The Republic of the Congo is carrying out a study examining the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative that aims to assess 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. Djombo's portfolio covers industrial development, the special economic zones and private sector promotion. The study is being 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.
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, connection to the national grid where it is available, and hybrid energy systems.
Solar would be paired with batteries rather than deployed on its own, while the biomass route would draw on agricultural, forestry and agro-industrial residues. Grid connections would be considered where capacity exists, and hybrid systems would combine sources.
The study is also expected to establish a pricing benchmark for energy solutions offered in the Congolese industrial market.
Pricing questions at launch
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 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. In his account, the price of electricity generated with diesel can reach almost XAF 200/kWh.
Electricity supply constraints are already impacting industrial operators in the country, the minister continued, with some companies reportedly having to suspend production lines. Despite high diesel prices, he said, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer before making investments.
Contract structures 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 expected to identify bankable projects capable of attracting public and private investment.
Small installed solar base
According to the project database of the Africa Solar Industry Association (AFSIA), the Republic of the Congo has 35.6 MW of operational solar to date, of which 27 MW is listed as unidentified commercial and industrial (C&I) projects.