The Republic of the Congo is preparing a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, as the country's power 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 approaches to be compared
According to the government, the assessment will weigh four potential routes for 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 study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Minister questions solar offers
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some of them as opportunistic, and said international comparisons would help establish fair and sustainable pricing.
The minister also pointed to the cost of relying on diesel generators when supply is disrupted, saying electricity generated that way can reach almost XAF 200/kWh.
Supply constraints hitting manufacturers
Electricity supply constraints are affecting industrial operators in the country, Djombo said, with some companies reportedly having to suspend production lines. Despite the high diesel prices, he added that some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models and bankable projects
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.
To date, the Africa Solar Industry Association lists 35.6 MW of operational solar in the Republic of the Congo in its project database, of which 27 MW is recorded as unidentified commercial and industrial (C&I) projects.