Africa > Central Africa > Chad > Chad Energy Profile

Chad: Chad Energy Profile

2012/02/29

Hand Holding Lightbulb at Sunset,Cape Town,Western Cape,

Chad, officially known as the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west. Due to its distance from the sea and its largely desert climate, the country is sometimes referred to as the "Dead Heart of Africa".

Chad is divided into multiple regions: a desert zone in the north, an arid Sahelian belt in the centre and a additional fertile Sudanese savanna zone in the south. Lake Chad, next which the country is named, is the major wetland in Chad and the second major in Africa. Chad\'s highest peak is the Emi Koussi in the Sahara, and N\'Djamena, (formerly Fort-Lamy), the capital, is the major city.

Chad is home to over 200 different ethnic and linguistic groups. Arabic and French are the official languages. Islam and Christianity are the majority widely practised religions. Beginning in the 7th millennium BC, human populations moved into the Chadian basin in great numbers.

By the end of the 1st millennium BC, a series of states and empires rose and fell in Chad\'s Sahelian strip, each focused on controlling the trans-Saharan trade routes that passed through the region. France conquered the territory by 1920 and incorporated it as part of French Equatorial Africa. In 1960, Chad obtained independence under the leadership of François Tombalbaye. Resentment towards his policies in the Muslim north culminated in the eruption of a long-lasting civil war in 1965. In 1979, the rebels conquered the capital and put an end to the south\'s hegemony. However, the rebel commanders fought amongst themselves until Hissène Habré defeated his rivals.

He was overthrown in 1990 by his general Idriss Déby. Recently, the Darfur crisis in Sudan has spilt over the border and destabilised the country, with hundreds of thousands of Sudanese refugees living in and around camps in eastern Chad. While a lot of political parties are active, power lies firmly in the hands of President Déby and his political party, the Patriotic Salvation Movement. Chad remains plagued by political violence and recurrent attempted coups d\'état.

Chad is one of the poorest and most corrupt nations in the world; most inhabitants live in poverty as subsistence herders and farmers. Since 2003, crude oil has become the country\'s primary source of export earnings, superseding the traditional cotton industry.

Energy sources

Total installed electricity capacity (2008): 32 MW
Thermal: 100%

Total primary energy supply (2008): 2,852.4 ktoe

Biomass: 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.

Reliance

There is currently no oil refining activity in Chad. The country is entirely dependent on imports from Nigeria, Cameroon and other neighbouring nations. 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.

Extend network

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 part the highest. Interconnection of the national electric network with those of nations 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.

Capacity concerns

Supply is largely in deficit. The bulk of consumption is met through biomass. STEE, the major institution responsible for electricity production and distribution, does not have the capacity to meet the country’s ever-growing electric energy request. The utility’s poor economic performance is as well 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 % of the people 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 part 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.

Renewable energy

Solar energy
As a large number of African nations 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 world irradiation of 2,000 – 2,400 kWh/ m2, rising to over 2,800 kWh/ m2 in some areas.

Wind energy

The 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 additional competitive or additional appropriate in the national context (geothermal, hydraulic, bio-combustibles, solar photovoltaic).

Biomass energy

Agricultural residues are abundant in the region, and are very precious 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 people, with over 93% using traditional biomass fuels.

Geothermal energy

Evidence 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.

Hydropower

Chad’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.

Energy efficiency

The wood fuels situation in Chad is similar to most of its neighbouring nations. 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 as well call for the development of efficiency of the national utility company, in both operations and finance. Technical and physical losses in the Chadian electricity network have as well 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.

Ownership

Electricity market
Generation and distribution of electricity in Chad is handled by the national-run Société Tchadienne D’eau et D’électricité (STEE). In 1999, the government issued a bid for an external management arrangement as a initial step before full privatization. Although several private companies had before indicated interest, only one group of companies (Vivendi-Dietsmann) submitted a bid. At the time of the original arrangement signing, the country was experiencing critical service unreliability and heavy financial losses. The situation did not improve thereafter, and disputes between the government and the new management arose in a lot of aspects, such as contractual obligations, technical choices, and tariffs. Due to these problems, the arrangement 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 as well benefited from the activation of the 21 MW Archa power station in 2008, inclunding 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 restored by the National Electricity Company (SNE) and the Chadian Waters Corporation (STE).

Liquid fuels market

Major players in the market include ExxonMobil, Chevron, Petronas, Total, Shell, and Perenco. A new national-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.

Competition

STEE before 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, national-owned institution.

The Société des Hydrocarbures du Tchad is a national-owned company and is vertically-integrated in its operations.

Energy framework

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 in general 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 appropriate significance on strategies to ensure strong and sustainable increase that helps to reduce poverty, in particular by:

(i) developing infrastructure to support power generation,

(ii) making electricity available to users at a additional 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 additional attractive by reducing the corporate gain 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.

