Chad signs PPA for the construction of 60MW solar power plant

Chad signs PPA for the construction of 60MW solar power plant

The government of Chad under its national utility La Société Nationale d’Electricité (SNE) entered into a 25 year power purchase agreement (PPA) with a consortium of InfraCo Africa and Smart Energies International for the construction of a 60-MWp solar power plant.

The contract consists of the Djermaya Solar project, which will be realised in two stages; 32 MWp and 28 MWp which will be developed by Aldwych Africa Development Limited (AADL) on behalf of InfraCo Africa, and Smart Energies.

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First large scale PV project

This will be one of the first large-scale PV projects in Chad, a country that relies upon expensive heavy fuel oil and diesel for electricity. This reliance makes it vulnerable to global fuel price fluctuations and supply failures.

“This PPA marks the beginning of a long collaboration between a consortium led by Smart Energies and InfraCo Africa, the SNE and the Chadian government. The energy needs are very important in Chad – needs mostly satisfied today by polluting energies. In a country with strong sunlight like Chad, solar energy appears as a great means to expand access to a clean energy. We are happy to contribute to its deployment in Chad,” said Hugues Antoine Guinoiseau, director of Smart Energies International.

Project financing

The African Development Bank (AfDB) has been confirmed as mandated lead arranger for the solar project. InfraCo Africa will contribute US $3 m to the development of the scheme, while sister company, the Technical Assistance Facility (TAF), will add US $0.8m in grants and the EU-Africa Infrastructure Trust Fund (EU-AITF) has allocated US $7.3m for the construction of a transmission line and substation to connect the plant to the grid.

An Environment and Social Impact Assessment (ESIA) on the project is expected to be concluded imminently. The African Development Bank (AfDB) has also been confirmed as mandated lead arranger for the project, the bank that last year unveiled plans to support 10GW of solar across the Sahel region by 2020.

“InfraCo Africa is uniquely able to fund high-risk projects in the earliest stages of their development so that they can complete activities, such as negotiating bankable PPAs, which are necessary to mobilise private sector investment. Working with our sister PIDG companies, Djermaya Solar demonstrates our commitment to investing into challenging markets, both here and across West Africa,” said InfraCo Africa’s head of West Africa Business Development, Kodjo Afidegnon.

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