Perenco to produce electricity in DRC
The Ministers’ Council of the Democratic Republic of Congo (DRC) has approved Perenco’s proposition to launch an electricity production project in the country. Perenco is looking to convert gas flared during oil production into power. The company hopes to support the government’s quest to universal access to power as well as generate revenue from currently wasted resources.
The Council of Ministers agreed that reducing gas flaring and increasing electricity production is a key challenge for the country’s energy sector. The DRC currently produces 25,000 barrels of oil per day and has stipulated that petroleum will be an important area of economic diversification in the upcoming years.
The DRC’s power sector was liberalized in 2014, opening the door to private power producers. Nevertheless, 94% of the electricity is produced by the national utility company Société Nationale d’Electricité.
Two state agencies were subsequently created in order to promote and regulate the sector, with the aim of bringing in private players: The Electricity Regulation Authority and the National Agency for Electrification in Rural and Peri-Urban Areas. With major potential in hydropower, solar energy and petroleum, the Congolese power sector is expected to flourish and support economic growth through improved access to power.