The Republic of the Congo has launched a study to assess the electricity supply needs of its special economic zones (SEZs) and industrial facilities, as rising demand puts pressure on existing arrangements. Michel Djombo, the country’s Minister of Industrial Development, SEZs and Private Sector Promotion, launched the initiative this week.
The work 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. Its purpose is to identify suitable supply solutions for industrial electricity demand and to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Four supply approaches under review
The study will compare four potential approaches:
- 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.
The comparison is intended to help the government and industrial users judge which options fit different demand profiles and locations. The study is also expected to examine 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 expected to identify bankable projects capable of attracting public and private investment.
Pricing questions
At the launch event, Djombo questioned solar electricity offers priced between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic. He said international comparisons would help establish fair and sustainable pricing.
The minister also highlighted the cost of relying on diesel generators when electricity supply is disrupted, saying the price of generated electricity can reach almost XAF 200/kWh. Supply constraints are affecting industrial operators, he continued, with some companies reportedly having to suspend production lines.
Despite the high cost of diesel, Djombo said some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer. That reluctance underscores the importance of the study’s planned pricing benchmark and financing review, although the initiative has not yet produced conclusions or binding tariffs.
Existing solar base
The Africa Solar Industry Association (AFSIA) has identified 35.6 MW of operational solar in the Republic of the Congo to date, according to figures in its project database. Of that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects.
The study therefore begins with a small but measurable solar footprint and a set of unresolved questions over how industrial users can secure reliable, affordable power. Its findings are expected to inform supply choices for SEZs and factories, as well as the commercial structures used to finance them.