Rural Energy Strategy and Master Plan for Liberia until 2030

4. Rural energy investment and action plan 42

5. Funding requirements and strategy 60

6. Institutional framework and private sector participation 70 ,#8gdhhXjii^c\^hhjZh 80

8. Coordination, monitoring and communication 86 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 INDEX 1 INTRODUCTION RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 This document presents the Rural Energy Strategy and Master Plan for Liberia (RESMP), which communicates i]ZbV^cZaZbZcihd[i]ZBVhiZgEaVcid`ZnhiV`Z]daYZgh#I]ZG:HBE[dgi]ZeZg^dYjci^a'%(%V^bhidhZi XaZVgiVg\Zih!id^YZci^[naZVhi"Xdhiegd_ZXihVcYiZX]cdad\^Zh!idegdedhZXdcXgZiZ^ckZhibZcih[dg[jcY^c\ and implementation, with appropriate institutional framework and capacity to increase energy access and renewable energies to the country’s rural areas and population – meaning all areas and population outside of greater Monrovia. The Rural and Renewable Energy Agency Act mandates the Rural and Renewable Energy Agency (RREA) to develop a Rural Energy Strategy and Master Plan for Liberia. The Master Plan and supporting study was developed under supervision of RREA. The Consultant, Gesto Energy, in collaboration with the Sustainable Engineering Lab of the Earth Institute at Columbia University performed the technical work between July '%&*VcY6eg^a'%&+jcYZgVXdcigVXil^i]GG:6[jcYZYWni]Z:jgdeZVc9ZkZadebZci;jcY&%i]:9;# I]Zldg`^cXajYZYXdchjaiVi^dcl^i]hiV`Z]daYZgh!cVbZanbdgZi]Vc+%^ciZgk^Zlhid`ZnYZX^h^dcbV`Zgh VXgdhhVaa&*Xdjci^ZhVcYVKVa^YVi^dcLdg`h]de]ZaY^c<WVgc\Vdci]Z)i]d[;ZWgjVgn'%&+l^i]bdgZ i]Vc-%eVgi^X^eVcih# Methodology. Rural for the purpose of the Master Plan means all areas, settlements and inhabitants outside of Monrovia, either in the cities and towns or in small remote villages. Rural energy includes electricity, Xdd`^c\ \Vh VcY X]VgXdVa$lddY [dg Xdd`^c\# :cZg\n Xdchjbei^dc [dg igVchedgiVi^dc dg aVg\Z ^cYjhig^Zh ^hcdi^cXajYZY^ci]ZhXdeZd[i]ZBVhiZgEaVc#I]ZÃghiXdbegZ]Zch^kZhdaVgVcY]nYgdbVehd[A^WZg^VlZgZ developed to, together with the comprehensive Geographic Information System (GIS) database developed in collaboration with the Liberia Institute for Statistics and Geo-Information Services (LISGIS), apply the least cost geo-spatial “Network Planner” methodology to Liberia. The RESMP was then formulated on the basis d[lZaa"YZÃcZYegd_ZXihZaZXi^dcVcYeg^dg^i^oVi^dcXg^iZg^VYZh^\cZYidZchjgZZc]VcXZYZcZg\nVXXZhhl^i] equity, sustainable development and optimal use of indigenous and renewable resources. Impact.I]ZG:HBEgZegZhZcihA^WZg^V¼h^ciZci^dchVcYeaVchidlVgYhi]ZdW_ZXi^kZhd[i]ZCVi^dcVa:cZg\n