Eritrea
With a cumulative score of 0.68, Eritrea ranks number 106 among emerging markets and number 135 in the global ranking.
- Emerging markets
- Middle East & Africa
0.83 / 5
Power score
0.32 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Eritrea does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Eritrea submitted a Nationally Determined Contribution (NDC) – its plan to help achieve the goals of the Paris Agreement – to the United Nations Framework Convention on Climate Change (UNFCCC) in 2018. It committed to reduce emissions by 23.1% by 2020, 30.2% by 2025, and 39.2% by 2030 versus a business-as-usual trajectory from 2010 levels. It also laid out a target for renewable energy (solar, wind and geothermal) to account for 70% of total electricity generation by 2030.
Fossil fuel phase-out policy
Eritrea does not have a fossil fuel phase-out policy. The majority of its installed power generation capacity runs on imported fossil fuels.
Power
Power policy
Eritrea’s primary concern is increased electrification. The current national electrification rate sits at 50%, though the rural electrification rate is only about 37%. Given this gap, Eritrea has a rural electrification plan in place, though the specific details are not readily available. The country met its target of 15% of the rural population having electricity by 2020 and is aiming for this to reach 100% by 2030.
Power policies
Power prices and costs
Eritrea’s power prices have been consistent for over a decade. The commercial, residential and industrial sectors are all priced at $0.24 per megawatt-hour (MWh). There are no time-based tariffs.
Power market
There is very little on-grid policy in Eritrea. State utility Eritrean Electricity Company (EEC) dominates all segments of the power market, and while there is some involvement of the private sector in power generation, this has primarily been through donor-funded mini-grids. There are no standardized power purchase agreements (PPAs) in Eritrea.
The off-grid sector in Eritrea is also in its infancy. There are no clear rules for establishing mini-grids or site specification methods. Pay-as-you-go is not available in the country. Instead, Eritrea is focused on grid expansion, though these plans are not readily available.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Eritrea is in the midst of a dire security and political situation – a major obstacle to doing business. The country has been engaged in conflicts for the past two decades and has endured political corruption. This discourages foreign investment and makes clean energy development extremely difficult.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
The government has yet to implement any substantive policy support in this sector and the electric vehicle market remains at an early stage.
EV policy
The government has yet to implement any substantive policy support in this sector and the electric vehicle market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
Buildings policies
Additional insights
from BNEF
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