The Republic of the Congo has begun a study of the electricity supply needs of its special economic zones (SEZs) and industrial facilities, an initiative aimed at assessing suitable supply solutions as the country's electricity demand increases.
The study was launched earlier this week by Michel Djombo, the country's Minister of Industrial Development, SEZs and Private Sector Promotion. It will be conducted under the supervision of 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 options under comparison
The work 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.
The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
The four routes differ in where the electricity would come from: solar-plus-storage and biomass cogeneration are on-site generation options, a grid connection depends on whether the national network reaches the site, and hybrid systems combine more than one source.
Minister questions solar pricing
Speaking at the launch event, Djombo questioned solar electricity offers priced at 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 periods of electricity supply disruption, saying the price of electricity generated that way can reach almost XAF 200/kWh.
Electricity supply constraints are affecting industrial operators in the country, the minister continued, with some companies reportedly having to suspend production lines. Despite the high diesel prices, he said, some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.
Commercial arrangements and bankable projects
The initiative plans to examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by the businesses themselves, 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.
The exercise therefore covers both the technical choice of supply source and the commercial structure under which power would be delivered to industrial users.
Figures in the project database of the Africa Solar Industry Association (AFSIA) put the Republic of the Congo's operational solar capacity at 35.6 MW to date, of which 27 MW is listed as unidentified commercial and industrial (C&I) projects.