The Republic of the Congo has begun work on a study of the electricity supply needs of its special economic zones and industrial facilities, an initiative aimed at identifying suitable supply solutions as national electricity demand rises.
Michel Djombo, the country’s Minister of Industrial Development, SEZs and Private Sector Promotion, launched the study earlier this week. It will be supervised by 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 compared
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; 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.
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.
Diesel reliance and hesitant buyers
The minister also highlighted the cost of relying on diesel generators during periods of electricity supply disruption, saying the price of electricity generated that way can reach almost XAF 200/kWh.
Electricity supply constraints are affecting industrial operators, Djombo continued, with some companies reportedly having 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.
The comparison sets storage-backed solar and residue-based generation against grid supply that the study describes as available only where connections exist, and against hybrid systems that combine sources. The minister’s figures place diesel-fired generation at close to XAF 200/kWh, above the XAF 130–150/kWh solar offers he questioned.
Commercial models and bankability
The scope covers how industrial customers would buy power, not only how it would be produced, with the study due to examine commercial arrangements alongside the technical options.
The initiative plans to review 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.
Small installed base
According to figures available in the project database of the Africa Solar Industry Association, 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.