Image: Jcomp via Freepik

The African Development Bank (AfDB), together with the Emerging Africa Infrastructure Fund (EAIF), and private sector development institution, Proparco, announced that they will be the senior lenders for the 34 MW Djermaya Solar Project in Chad– committing $20.3 million, $10.5 million, and another $10.5 million, respectively.

The Djermaya Solar Project, Chad’s first solar-plus storage system, will have a total capacity of 60 MWp and will include a 4 MWh battery system. The project was developed by private infrastructure development group, InfraCo Africa, through diversified power company, Anergi Africa Developments and its partner Smart Energies, an independent power producer. Global energy investment firm Denhall Capital, entered the project as a long-term investor through renewable energy developer, Neo Themis.

InfraCo Africa Business Development Manager, Fatou Gaye, stated, “InfraCo Africa is delighted to welcome the African Development Bank, Proparco, and our sister PIDG (Private Infrastructure Development Group) company, EAIF, as lenders to the Djemaya Solar Project. We are also pleased to be working with Denham Capital and the Neo Thermis team to progress the project through to construction and operations in the coming months.”

Kevin Kariuki, AfDB Vice President for Power, Energy and Climate Change noted the project’s potential to catalyze the north-African country’s energy transition, “First solar power in Chad, first electricity storage infrastructure, it is also the first public-private partnership in the form of an Independent Power Producer in the country. This model could be replicated in other Sahelian countries under the Desert to Power Initiative in order to attract investments and accelerate the transition to clean energy.”

Located 30km north of Chad’s capital, N’Djamena, the project will include an 18km transmission line. The first phase of the project will have a generation capacity of 34 MW and the second phase, 28 MW. According to the AfDB, the solar plant will generate enough energy to supply over 25,000 people with electricity, while mitigating carbon emissions by approximately 38,000 tons per year.

“The Djermaya project is particularly significant because it is pioneering renewable energy and battery storage in Chad. Its key strategic function is to help Chad unlock the country’s economic potential and to fly the flag for more green energy projects in the country.” Investment Director, Paromita Chatterjee, noted.

The Government of Chad has expressed its commitment to the project, with the project company, Djermaya CDEN Energy having signed a 20-year power purchase agreement with Chad’s national utility company, the Société Nationale d’Electricité.

Construction work for the project is currently envisaged for early-2022, with supply of electricity to Chad’s national grid expected by 2023.