Savannah Energy signs agreement with the Government of Chad for renewable energy projects

CHAD – Savannah Energy has announced the signing of an agreement with the Ministry of Petroleum and Energy of the Republic of Chad for the development of up to 500 MW of two renewable energy projects.

The project will supply electricity to the Doba Oil Project and the towns of Moundou and Doba in Southern Chad, and the capital city, N’Djamena.

The first Project Savannah has agreed to develop comprises an up to 300 MW photovoltaic solar farm and battery energy storage system (“BESS”) located in Komé, Southern Chad.

This Project is being developed to provide clean, reliable power generation for the Doba Oil Project and the surrounding towns of Moundou and Doba.

In doing so, it will displace the existing hydrocarbon power supply resulting in a significant reduction in CO2 emissions and providing a supply of clean, reliable electricity on a potential 24/7 basis to the surrounding towns of Moundou and Doba.

The expected tariff for the electricity generated from this project is expected to be significantly less than that being paid for the current hydrocarbon-based power generation in the region.

At 300 MW, the Centrale Solaire de Komé would be the largest solar project in sub-Saharan Africa (excluding South Africa) as well as constituting the largest battery storage project in Africa.

Project sanction for the Centrale Solaire de Komé is expected in 2023 with first power in 2025.

We are delighted to work with Savannah on these two potentially transformational power projects for Chad,” said Djerassem le Bemadjiel, Minister of Petroleum and Energy of the Republic of Chad

The second project covered by the Agreement involves the development of solar and wind projects of up to 100 MW each to supply power to the country’s capital city, N’Djamena.

A significant portion of this project is anticipated to benefit from the installation of a BESS, potentially enabling the provision of a 24/7 power supply.

At up to 200 MW, the Centrales d’Energie Renouvelable de N’Djamena would more than double the existing installed generation capacity supplying the city and increase the total installed grid-connected power generation capacity in Chad by an estimated 63%.

Savannah expects the cost of power from the Centrales d’Energie Renouvelable de N’Djamena to be lower than existing competing power projects, which are currently primarily hydrocarbon-based.

Project sanction for the Centrales d’Energie Renouvelable de N’Djamena is expected in 2023/24 with first power in 2025/26.

Savannah expects to fund the Projects from a combination of its own internally generated cash flows and project-specific debt.

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