InfraCo Africa consortium signs PPA for 60MW solar project in Chad

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Infraco Africa's Head of West Africa Business Development, Kodjo Afidegnon, signs a PPA for the company's Djermaya Solar project in Chad with Michel Boukar, Minister of Petroleum and Energy. Credit: InfraCo Africa Twitter

A consortium including InfraCo Africa and Smart Energies International has signed a 25-year power purchase agreement (PPA) with the Chad’s national utility La Société Nationale d’Electricité (SNE) for a 60MW solar project.

Aldwych Africa Development Limited (AADL) is acting as a developer on the project on behalf of InfraCo Africa, which is a majority shareholder in the Djermaya Solar Project.

This will be one of the first large-scale PV projects in Chad, a country that relies upon expensive heavy fuel oil and diesel for electricity. This reliance makes it vulnerable to global fuel price fluctuations and supply failures.

The plant will be delivered in two phases of 32MW and 28MW, with the first phase due to start delivering power in 2020.

Hugues Antoine Guinoiseau, director of Smart Energies International, said: “This PPA marks the beginning of a long collaboration between a consortium led by Smart Energies and InfraCo Africa, the SNE and the Chadian government. The energy needs are very important in Chad – needs mostly satisfied today by polluting energies. In a country with strong sunlight like Chad, solar energy appears as a great means to expand access to a clean energy. We are happy to contribute to its deployment in Chad.”

In terms of financing, InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has committed US$3 million for project development and leveraged US$0.8 million in grants from its sister PIDG company, the Technical Assistance Facility (TAF). The TAF grant has also funded legal advice for the Government of Chad to support preparation and negotiation of project documents. The project has also secured a €6.35m commitment from the EU-Africa Infrastructure Trust Fund (EU-AITF) to build a transmission line and substation to connect the solar plant to the grid.

InfraCo Africa’s head of West Africa Business Development, Kodjo Afidegnon said: “InfraCo Africa is uniquely able to fund high-risk projects in the earliest stages of their development so that they can complete activities, such as negotiating bankable PPAs, which are necessary to mobilise private sector investment. Working with our sister PIDG companies, Djermaya Solar demonstrates our commitment to investing into challenging markets, both here and across West Africa.”

An Environment and Social Impact Assessment (ESIA) on the project is expected to be concluded imminently. The African Development Bank (AfDB) has also been confirmed as mandated lead arranger for the project, the bank that last year unveiled plans to support 10GW of solar across the Sahel region by 2020.

Read Next

PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
April 22, 2021
A round-up of the latest news from the US solar sector, including distributed solar specialist SunPower's return to large-scale power systems, panel maker Maxeon's share offering, and developer National Grid Renewables' PPA with Hershey, Home Depot and NRG.
April 21, 2021
Ingka Group, a retailer that runs the majority of IKEA stores, has allocated an additional €4 billion (US$4.8 billion) to invest in solar and wind plants.
April 14, 2021
While recent solar auctions in Spain and Portugal have made headlines with low prices and high levels of participation, the power purchase agreement market will be key to helping both countries reach their 2030 solar deployment targets, it was suggested during a panel discussion.
April 14, 2021
Independent energy trader BB Energy (BBE) has set its sights on Africa’s solar and storage market by acquiring Solarcentury’s Africa-facing division for an undisclosed sum.
April 12, 2021
A consortium between Abu Dhabi-based Masdar, EDF Renewables and Nesma Holding Company has broken ground on a 300MW PV project in Saudi Arabia.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021