The Republic of the Congo has begun a study of electricity supply requirements for its special economic zones (SEZs) and industrial facilities, aiming to identify suitable supply options as national 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 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 approaches to meeting industrial electricity demand:
- solar generation paired with battery storage;
- biomass and cogeneration using agricultural, forestry and agro-industrial residues;
- connection to the national grid where capacity is available;
- hybrid energy systems combining more than one source.
The options span dispatchable generation from residues, storage-backed solar, grid supply and hybrids; the study is intended to assess which mix suits industrial loads that currently fall back on diesel when supply is disrupted.
It is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market, and to 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. The exercise is also meant to identify bankable projects capable of attracting public and private investment.
Questions over solar pricing
Speaking at the launch event, Djombo questioned solar offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic, and said international comparisons would help establish fair and sustainable pricing.
He also highlighted the cost of relying on diesel generators during supply disruptions, saying the resulting electricity can reach almost XAF 200/kWh.
Supply constraints hit production lines
Electricity supply constraints are affecting industrial operators, the minister said, with some companies reportedly having to suspend production lines. Despite high diesel prices, he added, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
The announcement did not indicate a preferred option, and the study is framed as an assessment of suitable solutions rather than a procurement decision. The comparison is nonetheless significant for developers, because the four options carry different capital and fuel cost structures that determine the tariffs industrial customers would pay.
Small installed solar base
The Africa Solar Industry Association lists 35.6 MW of operational solar in the Republic of the Congo to date, according to figures in its project database, 27 MW of which is recorded as unidentified commercial and industrial projects.
For industrial buyers, the practical outcome would be a reference price and a set of contracting models; for investors, the intended output is a pipeline of projects judged bankable. No completion timetable was given in the announcement.