The Republic of the Congo has launched a study to assess how best to meet the electricity needs of its special economic zones (SEZs) and industrial facilities as demand rises. Michel Djombo, minister of industrial development, SEZs and private sector promotion, introduced the initiative earlier 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 central task is to compare four potential approaches to supplying industrial electricity: 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.
Pricing benchmark and cost concerns
The study is also expected to establish a pricing benchmark for energy solutions in the Congolese industrial market. 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 pointed to the cost of relying on diesel generators when electricity supply is disrupted, saying generated electricity can reach almost XAF 200/kWh. Supply constraints are affecting industrial operators, according to Djombo, with some companies reportedly having to suspend production lines. Even with 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.
The launch comes as industrial operators confront supply interruptions. Djombo linked those constraints to production suspensions and to the high cost of diesel backup, while noting that some companies have not yet moved to alternatives. The study is intended to clarify both the available supply models and the conditions under which industrial customers could adopt them.
Commercial models under review
Beyond technology choice, the initiative plans 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. The study is also expected to identify bankable projects capable of attracting public and private investment.
The focus on SEZs and industrial facilities reflects the government’s effort to connect electricity planning with industrial development. The study’s comparison of supply options is intended to assess suitable solutions as the country’s electricity demand increases, rather than to endorse a single technology in advance.
According to figures 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 that total, 27 MW is listed as unidentified commercial and industrial (C&I) projects.