The Republic of the Congo has begun a study of the electricity supply needs of its special economic zones and industrial facilities, an initiative aimed at assessing suitable supply solutions as the country's electricity demand rises.
The assessment 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 options to be compared
The study will compare four potential 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 it is available;
- hybrid energy systems combining more than one source.
Grid connections are among the options to be reviewed where they are available, while the other approaches would rely on on-site generation.
The work is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market, and to give industrial users and their financiers a common reference point for comparing offers.
Minister questions solar tariffs
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.
He also highlighted the cost of relying on diesel generators during supply disruptions, saying the price of electricity generated that way can reach almost XAF 200/kWh.
The rates cited place solar offers below the roughly XAF 200/kWh the minister attributed to diesel generation during outages, although he argued that some solar pricing is opportunistic and that international benchmarks are needed.
Electricity supply constraints are affecting industrial operators in the country, the minister continued, with some companies reportedly having to suspend production lines. Despite high diesel prices, he said some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Contract structures and bankable projects
The initiative also plans to examine commercial arrangements for supplying industrial customers, including turnkey installations financed directly by the 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.
Figures in the project database of the Africa Solar Industry Association list 35.6 MW of operational solar in the Republic of the Congo to date, of which 27 MW is recorded as unidentified commercial and industrial projects.