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President Tshisekedi’s successes in outflanking his powerful predecessor Joseph Kabila give hope that a more inclusive economic recovery is possible. But while investors look again at opportunities around the vast country, and the president has high hopes for mega solar schemes and Grand Inga, DRC remains problematic, write Jon Marks and François Misser.

Renergen has contracted three companies to carry out engineering studies for Phase 2 of its Virginia gas project in Free State. Saipem will carry out FEED studies for the development of the downstream liquid natural gas and liquid helium processing facilities, while EPCM Holdings, which is currently constructing Renergen’s Phase 1 gas gathering pipeline, has been awarded the FEED contract for the development of the Phase 2 gas gathering pipeline.

Engie has merged its Africa business into its Middle East, South and Central Asia, and Turkey unit. The French utility said it would focus on just Egypt, Morocco, Senegal and South Africa, where it already has sizeable operations. The combined business unit will be headquartered in Dubai and overseen by Sébastien Arbola.

Zambia’s government has said it will assume Zesco’s debt to private power suppliers in a bid to promote confidence as it seeks to renegotiate power supply agreements. A government team led by the Industrial Development Corporation (IDC) is renegotiating power purchase agreements with IPPs in an attempt to reduce the tariffs at which Zesco buys power from private producers. Ministry of Energy sources estimate Zesco’s debt to IPPs had reached around $726m at the end of November 2020.

The Irish government has decided there are sufficient grounds to proceed with a complaint against San Leon Energy over its past activities in the onshore Tarfaya and Zag licence areas in the disputed territory of Western Sahara. The Global Legal Action Network (GLAN), an Irish NGO, filed a complaint in October 2018 claiming San Leon was not complying with a number of guidelines for multinational companies set out by the OECD, specifically the principle of meaningful engagement with stakeholders – in this case the Sahrawi people – and the principle of respect for internationally recognised human rights.

Pembani Remgro Infrastructure Fund (PRIF) has signed an agreement with GridX Africa Development to invest in GridX Duara Holdings’ (GDH) $25m pipeline of solar and battery power projects.

South Africa’s largest coal miner Exxaro Resources will no longer invest in thermal coal, chief executive Mxolisi Mgojo said on 2 February during the virtual African Mining Indaba conference. Mgojo said that while the company would not invest in new assets, it would continue to supply the Matimba and Medupi coal power plants.

Energy minister and Sonatrach veteran Abdelmadjid Attar is among those criticising the state energy giant for performing well below expected levels, dragging down the wider Algerian economy with it. Pressure is growing for the government to deliver an investor-friendly business environment and for Sonatrach to revise its long-term strategy and management structures, writes Jon Marks.

President Tshisekedi’s successes in outflanking his powerful predecessor Joseph Kabila gives hope that a more inclusive economic recovery is possible. But while investors look again at opportunities around the vast country, and the president has high hopes for mega solar schemes and Grand Inga, DRC remains problematic, write Jon Marks and François Misser.

While DRC locals wait for access to sustainable energy, the government is getting excited about massive Inga dam developments which in the past have attracted attention to the detriment of smaller schemes. After President Félix Tshisekedi took the African Union (AU) revolving presidency on 6 February, a European analyst commented it was “an open secret that he will be trying to use this position to seek support for the Inga III project, and beyond that for the Great Inga projects.”

Off-grid solar company Solarise Africa announced on 9 February that it had signed a partnership agreement with turnkey energy firm Centennial Generating Company.

President Denis Sassou Nguesso confirmed on 23 January that he would seek a fourth consecutive mandate when elections are held on 21 March. The 77-year-old president will again stand as candidate of the ruling Parti Congolais du Travail. Before then Sassou is hoping for progress with Brazzaville’s International Monetary Fund-led debt restructuring, agreed in 2019 but still incomplete.

Brazilian miner Vale has announced plans to restructure the ownership of the loss-making Moatize coal mine as a first step towards exiting the coal business. Vale said on 20 January it had signed a heads of agreement with Japanese trading house Mitsui, allowing both parties to structure Mitsui’s exit from the Moatize coal mine and the Nacala Logistics Corridor (NLC) port and rail project. Vale will acquire Mitsui’s stake in the mine and logistics assets for $1 each, then seek a buyer for the assets, which could interest Indian or Chinese investors.

Domestic consumption has reached a new record of 550MW – with most demand in the main cities of Brazzaville and Pointe-Noire – compared to national generation capacity of only around 400MW from Republic of Congo’s main power stations, state Société Energie Electrique du Congo (E2C) distribution director Jules Saturnin Souka told African Energy. Solutions include installing a third gas turbine at Eni’s gas-fired plant in Pointe-Noire – expected later this year – and strengthening the national transmission and urban distribution network, for which funding has been sought.

The completion date for the $2.3bn Chinese-sponsored Kafue Gorge Lower (KGL) hydropower scheme in southern Zambia has been pushed back after a surge in cases of the South African coronavirus strain. Planned to produce 750MW on completion, KGL will be Zambia’s third biggest power station after the 1,080MW Kariba North Bank and the 990MW Kafue Gorge Upper and will help to reduce the current 810MW supply deficit.