The €5.7 million project is being part-financed by the European Union, the United Nations Development Programme and the government of Eritrea to deliver solar electricity to up to 40,000 homes and businesses in the remotest parts of the country.
A view to Areza, one of the communities that will be served by the Solarcentury solar+storage mini-grid.
British solar power developer Solarcentury has been selected to design and build two solar-powered mini-grids in two remote communities of East African country Eritrea.
The 2.25 MW project is backed by investment totalling €5.7 million, and draws upon funding from the European Union''s ACP EU Energy Facility (from a total pot of €8 million), the United Nations Development Programme Eritrea (€1.92 million) and the government of the State of Eritrea (€1.89 million).
Solarcentury will use solar PV panels and lithium-ion batteries to create the two mini-grids that have been designed to displace the diesel generators currently being used to bring power to the communities of Areza and Maidma.
These remote areas of the country have no power grid to speak of, and Solarcentury hopes that its mini grids – which will deliver clean, affordable and reliable electricity to up to 40,000 homes and businesses – will serve as a model for rural electrification right across Africa.
"Solar power and energy storage technology are increasingly the most cost-effective way to deliver clean reliable power to areas remote from the grid," said Solarcentury''s director of hybrid power systems Daniel Davies. "This exciting project builds on the work we have done elsewhere in Africa and will demonstrate the amazing potential for solar to provide low cost reliable power in isolated areas."
An Eritrean representative of the country''s ministry of energy and mines added that the hope is this project can be replicated across the country in order to mitigate the adverse effects of climate change in Eritrea while also proving a more affordable source of power for Eritreans.
The installations are expected to be finalized by early next year, Solarcentury said, with construction beginning in October. The developer embarked on a concerted East African development campaign in 2015, and has since installed the largest battery storage system+solar in the region – a $2.5 million project in Kenya – as well as the largest East Africa rooftop solar array, also in Kenya.
Around 75% of Eritrea''s 6.3 million population has no access to grid power. The country receives 97.3% of all its energy from fossil fuel sources even though it has high levels of solar irradiation-
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Africa-Press – Eritrea. Microgrids offer a promising solution for electrifying Africa''s rural communities and advancing the transition to clean energy. They offer advantages over traditional grid expansion, including lower costs, greater flexibility, and easier integration of renewable energy sources. However, several challenges remain, including upfront costs, energy storage, and environmental concerns.
To achieve universal electricity access by 2030 as envisaged in the SDGs, 110 million connections are needed each year. Robust decentralised and off-grid solutions could play a pivotal role in bridging the electricity access gap, especially in areas of low density where grid expansion would be uneconomically expensive.
1. Microgrids are more economically feasible.
Microgrids offer several advantages over traditional main-grid technology. Traditional grid expansion cost up to £17,500 per km for transmission presenting significant financial costs in areas of low density. To recover these costs, utilities often need to implement high tariffs, most of which are typically unaffordable for most rural households.
Off-grid microgrids are less capital intensive than grid expansion. They not only reduce the capital investment required but also mitigate the transmission and distribution costs associated with centralised grid systems. As a result, microgrids are a practical solution for approximately 45 per cent of Africa''s rural communities. In Ghana for example, decentralised minigrids have become the least cost option for extending electricity access to remote communities. Microgrids provide opportunities for growth in remote areas where traditional grid connections are uneconomical and unfeasible.2. By storing energy, microgrids can improve electricity access.
Power supply in developing countries is riddled with intermittency challenges either as a result of fuel supplies shortages, inefficient grid systems or over-demand of energy. When combined with energy storage systems, microgrids can help reduce intermittency by storing excess energy during periods of high generation and releasing it during periods of low/no generation or by acting as backup systems during periods of disruption on the main grid. This combination enhances overall reliability, ensures smoother power access and reduces intermittency challenges. This has been in observed in Tanzania where hybrid minigrid technologies that combine renewables and storage have been shown to improve reliability of electricity.
Challenges to development and scale-up of microgrids
Reliability of microgrids, especially those based on renewable energy sources require investments in energy storage systems. However, despite costs relating to storage systems having gone down over time, they still present substantial initial and maintenance costs.
In addition, microgrids face challenges in attracting finance and investment due to their relative novelty and therefore limited examples of effective business models and higher perceived risk. As such, scaling of microgrids is challenging. Since microgrids tend to be geared at remote and underserved communities, ensuring sustainability requires a balanced mix between household users and productive users as well as access to infrastructure and financing for productive users to enable their sustainability.
The disposal of energy storage devices and other components has raised environmental concerns. Challenges associated with recycling devices like batteries can have adverse impacts on the environment. For instance, solar panels waste is projected to be 78 million tonnes by 2050 and can lead to the leaching of dangerous chemicals into the ground. Furthermore, land use for microgrid infrastructure such as wind turbines or solar panels can adversely impact local ecosystems and habitats.
Promoting sustainable microgrid development and bridging knowledge gaps
Developing and implementing microgrid projects that are responsive and environmentally friendly will require tackling these challenges. Governments need to establish an enabling environment that de-risks investments, supports innovation, and accelerates clean energy transition. Legislation that clearly spells out microgrid ownership rules can facilitate access to finance for private developers. Removing restrictions on collection of electricity tariffs and leveraging public investment to crowd in private investment can effectively reduce the initial upfront investment costs for developers. This approach not only mitigates investment risks but also paves the way for scaling up.
About Eritrea community microgrids
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