The Chadian Minister of Finance and Budget, Tahir Hamid Nguilin, and the Chadian Minister of Mines and Energy, Youssouf Abbassallah, have signed a memorandum of understanding (MoU) with Alcaal Group for the construction of a 200 megawatts solar plant.

The Argentina-based Group will also be carrying out the feasibility studies of the photovoltaic plant that will be located on the outskirts of the country’s capital.

Earlier this month, the President of Chad, Idriss Déby, announced that representative of the Group visited the country to hold talks that centred around investing in the country’s agribusiness and renewable energies.

The MoU signed includes the feasibility studies of the construction, the operation and maintenance of the power plant that will be located on the outskirts of N’Djamena.

Last month, the United Nations Development Program launched the “Sun Health” project in Chad. The project will cost over $3 million and it is aimed at installing solar panels in 150 health centres across the country.

The country suffers from the lack of a reliable energy source, with only 6.4% of the entire population having access to stable electricity. According to data from the International Renewable Energy Agency (IRENA), Chad had an installed solar capacity of 1 MW at the end of 2019.

The United States Agency for International Development estimated the country has only 125 MW of total generation capacity for power with a huge amount of it coming from diesel and heavy fuel oil.

The 125 MW of electricity is expected to serve over 14.5 million people in Chad. Having the tenth largest oil reserves on the African continent, as well as wind and solar resource potential, the Chadian government is working to massively expand the supply of electricity and encourage investment in the energy sector. The total energy consumption in Chad is 200.00 million kWh of electric energy per year which is an average of 13 kWh.