Chad
Djermaya Solar – Chad (on-grid solar power generation)
Lighting the way for renewables in Chad
Background
- 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 11.7% 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.
Signed: 2015
Investment by InfraCo Africa: €2.8m
Investment by EAIF: €9.3m
PIDG TA: US$854,000
PIDG TA (VGF): US$1.5m
Solution
- This project will construct an initial 34MWp 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 34MWp phase secured financing in 2021. Construction start is planned for early 2021 and operations for in 2022. This will be followed by a second 26MWp 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).
- 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 TA to support legal and environmental advisory services.
Impact
What: SDG 7.1 & 13 – Access to affordable, reliable energy services and reduce GHG emissions.
How: Add 34MWp greenfield solar PV + 4MWh battery energy storage to increase access of reliable electricity to (i) consumers to improve quality of life, (ii) to firms increasing productivity, and so lead to economic growth and job creation and (iii) displace emissions.
Who: Consumers, Firms and Planet
Depth: Largest impact expected on first time users of electricity and consumers/firms that face reliability issues.
Scale: 409k consumers, thousands of jobs in the economy and avoid 5k tCO2e
Market Challenge: No private sector frameworks for investment in the power sector and very low access to energy (<12%).
Market Channel: Deliver first of a kind as a Solar IPP and set templates on project documentation which has already been made public for other bidders.
Market Outcome: Encourage further private sector investment in the country and enable more renewable projects to follow.