The Board of Directors of the African Development Bank has approved on Thursday, September 26, a loan of 18 million euros and a Partial Risk Guarantee (GPR), for the establishment of the solar power station of Djermaya in Chad.
The construction and operation of the Djermaya photovoltaic solar power plant, with a maximum capacity of 32 MW, is planned 30 km north of N’Djamena. The interconnection infrastructure includes a 33kV double circuit 33kV overhead transmission line, two 33 / 90kV transformers at the Lamadji substation and a 4MWh battery system for network stabilization.
Led by the Bank’s “Desert to Power” initiative, this flagship project is original in many ways. 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 project will contribute to building sustainability in Chad’s power sector by reducing production costs; will increase installed capacity in the country and contribute 10% 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 energies 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 PPP involved on the one hand, the consortium consisting 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 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. Thus, this project will mark a new step in improving the legal framework and standards for privately financed infrastructure projects, as well as strengthening institutional capacity.
This pioneering project of the first independent power generation plant is an excellent example of the methodology used by the Bank in setting up its various financing instruments to attract private investment.
“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. the Bank for Energy, Climate Change and Green Growth.
The project is aligned with the Bank’s five priorities, namely the High Five, including the so-called “Enlighten Africa and fuel it”; it is also in line with the Country Strategy Paper (CSP) and the national objectives of the Chadian government. The Bank’s strategy for private sector development encourages partnerships between the public and private sectors.