The African Development Bank (AfDB) has approved a financing package of €28 million to build solar power plants in the Chadian towns of Gassi and Lamadji. Part of the Bank’s “Desert to Power” initiative, this project aims to enhance energy access across Africa.
The financing package includes €20 million in direct support, combining a loan and grant from the African Sustainable Energy Fund, and a financial guarantee of €8 million from the African Development Fund and the Green Climate Fund. These guarantees will support Chad’s transition from costly and polluting fuel-based power to clean energy.
The project will establish two solar power plants, each capable of generating 15 megawatts of electricity, along with new power plants, transmission lines, and a 6-megawatt-hour battery storage system in the suburbs of N’Djamena. Once completed, the solar plants are expected to produce 61 gigawatt-hours of clean, affordable energy annually, meeting 20% of Chad’s electricity needs.
Transformative Impact
The project marks a turning point in Chad’s renewable energy journey. It is expected to reduce carbon dioxide emissions by 49,000 tons annually and help Chad meet its climate targets under the Paris Agreement. Additionally, the construction phase will create 200 jobs, with 34 permanent operational roles, providing economic opportunities for women and youth. The project will also benefit the national economy through revenue from taxes and a reduction in reliance on energy imports.
AfDB Vice President Kevin Kariuki welcomed the initiative as crucial to Chad’s energy transformation under the Desert to Power initiative. He highlighted the Bank’s commitment to supporting clean energy projects that drive local economic growth and strengthen energy security.
Wale Shonibare, Director of the Bank’s Energy Financial Solutions Department, emphasized the project’s role in showcasing the Sahel region’s renewable energy potential. “This demonstrates how strong partnerships and innovative solutions can drive energy transitions and foster sustainable development,” he said.
Strategic Alignment
This initiative aligns with AfDB’s Ten-Year Strategy and the “Light Up and Power Africa” objective. It reinforces the Bank’s mission to promote inclusive and sustainable energy development across the continent while advancing Chad’s commitment to expanding access to renewable energy.
The total project cost is expected to be €41 million, with additional financing from Development Finance Institutions (DFIs) anticipated. This project is a critical step in addressing Chad’s energy gap, reducing fuel subsidies, and improving the balance of payments.
The Gassi and Lamadji solar energy project is setting a transformative example for renewable energy development in the Sahel region, leading the way in clean energy innovation.
