Liberia Energy Situation

Energy situation

According to a recent World Bank study, Liberia has an extremely low access rate to public electricity, with an access rate of less
than 1%. While LEC served about 2,500 connections in Monrovia as of 2010, the baseline study carried out by Norad estimates that close to 90,000 households and businesses in Monrovia may be served by small diesel generators.

Energy Supply

Electricity

The installed generation capacity is 23 MW of Diesel power. This
has recently increased to 23MW with
Although a number of solar home systems (SHS) have been deployed, there is no data on the
location of households using solar PV systems in Liberia. According to the RREA, there is no
data on biogas or wind energy project identified in the country. Only one small wind turbine
has been noticed in Monrovia. Currently, there are no data on the number of people using
stand alone diesel plants in the country. With regard to electricity access by household, The
Liberia Electricity Company (LEC) has some scattered data on the capitals of the counties.

Due largely to expensive diesel
production, Liberia has one of the highest
public tariffs in the world at $0.48/kWh.

 

Energy Consumption

Energy Demand of Household Sector

Key Problems of the Energy Sector

Policy Framwork, laws and regulations

Poverty Reduction Strategy

Energy Policy, energy strategy

The Government of Liberia (GOL) is considering energy access to the population, particularly to the previously neglected rural poor a cornerstone of its policy..

Important Laws and Regulations

Institutional set up

- Ministry of Lands, Mines and Energy (MLME): The key roles and responsibilities of the Ministry especially the Department of Energy, among others, are to facilitate the provision of energy to the domestic, commercial and industrial users by public enterprises and the private sector, through the development of an efficient regulatory, planning and implementation framework. It also reorientates the approach to rural electrification emphasising informed community choice, sustainability and containment of Government subsidy to achieve greater penetration of electrification into rural areas. Furthermore, to research and promote the development of local energy resources such as Hydro-power, biomass, solar, wave and wind energy; and promote energy conservation measures which improve both technical and economic efficiency in energy use.
- Rural and Renewable Energy Agency (RREA): The RREA is the agency dedicated to the commercial development and supply of modern energy services to rural Liberia with emphasis on utilizing available local renewable energy resources. The focus of the existing working team is on sustainable solar market packages (SSMP).

- Liberia Electricity Company (LEC): The utility is managed by a joint venture between Manitoba Hydro International and Kenyan Power and Light Corporation based on a 5-year Management Contract (MC) that started on July 1st, 2010.  The management is supervised by a Board that is supported by NetGroup (RSA) in its monitoring and supervisory role. The MC incorporates a results based financing component. It includes performance fees and penalties for over and under performance, respectively, on key indicators. In addition, reduction/increases in operational costs will lead to performance/penalty fees.

A key aspect of the MC is that the target indicators were to be based on the initial (tentative) commitments from donors for
investment contributions, totaling $53million over the 5 years. Thus, the Operator has a strong incentive to use donor contributions
effectively and achieve improved results. In addition, the World Bank has committed some $2million per year in OBA financing. Further to the performance indicators, the Operator is required to carry out a range of training activities and has rather
extensive reporting requirements.

Activities of other donors

I. Main energy programmes/activities in the past:

1) Emergency Power Programme (EPP). Main features:
- USAID, EU, NW, WB funded
- Focus: Technical Assistance to Liberia Electricity Corporation to kick-start power production
- Some support to infrastructure (grid rehabilitation) and running costs of power generation
- EPP is currently running out

2) LEAP (Liberia Energy Assistance Programme), USAID

Main areas of support:
- Continued support to LEC, e.g. on prepaid meter systems
- Implementation of social PV (health centers, schools…)
- Support to the establishment of a Rural and Renewable Energy Agency (RREA) and a Rural Energy Fund (REF)
- Development of a National Energy Policy (NEP)

II. New Energy Programmes

1) USAID – New Renewable Energy Programme:

- $24mio over 4 years; $4mio into power generation; $4mio into institutional support for implementation of NEP
- Focus:
o (community-run) MHP
o Biomass (residue use)
o Potentially hybrid systems of MHP and biomass gasification as rivers dry up in dry season
- Long-term TA has been contracted and is expected in country in June 2010
- Like-wise, the first workplan is expected for June 2010
o Apart from long-term activities, there will be initial short-term TA (baseline studies etc.?)
o Concrete details will become clearer once TA is in-country

2) World Bank:

- Has committed $3.4mio in support of RREA and the implementation of NEP components through RREA
- Business plan for RREA still to be developed
o WB will support that
- RREA will be supported by WB if GoL provides in-kind contribution
- Main components of NEP:
o Restructuring of Energy Dpt in Min of Lands, Mines and Energy
o Restructuring of and management contract for LEC
 NO has promised support to this
o Setting up an Energy Regulatory Board
 Hasn’t happened yet; guidelines still missing
o Restructuring National Oil Company in view of potential oil extraction in Liberia
- Pilot projects to be implemented by RREA (funded by WB)
o 35kW MHP
 Problem: dry season
o 2 social PV projects => Training for maintenance on PV with objective to build up capacities in-country
- Rural Energy Masterplan: RREA has applied for EF II funding (1.5 mio) to carry out this plan

 

10MW financed by USAID and 3MW by
Norway