Energy debates

An interim agreement is currently in place regarding the continued construction and use of the Chad-Cameroon oil pipeline, next 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. Better regional connection is seen as a key factor in reducing Chad’s energy deficit and developing the energy sector.

Energy studies

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 nations (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 as well 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 as well involved in interconnection projects in the country, particularly the electrification of six Chadian towns from Guider in Cameroon.

Role of 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.

Government agencies

No government agency is currently active in the field of sustainable energy in the country.

Energy procedure

Chad is part of the Energy Program for West Africa, funded by the United Nations Industrial Development Organisation (UNIDO), and the World 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.

Energy regulator

In Chad, the energy sector is still due regulated by the government through the Minister of Energy.

Degree of independence

The Ministry of Energy is a direct subsidiary of the government and is financed due from the national budget. The Minister is appointed by the President.

Regulatory framework

The law regulating the generation, transport and distribution of electricity dates back to 1999. It enables the national to delegate the management of these services to one or several independent legal entities under Chadian public or private law. This law as well 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.

Regulatory roles

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 equitable and transparent.

Energy regulation role

Regulation of the petroleum sector is the responsibility of the Ministry of Petroleum. This includes the granting of exploration and production licenses, the production of an oil database for the country, and ensuring quality of production and standards within the sector.

Regulatory barriers

There is no regulatory framework for the development and implementation of RES in the country. The establishment of an independent regulatory agency would as well improve the legislative environment in the energy sector. Continued expansion of electricity services to the people is a vital precursor to continued development. Institutional reform is as well 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.

Country Analysis Note

Chad ranks as the tenth-largest oil reserve holder among African countries, with 1.5 billion barrels of proven reserves as of January 1, 2013, according to the Oil and Gas Journal.
Crude oil production in Chad was an estimated 115,000 barrels per day (bbl/d) in 2011 and 105,000 bbl/d in 2012. Almost all of this was exported via the Chad-Cameroon Pipeline.
The China National Petroleum Corporation (CNPC) and the Chadian government jointly constructed the 20,000 bbl/d N'Djamena refinery, and it began supplying the local market with petroleum products in 2011. However, operations have occasionally been temporarily suspended in the past due to price disputes and operational issues.
Petroleum is the only hydrocarbon that Chad consumes. Traditional wood fuel is the primary source of total energy consumption in the country.
Very few households in Chad have access to electricity. The country has installed electric generation capacity of 31 megawatts that is thermal-powered using refined oil products.

Analysis Last Updated: March 2013

Overview data for Chad

Petroleum (Thousand Barrels per Day)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Total Oil Production	(1980-2012)	114.96	9,369	87,483	48	104.48
Crude Oil Production	(1980-2012)	114.96	8,572	74,141	42	104.48
Consumption	(1980-2012)	1.80	3,297	88,662	132	1.85 ^E
Estimated Petroleum Net Exports	(1980-2012)	113.16	6,072	--	158	102.64
Refinery Capacity	(1980-2012)	0	3,220	88,097	110	0
Proved Reserves(Billion Barrels)	(2006-2013)	1.50	124	1,526	36	1.50
Natural Gas (Billion Cubic Feet)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Production	(1980-2011)	0.00	7,373	111,954	89	0.00
Consumption	(1980-2011)	0.00	3,558	113,321	109	0.00
Net Export/Imports(-)	(1990-2011)	0.00	3,813	--	64	0.00
Proved Reserves (Trillion Cubic Feet)	(1980-2013)	35.30	546	6,845	25	0.00
Coal (Million Short Tons)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Production	(1980-2011)	0.000	286	7,934	66	0.000
Consumption	(1980-2011)	0.000	223	7,751	113	0.000
Net Export/Imports(-)	(1980-2011)	0.000	64	--	85	0.000
Electricity (Billion Kilowatthours)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Net Generation	(1980-2010)	0.10	594	19,083	195	0.10
Net Consumption	(1980-2010)	0.09	530	17,360	195	0.09
Installed Capacity (GWe)	(1980-2010)	0.03	130	4,843	193	0.03
Total Primary Energy (Quadrillion Btu)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Production	(1980-2011)	.287	37	509	79	0.262
Consumption	(1980-2011)	0.004	16	511	197	0.004
Energy Intensity (Btu per 2005 U.S. Dollars)	(1980-2011)	199	5,279	7,452	198	197
Carbon Dioxide Emissions (Million Metric Tons of CO₂)		Previous Year				Latest Year
	History	Chad	Africa	World	Rank	Chad
Total from Consumption of Fossil Fuels	(1980-2011)	0.25	1,155	31,502	196	0.29

-- = Not applicable; NA = Not available; E = Estimate value
Sources: EIA. For more detailed data, see International Energy Statistics.

Data last updated: May 30, 2013

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