The Republic of the Congo has launched a study examining the electricity supply needs of its special economic zones (SEZs) and industrial facilities, with the aim of assessing suitable supply solutions as the country's 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. The work 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 to be weighed
Four potential approaches to meeting industrial electricity demand will be compared, each assessed for its suitability for Congolese industrial users:
- solar generation paired with battery storage;
- biomass and cogeneration using agricultural, forestry and agro-industrial residues;
- connections to the national grid where it is available;
- hybrid energy systems.
The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Minister questions solar pricing
Speaking at the launch event, Djombo questioned solar electricity offers priced at 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.
The minister also highlighted the cost of relying on diesel generators during periods when electricity supply is disrupted, saying the price of the electricity generated can reach almost XAF 200/kWh.
Electricity supply constraints are affecting industrial operators in the country, Djombo continued, with some companies reportedly having had to suspend production lines. Despite the high diesel prices, he said, some industrial 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.
As described at the launch, the scope covers both the technical supply options and the contractual frameworks under which industrial customers would be served.
According to figures in the project database of the Africa Solar Industry Association (AFSIA), the Republic of the Congo has 35.6 MW of operational solar to date, 27 MW of which is listed as unidentified commercial and industrial (C&I) projects.