The Republic of the Congo has launched a study of electricity supply needs for its special economic zones (SEZs) and industrial facilities, an initiative intended to identify suitable supply solutions as national electricity demand grows.
The study was launched earlier this week by Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion. It 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 comparison
The work 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 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 between XAF 130 ($0.22) and XAF 150/kWh, describing some of them 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 periods of electricity supply disruption, saying the price of generated electricity can reach almost XAF 200/kWh. Supply constraints are already affecting industrial operators in the country, he continued, with some companies reportedly having to suspend production lines.
Even against that backdrop, Djombo 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
Beyond technology choice, the initiative plans to examine different commercial arrangements for supplying industrial customers. These include turnkey installations financed directly by businesses, financing services for equipment purchases, and the introduction of independent power producers.
The study is also expected to identify bankable projects capable of attracting public and private investment.
Installed solar in the Republic of the Congo remains small. The Africa Solar Industry Association (AFSIA) 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 (C&I) projects.