The Republic of the Congo is working on a study examining electricity supply needs for its special economic zones (SEZs) and industrial facilities.

The initiative, which aims to assess suitable supply solutions as the country’s electricity demand increases, 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 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.

The study will compare four potential approaches to meeting industrial electricity demand: solar 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 a launch event, Djombo questioned solar electricity offers priced at between XAF 130 ($0.22) and XAF 150/kWh, describing some as opportunistic, and said international comparisons would help establish fair and sustainable pricing.

The minister also highlighted the cost of relying on diesel generators during periods of electricity supply disruption, saying the price of generated electricity can reach almost XAF 200/kWh. 

Electricity supply constraints are impacting industrial operators in the country, the minister continued, with some companies reportedly having to suspend production lines. Despite high diesel prices, Djomobo also revealed some industrial operators remain reluctant to commit to alternative energy solutions and are waiting for market conditions to become clearer.

The initiative plans to also examine different commercial arrangements for supplying industrial customers, including turnkey installations financed directly by businesses, financing services for equipment purchases and introducing independent power producers. It is also expected to identify bankable projects capable of attracting public and private investment.

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 available in its project database, 27 MW of which is listed as unidentified C&I projects.