The Republic of the Congo has launched a study to examine the electricity supply needs of its special economic zones (SEZs) and industrial facilities, as the country’s power demand rises. Michel Djombo, minister of industrial development, SEZs and private sector promotion, launched the initiative.
The study will be conducted under the supervision of the Ministry of Energy and Hydraulics, implemented by the National Agency for Rural Electrification, and supported technically by the United Nations Development Programme.
Four options under review
The assessment will compare four potential approaches to meeting industrial electricity demand: solar paired with battery storage; biomass and cogeneration using agricultural, forestry and agro-industrial residues; connections to the national grid where available; and hybrid energy systems.
It is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market. At the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic. He said international comparisons would help establish fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators during disruptions to electricity supply, saying the price of generated electricity can reach almost XAF 200/kWh. Supply constraints are affecting industrial operators in the country, and some companies have reportedly had to suspend production lines.
Despite the high diesel prices, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial arrangements
The initiative 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 also expected to identify bankable projects capable of attracting public and private investment.
According to figures in the Africa Solar Industry Association’s project database, 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 projects.