Chad is advancing its efforts to improve electricity supply with two hybrid solar power projects in N'Djamena reaching financial close. The Gassi and Lamadji projects will deliver 30 megawatts-peak of solar generation and 8 megawatt-hours of battery storage. This development adds renewable capacity to Chad's national electricity system under a 20-year power purchase agreement with Tchadelec, the national electricity utility. The projects are being developed by Qair.
The development of the Gassi and Lamadji projects is backed by a €37.9 million financing package mobilised by the African Development Bank Group. The financing package has support from Proparco, the Sustainable Energy Fund for Africa, and the Green Climate Fund. An additional €8 million partial risk guarantee from the African Development Fund and the Green Climate Fund is designed to strengthen the project's financial structure and reduce investment risk.
Reliable electricity is essential for businesses, healthcare facilities, schools, households, and industrial activity in Chad. The battery storage component of the projects can help improve the usefulness of solar generation beyond daylight hours. This development represents a practical example of how blended finance can help unlock investment in markets where infrastructure projects can otherwise struggle to attract commercial capital.
The African Development Bank has linked the projects to its Desert to Power and Mission 300 initiatives. These initiatives seek to accelerate electricity access and renewable energy development across Africa. Desert to Power aims to develop 10,000MW of solar generation capacity across the Sahel. The projects are among the first independent power producer developments in Chad and are expected to strengthen the national grid once completed.
The financing structure of the Gassi and Lamadji projects demonstrates how development institutions can work with private investors to make renewable projects bankable in challenging markets. For a country facing significant energy-access challenges, this move represents an important shift from ambition to implementation. It also highlights a wider opportunity for the Sahel, which possesses enormous solar potential.
Converting the Sahel's solar potential into reliable electricity requires financing, infrastructure, storage, and strong partnerships. Chad's latest projects bring those elements together. As construction moves forward, Gassi and Lamadji could provide more than additional generation capacity. They could demonstrate how targeted investment and innovative financing can help countries with large energy gaps build cleaner, more reliable power systems.
The successful implementation of the Gassi and Lamadji projects could have a significant impact on Chad and the wider Sahel region. It could pave the way for other countries to replicate similar projects, leveraging their solar potential to improve electricity access and drive economic growth. The project's outcomes will be closely watched by stakeholders, including the African Development Bank, Qair, and the national electricity utility, Tchadelec.
Key points
- Chad's two hybrid solar power projects in N'Djamena will deliver 30 megawatts-peak of solar generation and 8 megawatt-hours of battery storage.
- The African Development Bank Group has mobilised a €37.9 million financing package to support the development of the projects.
- The projects are linked to the African Development Bank's Desert to Power and Mission 300 initiatives, which aim to accelerate electricity access and renewable energy development across Africa.
