This is a best prospect industry sector for this country. Includes a market overview and trade data.
The Government of Chad and development partners like the World Bank are prioritizing electrification to promote economic growth and inclusion. Per capita electricity consumption is one of lowest in the world and tariffs are among the highest. According to the CIA World Factbook, Chad possessed only 48,000 kW of installed electricity generation capacity as of 2016. Chad’s electric grid is limited to N’Djamena and suffers frequent outages, and the country lacks a national electric power strategy. Power generation remains highly localized. The National Electricity Company SNE lacks technical and human capacity to meet growing demand because of aging infrastructure and lack of financing.
Leading sub-sectors in renewable energy include solar power and electricity generation and distribution. Chad’s location in the Sahel, which features brilliant sunshine especially during the dry season, and lack of alternate fuel sources such as coal make solar power an attractive export and investment sector. Chad currently generates electricity by consuming oil. With the declining cost of new solar generation plants, the Government of Chad and development partners have prioritized solar power throughout the country. Machinery and parts for electricity transmission and distribution are also in demand.
U.S. companies are already pursuing projects in solar energy as well as power plants fired by stranded natural gas. There are also opportunities to collaborate with the Government of Chad on developing a national power strategy. In March 2019, the Overseas Private Investment Corporation (OPIC), a U.S. Government development finance institution, committed $10 million to support the introduction of off-grid solar kits and appliances in Chad. OPIC’s loan will help FinLux Ellen Sarl distribute solar kits and appliances to individuals, schools, health clinics and small businesses in Chad, providing them with an affordable source of reliable electricity.
In 2020, the World Bank announced an electricity interconnection between hydropower produced in Cameroon and N’Djamena’s electric grid. Upcoming projects funded by multilateral development banks will focus on electrification and solar power generation.
Power Africa is a market-driven, U.S. Government-led public-private partnership aiming to double access to electricity in Africa. It offers private sector entities tools and resources to facilitate doing business in Africa’s power sector.
Power Africa facilitated financing from the African Development Bank and other partners for the Djermaya Solar project, with planned capacity of 60MWp. The project will be one of Chad’s first Independent Power Producers and commercial-scale solar plants.
Energy projects fall under the purview of the Ministry of Energy, though other Ministry’s may also be involved. For further information, please contact the U.S. Embassy in N’Djamena at Ndjamena-Commercial@state.gov.