Market Trends of Chad Power EPC Industry
This section covers the major market trends shaping the Chad Power EPC Market according to our research experts:
Increasing Power Projects to Drive the Market
- An increasing number of power projects is expected to boost the market's growth. Although the country heavily relies on the thermal energy sector for energy, many new renewable power projects are underway.
- In Chad, only 4% of the population has access to electricity. On the other hand, crude oil has become the country's primary source of export earnings.
- In 2021, Chad ranked as the second least-electrified country in the world, with only 11% of its population having access to electricity.
- In December 2021, Chad's first solar-plus-storage project secured funding. InfraCo Africa revealed the deal signed in Paris to double the amount of borrowing for the planned 34 MW solar project 30 km north of the Chadian capital, N'Djamena, which will also include 4 MWh of battery storage.
- In May 2022, Savannah Energy signed an agreement with the government of Chad to develop up to 500 MW of utility-scale renewables. The first project, located in the south of the country and due to be operational in 2025, comprises up to 300 MW of solar PV and a battery energy storage system (BESS) that provides power for the Doba Oil Project and two nearby towns.
- Hence, increasing investments in the industry are expected to drive the Chadian power EPC market during the forecast period.
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Renewable to Witness Significant Growth
- In 2021, the renewable energy sector in the country was quite small, with an installed capacity of only 1.327 MW. However, the government has shown keen interest in rapidly increasing the country's renewable energy scope.
- The French renewable energy firm InnoVent is building Chad's first solar power plant in Abeche. In December 2021, the company signed a delivery agreement with Société Nationale d'Electricité (SNE) grid, the national provider in Chad. Once completed, the solar plant will have a total capacity of 5 MW.
- In May 2022, Savannah Energy signed an agreement with the government of Chad to develop the second project. The company's agreement involves the development of solar and wind farms of up to 100 MW each, with a portion anticipated to benefit from the installation of a BESS to supply power to Chad's capital, N'Djamena. This project is expected to send its first power to the grid in 2025 or 2026.
- The renewable energy remained stagnant during 2020-2021, at 1.327 MW. However, new projects are under construction, which may aid the growth of the market.
- Therefore, renewable energy is likely to record the fastest growth in the Chadian power EPC market during the forecast period.
