The Republic of the Congo has launched a study of electricity supply needs for its special economic zones and industrial facilities. The initiative aims to assess suitable supply solutions as the country's electricity demand rises. It covers both the technical options for supplying power and the commercial arrangements for industrial customers.
Michel Djombo, the country's Minister of Industrial Development, Special Economic Zones and Private Sector Promotion, launched the study earlier this week. The Ministry of Energy and Hydraulics will supervise the work. The National Agency for Rural Electrification will implement it, with technical support from the United Nations Development Programme.
Four options for industrial power
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;
- hybrid energy systems.
The four approaches reflect different resource and infrastructure conditions. Solar-plus-storage would pair generation with batteries; biomass and cogeneration would use agricultural, forestry and agro-industrial residues; grid connections would be used where available; and hybrid systems would combine supply sources.
The comparison is intended to assess suitable supply solutions as demand grows. The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Pricing and reliability concerns
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150 per 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 when electricity supply is disrupted. He said the price of electricity generated in that way can reach almost XAF 200 per kWh.
Electricity supply constraints are affecting industrial operators in the country, Djombo continued. Some companies have reportedly had to suspend production lines. Despite high diesel prices, he also said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and investment
The initiative 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. According to figures in the Africa Solar Industry Association's project database, the Republic of the Congo has 35.6 MW of operational solar capacity to date. Of that total, 27 MW is listed as unidentified commercial and industrial projects.