The African Development Bank Group (AfDB) has approved funding of US $29M for building solar power plants in Gassi and Lamadji, Chad, as part of its Desert to Power initiative, aiming to expand energy access across Africa.
Part of the funding is from direct support from the Sustainable Energy Fund for Africa (SEFA), comprising a mix of loans and grants. Others are from financial guarantees shared equally by the African Development Fund (ADF) and the Green Climate Fund (GCF).
Total Project cost of the project estimated at US $43M will be supplemented by financing from other Development Finance Institutions (DFIs). This landmark project supports Chad’s transition to renewable energy, increasing its power supply by 20% and reducing reliance on expensive, polluting fuel-based electricity.
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Scope of work
The project will involve construction of two solar power plants in the outskirts of N’Djamena, each able to produce 15MW peak of electricity. It also includes new power stations, connection lines, and a 6M battery system to store energy for when the sun isn’t shining. The total project cost is estimated at EUR 41 million. The Bank’s financing is in addition to financing expected from other Development Finance Institutions (DFIs).
Upon completion the development will have an annual generation of 61 GWh of clean energy, addressing Chad’s energy deficit. Reduction of 49,000 tons of CO₂ emissions annually, aligning with Chad’s Paris Agreement commitments.
The project is set to create 200 construction jobs and 34 permanent operational jobs, with a focus on opportunities for women and youth. There will also be revenue generation for the government via taxes and reduced energy import costs, decreased reliance on fuel subsidies, improving Chad’s balance of payments.
