To reduce the dependence on coal-based power in African countries, a consortium including InfraCo Africa and Smart Energies International, has come together to develop a 60 MW solar project in the African country of Chad.

The consortium has entered into a 25-year power purchase agreement (PPA) with the Chad’s Ministry of Energy and the national utility La Société Nationale d’Electricité (SNE) for the development of the project.

The PPA will help to develop the Djermaya Solar Project by enabling the project to raise construction financing. InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has committed $3 million to the development of the project.

According to a statement by InfraCo Africa, Djermaya Solar is one of the first solar IPP projects in Chad. This project will be delivered in two phases of 32MWp and 28MWp, which will gradually integrate power into Chad’s national grid. The first phase is due to start delivering power in 2020.

Aldwych Africa Development Limited (AADL) will be the developer of the project on behalf of InfraCo Africa (a majority shareholder in the Djermaya Solar Project) apart from Smart Energies.

Hugues Antoine Guinoiseau, director of Smart Energies International, said in a media statement, “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.”

Chad, like many other African countries, relies on expensive heavy fuel oil and diesel for its electricity. This makes the country vulnerable to supply failures and global price fluctuations.

As a result, many development focused banks are actively financing green projects across the African continent. For instance, the African Development Bank (AfDB) recently approved a $1.5-million grant from the Sustainable Energy Fund for Africa (SEFA) to support the Nigerian government’s implementation of Phase 1 of the Jigawa 1-GW Independent Power Producer (IPP) Solar Procurement Program.

Recently, the New Development Bank (NDB), an initiative by BRICS (Brazil, Russia, India, China and South Africa) nations, has approved a $300 million loan for sustainable development projects in South Africa.

Mercom previously reported that the World Bank approved $180 million in assistance to Kenya in order to improve the financial health of the Kenya Electricity Generation Company Limited (KenGen) and to strengthen private sector financing in the of the East African country’s energy sector.