The Republic of the Congo has launched a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative aimed at matching supply solutions to the country's rising power demand. Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion, launched the work 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 routes under comparison
The assessment will compare four potential approaches to meeting industrial electricity demand:
- solar generation paired with battery storage;
- biomass and cogeneration plants using agricultural, forestry and agro-industrial residues;
- connection to the national grid where capacity is available;
- hybrid energy systems.
Alongside the technical comparison, the study is 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 saying that 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. That comparison has not, on its own, been enough to shift industrial behaviour, the minister indicated.
Supply constraints already interrupting output
Electricity supply constraints are affecting industrial operators in the country, Djombo continued, with some companies reportedly having to suspend production lines. Despite the high price of diesel-fired power, he also revealed that some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
The study is therefore framed to address uncertainty on both sides of the transaction: what a reliable supply would cost, and how it could be financed and contracted.
Commercial models and bankable projects
On the commercial side, the initiative plans to examine different 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.
Installed solar in the Republic of the Congo remains small. The Africa Solar Industry Association (AFSIA) lists 35.6 MW of operational solar in the country in its project database, 27 MW of which is recorded as unidentified commercial and industrial (C&I) projects — an indication that a large share of existing capacity sits with industrial users rather than in the utility fleet.