The Republic of the Congo has begun a study of the electricity needed by its special economic zones (SEZs) and industrial facilities, an initiative launched earlier this week by Michel Djombo, the country's minister of industrial development, SEZs and private sector promotion.
The work is being supervised by the Ministry of Energy and Hydraulics and implemented by the National Agency for Rural Electrification, with technical support from the United Nations Development Programme. It is intended to assess which supply solutions suit the country as electricity demand increases.
Four options under review
The study will compare four ways of meeting industrial power 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;
- hybrid energy systems combining more than one source.
The comparison is meant to show which of these routes can serve industrial loads, and at what cost, so that zones and factories can judge the fit for their own operations.
Beyond technology choice, the initiative is expected to establish a pricing benchmark for energy solutions sold into the Congolese industrial market.
Pricing questions
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150 per kWh, describing some of them as opportunistic, and said international comparisons would help establish fair and sustainable pricing.
He also highlighted the cost of relying on diesel generators during periods of electricity supply disruption, saying the price of power generated that way can reach almost XAF 200/kWh.
The minister said supply constraints are affecting industrial operators in the country, with some companies reportedly having to suspend production lines. Even so, he said some industrial users remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer, despite the high cost of diesel backup.
Commercial models and finance
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 as well to identify bankable projects capable of attracting public and private investment.
Solar deployment in the country remains modest so far. The Africa Solar Industry Association's project database lists 35.6 MW of operational solar in the Republic of the Congo, of which 27 MW is recorded as unidentified commercial and industrial projects.