The African Development Bank (AfDB) has approved €28 million in funding to construct solar power plants in Gassi and Lamadji, Chad. This initiative, part of the Bank’s “Desert to Power” program, aims to enhance energy access across Africa.
The financing package includes €20 million in direct support, combining a loan and grant from the Sustainable Energy Fund for Africa, and €8 million in financial guarantees from the African Development Fund and Green Climate Fund. These guarantees will support Chad’s transition to clean energy from costly and polluting fuel-based power.
The project will establish two solar plants on the outskirts of N’Djamena, each capable of producing 15 megawatts of electricity, alongside new power stations, transmission lines, and a 6-megawatt-hour battery system for energy storage. Once completed, the solar plants are expected to generate 61 gigawatt-hours of clean, affordable energy annually, meeting 20% of Chad’s electricity needs.
Transformative Impact
The project is a milestone in Chad’s renewable energy journey. It is anticipated to reduce carbon dioxide emissions by 49,000 tons yearly, helping Chad fulfill its Paris Agreement climate goals. Furthermore, it will create 200 jobs during construction, 34 permanent operational roles, and provide economic opportunities for women and young people. Revenue generation through taxes and reduced reliance on energy imports will also benefit the national economy.
AfDB Vice President Kevin Kariuki hailed the initiative as pivotal for Chad’s energy transition under the Desert to Power Initiative. He emphasized the Bank’s dedication to supporting clean energy projects that drive local economic growth and bolster energy security.
Wale Shonibare, Director of the Bank’s Energy Financial Solutions Department, highlighted the project’s role in showcasing the Sahel region’s renewable energy potential. “This demonstrates how strong partnerships and innovative solutions can advance energy transitions and foster sustainable development,” he said.
Strategic Alignment
This initiative aligns with the AfDB’s Ten-Year Strategy and the “Light Up and Power Africa” objective. It underscores the Bank’s mission to promote inclusive and sustainable energy development across the continent, reinforcing Chad’s commitment to expanding access to renewable energy.
With an estimated total cost of €41 million, the project is expected to leverage additional funding from Development Finance Institutions (DFIs). It is a critical step towards addressing Chad’s energy deficit, reducing fuel subsidies, and improving its balance of payments.
By spearheading clean energy innovation, the Gassi and Lamadji solar project sets a transformative example for renewable energy development in the Sahel region.