The Republic of the Congo has launched a study to assess electricity supply needs for its special economic zones (SEZs) and industrial facilities. Michel Djombo, the country’s Minister of Industrial Development, SEZs and Private Sector Promotion, launched the initiative earlier this week.
The study is intended to identify suitable supply solutions as electricity demand rises. 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. The study covers both SEZ and industrial demand.
Four supply options under review
The assessment will compare four possible 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. The options are under review and have not been selected as final projects. The four approaches cover on-site generation, grid supply and combinations of technologies.
The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market. At the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic. He said international comparisons would help establish fair and sustainable pricing. The benchmark is intended to give the industrial market a reference for comparing offers.
Diesel costs and supply constraints
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. Electricity supply constraints are affecting industrial operators in the country, and some companies have reportedly had to suspend production lines.
Despite the high diesel prices, some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer, according to the minister. That hesitancy is part of the market context the study is expected to examine.
Commercial models and investment
The initiative also plans to examine different commercial arrangements for supplying industrial customers. These include 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. The study will consider how such arrangements could broaden supply options beyond self-generation for industrial customers in the Congolese market.
As background, the Africa Solar Industry Association (AFSIA) has identified 35.6 MW of operational solar in the Republic of the Congo to date through its project database. Of that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects. The database figure provides a baseline for the country’s operating solar capacity.