The African Development Bank (AfDB) has reached financial close and made the first disbursement for two hybrid solar power projects in Chad, advancing efforts to expand reliable electricity access across the Sahel.
Developed by Qair, the Gassi and Lamadji projects will deliver a combined 30 MWp of solar power alongside 8 MWh of battery storage. The facilities are expected to strengthen Chad’s national electricity grid and increase the availability of renewable energy in a country where access to reliable power remains a major development challenge.
The projects will operate under a 20-year Power Purchase Agreement (PPA) with Tchadelec, Chad’s national electricity utility. Qair is among the first independent power producers (IPPs) to develop utility-scale renewable energy projects in the country.
The financial close has unlocked a €37.9 million financing package, structured and mobilised by the African Development Bank Group with support from development finance partners including Proparco, the Sustainable Energy Fund for Africa (SEFA) and the Green Climate Fund (GCF).
A key component of the financing is an €8 million Partial Risk Guarantee jointly provided by the African Development Fund and the GCF. The guarantee supports a letter-of-credit mechanism designed to strengthen payment security for Tchadelec’s obligations under the power purchase agreement.
The financing structure highlights how blended finance and risk-sharing mechanisms are increasingly being used to attract private investment into renewable energy projects in fragile and climate-vulnerable African markets.
According to Wale Shonibare, AfDB Director for Energy Financial Solutions, Policy and Regulation, the first disbursement demonstrates what can be achieved when development institutions and private-sector investors work together to deliver energy infrastructure.
With financing now secured, construction of the Gassi and Lamadji plants can move ahead, bringing Chad closer to adding new renewable generation capacity to its national grid.
The projects also form part of the AfDB’s wider Desert to Power and Mission 300 initiatives, which aim to accelerate electricity access across Africa. Desert to Power targets the development of up to 10,000 MW of solar generation capacity across the Sahel, while Mission 300 seeks to connect hundreds of millions of Africans to electricity.
For Chad and the wider Sahel, the projects represent another step toward building a more resilient power system, reducing energy constraints and creating a stronger foundation for economic growth.
