The Republic of the Congo has started work on a study of the electricity supply needed by its special economic zones and industrial facilities, as demand from manufacturers and processors rises.
The assessment was launched earlier this week by Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion. It will be carried out under the supervision of the Ministry of Energy and Hydraulics and implemented by the National Agency for Rural Electrification, with technical support from the United Nations Development Programme.
Four supply options under review
The study will compare four possible approaches to meeting industrial electricity demand, and is intended to identify which supply solutions suit the country as its power needs grow:
- solar generation paired with battery storage;
- biomass and cogeneration plants running on agricultural, forestry and agro-industrial residues;
- connections to the national grid where capacity is available;
- hybrid energy systems combining several of these sources.
The work is also expected to produce a pricing benchmark for energy solutions sold into the Congolese industrial market, giving buyers and developers a reference point when comparing offers.
Minister questions solar pricing
Speaking at the launch event, Djombo raised questions about solar electricity offers priced between XAF 130 (about $0.22) and XAF 150/kWh, describing some of them as opportunistic. He said international comparisons would help the country establish fair and sustainable pricing.
The minister also pointed to the cost of running diesel generators when supply is disrupted, saying the electricity produced that way can reach almost XAF 200/kWh. Supply constraints are already affecting industrial operators, he added, with some companies reportedly having to suspend production lines. Even at high diesel prices, Djombo said, some industrial users remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and bankable projects
The initiative is expected to examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by the businesses themselves, financing services for equipment purchases and the introduction of independent power producers. It is also meant to identify bankable projects capable of attracting both public and private investment.
Installed solar capacity in the Republic of the Congo remains small. The Africa Solar Industry Association lists 35.6 MW of operational solar in the country in its project database, of which 27 MW is recorded as unidentified commercial and industrial projects.