Scatec builds Chad's first solar plant with storage

From the newsletter

Release by Scatec, a subsidiary of the Norwegian renewables company Scatec ASA, has completed construction of a 36 MW solar PV plant integrated with a 20 MWh battery energy storage system in Chad. It was delivered under a leasing model, making it the first of its kind in the country, which has one of the lowest electrification rates in Africa.

• Only about 11% of the Chadian population has access to electricity, with significantly lower rates of 2% in rural areas. The grid is limited, serving mainly the capital city, and suffers from frequent outages.

• The commissioning of this solar and battery facility is expected to improve power reliability in the capital and reduce dependence on expensive and polluting diesel generation.

More details

• The project was funded by the International Finance Corporation (IFC). The national electricity utility, Société Nationale d’Électricité du Tchad (SNE) acted as the local partner. It also benefited from liquidity support guarantee issued by the World Bank’s International Development Association (IDA), which is designed to encourage investment and the growth of renewable energy in challenging regions such as Chad.

• Arnaud Gouet, Senior Vice President of Utilities at Release by Scatec, said, “This project is a significant step forward in Chad’s energy transition. It demonstrates the role that modular, clean energy solutions can play in delivering reliable power to underserved markets.”

• Many African countries still rely on fossil fuel power generation. The increase and instability in global market prices create challenges for local utility companies in balancing generation costs and revenue. Consequently, some utilities charge very high tariffs, making it difficult for consumers, especially low-income earners, to afford electricity. This also means power utility companies often lack sufficient revenue to expand their power generation capacity.

• Renewables like solar, with their ease of deployment, are transforming the market. Rural communities that once seemed too remote and costly to connect to the grid can now access power through mini-grids and solar home systems. This approach has been successful in Kenya, where approximately 68% of the rural population now has access to electricity. Nigeria is also adopting similar strategies to accelerate its electrification efforts.

• One significant challenge in financing risks is that it slows down progress. Most African markets, including countries like Chad, Congo, Burundi, and Sudan, haven't yet adopted progressive energy policies that allow private sector investments in power generation. Even countries that have made progress, such as Kenya and Ghana, haven't yet finalised policies for private investment in power transmission lines. South Africa only started implementing such a policy this year.

• Moving the needle on power access will demand an overhaul of policy and regulations in Chad. Multilateral lending institutions like the World Bank and the AfDB have shown effort in supporting and de-risking private sector investments, and this is the perfect time to make the necessary policy changes.

Our take

• The falling costs of solar and battery storage are making these technologies increasingly common. Even countries beginning their journey in renewables are piloting projects that include storage, and some, like South Africa, are moving towards mass deployment. This should be the next phase for Chad and many other African countries.

• However, this transition hinges on the formulation of improved policies and the upgrading of ageing grid infrastructure. New renewable energy projects should integrate grid planning from the outset to guarantee immediate power evacuation upon project completion.

• Chad needs a strategy that balances both on-grid connections and off-grid solutions, particularly leveraging solar to reach remote areas. A flexible approach is essential to accelerate electrification efforts.