Chad: Djermaya Solar
Lighting the way for renewables in Chad
In Chad, the country’s installed power generation capacity is largely reliant upon Heavy Fuel Oil and diesel. In spite of subsidies, Chad’s available capacity is insufficient to meet demand and just 11.1% of Chad’s population has access to electricity. Those businesses and households with access experience frequent power outages.
The Government of Chad (GoC) recognises that reliable, affordable power underpins social and economic development. Chad experiences exceptional levels of solar irradiation (up to 2800kWh/m2 in some areas) and therefore solar has the potential to transform the country’s energy sector: reducing generation costs and so reducing subsidies while also enabling the GoC to connect more people to power.
This project will construct an initial 36MWp solar PV plant in Djermaya, 30km north of Chad’s capital, N’Djamena. Development of Djermaya Solar will be phased to gradually integrate renewable power into Chad’s national grid. The first 36MWp phase secured financing in 2021. This will be followed by a second 24MWp phase. To further reinforce system stability, the project’s design integrates state-of-the-art technology including single-axis trackers and a battery energy storage system (BESS). The BESS will be financed under a €6.35m commitment from the EU-Africa Infrastructure Trust Fund (EU-AITF). Once built, the project will be one of Chad’s first Independent Power Producers (IPP) and one of the country’s first commercial-scale solar plants.
This pioneering project will play a leading role in delivering on the GoC’s National Development goals: to liberalise the energy sector, mobilise private investment and promote the development of renewable energy in Chad. The project is benefiting from strong collaboration between government agencies and SNE. AfDB approved €18 million senior debt facilities and a Partial Risk Guarantee in 2019. In 2021. AfDB, Proparco and EAIF signed a Loan Agreement with Djermaya Solar, with the finance institutions respectively committing €18 million, €9.3 million and €9.3 million of senior debt to the project. InfraCo Africa has also leveraged US$854,000 of grant funding from PIDG Technical Assistance (PIDG TA) to support legal and environmental advisory services. PIDG TA has recently provided US$1.5m in Viability Gap Funding. The project has also received €5m of grant finance from SEFA and a €1m grant from Proparco.
Being jointly developed by InfraCo Africa and Denham Capital.