Mining companies are increasingly considering hydropower as a power source for their mines in the Democratic Republic of Congo (DRC).

Hydropower, whether pumped storage or run-of-river, is a low-cost, clean form of energy in areas with rivers or dams.

The DRC has abundant water resources and is ideally placed to support the development of both small- and large-scale hydropower schemes.

The Grand Inga dam is a series of seven proposed hydroelectric power stations at the site of the country’s Inga Falls, which is one of the largest waterfalls in the world. If built as planned, the 40 GW project will be the largest power station in the world.

Hydropower has already being used successfully as a source of power by the mining industry. For example, the Azambi hydropower project is the third hydropower project developed by Barrick’s Kibali gold mine.

The Congo river, the continent’s largest river by volume, passes through ten countries before emptying into the Atlantic Ocean. At 150 km from its mouth in the DRC, the river holds its greatest hydropower potential at the site of Inga Falls.

The river currently hosts 40 hydropower projects, nine of which are in the DRC.

Hydropower makes up 2.4 GW of the DRC’s installed power generation capacity, although almost half is not operational.

The US Agency for International Development (USAid) estimates that the country is using only 2.5% of its hydroelectric resources and has technically feasible potential of 100 GW of hydroelectric energy.

Engineering consultancy Knight Piésold dams and hydropower section manager Robert Greyling says the DRC has the world’s third-largest hydropower potential after China and Russia. However, the DRC remains among the most underelectrified countries in the world, with 19% access to energy in urban areas and 1% in rural areas.

The country has peak power demand of about 4 GW. However, the mining sector alone will require about 1 681 MW by 2025.

Greyling explains that, amid complex and diverse sector needs, electricity access stands out as an important government priority. In 2014, the country promulgated an Electricity Act that enables the power sector to become an engine of economic growth. This legislation removed the State-owned utility in the country’s monopoly status and provided a new reguatory framework to promote public–private partnerships.

The DRC also created an electricity regulatory agency to promote rural and periurban electrification.

The current major role-players in the DRC energy sector are the Ministry of Energy and Water Resources, the utility Société Nationale d’Electricité (SNEL), medium-scale private operators and mining companies that supply neighbouring households as part of their corporate social responsibility.

Greyling notes that challenges to the existing power network include managing the growing power deficit, strengthening the interconnecting network and the transmission line network and reducing load-shedding, as well as the continued involvement of SNEL as a major stakeholder in energy access.

He remarks that the country lacks commercial financing and risk mitigation instruments.

Specifically, access to finance is an issue in the country’s energy sector and the country’s implementation of emergency plans for the rehabilitation of existing, and the construction of, new power plants.

In terms of funding and financing options, the country has no stock market or debt capital market, while the financial system is structured on small banks.

However, there is a strong development community presence, with the African Development Bank (AfDB) having strengthened the transmission network supplying Kinsasha and helped develop the Lungundi II hydropower plant to add supply in Tshikapa.

Greyling states that the World Bank has also been a major development partner in the DRC’s power sector, having provided more than $1-billion in financing for project development.

With government wanting to electrify new provincial capital cities in the short term and envisioning achieving universal electricity access in the long term, there will be opportunities for the private sector to play a greater role in the energy sector.

Hydropower in Africa plays a significant transformational role; it promotes renewable, cost-effective and reliable power; promotes industrial development and urbanisation; helps reduce the rates of deforestation;encourages other industries such as training and education; and projects built decades ago have left legacy assets.

Mines have developed hydropower capacity where concessions lie in remote areas and are reliant on thermal power, which is fuelled by expensive diesel, all while large untapped rivers flow nearby.

For miners, the baseline power and development cost must offset diesel expenditure over the life-of-mine, which hydropower can effectively do.

Once built, Greyling notes, hydropower schemes make it easier to add other renewable-energy sources.

Hydropower can benefit a mine by providing cost-effective and reliable power, the ability to afford mining of lower-grade ore and, thereby, extend the mine’s life, legacy assets and assist the mine with its social licence.

“Hydropower in the DRC will continue to play a hugely transformational role and over 780 sites have been identified to build small or micro-sized power plants,” Greyling says.

Tembo Power MD John Kanyoni says the company is developing nine hydropower projects across Africa, totalling 184 MW, spread over Kenya, Burundi and the DRC.

Tembo Power DRC is developing the small hydropower schemes of Dikolongo (17.3 MW), Kawa (16.7 MW) and Kambudji (32 MW) in the Lualaba province, near Lubudi.

All these projects are on track to reach financial close in 2022, with a power purchase agreement with a large offtaker in Katanga expected to be signed early in 2021.