Chad - Djermaya 28 MW Solar PV IPP - Senior Loan


Project Summary

Approval Date 26 Sep 2019
Sovereign / Non-Sovereign Non Sovereign
Sector Power
DAC Sector Code 23230
Commitment U.A 14,360,709.1
Status Approved

Project General Description

The proposed project concerns a EUR 18 million loan as well as a Partial Risk Guarantee (GPR), for the establishment of the Djermaya solar power plant in Chad. Djermaya Solar is a key building block of the Desert to Power Initiative and is of high strategic importance for Chad. It is the first renewable power generation project in the country, as well as the first Public Private Partnership that the country is implementing. The project site is located 30 km north of N’Djamena on a 100ha piece of land awarded by presidential decree. The project consists of the design, financing, construction, operation, and transfer of a 28MWe solar PV plant and interconnection infrastructure. The plant includes PV modules mounted on single-axis trackers, inverters, and step-up transformers. The interconnection infrastructure includes an 18 km 33kV aerial double-circuit transmission line, two 33/90kV step-up transformers at the Lamadji sub-station, and an 8MW battery stabilization system. The project is structured as an Independent Power Producer (IPP) and will be funded primarily through private investment. It is an opportunity to improve energy access in Chad by developing its natural solar potential. Moreover, the Project will set a precedent for PPPs in the country and create an opportunity for replication for other solar power projects on the Sahel region in the framework of the Desert to Power Initiative. Construction of the plant is expected to begin during Q1 2020 with commercial operations to commence 12 months later. Private investors will own the plant for 25 years of operations and then transfer it to the National Electricity Company (SNE). Interconnection infrastructure (including the battery system) will be transferred to the SNE after construction and commissioning.

Project Objectives

The project aims to provide a long-term sustainable, reliable and competitive source of renewable energy to the Chadian electricity distribution network and replace expensive diesel based generation currently used as baseload. It also contributes to developing the legal framework and standards for privately financed infrastructure projects as well as strengthening the institutional capacity to undertake such projects. As such, the project is paving the way for the development of future sustainable energy projects and further private investment in the country’s much needed infrastructure.

Beneficiaries

The Project will help build sustainability in the electricity sector in Chad 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). It will significantly increase the country generation capacity and displace 60 GWh of high cost diesel based generation thereby reducing government subsidies to the company, particularly since the peak facilityproduction is concomitant with the peak demand. The project will also diversify the energy mix by introducing renewable energies into a thermal production system based on fossil fuels; which will reduce carbon emissions by 38,000 tCO2 per year, in accordance with the country's commitments.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-TD-FF0-002
Last Update 19 Oct 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Chad