The Republic of the Congo has launched a study to assess the electricity supply needs of its special economic zones (SEZs) and industrial facilities, with the aim of identifying suitable supply solutions as national electricity demand rises.
The initiative was launched earlier this week by Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion. It will be supervised by the Ministry of Energy and Hydraulics, implemented by the National Agency for Rural Electrification and supported technically by the United Nations Development Programme.
Four supply options under comparison
The study will compare four potential approaches to meeting industrial electricity demand:
- solar generation paired with battery storage;
- biomass and cogeneration using agricultural, forestry and agro-industrial residues;
- connection to the national grid where it is available;
- hybrid energy systems combining more than one supply source.
The work is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Pricing questions and diesel costs
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some of them as opportunistic, and said international comparisons would help establish fair and sustainable pricing. He also highlighted the cost of relying on diesel generators during periods of supply disruption, saying electricity generated that way can reach almost XAF 200/kWh.
The minister said electricity supply constraints are affecting industrial operators in the country, with some companies reportedly having to suspend production lines. Despite the high cost of diesel, he added that some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and bankable projects
The initiative also plans to examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by businesses, financing services for equipment purchases and the introduction of independent power producers. It is expected to identify bankable projects capable of attracting public and private investment.
Figures from the Africa Solar Industry Association's project database put the Republic of the Congo's operational solar capacity at 35.6 MW to date, of which 27 MW is listed as unidentified commercial and industrial projects.