The African Development Bank Group has granted funding worth €28 million to Chad for the construction of solar power plants in Gassi and Lamadji towns. Funding falls within the framework of the Desert to Power initiative by the Bank, which targets the expansion of energy access on the African continent as well as speeding up the transition toward renewable energy sources.
The € 28 million shall comprise €20 million loans and grants from the Sustainable Energy Fund for Africa and €8 million financial guarantees contributed by both the African Development Fund and the Green Climate Fund each of whom contributed €4 million.
Solar Power Plants to Increase Capacity
The expansion project will see two 15-megawatt solar power plants constructed around the capital, N’Djamena, Chad. The facilities are to comprise power stations, transmission lines, and a 6-megawatt-hour battery system, ensuring reliable availability of energy. Once completed, the plants will increase electricity supply by 20% to the nation, helping to end energy deficit in the country.
The project costs would amount to approximately €41 million. It will further receive supplementary funds from DFIs.
Supporting Chad’s Renewable Energy Transition
Kevin Kariuki, Vice President of the Power, Energy, Climate, and Green Growth complex at the African Development Bank, said, “The Gassi and Lamadji solar project is a landmark development that underscores Chad’s strong commitment to the transition to renewable energy under the Desert to Power Initiative, and the Bank’s continued commitment to supporting transformative, clean energy projects across the continent.”
He added, “This project not only facilitates the Government of Chad’s efforts to increase access to energy through renewable energy but also drives local economic growth and strengthens the country’s energy security.”
The solar power plants will yield 61 gigawatt-hours of clean, affordable, and reliable energy each year, covering the very significant energy shortfall Chad faces. The project will aid Chad in cutting carbon emissions by 49,000 tons annually, supporting Chad’s Paris Agreement commitments.
During the construction phases, it expects to create 200 jobs, targeting women and youths. Once the plants start functioning, it will also provide 34 permanent jobs. This project will increase the revenue of the government, cut fuel subsidies, and balance the payments of Chad as it reduces the imports of energy.
Also read: African Development Bank Invests $10 Million Toward Sustainable Infrastructure in West Africa
The Gassi and Lamadji solar project fits right into the Ten-Year Strategy of the African Development Bank, New Deal on Energy for Africa, and the “Light Up and Power Africa” objective under High 5. It continues to augment Chad’s renewable energy commitments and advances AfDB’s mission in delivering sustainable and resilient energy towards more inclusiveness.
