African Development Bank approves $10.8M for Gassi solar plant
The African Development Bank Group has approved funding for the development of the Gassi Solar Power Plant, a landmark renewable energy project near N'Djamena, Chad. This project is a critical part of the Desert to Power initiative, aimed at increasing access to sustainable energy across the Sahel region.
The Gassi Solar Power Plant will have a capacity of 15 megawatt-peak (MWp) and include a 6-megawatt-hour battery energy storage system (BESS) to ensure reliable electricity supply during periods of low sunlight or nighttime. The project also involves the construction of power stations and connection lines to integrate the plant into Chad’s national grid, providing clean energy to local communities and businesses.
The African Development Bank has allocated part of its $15.6 million funding package to this project. The total approved funding includes $10.8 million in direct support, combining a loan and a grant from the Sustainable Energy Fund for Africa (SEFA), as well as $4.3 million in financial guarantees, equally shared by the African Development Fund and the Green Climate Fund, each contributing $2.15 million. The total project cost for the Gassi and Lamadji plants combined is estimated at $44.3 million, with additional financing expected from other Development Finance Institutions (DFIs).
The Gassi plant is expected to produce 30.5 gigawatt-hours of electricity annually, which will reduce Chad’s reliance on expensive diesel-based power generation. It will also cut 24,500 tons of carbon dioxide emissions annually, contributing to Chad’s climate goals under the Paris Agreement.
The Desert to Power initiative will create approximately 200 jobs during construction, prioritizing opportunities for women and youth, and will provide 34 permanent roles during operation. Additionally, the project will help generate tax revenue for Chad’s national treasury, reduce fuel subsidies, and improve the country’s balance of payments by decreasing energy imports.
“The Gassi Solar Power Plant underscores Chad’s strong commitment to renewable energy and demonstrates the African Development Bank’s dedication to supporting clean energy projects that improve lives, drive economic growth, and strengthen energy security,” said Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank.
Together with the Lamadji Solar Power Plant, the Gassi project will help Chad generate a total of 61 gigawatt-hours of clean, affordable energy annually. This effort aligns with the African Development Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” promoting sustainable energy development across the continent.
Overview
Organizations | Sustainable Energy Fund for Africa (SEFA), Société Nationale d'Électricité (SNE) |
Country | Chad |
Updates
Gassi Solar Power Plant
Organization Name | Role | Amount | Financing Instrument | Status |
---|---|---|---|---|
Sustainable Energy Fund for Africa (SEFA) | Financier | $10,800,000.00 | Debt | Planning |
Société Nationale d'Électricité (SNE) | - | - | Planning |
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