The Republic of the Congo has launched a study of electricity supply needs for its special economic zones and industrial facilities, as rising demand increases pressure on the power system.
The initiative was launched by Michel Djombo, the country’s minister of industrial development, special economic zones 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
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; 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. The comparison is meant to assess suitable supply solutions as the country’s electricity demand increases.
Pricing and reliability concerns
At a launch event, Djombo questioned solar electricity offers priced between XAF 130 (about $0.22) and XAF 150/kWh. He described some of those offers as opportunistic and said international comparisons would help establish fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators during supply disruptions. He said electricity generated from diesel can reach almost XAF 200/kWh.
Electricity supply constraints are affecting industrial operators, Djombo continued, with some companies reportedly having to suspend production lines. Despite the high cost of diesel, he said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial arrangements and existing solar
The initiative will also examine 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.
The Africa Solar Industry Association has identified 35.6 MW of operational solar in the Republic of the Congo in its project database. Of that total, 27 MW is listed as unidentified commercial and industrial projects.
The study is an assessment rather than a procurement commitment. Its comparison of supply options, pricing benchmark and review of commercial models is expected to give policymakers and industrial users a basis for deciding which approaches merit further development.