Chad: Energy Resources
|Energy Consumption||0.00 Quadrillion Btu|
|2-letter ISO code||TD|
|3-letter ISO code||TCD|
|Numeric ISO code||148|
|UN Region||Middle Africa|
|Energy Maps||0 view|
|Energy Organizations||0 view|
|Research Institutions||0 view|
|CIA World Factbook, Appendix D|
|Wind Potential||0||Area(km²) Class 3-7 Wind at 50m||95||1990||NREL|
|Coal Reserves||Unavailable||Million Short Tons||N/A||2008||EIA|
|Natural Gas Reserves||0||Cubic Meters (cu m)||192||2010||CIA World Factbook|
|Oil Reserves||1,500,000,000||Barrels (bbl)||38||2010||CIA World Factbook|
Energy Maps featuring Chad
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Policy and Regulatory Overview 
At the national level, 2.2% of households use electricity, with only 12% having access in the capital and 1% in provincial areas. The per capita electricity consumption is one of the lowest in the world and tariffs are among the highest. Interconnection of the national electric network with those of countries in the region with adequate supply capacity, could help address this constraint. The current status of the Chadian electricity network is limited, with three small, non-interconnected grids serving the cities of N'Djamena and Shar Mouduo Abeché constituting the entirety of the distribution infrastructure.
Chad is part of the Energy Program for West Africa, funded by the United Nations Industrial Development Organisation (UNIDO), and the Global Environmental Facility (GEF). This project aims to promote renewable energy and energy efficiency projects via a programmatic approach, and the creation of markets for private-sector investors in sustainable energy. Planned projects have included the establishment of renewable energy mini-grids for rural areas.Rehabilitation of the country’s electricity grid has been considered a priority in recent years, as the majority of the generation and distribution infrastructure was in dire need of repair, with some units having not been serviced since independence in 1960. Recent efforts by the World Bank to rehabilitate generation units in N’Djamena, Moundou, Sahr, Abeche, Doba, Bongor and Faya-Largeau were in part successful, but the ongoing sustainability of maintenance and quality has been called into question, primarily due to operational inefficiencies in the national utility. Pre-feasibility studies into the proposed Chad-Cameroon interconnection have been conducted.
An interim agreement is currently in place regarding the continued construction and use of the Chad-Cameroon oil pipeline, after government policy on oil revenue spending violated agreements with the World Bank, the financing agency for the project.An interconnection project between northern Cameroon and N’Djamena is being considered, commencing in 2014. The African Development Bank has agreed to fund the project, with a third of the costs being paid for by the Chadian Government. Greater regional connection is seen as a key factor in reducing Chad’s energy deficit and developing the energy sector.
Total installed electricity capacity (2008): 32 MWThermal: 100%Total primary energy supply (2008): 2,852.4 ktoeBiomass: 94%Oil and oil products: 6% The energy sector is largely underdeveloped. Consumption of conventional energy (electricity and petroleum products) accounts for only 10% of national consumption. The exorbitant cost and scarcity of electricity poses a major obstacle to Chad’s economic development. Over 80% of the production and consumption of electricity occurs in the capital, N’Djamena. Output of electricity was 103 GWh in 2008, from thermal sources only. Per capita electricity consumption in 2008 was 9 kWh.
The sale prices of electric power are set by an order issued by the Minister of Commerce. These prices are in principle identical throughout the territory. The Ministry of Energy is responsible for the operations of the SNE, the sole market actor, and ensuring that said operations are fair and transparent.
STEE previously held the monopoly on the generation and supply of electricity in Chad, a role which has passed on to its successor company, the SNE. The SNE continues monopoly operation of the sector and is a vertically-integrated, state-owned institution.The Société des Hydrocarbures du Tchad is a state-owned company and is vertically-integrated in its operations.
The wood fuels situation in Chad is similar to most of its neighbouring countries. Wood fuels will be used for some time in sub-Saharan cities, and their sustainability is questionable. However, Chad is implementing a village based management program, with the help of a new autonomous private agency, AEDE, and the introduction of a new Law and Decree to support the efficient management of the wood fuel sector. Proposals recently put forward by the International Monetary Fund also call for the improvement of efficiency of the national utility company, in both operations and finance. Technical and physical losses in the Chadian electricity network have also traditionally been a problem, and supply-side efficiency is considered a priority for development of the sector. Distribution losses alone in 2008 were estimated at 7 GWh.
