Chad, a landlocked country in Central Africa, is highly exposed to the effects of climate change, despite being among the countries with the lowest CO2 emissions per capita. Over the past two decades, economic growth in the country has been driven predominantly by the extraction and export of hydrocarbon resources. However, fluctuations in global oil prices, compounded by unstable international markets for Chad’s other key exports – agriculture and livestock – have affected the national economy.
Recognising these challenges, Chad has identified economic diversification and reduced oil dependence as central to its future development priorities. An important element of this strategy is expanding mining operations, alongside increasing efficiency and productivity in the agricultural and livestock sectors. Realising this ambition requires significant investment in energy services. Although Chad’s development strategy does not directly identify it as such, global efforts on energy transition greatly impact the country’s economic trajectory.
Reducing dependence on petroleum and traditional biomass fuels, as well as diversifying energy sources, are essential to Chad’s development plans. The development of the mining sector, particularly minerals that are critical to energy transition, could support the diversification of export revenues. Chad’s abundance of solar, wind, and biomass resources, alongside its strategic position for regional energy integration, are strategic assets that can be leveraged to facilitate the energy transition.
Nonetheless, the country faces challenges in advancing its energy transition agenda. There is a critical need for enhanced capacity building across energy stakeholders to support Chad’s aspirations. This report “Energy Transition Assessment: Chad” published by IRENA highlights that the energy governance framework needs to be strengthened and complemented by policy instruments and initiatives to foster energy transition, renewable energy deployment and energy efficiency enhancement.
Moreover, there is a clear need to address energy transition beyond the power sector, with productive uses of energy in agriculture, alternative transport solutions and increased processing of local resources. Establishing a favourable climate to attract private international investment for renewables will be indispensable, alongside exploring emerging opportunities within the wider energy transition domain.
Access the report here