The Republic of the Congo has launched a study to assess electricity supply needs for its special economic zones and industrial facilities, as rising demand and supply constraints put pressure on industrial operations. The initiative is at the study stage and is intended to assess suitable supply solutions for the country’s growing electricity demand.
Michel Djombo, the country’s Minister of Industrial Development, SEZs and Private Sector Promotion, launched the initiative earlier this week. The study 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 pathways under review
The study will compare four potential approaches to meeting industrial electricity demand for special economic zones and industrial users:
- Solar with battery storage, combining photovoltaic generation with storage.
- Biomass and cogeneration using agricultural, forestry and agro-industrial residues.
- Connections to the national grid where available.
- Hybrid energy systems that combine multiple supply sources.
The comparison covers both generation technologies and the commercial arrangements used to deliver power to industrial customers. The initiative is expected to establish a pricing benchmark for energy solutions in the Congolese industrial market. It also plans to examine turnkey installations financed directly by businesses, financing services for equipment purchases and the introduction of independent power producers, and is expected to identify bankable projects capable of attracting public and private investment.
Pricing questions at launch
At the launch event, Djombo questioned solar electricity offers priced between XAF 130 and XAF 150 per kWh, with XAF 130 cited as about $0.22. He described some 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 during periods of electricity supply disruption, saying the price of generated electricity can reach almost XAF 200/kWh. Supply constraints are affecting industrial operators in the country, and some companies have reportedly had to suspend production lines.
Despite high diesel prices, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer. The study is therefore expected to address both price transparency and the commercial structures needed to make projects bankable.
Existing solar base
The Africa Solar Industry Association has identified 35.6 MW of operational solar in the Republic of the Congo to date, according to figures in its project database. Of that total, 27 MW is listed as unidentified commercial and industrial projects. The database entry does not identify those projects individually.