The Republic of the Congo has started work on a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative intended to identify suitable supply solutions as national demand rises.
Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion, launched the study earlier this week. It will be 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.
Four supply routes under review
The study will compare four potential approaches to meeting industrial electricity 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 capacity is available;
- hybrid energy systems combining more than one source.
It is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Minister questions solar pricing
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 saying that international comparisons would help establish fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators during periods of supply disruption, saying the price of electricity generated that way can reach almost XAF 200/kWh.
Supply constraints are already affecting industrial operators in the country, he continued, with some companies reportedly having to suspend production lines. Despite high diesel prices, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial models in scope
The initiative plans to examine various 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 also expected to identify bankable projects capable of attracting public and private investment.
According to figures available in the project database of the Africa Solar Industry Association (AFSIA), the Republic of the Congo has 35.6 MW of operational solar to date, of which 27 MW is listed as unidentified commercial and industrial projects. The study is intended to assess which supply solutions suit the country's industrial demand as it grows.