Savannah Energy sings pact with Chad to develop 500 MW renewable projects

British energy company Savannah Energy has announced the signing of an agreement with the Ministry of Petroleum and Energy of Chad for the development of up to 500 MW of renewable energy projects. The projects will supply electricity to the Doba Oil Project and the towns of Moundou and Doba in Southern Chad, and the capital city, N’Djamena. With a population under 20 million, Chad has very poor energy access and grid quality power is available for a minority of its citizens. The land locked country in North Central Africa is rimmed by Mountains to the North, East and West.

The first project Savannah has agreed to develop comprises an up to 300 MW photovoltaic solar farm and battery energy storage system (BESS) located in Kome, Southern Chad. Savannah Energy will displace existing hydrocarbon power supply resulting in a significant reduction in CO2 emissions and provide a supply of clean, reliable electricity on a potential 24/7 basis to the surrounding towns of Moundou and Doba.

The official statement of Savannah Energy said the tariff for the electricity generated in this project will be much less. It would also be the largest solar project in sub-Saharan Africa as well as constituting the largest battery storage project in Africa. Savannah Energy says that the solar project is expected to be sanctioned in 2023 and operational in 2025.

The second project is about the development of solar and wind projects of up to 100 MW each to supply power to the country’s capital city, N’Djamena. Savannah Energy held that the project will double the existing installed generation capacity supplying the city and increase total installed grid-connected power generation capacity in Chad by an estimated 63%.

Savannah Energy said it looks to fund the renewable projects from a combination of its own internally generated cash flows and project specific debt.

Djerassem le Bemadjiel, Minister of Petroleum and Energy, Chad, said “Our country is blessed with a significant renewable energy resource and we are excited that a leading British company such as Savannah is seeking to harness this resource to provide utility scale power to our country.”

Mark Matthews, Ambassador of the United Kingdom to Chad, commented, “I am delighted that Savannah Energy is making such a substantial investment in renewable energy in Chad. Chad has plentiful resources of renewable energy which, through investments like this, can be harnessed to develop the economy and improve the lives of Chadians. This is a further example of UK commitment to Chad.”

Andrew Knott, Chief Executive Officer, Savannah Energy, held, “The Projects represent one of the largest ever foreign direct investments in Chad and are believed to be the largest ever by a British company.” He also said that Savannah looks forward to working with the Government and its developmental finance partners over the course of the coming years as they move through the feasibility and construction phases of the projects to Savannah Energy’s intended first power dates in 2025/26.