The Republic of the Congo has started a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative aimed at identifying suitable supply solutions as the country's electricity demand increases.
Industrial Development, SEZs and Private Sector Promotion Minister Michel Djombo launched the work earlier this week. The study 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 capacity is available; and hybrid energy systems.
It 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, and said international comparisons would help establish fair and sustainable pricing.
The minister contrasted those offers with the cost of relying on diesel generators during electricity supply disruptions, saying the price of generated electricity can reach almost XAF 200/kWh.
Supply constraints are already affecting industrial operators in the country, Djombo continued, with some companies reportedly having to suspend production lines. Despite high diesel prices, he added, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial arrangements in scope
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.
Organisers further intend to identify bankable projects capable of attracting public and private investment, according to the launch announcement.
Small installed solar base
The Republic of the Congo has 35.6 MW of operational solar identified to date, according to figures in the project database of the Africa Solar Industry Association (AFSIA). Of that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects.
The initiative is a planning exercise: its stated scope covers assessing supply options, setting a price reference and structuring projects, rather than building generation capacity itself.