Eda^Xn!VhlZaaVhgZ\^dcVaVcY\adWVa^c^i^Vi^kZhhjX]Vhi]Z:8DL6HGZcZlVWaZ:cZg\nVcY:cZg\n:[ÃX^ZcXn Action Plan, Sustainable Energy for All and Sustainable Development Goals. The RESMP also represents the Ãgb^ciZci^dcd[i]Z<dkZgcbZcid[A^WZg^Videgdk^YZi]ZcZXZhhVgn^c[gVhigjXijgZidZcVWaZi]ZXdjcign¼h development and to contribute to the improvement of life for all Liberians. President Ellen Johnson Sirleaf ^c'%%+d[[ZgZYV\j^Y^c\had\Vc[dgA^WZg^V¼hZcZg\neda^XnVcYhigViZ\n/¹HbVaaa^\]iidYVn!W^\a^\]iidbdggdlº# I]ZCVi^dcVa:cZg\nEda^XnhZii]Zeda^X^Zhid\d[gdbhbVaaa^\]iidW^\a^\]i#I]ZBVhiZgEaVccdl^YZci^ÃZh i]Zegd_ZXihVcYi]Z^ckZhibZcihidVa^\c!_d^cVcYdei^b^oZVaaZ[[dgihd[cVi^dcVaVji]dg^i^Zh!^ciZgcVi^dcVa partners, civil society and private sector, towards the goal of having Big Light across Liberia in the future. &( 2 COUNTRY CONTEXT AND BACKGROUND RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 '#&8DJCIGN BACKGROUND Liberia’s geography and rural population. Liberia is situated in West Africa, neighboring Sierra Leone, Guinea VcY8iZY¼>kd^gZ#A^WZg^V^hY^k^YZY^cidÃ[iZZcXdjci^Zh#Bdcgdk^V!A^WZg^VcXVe^iVaadXViZY^cBdcihZggVYd 8djcin!^hi]ZbdhiedejadjhX^in!l^i]'-d[i]ZidiVaedejaVi^dcd[A^WZg^V#;dgi]ZejgedhZd[i]ZBVhiZg EaVc! gjgVa bZVch Vaa VgZVh djih^YZ d[ Bdcgdk^V! bZVc^c\ ,' d[ i]Z Xdjcign¼h edejaVi^dc VcY VgdjcY &)%%%hZiiaZbZcih#I]^hYZÃc^i^dcY^[[Zgh[gdbi]Z'%%-XZchjhl]ZgZedejaVi^dc^chZkZgVa8djcin8Ve^iVah ·&.d[i]ZedejaVi^dc"lZgZVXXdjciZY[dgVhjgWVc# Historical Background. Liberia was created through a settlement of freed slaves from the United States ^c &-'' VcY Wn &-), i]Z 6bZg^Xd"A^WZg^Vch lZgZ VWaZ id ZhiVWa^h] V gZejWa^X! i]jh WZ^c\ 6[g^XV¼h daYZhi gZejWa^X# >c 9ZXZbWZg &.-.! i]Z CVi^dcVa EVig^di^X ;gdci d[ A^WZg^V CE;A! aZY Wn 8]VgaZh IVnadg! hiVgiZY V adc\ 8^k^a LVg i]Vi aVhiZY jci^a 6j\jhi &&! '%%( l]Zc 8]VgaZh IVnadg hiZeeZY Ydlc VcY lZci ^cid Zm^aZ# 6[iZgildnZVghd[gjaZWnVigVch^i^dcVa\dkZgcbZci!i]Z'%%*A^WZg^Vc\ZcZgVaZaZXi^dclZgZ]ZaY#>ci]ZhZ elections, President Ellen Johnson Sirleaf, former World Bank employee and Liberian Finance Minister, ldc i]Z egZh^YZci^Va ZaZXi^dch VcY WZXVbZ i]Z Ãghi YZbdXgVi^XVaan"ZaZXiZY [ZbVaZ 6[g^XVc ]ZVY d[ hiViZ ^c?VcjVgn'%%+!WZ^c\gZZaZXiZY^c'%&&# Economic background.;daadl^c\i]ZÃghiedhi"lVgYZbdXgVi^XZaZXi^dch^c'%%*!EgZh^YZci:aaZc?d]chdc H^gaZV[]VYi]ZX]VaaZc\ZidgZWj^aYA^WZg^V¼hZXdcdbn!VcYidgZXdcX^aZVcVi^dchi^aagZXdkZg^c\[gdb&)nZVgh d[ X^k^a lVg# 7n i]Z ZcY d[ i]Z &) nZVg XdcÄ^Xi! bdhi d[ A^WZg^V¼h ^c[gVhigjXijgZh ]VY WZZc YZhigdnZY! [ddY insecurity was widespread, poverty rates were high, and many people had been displaced. The economic ^beVXid[i]ZX^k^alVglVhXaZVg/^c'%%(A^WZg^VlVhi]ZhZXdcYXdjcignl^i]adlZhi<gdhh9dbZhi^XEgdYjXi (GDP) based on Power Purchase Parity per capita in the world. With the restoration of peace, Liberia faced V eZg^dY d[ gVe^Y ZXdcdb^X \gdli]! ZmeZg^ZcX^c\ V <9E gViZ d[ ,#+ dc VkZgV\Z ^c i]Z eZg^dY d[ '%%)"&(! and its nominal GDP more than tripling during this period. The restart of iron ore production encouraged construction and service sector activities. An evolution of the Liberian GDP is shown in Figure 2.1. =jbVcYZkZadebZciVcY<ZcYZg^cZfjVa^in# 9jZ id i]^h igdjWaZY VcY Y^[ÃXjai eVhi A^WZg^V ]Vh dcZ d[ i]Z lowest Human Development Indexes in the world according to the United Nations Development Programme, gVc`^c\&,,djid[&--#6ai]dj\]^i^begdkZYh^\c^ÃXVcian[gdb%#((^c'%%*id%#)(^c'%&*!^igZbV^chlZaa WZadli]ZldgaY¼hVkZgV\Z%#,&VcYVahdi]ZHjW"HV]VgVc6[g^XV¼hVkZgV\Z%#*'#DcZVgZVl]ZgZA^WZg^V hXdgZheVgi^XjaVganadl^hdci]Z<ZcYZg>cZfjVa^in>cYZm!WZ^c\i]Z.i]Xdjcigndjid[&**l^i]i]Z]^\]Zhi levels of gender inequality. Maternal mortality ratio, adolescent birth rate are high and access to education VcY_dWhgZbV^cadl[dgldbZc^cA^WZg^V# Poverty reduction strategy and the agenda for transformation. Following the inauguration of President Ellen ?d]chdcH^gaZV[^c'%%+!i]Z<dkZgcbZcid[A^WZg^VZbWVg`ZYdci]Z150-day Deliverables or Action Plan (February · ?jcZ '%%+! VcY i]Z Interim Poverty Reduction Strategy (IPRS) ?jan '%%+ · ?jcZ '%%-! d[[Zg^c\ \j^YVcXZ to donor interventions in addition to continuing programs and activities previously initiated mostly with an emergency relief scope with short-term recovery strategies. &* '*%% '* Real GDP growth Annual % change Nominal GDP, USD Millions '%%% '% &*%% &* &%%% &% *%% 5% % % '%%) '%%+ '%%- '%&% '%&' '%&) GDP Growth ;^\jgZ'#&·Cdb^cVa<9EVcYGZVa<9E\gdli]VccjVaeZgXZciX]Vc\Z# GDP >c 6eg^a '%%-! i]Z <dkZgcbZci d[ A^WZg^V ÃcVa^oZY i]Z EdkZgin GZYjXi^dc HigViZ\n EGH Vh V bVXgdZXdcdb^X policy framework document to guide socioeconomic development activities and national reconstruction from ?jan&!'%%-id?jcZ(%!'%&&#I]ZEGHlVhYZh^\cZYVcYWj^aiVgdjcY[djge^aaVgh/&8dchda^YVi^c\EZVXZVcY HZXjg^in0'GZk^iVa^o^c\i]Z:Xdcdbn0(HigZc\i]Zc^c\<dkZgcVcXZVcYi]ZGjaZd[AVl0VcY)GZ]VW^a^iVi^c\ Infrastructure and Delivering Basic Services. The Agenda for Transformation6[I^hi]Z<dkZgcbZcid[A^WZg^V¼hÃkZ"nZVgYZkZadebZcihigViZ\n'%&'·'%&,# >i[daadlhi]ZA^[iA^WZg^VEdkZginGZYjXi^dcHigViZ\nEGH!l]^X]gV^hZYA^WZg^V[gdbedhi"XdcÄ^XiZbZg\ZcXn gZXdchigjXi^dc VcY edh^i^dcZY ^i [dg [jijgZ \gdli]# I]Z 6[I ^c ^ihZa[ l^aa¸^c ^ih ÃkZ"nZVg i^bZ[gVbZ¸cdi WZ VWaZ id VX]^ZkZ Vaa i]Vi A^WZg^V ^h ed^hZY id Yd# GVi]Zg ^i ^h i]Z Ãghi hiZe ^c VX]^Zk^c\ i]Z \dVah hZi dji in Liberia Rising'%(%!A^WZg^V¼hadc\"iZgbk^h^dcd[hdX^d"ZXdcdb^XYZkZadebZci#I]Z6[IhZihdjiegZX^hZ\dVah VcYdW_ZXi^kZhi]ViA^WZg^Vl^aaVX]^ZkZWn'%&,^cdgYZgidiV`Zi]ZcZXZhhVgnhiZehidlVgY^ihadc\"iZgb\dVah! which are to become a more prosperous and a more inclusive society. Ebola outbreak. A^WZg^V ZmeZg^ZcXZY Vc Ze^YZb^X d[ :WdaV K^gjh 9^hZVhZ ^c '%&) VcY '%&*! Vadc\ l^i] i]Z cZ^\]Wdg^c\ Xdjcig^Zh d[ <j^cZV VcY H^ZggV AZdcZ# LdgaY =ZVai] Dg\Vc^oVi^dc L=D dcan YZXaVgZY i]ZXdjcign[gZZd[igVchb^hh^dcVÃcVai^bZdc?VcjVgn&)!'%&+#>i^hZhi^bViZYi]ViA^WZg^Vhj[[ZgZY&%+,* :WdaVXVhZh!)-%.d[l]^X]lZgZ[ViVa#:WdaV]VYVhZkZgZ^beVXi^ci]ZA^WZg^VcZXdcdbnVXgdhhVaahZXidgh of employment. Indeed, many of those in wage employment were either asked to stay at home or lost their positions entirely. Markets closed, potential customers became more reserved in their spending, and travel restrictions disrupted supply. Moreover, Ebola drove up key food prices and led to food insecurity across the country. This along with the decrease of incoming Foreign Direct Investment (FDI) as many businesses departed, taking capital and expertise with them, and a decline in exports of 38%, imposed a serious slowdown in Liberia’s ZXdcdbn#>cYZZY!A^WZg^V¼h<9E\gdli]gViZYZXa^cZY-ee#[gdb-#,^c'%&(id%#,^c'%&)# Energy access is a key component of Liberia’s post-Ebola recovery strategy. A recovery plan for Liberia after i]Z:WdaVdjiWgZV`lVhVeegdkZY^c'%&*l^i]:cZg\n6XXZhhVcYGZcZlVWaZ:cZg\^ZhWZ^c\V`ZnXdbedcZci as energy infrastructure is critical to enable economic activity, output and growth, but also a key lever to strengthen resilience, reduce vulnerability and promote gender equality through improved Health, Education and Security services. &+ RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 '#'LIBERIA’S ENERGY SECTOR AND POTENTIAL A^WZg^V¼hX^k^alVg]VYhZkZgZXdchZfjZcXZhdci]ZXdjcign¼hedlZghZXidg#Before the civil war, more than ,d[i]ZedejaVi^dc]VYVXXZhhidejWa^XZaZXig^X^in·VgdjcY(*%%%XdhijbZgh·l^i]VidiVa^chiVaaZYXVeVX^in d[&.&BL!d[l]^X]Veegdm^bViZan.-lZgZ^cVcYVgdjcYBdcgdk^V#L^i]i]ZYZhigjXi^dcd[bdhid[i]Z generation facilities during the war, including the Mount Coffee hydropower plant, as well as of transmission and distribution lines, the Liberian Energy Corporation – national utility in charge of generation, transmission and distribution of electricity – had to cease operations. On-going reconstruction focused in Monrovia. In the last few years, much effort has been made to resume operations and restore the power sector to pre-war levels in Monrovia. An emergency program allowed for i]Z ^chiVaaVi^dc d[ ''#+ BL d[ Y^ZhZa WVhZY \ZcZgVidgh l^i] kZgn ]^\] \ZcZgVi^dc Xdhih# >c ?jan '%&%! A:8 ]VYVgdjcY'*%%XjhidbZgh!VcjbWZgi]Vi^cXgZVhZYidVgdjcY'%%%%WnZcYd['%&*/Vh^\c^ÃXVci\gdli]!Wji hi^aaaZhhi]VcZmeZXiVi^dchVcYaZhhi]Vc&%d[Bdcgdk^V¼hedejaVi^dc#EdiZci^VaXjhidbZghhi^aagZan]ZVk^an on self-generation given the very high tariff charged by LEC of 55 USD cents per kWh (one of the highest in the world). Several investments to reduce costs and facilitate adoption are currently ongoing: 48 MW of Heavy Fuel Oil based generation at Bushrod and the reconstruction of Mount Coffee Hydro – all focused in Monrovia. &, Bushrod Island Kru Town Electric System Capitol HV Substation Existing Power Lines (kV) Paynesville '' 33 66 ;^\jgZ'#'·:m^hi^c\ZaZXig^XVaedlZg\g^Yd[A^WZg^V'%&*# Liberia’s rural energy access is almost nonexistent.9Zhe^iZhdbZegd\gZhhdci]ZZaZXig^ÃXVi^dcd[Bdcgdk^V! as seen in Figure 2.2, and the implementation of three Cross-Border Medium Voltage grids with Côte d’Ivoire l^i] eaVccZY ZaZXig^ÃXVi^dc d[ ' -%% XjhidbZgh! A^WZg^V hi^aa ]Vh dcZ d[ i]Z adlZhi \g^Y ZaZXig^ÃXVi^dc gViZh ^c i]Z ldgaY l^i] aZhh i]Vc ( d[ i]Z edejaVi^dc XdccZXiZY id \g^Y edlZg VcY aZhh i]Vc %#* d[ i]Z gjgVaedejaVi^dcWZ^c\XdccZXiZY#I]^hbZVchi]ZbV_dg^ind[i]Z8djcin8Ve^iVahVcYaVg\Zidlch!ZmXZei Monrovia, are currently in the “dark” or dependent on the use of individual or “community current” diesel WVhZY\ZcZgVidgh#I]ZkVhibV_dg^ind[i]ZXdjcign¼hedejaVi^dc!i]ViXVccdiV[[dgYY^ZhZaWVhZY\ZcZgVi^dc! are reliant upon various informal and unreliable systems with almost no energy access. For cooking, people rely mostly on charcoal in the County Capitals and large towns and on wood in the more rural areas. Cooking \Vh^hVabdhidcanVkV^aVWaZ^cBdcgdk^VVikZgn]^\]eg^XZh*%JH9eZg&'`\WdiiaZ# &- RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Voinjama Sanniquellie City Bopolu Gbarnga City Robertsport Tubmanburg Bensonville City Kakata City MONROVIA Country capital Zwedru County capital Country border Buchannan County border Watersheds Cestos City Fish Town City Hydropower Potencial (MW) Greenville City 1%#*&#%'#%(#%*#%&%#%'%#%*%#%3&%%#% Barclayville Mean Annual Isoenergetics (kWh/m2) Harper City 1%#%'%#%+%#&'%#'%%#)%%#+%%#-%&#'%3&#-% ;^\jgZ'#(·=nYgdedlZgediZcX^VabVe# High hydropower potential across the country. Liberia is a tropical country with a very rainy wet season that lasts between April and November and a long sea coast where many rivers end. Hydro potential is very h^\c^ÃXVci^cA^WZg^Vl^i]'(%%BLd[]nYgdedlZgediZci^Va]Vk^c\WZZc^YZci^ÃZYjcYZgi]ZG:HBEhijYn! as shown in Figure 2.3 and Figure 2.4 (despite the absence of a comprehensive country