The Republic of the Congo has begun work on a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, aiming to identify suitable supply solutions as the country's electricity demand increases.
Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion, launched the initiative earlier this week. The study will be conducted under the supervision of 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 under comparison
The assessment 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 it is available; and hybrid energy systems.
Setting a price benchmark
Beyond technical suitability, the study is 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 and XAF 150 per kWh, with XAF 130 equivalent to about $0.22/kWh, describing some of them as opportunistic, and said international comparisons would help establish fair and sustainable pricing.
He 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.
Constraints already affecting industry
Electricity supply constraints are affecting industrial operators in the country, the minister 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.
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 also expected to identify bankable projects capable of attracting public and private investment.
Taken together, the scope described at the launch goes beyond a technical audit of generation options: it links the choice of supply technology to the commercial structures and financing arrangements under which industrial customers would actually buy power.
A small solar base to build on
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.
No completion date for the study was announced at the launch. Its conclusions are expected to guide how industrial users in the country's special economic zones and other facilities are supplied as demand grows.