African Development Bank approves $10.8M for Lamadji solar plant

The African Development Bank Group has approved funding for the Lamadji Solar Power Plant, a key renewable energy project located near N'Djamena, Chad. The project is part of the Desert to Power initiative, which aims to leverage Chad’s abundant solar resources to address energy deficits and reduce reliance on fossil fuels.

The Lamadji Solar Power Plant will have a capacity of 15 megawatt-peak (MWp) and will feature a 6-megawatt-hour battery energy storage system (BESS) to provide reliable electricity even during periods of low sunlight or nighttime. The project also includes power stations and connection lines to integrate the plant into Chad’s electricity grid, improving energy access for local communities.

The funding for Lamadji comes as part of the African Development Bank’s $30.2 million renewable energy funding package, which also supports the Gassi Solar Power Plant. The approved funding includes $10.8 million in direct support, combining a loan and a grant from the Sustainable Energy Fund for Africa (SEFA), and $4.3 million in financial guarantees. These guarantees are equally split between the African Development Fund and the Green Climate Fund, each contributing $2.15 million.

The total cost for the Gassi and Lamadji projects is estimated at $44.3 million, with additional financing expected from other Development Finance Institutions (DFIs). The Lamadji plant is expected to generate 30.5 gigawatt-hours of electricity annually, reducing Chad’s dependence on fuel imports and cutting 24,500 tons of carbon dioxide emissions every year.

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 plant will help generate tax revenue for Chad, reduce fuel subsidies, and improve the country’s balance of payments by decreasing its reliance on imported energy.

Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulations at the African Development Bank, emphasized the importance of the project, stating, “This pioneering solar initiative showcases the renewable energy potential of the Sahel region and demonstrates how innovative financing and partnerships can drive sustainable development. It is a model for advancing Chad’s energy transition and strengthening its economy.”

Together with the Gassi Solar Power Plant, the Lamadji project will enable Chad to generate a total of 61 gigawatt-hours of clean, affordable energy annually, significantly improving energy security while reducing environmental impacts. 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.”