The Djermaya solar project, represented by its majority shareholder InfraCo Africa, recently signed a 25-year power purchase agreement with the Ministry of Energy and SNE, the national power utility company.
This contract marks a key step in the development of the solar plant as it allows the project to obtain the necessary funds to finance its construction.
“The Djermaya solar project is very important for us,” said Michel Boukar, Minister of Oil and Energy, on signing the agreement.
InfraCo Africa highlighted that the Djermaya solar plant is one of the first projects of autonomous production of solar energy in the country.
This pioneering project will be delivered in two phases of 32MW and 28MW in order to allow the Chadian national grid to progressively integrate this new capacity in renewable energy. Read more: $6.56m solar hybrid project showcases ‘perfect’ model
“It will enable us to increase access to electricity in our country, but also to reduce our greenhouse gas emissions, especially since these two objectives are part of the government of Chad’s strategic objectives,” Boukar added.
The development of the project is led on the ground by Aldwych Africa Development Limited (AADL), on behalf of InfraCo Africa and Smart Energies.
According to Hugues Antoine Guinoiseau, director of Smart Energies International, “this power purchase agreement marks the beginning of a long collaboration between a consortium led by Smart Energies and InfraCo Africa, SNE and the Chadian government.
“For a country with so much sunlight, solar power seems to be the ideal way to expand access to a clean energy source. We are delighted to be able to contribute to its deployment in Chad.”
Djermaya solar project
InfraCo Africa, a member of the Private Infrastructure Development Group (PIDG), has committed $3 million for the development of the Djermaya solar power plant and generated $800,000 in grants from the Technical Assistance Facility (TAF), its sister company to PIDG.
Among other activities, the TAF grant was able to finance the legal advisory service for the government of Chad in order to support it in its preparations for and negotiation of project documents, such as the power purchase agreement.
In his speech given at the time of signing, Kodjo Afidegnon, West Africa Business Development Director for InfraCo Africa, said: “We look forward to working with our partners to push the boundaries for renewable energy in Chad.”