34MW Solar/Battery IPP Hybrid Project Reaches Financial Close in Chad

AfDB previously announced its support for the project, having approved €18 million senior debt facilities and a Partial Risk Guarantee in 2019. AfDB, Proparco and EAIF signed a Loan Agreement with Djermaya Solar on 26th November 2021, with the finance institutions respectively committing €18 million, €9.3 million and €9.3 million of senior debt to the project. This announcement forms part of the overall package of climate commitments PIDG presented at COP26 in Glasgow in November.

Located 30km north of the country’s capital, N’Djamena, the Djermaya Solar project has been developed by InfraCo Africa, through Anergi Africa Developments Ltd (AADL), with its partner Smart Energies. Denham Capital recently entered the project as long-term investors through Neo Themis.

Djermaya Solar will be developed in two phases totalling 60MW and is the first solar project to be designed, financed, built and operated by an independent power producer (IPP) in Chad. The project will also pioneer utility-scale energy storage in the country, incorporating a 4MWh Battery Energy Storage System (BESS), 18km transmission line and a substation funded with €6.35 million of concessional debt from the EU-Africa Infrastructure Trust Fund (EU-AITF). InfraCo Africa has also leveraged US$854,000 of grant funding from PIDG Technical Assistance (PIDG TA) to support legal and environmental advisory services and an additional US$1.5million capital grant.

Djermaya Solar also benefits from strong support from the Government of Chad and the project company, Djermaya CDEN Energy (DCE), has signed a 20-year Power Purchase Agreement with SNE to supply Chad’s national electricity utility. The Government of Chad and DCE have also signed a Put and Call Option Agreement and a Fiscal and Customs Agreement as part of the project financing approach required to commence construction in early 2022. Djermaya Solar is expected to begin delivering power to Chad’s national grid in 2023.

Author: Bryan Groenendaal

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