Egypt to build two $23mn solar projects in Eritrea as regional push gathers pace

Egypt’s Ministry of Electricity is developing two solar power projects in Eritrea with investments exceeding $23mn, as part of broader efforts to expand energy cooperation across Africa, a government official told Asharq Business on April 29.

The projects form part of a wider Egyptian strategy to expand renewable energy initiatives across the Horn of Africa, including Somalia and Djibouti, with a focus on technology transfer and infrastructure development. The plans follow recent talks between Electricity Minister Mahmoud Esmat and Eritrean officials, including presidential economic adviser Hagos Ghebrehiwet and Trade Minister Nasr El-Din Saleh, to explore implementing projects to supply power to the key region.

The first project will have a capacity of 1MW. Solar panels have already been manufactured in Egypt by the Arab Organisation for Industrialisation (AOI), with installation and operation expected to begin soon. The second project, with a capacity of 3MW, is currently undergoing soil testing and site preparation. It will incorporate battery storage systems, enabling it to operate independently of the national grid and serve as a model for off-grid solar stations.

The AOI  will oversee execution, including contracting a specialised firm to supply storage batteries, while Egypt’s electricity ministry will provide technical supervision to ensure compliance with operational standards.

Eritrea remains an emerging market for renewable energy despite strong solar potential. In 2023, only 54.4% of its population had access to electricity, compared with a global average of around 91%, according to World Bank data. The country aims to raise the share of renewables to 20% of total generation by 2030.