Supply is largely in deficit. The bulk of consumption is met through biomass. STEE, the main institution responsible for electricity production and distribution, does not have the capacity to meet the country’s ever-growing electric energy demand. The utility’s poor economic performance is also a concern, as short-term considerations have often taken precedence over long-term development decisions in recent years. The energy problem is central to environmental issues. Wood and charcoal provide 90% of the energy consumed in Chad, and natural gas consumption is on the rise, growing from 69 metric tons in 1999 to 367 metric tons in 2004. However, only a small percentage of the population uses this type of energy. Fewer than 11,000 households are equipped with gas heaters, and 90% of these households are located in N’Djamena, the capital. Electricity prices in Chad are among the highest in the world. On 1 January 2005, the price per kWh (low tension) moved from CFAF 200 to CFAF 125, versus CFAF 63 in Cameroon, the equivalent of CFAF 20 in Nigeria, and CFAF 26-52 in France. In 2010, power tariffs were still far above normal African levels, at approximately US$ 44 cents/kWh. Proposals for reducing fuel costs include the construction of an oil-fired topping plant in the Doba oil field, currently operated by Exxon.
No government agency is currently active in the field of sustainable energy in the country.
Electricity marketGeneration and distribution of electricity in Chad is handled by the state-run Société Tchadienne D’eau et D’électricité (STEE). In 1999, the government issued a bid for an external management contract as a first step before full privatization. Although several private companies had previously indicated interest, only one group of companies (Vivendi-Dietsmann) submitted a bid. At the time of the original contract signing, the country was experiencing serious service unreliability and heavy financial losses. The situation did not improve thereafter, and disputes between the government and the new management arose in many aspects, such as contractual obligations, technical choices, and tariffs. Due to these problems, the contract was terminated in 2004, and privatization was frozen.In the second quarter of 2008, a large part of an operating subsidy to STEE was sold. This was a boost to the sector, which also benefited from the activation of the 21 MW Archa power station in 2008, as well as the increased use of diesel fuel. This strengthened the generating capacity of STEE and covered 50% of N’Djamena’s consumption. As of 5 May 2010, the STEE was officially dissolved, and replaced by the National Electricity Company (SNE) and the Chadian Waters Corporation (STE). Liquid fuels marketMajor players in the market include ExxonMobil, Chevron, Petronas, Total, Shell, and Perenco. A new state-owned enterprise, the Société des Hydrocarbures du Tchad (Chad Hydrocarbons Company) was created in 2006 (for exploration, production and marketing of hydrocarbons and petroleum products, and the negotiation of oil contracts). A National Commission for the Negotiation of Petroleum Agreements (CNRCP) was created in 2006. The CNRCP is under the supervision of the Prime Minister.
Degree of independence
The Ministry of Energy is a direct subsidiary of the government and is financed directly from the national budget. The Minister is appointed by the President.
Chad is a member of the Economic Community of the Central African States (ECCAS), which was created in October 1983 in Libreville (Republic of Gabon), and consists of 11 countries (Angola, Burundi, Cameroon, Central African Republic, Chad, Congo-Brazzaville, the Democratic Republic of Congo, Gabon, Equatorial Guinea, Rwanda, and Sao Tome and Principe). The treaty creating the community encourages cooperation in the field of energy and natural resources between Member States. The energy protocol commits Member States to cooperate in the exploitation of hydro-electric, new, and renewable energy sources.Chad is also a member of the Central African Power Pool (CAPP), which was initially created in 2003, to organise and manage an integrated Central African power network. The CAPP is also involved in interconnection projects in the country, particularly the electrification of six Chadian towns from Guider in Cameroon.
In April 2000, the government of Chad began to prepare a National Poverty Reduction Strategy (NPRS) as part of a participatory process involving the private and the public sector, opinion leaders, academia, and civil society organizations. The NPRS presents an overall view of the country’s economic and social policies and proposes to cut poverty by half in less than 15 years (by 2015).For the energy sector, the NPRS places special significance on strategies to ensure strong and sustainable growth that helps to reduce poverty, in particular by: (i) developing infrastructure to support power generation,(ii) making electricity available to users at a more reasonable cost, and (iii) promoting alternative sources of energy (solar, wind, etc.) to limit the cutting of firewood, which is exacerbating desertification. In 2000, the Chadian government revised its Petroleum Code. The revision allowed for production sharing agreements (PSAs), between foreign companies and the Chadian government. In addition, the government made the investment climate more attractive by reducing the corporate income tax rate from 50% to 45%. The country is in the process of implementing a national energy policy, with considerations given to renewable energy. An advisory committee of experts, technical advisers to the President, and senior ministerial officials involved in the energy sector has been formed, to advise the government on the formulation of a new energy policy framework.