hydro atlas study). A^WZg^V ]nYgd ediZci^Va ^h XdcXZcigViZY dc aVg\Z g^kZgh l^i] ]^\] bZVc VccjVa Ädl VcY adl ]ZVYh · \^kZc A^WZg^V¼h¹eaV^cºided\gVe]n#=dlZkZg!i]Z]nYgdVhhZhhbZcihijYnd[i]ZG:HBE^YZci^ÃZYhZkZgVaadXVi^dch l^i]]^\]cVijgVa]ZVYhVcYÄdlhVWdkZ*%b($h·dei^bVa[dgVWdkZ*BL]nYgdhX]ZbZhl^i]adlaZkZa^oZY Xdhihd[ZaZXig^X^inl]^X]XVchjeeani]ZcVi^dcVa\g^YdgaVg\ZYZXZcigVa^oZY\g^YhVXgdhhi]ZXdjcign#A^WZg^V¼h ]nYgdediZci^Va^hhjW_ZXiid]^\]^cigV"VccjVakVg^Vi^dcl^i]h^\c^ÃXVcigZYjXi^dc^cegdYjXi^dcYjg^c\i]ZYgn hZVhdcgZfj^g^c\XdbW^cVi^dcl^i]di]Zg\ZcZgVi^dchdjgXZhVcYWZcZÃii^c\[gdb^cXajh^dcd[eZV`^c\edcYh# HdaVgVcY7^dbVhhgZcZlVWaZediZci^VaVahdh^\c^ÃXVci# Additionally to hydro, Liberia’s climate also favors ild di]Zg ineZh d[ gZcZlVWaZ ZcZg\n l^i] ediZci^Va [dg gjgVa ZaZXig^ÃXVi^dc/ 7^dbVhh VcY HdaVg# 7^dbVhh \Vh^ÃXVi^dc iZX]cdad\n · l]^X] ]Vh WZZc iZhiZY ^c A^WZg^V l^i] egdb^h^c\ gZhjaih Wji hdbZ X]VaaZc\Zh in terms of operation – can become a lower cost alternative to diesel. &. Stream lines Capacity (MW) %"& '"* +"&% &&"&* &+"'% '&"(% 3(% LCOE (USD/MWh) %"&%% &%&"&*% &*&"'%% '%&"'*% 3'*% ;^\jgZ'#)·'(%%BLd[=nYgdedlZgegd_ZXih^YZci^ÃZY^cA^WZg^V# Solar resource – which has been mapped by RESMP study (see Figure 2.5) – is high and consistent across i]ZXdjcignl^i]VcVkZgV\ZaZkZad[&,&'`L]$b'$nZVgVcYediZci^Va[dg\ZcZgVi^dcd[&)%%id&*%%`L]$ `Le#HdaVgiZX]cdad\n^hi]ZbdhiVeegdeg^ViZ[dghbVaa$bZY^jbhXVaZgjgVaZaZXig^ÃXVi^dc^cA^WZg^Vl^i]i]Z potential to be combined with diesel and batteries to support Low Voltage Transitional mini-grids which could electrify even County Capitals and large towns before the national grid arrives. Despite high renewable energy potential, power cost relies mostly on fossil fuels and is one of the most expensive in the world. Many locations across the country offer the potential for lower cost renewable electricity. However, people with electricity access in Liberia face one of the highest costs of electricity ^ci]ZldgaYl^i]A:8iVg^[[hd[JH9%#*%eZg`L]^cBdcgdk^V!VcYJH9%#'*eZg`L]^c8gdhh7dgYZgegd_ZXi areas with electricity. LEC power is currently generated from fossil fuels, with the Mount Coffee Hydropower ZmeZXiZYidXdbZdca^cZWni]ZZcYd['%&+# '% RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Voinjama Sanniquellie City Bopolu Gbarnga City Robertsport Tubmanburg Bensonville City Kakata City MONROVIA Zwedru Buchannan Cestos City Country capital Fish Town City County capital Country border Greenville City County border Barclayville Global Horizontal Irradiation (kWh/m2/year) Harper City 1&#**%&#+%%&#+*%&#,%%&#,*%3&#-%% ;^\jgZ'#*·HdaVgEdiZci^Va6iaVh[dgA^WZg^V# Dc"\d^c\ VcY