The Republic of the Congo has launched a study to assess the electricity supply needs of its special economic zones (SEZs) and industrial facilities, as rising demand and supply constraints put pressure on manufacturers.
Michel Djombo, the country’s minister of industrial development, SEZs and private sector promotion, launched the initiative earlier this week. The Ministry of Energy and Hydraulics will supervise the work, the National Agency for Rural Electrification will implement it, and the United Nations Development Programme will provide technical support.
Four options for industrial power
The study will compare four potential approaches to meeting industrial electricity demand:
- Solar 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.
The four approaches cover both generation technologies and grid supply; the grid option is limited to locations where connections are available. The study is intended to compare the options rather than commit to a single technology at this stage. It is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic. He 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, 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 the high cost of diesel, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer. The minister’s comments focused on quoted prices for solar and diesel-generated electricity, rather than on specific projects.
The initiative also 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 expected to identify bankable projects capable of attracting public and private investment. That work would extend the review beyond technology choice to project structure and finance.
According to the Africa Solar Industry Association’s project database, the Republic of the Congo has 35.6 MW of operational solar to date. Of that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects.