The Republic of the Congo has begun work on a study examining the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative intended 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. It 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 scope covers both the SEZs and individual industrial facilities.
Four supply options compared
The work 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.
- Hybrid energy systems combining more than one source.
The options span on-site generation from solar or biomass, grid connections where capacity is available, and hybrid systems that combine sources. Alongside the technical comparison, the study is also 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. He said international comparisons would help establish fair and sustainable pricing.
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.
The minister's comments set the solar tariffs quoted in the market against the cost of diesel generation during outages, framing the pricing question the study is expected to address through its benchmark for industrial energy solutions.
Supply constraints hit production lines
Electricity supply constraints are impacting industrial operators in the country, Djombo continued, with some companies reportedly having to suspend production lines.
Despite the high diesel prices, the minister added, some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial arrangements under review
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 also expected to identify bankable projects capable of attracting public and private investment.
Operational solar base remains small
The Africa Solar Industry Association (AFSIA) has identified 35.6 MW of operational solar in the Republic of the Congo to date, according to figures in its project database, of which 27 MW is listed as unidentified commercial and industrial (C&I) projects.