The Republic of the Congo has launched a study of electricity supply needs for its special economic zones (SEZs) and industrial facilities, as the country's electricity demand increases. Michel Djombo, minister of industrial development, SEZs and private sector promotion, launched the initiative 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. Its purpose is to assess suitable supply solutions for industrial electricity users.
Four supply options under review
The assessment will compare four potential approaches. The first is solar generation paired with battery storage. The second is biomass and cogeneration using agricultural, forestry and agro-industrial residues. The third is connection to the national grid where available. The fourth is hybrid energy systems.
The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market. That benchmark would give industrial buyers and suppliers a reference point as the country considers how to meet demand from economic zones and factories.
Pricing questions raised at launch
At the launch event, Djombo questioned solar electricity offers priced at between XAF 130 ($0.22) and XAF 150 per kWh. He described some of those offers as opportunistic and said international comparisons would help establish fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators when electricity supply is disrupted. According to Djombo, electricity generated in those circumstances can reach almost XAF 200 per kWh. Supply constraints are already affecting industrial operators, he said, with some companies reportedly having to suspend production lines.
Despite the high cost of diesel, some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer, Djombo said. The study is therefore intended to examine not only technologies but also the commercial terms under which industrial customers could adopt them.
Commercial models and investment
The initiative plans to examine several 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. It is also expected to identify bankable projects capable of attracting public and private investment.
AFSIA data puts existing operational solar capacity in the Republic of the Congo at 35.6 MW. Of that total, 27 MW is listed as unidentified commercial and industrial projects in the Africa Solar Industry Association's project database.
The study is at the assessment stage. It will compare supply options, examine pricing and commercial structures, and seek to identify projects that could move toward financing. For industrial operators in the Republic of the Congo, the work is intended to clarify the cost and supply trade-offs among solar-plus-storage, biomass cogeneration, grid connections and hybrid systems.