- The African Development Bank Group has approved funding worth EUR 28 million to build solar power plants in Gassi and Lamadji, Chad.
- The funding includes EUR 20 million in direct support, combining a loan and a grant from the Sustainable Energy Fund for Africa, plus EUR 8 million in financial guarantees.
- These guarantees are split equally between the African Development Fund and the Green Climate Fund, which both contribute EUR 4 million each to support this clean energy project.
This important project is part Chad’s Desert to Power plan. It will increase power supply by 20% and pave the way for the country’s energy transition from expensive, polluting fuel-based power to clean energy. The project will build two solar power plants in the outskirts of N’Djamena, each able to produce 15-megawatt peak of electricity. It also includes new power stations, connection lines, and a 6-megawatt-hour 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).
The solar plants are expected to generate 61 gigawatt-hours of clean, reliable, and affordable energy each year responding to Chad’s energy deficit. This will reduce carbon dioxide emissions by 49,000 tons each year, helping Chad meet its climate change commitments under the Paris Agreement. The project will create 200 jobs during construction, with special opportunities for women and young people and 34 permanent jobs during operation. The project will generate revenue for the national treasury through taxes, reduce fuel subsidies, and improve the country’s balance of payments by reducing energy imports.
Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the Gassi and Lamadji Solar PV project reinforces Chad’s commitment to increase energy access through renewable energy. It also supports the African Development Bank’s mission to promote sustainable, inclusive, and resilient energy development across Africa.
Author: Bryan Groenendaal
