GCIAndrew Knott of Savannah Energy discusses agreement for development of up to 500 megawatts of renewable energy projects
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Andrew Knott CEO of Savannah Energy #SAVE discusses the signing of an agreement with the Ministry of Petroleum and Energy of the Republic of Chad for the development of up to 500 megawatts of renewable energy projects.
Centrale Solaire de Komé
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 (the "Centrale Solaire de Komé"). 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 existing hydrocarbon power supply resulting in a significant reduction in CO2 emissions and provide a supply of clean, reliable electricity on a potential 24/7 basis to the surrounding towns of Moundou and Doba (which currently only have intermittent power access). 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.
Centrales d'Energie Renouvelable de N'Djamena
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 (the "Centrales d'Energie Renouvelable de N'Djamena"). A significant portion of this project is anticipated to benefit from the installation of a BESS, potentially enabling the provision of 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 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 cashflows and project specific debt.
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