Energy Law at Chad
Here’s a detailed overview of Energy Law in Chad as of 2025:
🇹🇩 Energy Law in Chad: Overview
1. Legal Framework
Chad’s energy sector is governed primarily by:
Law No. 005/PR/2016 on the Electricity Code, which regulates generation, transmission, distribution, and supply of electricity.
Hydrocarbon Law No. 001/PR/2018 — governing oil and gas exploration, production, and export.
Various decrees and regulations issued by the Ministry of Energy and Hydrocarbons.
Chad is a member of the Central African Power Pool (CAPP), aiming to improve regional energy integration.
2. Regulatory Authorities
Ministry of Energy and Hydrocarbons — sets policies and oversees the energy sector.
National Electricity Regulatory Authority (ARNE) — independent regulator responsible for licensing, tariffs, and market oversight.
Société Nationale d'Électricité du Tchad (SNE) — the national electricity company, managing generation, transmission, and distribution.
Regulatory framework is evolving to encourage private sector participation.
3. Electricity Sector
Access to electricity remains limited, especially in rural areas.
Electricity generation mainly relies on thermal plants (diesel, heavy fuel oil) and some small hydro projects.
The transmission and distribution networks are underdeveloped with significant losses.
Government and donors promote rural electrification programs and off-grid solutions.
4. Renewable Energy
Chad has good solar energy potential, increasingly tapped through mini-grids and standalone systems.
Legal incentives for renewable energy projects include tax breaks and customs exemptions.
Hydro and biomass resources are recognized but less developed.
Renewable energy development is supported by international partners and climate finance mechanisms.
5. Oil and Gas Sector
Oil production is significant, with exports managed under the Hydrocarbon Law.
Exploration is dominated by international oil companies in partnership with the government.
Legal regime supports investment through production-sharing agreements (PSAs).
Gas infrastructure remains limited but is a focus area for future development.
6. Investment Climate
The government encourages foreign direct investment in energy infrastructure.
Public-private partnerships are promoted for generation and distribution projects.
Investors benefit from guarantees under investment laws, but regulatory and political risks remain.
✅ Key Opportunities
Expansion of solar PV and mini-grid projects for rural electrification.
Modernization of thermal power plants and grid infrastructure.
Development of hydrocarbon resources and associated gas utilization.
Participation in regional power projects via CAPP.
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