The Republic of the Congo has begun work on a study of electricity supply requirements for its special economic zones (SEZs) and industrial facilities. The initiative is intended to assess suitable supply solutions as the country's electricity demand increases, and to establish a pricing reference for energy sold to industrial users.
Industrial Development, SEZs and Private Sector Promotion Minister Michel Djombo launched the study at an event this week. 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 routes to be compared
Under the plan set out at the launch, the study will weigh four possible approaches to meeting industrial electricity demand:
- solar generation paired with battery storage;
- biomass and cogeneration plants running on agricultural, forestry and agro-industrial residues;
- connection to the national grid where capacity is available;
- hybrid energy systems.
The work is also expected to produce a pricing benchmark for energy solutions in the Congolese industrial market.
Minister questions current 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. He said international comparisons would help establish what he characterised as fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators during periods when electricity supply is disrupted, saying the price of electricity generated that way can reach almost XAF 200/kWh.
Djombo said supply constraints are already affecting industrial operators in the country, with some companies reportedly having to suspend production lines. He added that, despite high diesel prices, some operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial structures and bankable projects
Beyond technology choice, the study is set to examine different commercial arrangements for supplying industrial customers. These include turnkey installations financed directly by the businesses themselves, financing services for equipment purchases and the introduction of independent power producers. The initiative is also expected to identify bankable projects capable of attracting public and private investment.
Limited installed solar base
Deployed solar capacity in the Republic of the Congo remains small. According to figures available in the project database of the Africa Solar Industry Association (AFSIA), 35.6 MW of operational solar has been identified in the country to date, of which 27 MW is listed as unidentified commercial and industrial (C&I) projects.
The announcement did not include a timeline, budget or procurement plan for the study.