There is currently no oil refining activity in Chad. The country is entirely dependent on imports from Nigeria, Cameroon and other neighbouring countries. Petroleum products are imported by road, and supplies are erratic. Tamoil and Total, which have storage facilities, provide some 35% of imports (mostly from Cameroon and Nigeria). About a dozen private Chadian importers supply a substantial part of the import of refined petroleum products. Retail distribution is largely in the hands of informal operators. Since the liberalisation of trade in petroleum products in 2002, distribution companies have been free to set sale prices. Estimated oil imports in 2009 were 1,837 bbl/day. There is no international trade in electric power, although the possibility has been discussed, and a feasibility study conducted into interconnection with Cameroon.
Role of the government
The Ministry of Mining and Geology is responsible for the organization and execution of work on the geological and mining research and related work accompanying the national territory. The Ministry of Petroleum and Energy (http://www.ministere-petrole.td/) is responsible for the design, coordination, implementation and monitoring of government policy in the field of hydrocarbons and energy. Rural water supplies are the purview of the Ministry for Pastoral and Village Water Resources. Chad has made no commitments in respect of mining, water or energy-related services under the General Agreement on Trade in Services (GATS). Mineral prospecting, exploration and exploitation are generally open to private Chadian or foreign companies.
The law regulating the generation, transport and distribution of electricity dates back to 1999. It enables the state to delegate the management of these services to one or several independent legal entities under Chadian public or private law. This law also provides for a regulatory authority responsible for overseeing the application of the regulation, proposing the rates to the government for approval, approving the multi-year investment program, and approving the award of government contracts in the sub-sector. The creation of this authority has so far not occurred.
There is no regulatory framework for the development and implementation of RES in the country. The establishment of an independent regulatory agency would also improve the legislative environment in the energy sector. Continued expansion of electricity services to the population is a vital precursor to continued development. Institutional reform is also seen to be a key factor in energy development, as the former and current national utilities are often inefficient in their management of the sector, and lacking in capacity for project implementation.
In Chad, the energy sector is still directly regulated by the government through the Minister of Energy.
Solar energyAs a large number of African countries tend to, Chad has daily solar radiation ranging between 4 and 6 kWh/m2, offering a significant energy resource. Solar energy is primarily used for solar cooking at this time. The majority of the country has a global irradiation of 2,000 – 2,400 kWh/ m2, rising to over 2,800 kWh/ m2 in some areas. Wind energyThe country shows significant wind potential in its central region, where the theoretical potential reaches 7-7.5 m/s. However, in Chad the political stance has not been clearly stated with regards to the development of wind energy projects and the technical feasibility of wind energy projects is non-conclusive, at least in the medium term (electrical grid, electrical load, layout of the land, etc.). In addition, other forms of renewable energy are perceived to be either more competitive or more appropriate in the national context (geothermal, hydraulic, bio-combustibles, solar photovoltaic). Biomass energyAgricultural residues are abundant in the region, and are very valuable for energy production. As a sugar producing country, Chad has large quantities of bagasse available for energy production from co-generation as a surplus from the internal sugar mills needs. Biomass is the primary energy source for the majority of the country's rural population, with over 93% using traditional biomass fuels. Geothermal energyEvidence of geothermal activity has been noted in mineral resource surveys in the Tibesti area of the country. However, no study has been undertaken as to the potential of this resource for power generation. HydropowerChad’s economically and technically feasible hydropower potential is approximately 150 GWh/year. Plans are ongoing to create an inter-connection between hydropower resources in Cameroon and N'Djamena, the Chadian capital.
- National Action Programmes on Desertification
- CARPE-IUCN Small Grants Program
- USAID West Africa Climate Program
- Chad-IAEA Cooperation
0 Energy Organizations
0 Clean Energy Companies
0 Research Institutions