The Republic of the Congo has launched a study examining the electricity supply needs of its special economic zones (SEZs) and industrial facilities. The initiative is intended to assess suitable supply solutions as the country's electricity demand increases. The study is at the assessment stage and will compare several options rather than commit to a single technology.
Michel Djombo, the country's minister of industrial development, SEZs and private sector promotion, launched the study earlier this week. 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.
The study will compare four potential approaches to meeting industrial electricity demand: solar 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 as opportunistic. He said international comparisons would help establish fair and sustainable pricing. The study has not yet set that benchmark, and the minister's remarks indicate that pricing is a central issue in the assessment.
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. He added that electricity supply constraints are affecting industrial operators in the country, with some companies reportedly having to suspend production lines.
Despite the high diesel prices, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
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.
According to figures in the Africa Solar Industry Association's project database, the Republic of the Congo has 35.6 MW of operational solar to date. Of that total, 27 MW is listed as unidentified commercial and industrial projects.
The database figure offers a current snapshot of operating solar capacity in the country, while the new study focuses on future supply options for industrial users.