(Business in Cameroon) – The Nachtigal Hydro Power Company (NHPC) has successfully connected all 420 MW of the Nachtigal Dam to Cameroon’s national grid. After completing a smooth connection to the grid on February 27, 2025, and weeks of rigorous testing, the final unit of the hydroelectric facility was officially brought online on March 18, 2025. This marks a major milestone for the project, with the plant now operating at full capacity, ready to contribute significantly to the country’s energy supply.
NHPC announced that the completion of this seventh and final unit signals the end of the construction phase and the beginning of the plant’s 35-year operational life. This is a critical moment, as per agreements between the government and NHPC, a monthly payment of CFA 10 billion is now due to the company for the energy capacity, regardless of actual consumption.
However, the financial realities of Cameroon’s power sector are complicating matters. Eneo, the state-owned electricity distributor, has been struggling with liquidity issues for years. The company, controlled by the British investment fund Actis, claims that the government owes more than CFA 100 billion in unpaid bills. Despite this, Eneo is unable to meet its financial obligations to its suppliers, including NHPC, which will begin expecting payments in the coming months.
Eneo’s Financial Struggles Continue
The financial difficulties faced by Eneo are becoming more pronounced. As of December 31, 2022, Eneo reported a staggering CFA 113 billion cash flow deficit and a total debt of CFA 700 billion, half of which was owed to various suppliers. The national treasury, which usually steps in to pay public-sector arrears to Eneo, has struggled to keep pace with these payments. In fact, the independent power producer Globeleq, which runs the Kribi and Dibamba power plants, has been forced to shut down its facilities several times over the last few months due to unpaid bills totaling CFA 137 billion, which Eneo has failed to settle despite numerous promises.
Challenges in Power Distribution
With the full capacity of Nachtigal now online, the government or Eneo will need to find CFA 10 billion every month to meet NHPC’s contractual obligations. However, immediate consumption of all the electricity produced at Nachtigal may not be possible. Delays in the construction of critical transmission lines from the Nyom substation near Yaoundé, as well as from Nachtigal to the capital, are holding up distribution.
Sources close to the project say that several transmission lines from Nyom are still in the final stages of construction, while the line connecting Nachtigal to Yaoundé, built by the French company Bouygues, is undergoing inspection. This inspection is a necessary step before the line is handed over to Sonatrel, the national electricity transmission company. The inspection will assess the stability of the line’s pylons, identify any damage or corrosion, and check the integrity of the electrical conductors and insulators.
Nachtigal’s Role in Cameroon’s Energy Future
The Nachtigal project is a game-changer for Cameroon, representing an investment of CFA 786 billion. It is the country’s largest power generation facility and is set to increase Cameroon’s installed electricity capacity by 30%. This boost will not only help to improve the country’s energy security but also shift the energy mix toward hydroelectric power, offering significant savings on fuel costs for the country’s thermal backup power plants.
In addition to securing domestic energy needs, the Nachtigal plant is positioning Cameroon as a leader in electricity exports in Central Africa. As part of the Central Africa Power Interconnection Project (Pirect), Cameroon plans to export 100 MW of electricity to Chad starting in 2027, providing much-needed energy to its neighbor.
