AfDB Grants Loan for 18 MW Solar Plus Storage Project in Chad

AfDB has approved a loan of 18 million euros for the establishment of the solar plus storage facility of Djermaya in Chad.

The African Development Bank (AfDB) has approved a loan of 18 million euros and a Partial Risk Guarantee (GPR), for the establishment of the solar power station of Djermaya in Chad. Storage

The construction and operation of the solar power plant, with a maximum capacity of 32 MW, is planned 30 km north of N’Djamena. The project will also include the development of a 4 MWh battery system for network stabilisation.

Led by the Bank’s “Desert to Power” initiative, this flagship project is original in many ways. It is the first of its kind in renewable energy production, it is also the first public-private partnership (PPP) in the field of electricity in Chad. 

The PPP will consist of Aldwich International Limited/ Anergie and Smart Energies, promoters of the project, as well as Infraco as shareholder and on the other hand the governmental part composed of the National Electricity Company (SNE), the Ministry of Energy, the Ministry of Finance and the Renewable Energy Agency (ADER).

The project will contribute to building sustainability in the country’s power sector by reducing production costs; it will also increase the installed capacity in the country and contribute 10 percent of the energy supplied to the interconnected system, the equivalent of 25,000 customers.

The project will also diversify the energy mix by introducing renewable energy into a fossil fuel-based thermal generation system. This will reduce carbon emissions by 38,000 tCO2 per year, in line with the country’s commitments.

“This intervention can be replicated in other Sahel countries as part of the Desert To Power initiative to attract much-needed investment in the energy sector,” said Wale Shonibare, acting vice president of Energy at the Bank for Energy, Climate Change and Green Growth.

The Chadian government has set up an inter-sector working group for this project, which has become a priority for the country. Several agreements have already been signed, including the Electricity Supply and Purchase Agreement.