The Republic of the Congo has begun a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an assessment intended to identify suitable supply solutions as national demand rises.
The initiative was launched earlier this week by Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion. It will be supervised by 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 under comparison
The study will weigh four potential routes to meeting industrial power demand: solar generation paired with battery storage; biomass and cogeneration fuelled by agricultural, forestry and agro-industrial residues; connection to the national grid where it is available; and hybrid energy systems. The grid route is therefore conditional on existing availability, as set out in the ministry's description of the work.
A second objective is to establish a pricing benchmark for energy solutions sold into the Congolese industrial market.
Minister questions current solar pricing
Speaking at the launch event, Djombo challenged solar electricity offers priced between XAF 130 (about $0.22) and XAF 150/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 when electricity supply is disrupted, saying power generated that way can reach almost XAF 200/kWh.
Supply constraints are already affecting industrial operators in the country, the minister continued, with some companies reported to have suspended production lines. Even at high diesel prices, he added, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models also in scope
The initiative is expected to examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by the businesses themselves, financing services for equipment purchases, and the introduction of independent power producers. It is also meant to identify bankable projects capable of attracting public and private investment.
Installed solar in the Republic of the Congo stands at 35.6 MW, according to the project database of the Africa Solar Industry Association (AFSIA), of which 27 MW is listed as unidentified commercial and industrial (C&I) projects.
The study is at an early stage, and its findings, along with any resulting procurement decisions, have not been announced.