The government of Cameroon has signed a letter of intent for the Grand Eweng hydropower project. The letter was signed between Ministry of Water and Energy (MINEE) and Hydromine, and Eneo Cameroon (ENEO).
The letter of intent defines the cooperation among the parties to finalize the terms of a power purchase agreement between the Grand Eweng project company to be formed and ENEO, under the supervision of the MINEE, for the sale of electricity produced by the Grand Eweng hydropower plant.
The letter further sets out framework and certain milestones for the development of the project on a build, own, operate, and transfer (BOOT) model, which transfers Grand Eweng to the State after the concession term.
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Grand Eweng hydropower plant.
The project is under development by Hydromine as an independent power producer (IPP) in cooperation with the Government of Cameroon and is one of sub-Saharan Africa’s largest private sector-led power projects.
The project consists of a dam and reservoir with a hydroelectric facility and will be financed and commissioned in phases. Phase one is estimated to add 1,000MW of installed capacity generating over 7,000 GW/hours average annual energy generation.
Works on the Grand Eweng project includes the development, design, financing, construction, and operation of a hydropower plant on the Sanaga River between Yaoundé and Douala in the eastern Littoral Region.
The full future potential installed capacity of the site will be up to 1,800MW producing 9,000-gigawatt hours average annual energy generation useful for clean peaking power. The energy produced will contribute to meeting Cameroon’s national electricity demand that is expected to be more than 3,300MW by 2030, which may reach 4,000MW with high growth.
