The Republic of the Congo has launched a study of electricity supply requirements for its special economic zones (SEZs) and industrial facilities, as rising demand increases pressure on the country's power system. The initiative is intended to assess suitable supply solutions as demand rises.
Michel Djombo, minister of industrial development, SEZs and private sector promotion, launched the initiative. The Ministry of Energy and Hydraulics will supervise the work, the National Agency for Rural Electrification will implement it and the United Nations Development Programme will provide technical support.
Four options and a pricing benchmark
The study will compare four possible approaches to meeting industrial electricity demand: solar generation paired with battery storage; biomass and cogeneration using agricultural, forestry and agro-industrial residues; connections to the national grid where available; and hybrid energy systems. It is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Speaking at the launch event, Djombo questioned solar electricity offers priced at between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic. He said international comparisons would help establish fair and sustainable pricing. He also highlighted the cost of relying on diesel generators during supply disruptions, saying generated electricity can reach almost XAF 200/kWh.
Industrial constraints and cautious buyers
According to the minister, electricity supply constraints are affecting industrial operators, 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.
The initiative is expected to examine commercial arrangements for supplying industrial customers. These include turnkey installations financed directly by businesses, financing services for equipment purchases and the introduction of independent power producers. It also aims to identify bankable projects capable of attracting public and private investment.
The technology and commercial reviews are linked: the study is meant to assess suitable supply solutions as demand rises, while also testing whether proposed energy prices are fair and sustainable. Solar-plus-storage, biomass cogeneration, grid connections and hybrids would therefore be judged not only on technical fit but also on their cost and financing arrangements for industrial users. The review is also meant to establish a pricing benchmark, so technology choices and commercial terms are expected to be considered together.
Small operational solar base
The Africa Solar Industry Association lists 35.6 MW of operational solar in the Republic of the Congo in its project database. Of that total, 27 MW is recorded as unidentified commercial and industrial projects.