The Republic of the Congo has launched a study to assess electricity supply needs for its special economic zones (SEZs) and industrial facilities, as rising demand puts pressure on the country’s power system. Michel Djombo, minister of industrial development, SEZs and private sector promotion, launched the initiative earlier this week.
The study 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 users and to establish a pricing benchmark for energy solutions in the Congolese industrial market.
Four supply models under review
The review will compare four potential approaches: solar photovoltaic systems 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 that combine different sources.
Electricity supply constraints are already affecting industrial operators, according to the minister. Some companies have reportedly had to suspend production lines. Diesel generators used during disruptions can produce electricity at almost XAF 200/kWh, making backup power costly for factories.
Pricing questions
Speaking at the launch event, Djombo questioned solar electricity offers priced between XAF 130 and XAF 150/kWh, with the lower figure equivalent to about $0.22/kWh. He described some offers as opportunistic and said international comparisons would help establish fair and sustainable pricing.
Yet the minister also said some industrial operators remain reluctant to commit to alternative energy solutions despite high diesel costs, preferring to wait for market conditions to become clearer.
Commercial and investment arrangements
The initiative plans to examine different 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 also expected to identify bankable projects capable of attracting public and private investment.
The study’s scope reflects the dual challenge facing the Republic of the Congo: expanding reliable power for industry while avoiding procurement and pricing structures that could raise costs or deter investment. The comparison of grid connections with off-grid and hybrid options will be central to that assessment, particularly for SEZs where demand may be concentrated but supply remains constrained.
According to the Africa Solar Industry Association’s project database, the Republic of the Congo has 35.6 MW of operational solar capacity to date. Of that total, 27 MW is listed as unidentified commercial and industrial projects, indicating that distributed solar already has a presence in the segment the government is now studying.