Harnessing the geothermal potential in Eritrea has a significant impact on the economic development as the country relies on its electric power generation from imported refined petroleum products, which is wholly based on oil burning plants. The impact can be viewed by both the unreliable cost fluctuation mainly increment of fuel cost coupled with the unfriendly environment.
Therefore geothermal energy will have an important input in alleviating expenditure on foreign currency while safeguarding the environment. The tectonic setting and geological makeup of the south-eastern coastal zone of Eritrea is a favorable site for having geothermal resources that are potential for the development of geothermal resources mainly for electrical generation and utilization. Alid and Nabro-Dubbi fields are the notable places with ample geothermal manifestations. The volcanism of 2011 in Nabro has made impact at present by sealing the surface.
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The Eritrean economy, particularly the rural economy, still heavily depends on traditional fuels. Biomass fuels accounted for 64% of the total energy production in Eritrea in 2003, but rural households derived 94% of their energy from unprocessed traditional fuels, mainly fuel wood, charcoal, dung and agri-residues. Only 3% of the rural population have access to electricity in Eritrea
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