The Eritrean Electric Corporation is the primary power Corporation in Eritrea. Electricity generation in Eritrea is restricted to thermal plants. At present services are restricted to major towns. The main power station is located at Beleza.
Eritrea has approximately 60 MW of diesel-fired generating capacity. The Eritrean Electricity Corporation (EEC) handles generation, transmission and distribution of electricity. In 1997, South Korean firms Daewoo and Hanjung signed an agreement to build a heavy oil-fired plant in at Hirgigo, just outside of Massawa. The plant, nearly completed, was damaged in a bombing raid by Ethiopia in 2000. In 2001, Eritrea signed loan agreements with the United Arab Emirates and Saudi Arabia for the facility's repair. The 88 MW facilities came online in March 2003, but many industry experts fear that the new capacity could overload Eritrea's dated grid system. Both the European Development Fund and the World Bank have considered projects to update the transmission lines, but firm contracts have not been negotiated.
Electricity is only available in Eritrea's larger cities and towns, leaving about 80% of the Eritrean population without access to electricity. Some smaller villages have community diesel generators which can provide small amounts of electricity to households. Photovoltaic (PV) electricity generation is being used in special applications throughout the country. Twenty-six rural health centers are each supplied with 2-kilowatt (kW) solar photovoltaic power systems for refrigeration, lighting, operating theaters, fans, and laboratory equipment. Additionally, the majority of the 140 rural clinics are equipped with solar powered vaccine refrigerators. Approximately 3% (about 60 villages) of Eritrea's villages have been supplied with PV systems (0.8 to 1.2kW) to power water pumps to supply drinking water. Each system serves a minimum of 300 households. Over 70 rural schools (out of 700)