Liberia Energy Situation

Energy situation

In Liberia woody biomass is the primary energy source used for domestic cooking and heating. In 2004, it was estimated that over 95% of the population depends on firewood and charcoal for cooking and heating needs and palm oil for lighting. According to the Central Bank of Liberia (CBL), a total of 14.8 tons of charcoal was produced in 1998. The CBL reported that charcoal production increased to 255 tons in 1999 with about 90% of households using firewood and charcoal as an energy source. The National Charcoal Union of Liberia (NACUL) estimated that charcoal production in Liberia went up to 36,500 tons in 2005. There are no firm data on firewood consumption in Liberia, but findings from a survey conducted by CSET in 2004 indicate that scarcity of firewood is becoming a serious problem in most parts of Liberia, especially in Montserrado County.Annual consumption of firewood in rural Montserrado County is estimated at 18m3 per household. Forecast for the country estimates an annual increase in demand of about 0.6 m³ per household. Other estimates foresee an annual increase in demand of about 0,43 m³ per person.

Modern energy services based on electricity and petroleum products are predominantly used for economic production and transportation. In the household sector, the use of modern energy services consists mainly of kerosene, electricity, and liquefied petroleum gas for lighting, cooking, and entertainment. These are used by higher income households in urban areas.

According to the data of the government, about 10% of urban residents and less than 2% of rural residents have electricity access largely from self-generation using expensive imported fuel. The access rate to public electricity is 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.

Liberia has considerable potential for hydroelectric power. At the onset of civil war there were three (3) operational hydroelectric power plants in Liberia: Harbel (Firestone), 4MW; Mount Coffee (LEC), 64MW; and Yandahun (a community micro hydro in Lofa
County), 30KW. The Mount Coffee and Yandahun plants were destroyed during the war, but the Harbel plant is still operational. A number of feasibility studies were carried over the period 1976-1983. At least 14 largescale schemes were identified in over six (6) main rivers. The Cavalla River has a single largest potential (225MW at Tiboto) but with more than half of this in Cote d’Ivoire, bilateral cooperation is required for its development. Similarly, the Mano River, with the potential of up to 180MW, has nearly a quarter of its basin in Sierra Leone2. However, since four (4) of the six river basins are within Liberia’s borders, they could be developed. The major drawback is that all suffer from the problem of low-head flow, requiring huge investment in storage or reservoir to maintain firm capacity during the dry season. About 24 other sites have been identified for small hydroelectric schemes (up to
5 MW). In 1988, the Liberia Electricity Corporation (LEC) sought investment capital to develop six mini hydro schemes with total installed capacity of about 20 MW, which was intended to supply three (3) rural grids serving 14 major population centers in the
northern half of Liberia. 

Policy Framwork, laws and regulations

The GoL published in 2007 a Renewable Energy and Energy Efficiency Policy and Action Plan. In the document the government outlines its policy build and increase the application of renewable energy and energy efficiency technologies in Liberia by promoting investment, technology transfer, market development and local capacity building. In 2009 a National Energy Policy (NEP) was formulated which further developed the ideas of the Policy and Action Plan. NEP defines as principal objective of the national energy policy to ensure universal access to modern energy services in an affordable, sustainable and environmentally-friendly manner in order to foster the economic, political, and social development of Liberia. In addition, the GoL declares its intention to drive Liberia towards a carbon neutral economy by 2050. Short term objectives of the policy are that by 2015:

• 40% of Liberian citizens living in rural and peri-urban areas and using traditional biomass for cooking shall have access to improved stoves and kerosene or efficient-gas cookers in order to reduce indoor pollution;
• 30% of the urban and peri-urban population shall have access to reliable modern energy services enabling them to meet their basic needs (lighting, cooking, communication, and small production-related activities);
• 15% of the rural population and 25% of the schools, clinics, and community centers in rural areas shall have access to modern energy services to meet the same basic needs.

The GOL expects to achieve its access goals for 2015 while reducing greenhouse gas emissions by 10%, improving energy efficiency by 20%, raising the share of renewable energy to 30% of electricity production and 10% of overall energy consumption, and increasing the level of biofuels in transport fuel to 5%.

The NEP is considered a key contribution to the poverty reduction policy of the government as outlined in the Poverty Reduction Strategy (PRS). Poverty reduction is built on four pillars – (1) consolidating peace and security; (2) revitalizing the economy; (3) strengthening governance and the rule of law; and (4) rehabilitating infrastructure and delivering basic services.

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).

Energy Regulatory Board (ERB): ERB approves the tariffs and prices set by the operators. The general policy is that energy services should be provided on a full cost-recovery basis to those who are able to pay and on a targeted subsidized basis to those who can only afford to pay a portion of the cost.The Government intends to establish a regulatory process for monitoring all costs – economic, financial, social, and environmental – and allocating these to the user (rate payer or polluter) or public (taxpayer) as appropriate. 

Bureau of Standards: is responsoble to establish standards to ensure accuracy of meters and gauges, product safety, security, reliability, consistency, purity, and availability as well as timeliness in responding to stakeholder service requests.

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

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)

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:
  • (community-run) MHP
  • 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
  • Apart from long-term activities, there will be initial short-term TA (baseline studies etc.?)
  • 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
  • WB will support that
• RREA will be supported by WB if GoL provides in-kind contribution
• Main components of NEP:
  • Restructuring of Energy Dpt in Min of Lands, Mines and Energy
  • Restructuring of and management contract for LEC
    • NO has promised support to this
  • Setting up an Energy Regulatory Board
    • Hasn’t happened yet; guidelines still missing
  • Restructuring National Oil Company in view of potential oil extraction in Liberia
• Pilot projects to be implemented by RREA (funded by WB)
  • 35kW MHP
    • Problem: dry season
  • 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