The Board of Directors of the African Development Bank Group has approved funding worth EUR 28 million to build solar power plants in Gassi and Lamadji, Chad. This is part of the Bank's Desert to Power program to increase energy access across Africa.
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).
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. 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."
Wale Shonibare, the Bank's Director of the Energy Financial Solutions, Policy, and Regulations department, added, "As a pioneering solar project in Chad, this initiative exemplifies the scale of renewable energy potential in the Sahel region. It demonstrates how strong partnerships and the Bank's deployment of its suite of instruments and innovative solutions can advance the energy transition and foster sustainable economic development."
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.
