The Republic of the Congo has launched a study of the electricity supply needed by its special economic zones (SEZs) and industrial facilities, as part of an effort to match rising demand with suitable supply solutions.
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 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 under comparison
The study will compare four potential approaches to meeting industrial electricity demand: solar generation paired with battery storage; biomass and cogeneration plants running on agricultural, forestry and agro-industrial residues; connections to the national grid where such connections are available; and hybrid energy systems.
Alongside the technical comparison, the work is expected to establish a pricing benchmark for energy solutions sold into the Congolese industrial market, giving buyers and suppliers a common reference point.
Pricing questions behind the review
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 the country establish pricing that is both fair and sustainable.
The minister also pointed to the cost of relying on diesel generators during periods when grid supply is disrupted, saying electricity generated in this way can reach almost XAF 200/kWh.
Supply constraints are already affecting industrial operators, he continued, with some companies reportedly having to suspend production lines. Yet despite the high price of diesel-fired power, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and bankable projects
The study also plans to examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by the businesses themselves, 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 figures in the project database of the Africa Solar Industry Association (AFSIA), the Republic of the Congo has 35.6 MW of operational solar capacity to date, of which 27 MW is listed as unidentified commercial and industrial projects.
Because the planned comparison covers both technology choice and the terms on which power is delivered, the resulting benchmark could influence how industrial users in the country contract for electricity, not only the tariff they pay per kilowatt-hour.