The Republic of the Congo has launched a study examining the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an effort aimed at assessing suitable supply solutions as the country's power 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 conducted under the supervision of 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 routes under review
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 that combine more than one source.
Alongside the technical comparison, the assessment is expected to establish a pricing benchmark for energy solutions in the Congolese industrial market, giving buyers and suppliers a common reference for what power should cost.
Minister questions solar offers
Speaking at the launch event, Djombo questioned solar electricity offers priced at 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 for the local market.
The minister also pointed to the cost of relying on diesel generators during periods of electricity supply disruption, saying power generated that way can reach almost XAF 200/kWh, above the solar offers he criticised.
Electricity supply constraints are already affecting industrial operators in the country, Djombo continued, with some companies reportedly having to suspend production lines. Despite the high price of diesel, he added, some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and bankable projects
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 expected to identify bankable projects capable of attracting public and private investment.
According to the Africa Solar Industry Association (AFSIA), the Republic of the Congo has 35.6 MW of operational solar to date, based on figures in its project database. Of that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects.
The combined scope of the study, covering technology choice, a price reference, commercial structures and project identification, points to an effort to bring private capital into industrial power supply rather than relying on public spending alone.