• PPA for 60 MW solar power project capacity has been signed between local Chad utility SNE, Ministry of Energy and InfraCo Africa’s Djermaya Solar Project
  • The 60 MW capacity will be developed in two phases of 32 MW and 28 MW
  • First phase is expected to achieve financial closure in 2019 and will be connected to the national grid in 2020
  • Aldwych Africa Development Limited (AADL) is developing the project on behalf of InfraCo Africa, along with Smart Energies

A power purchase agreement (PPA) for a period of 25-years has been signed between Chad utility La Société Nationale d’Electricité (SNE), the Ministry of Energy, of the country and InfraCo Africa’s Djermaya Solar Project for 60 MW capacity.

Being developed as one of the first solar IPP projects in the African nation, Djermaya Solar will be developed in two phases of 32 MW and 28 MW. Both the projects will supply power to the national grid on completion. The first phase of 32 MW is on track to start delivering power to the grid in 2020, after it achieves financial closure in 2019.

On behalf of InfraCo Africa, Aldwych Africa Development Limited (AADL) is responsible for carrying out development of the project, along with Smart Energies. InfraCo Africa has committed a total of $3 million and leveraged $0.8 million in grants from its sister company in Private Infrastructure Development Group (PIDG). The sister company is called Technical Assistance Facility (TAF). The TAF grant is being used to fund legal advice for the Government of Chad to support preparation and negotiation of project documents as the PPA.

Another €6.35 million ($7.24 million) commitment has come from the EU-Africa Infrastructure Trust Fund (EU-AITF) to build a transmission line and substation to connect Djermaya Solar to the grid.

“The Djermaya Solar project is important to us because it will help to increase electricity access in our country, but also reduce our greenhouse gas emissions, both being strategic goals for the Government of Chad,” said Minister of Petroleum and Energy, Michel Boukar.

AfDB is on board as the mandated lead arranger for the project. In July 2017, the bank announced its support for the 32 MW solar power plant in N’Djamena, Chad (see AfDB Finances Chad PV Plant).