV substation and a 66kV transmission line connected to the existing transmission line between East Asmara and Dekemhare, located about 1km from the project site.
The second component of the development is technical assistance and capacity building.
This aims to support technical studies for large-scale renewable energy projects to respond to electricity demand within Eritrea Electricity Corporation (EEC) network’s interconnected system, minimise the electricity generation from thermal plants and conduct critical studies of the energy sector, including emission reduction potential of the identified renewable energy projects and their eligibility for co-financing by international climate funds.
The technical assistance includes capacity building for the electricity company and the Ministry of Environment, particularly in photovoltaic technologies and battery energy storage systems, dispatch management and commissioning of electrical equipment.