Djermaya Solar Power Plant Project in Chad gets €18mn loan-approval from AfDB
The African Development Bank’s board of directors has recently approved a loan of 18 million euros and a Partial Risk Guarantee (GPR), for the establishment of the solar power station of Djermaya in Chad.
The planning of constructing and operating the Djermaya photovoltaic solar power plant was previously made 30 kilometres north of N’Djamena. The interconnection infrastructure includes a 33kilovolt double circuit overhead transmission line, two 33 / 90kiloVolt transformers at the Lamadji substation and a 4MWh battery system for network stabilization.
Led by the Bank’s “Desert to Power” initiative, this flagship project is original in many ways. The first of its kind in renewable energy production, it is also the first public-private partnership (PPP) in the field of electricity in Chad.
The project is said to be contributing in building sustainability in Chad’s power sector by lowering production costs; increasing installed capacity in the country and contributing 10 percent of the energy supplied to the interconnected system (the equivalent of 25,000 customers).
On the other hand, the project is said to be diversifying the energy mix by introducing renewable energies into a fossil fuel-based thermal generation system. This will reportedly reduce carbon emissions by 38,000 tCO2 per year, in line with the country’s commitments.
The government of Chad has created an inter-sector working group for this project that has become a priority for the country. Several agreements have been signed and finalized including the Electricity Supply and Purchase Agreement. This project will mark a new step in developing the legal framework and standards for privately financed infrastructure projects, as well as boosting institutional capacity.
The project is aligned with the Bank’s five priorities, namely the High Five, including the so-called “Enlighten Africa and fuel it”; it is also in line with the Country Strategy Paper (CSP) and the national objectives of the Chadian government. The Bank’s strategy for private sector development encourages partnerships between the public and private sectors.