Societe Tchadienne D'eau et D'electricite (STEE) is the organisation responsible for electricity generation and supply in Chad. In line with the IMF-sponsored structural adjustment plan, plans are being put together for the privatization of the parastatal.
Less than 2% of Chad ’s population has access to electricity, and most of the population relies on wood for fuel requirements; use of wood for fuel contributes to deforestation. The majority of Chadians with access to electricity reside in N’Djamena, where the country’s only major power station (22 MW) is located. Only nine percent of households in N’Djamena have electricity. The high cost of importing petroleum to fuel power generation makes Chad ’s electricity prices among the highest in the world. World Bank loans to develop the electricity sector have focused on increases in sustainable energy ($5.3 million) and improvements in equipment renovation ($55 million).
Generation and distribution of electricity in Chad is handled by the state-run Société Tchadienne D’eau et D’électricité (STEE). France ’s Veolia, who manages STEE, is expected to purchase a majority share when the company is privatized in accordance with World Bank reforms.
Attempts to utilize oil from the Sedigi field in electricity generation have been unsuccessful, as the Concorp International-constructed pipeline between Sedigi and N’Djamena is unusable. Both Libya and France have provided generators to increase Chadian electricity supply in the short-term, and Libya has offered to export electricity to the country. In February 2004, the French Development Agency (AFD) agreed to a €4 million to improve the Chadian energy sector.