eaVccZY gjgVa ZaZXig^ÃXVi^dc ^c^i^Vi^kZh# GG:6 ]Vh hZkZgVa [jcYZY egd_ZXih dc"\d^c\ l^i] Vhigdc\gZcZlVWaZXdbedcZci!cdiVWani]ZHXVa^c\"jeGZcZlVWaZ:cZg\nEgd\gVbHG:EEgd_ZXih^cAdl >cXdbZ 8djcig^Zh ^c^i^Vi^kZ l^i] JH9 *%B Xdbb^iiZY Wn i]Z 8a^bViZ >ckZhibZci ;jcY 8>; i]gdj\] i]Z World Bank and African Development Bank to deploy hydro and other renewable generation and mini-grids ^cCdgi]lZhiVcYHdji]ZVhiVgZVhd[i]ZXdjcign#GZ\VgY^c\<g^YZmiZch^dci]Zdcanegd_ZXihVagZVYn implemented are the Cross Border grids from Ivory Coast that currently electrify the County Capitals of Pleebo, OlZYgjVcY<VciVVcYVgZZmeZXiZYidXdccZXi'-%%Xa^Zcih#I]Z^ciZgcVi^dcVa8AH<=^\]KdaiV\Z=Ka^cZ is under-way and includes the installation of 4 sub-stations across Liberia: Mano, Mount Coffee, Buchanan and NZ`ZeV#A^WZg^V6XXZaZgViZY:aZXig^X^in:meVch^dcEgd_ZXiA68::EVcYAdXVa:ciZgeg^hZ6hh^hiVcXZEgd\gVb A:6E dc"\d^c\ egd_ZXih ^cXajYZ Vahd hdbZ \g^Y ZmiZch^dc [gdb Bdcgdk^V id @V`ViV! @aZ VcY G>6 (the “three corridors”). '& '' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 '#(RURAL ENERGY POLICY AND PRIORITIES Country agenda and policy. A^WZg^VVhe^gZhidWZXdbZVb^YYaZ^cXdbZXdjcignWn'%(%VcY]VhVeegdkZY ^ih 6\ZcYV [dg IgVch[dgbVi^dc " A^WZg^V G^h^c\ '%(% " l^i] i]Z [dXjh cdi dcan dc VXXZaZgVi^c\ \gdli]! but also on ensuring that growth can be sustained and lead to a more inclusive society. Equity is a key principle d[A^WZg^V¼heda^Xnl]^X]^hgZÄZXiZYcdidcandci]Z6\ZcYV[dgIgVch[dgbVi^dcWjiVahddci]ZCVi^dcVa<ZcYZg Eda^Xnl]^X]V^bhid\j^YZi]ZXdjcignidlVgYhVX]^Zk^c\\ZcYZgZfj^inVcYZfjVa^in!Wj^aY^c\VcYji^a^o^c\ i]ZediZci^Vad[ldbZcVcYbZc!WdnhVcY\^gah^cejghj^c\VcYWZcZÃi^c\[gdbcVi^dcVaYZkZadebZci\dVah# National Energy Policy principles. I]ZCVi^dcVa:cZg\nEda^XnVeegdkZY^c'%%.l^i]V[dXjhdc)`ZnhigViZ\^X ^hhjZhVcYdW_ZXi^kZh/Access with Quality and reasonable Cost with an adequate Institutional Framework. EgZh^YZci :aaZc ?d]chdc H^gaZV[ YZÃcZY i]Z [daadl^c\ \j^Y^c\ eg^cX^eaZh [dg A^WZg^V¼h :cZg\n Eda^Xn ^ci]Z`ZncdiZVYYgZhhidi]ZCVi^dcVa:cZg\nHiV`Z]daYZgh;dgjb^c'%%+l]^X]hi^aagZbV^ckVa^Y/ • Leveraging enhanced energy access for improvements in education, health and economic development; • Providing access to modern energy (fuels and electricity) for previously neglected rural consumers; • Enhancing transparency and accountability at every stage of energy operations; • :chjg^c\i]Zadc\"iZgbÃcVcX^Vak^VW^a^ind[ZaZXig^Xji^a^i^ZhVcYdi]ZgZcZg\nXdbeVc^Zh0 • Ensuring the affordability of all energy forms for poor consumers; • 7VaVcX^c\i]ZZck^gdcbZciVaXdhihVcYWZcZÃihd[VaaZcZg\negd\gVbh!iV`^c\^cidVXXdjcii]ZXdaaZXi^kZ global effort to control harmful greenhouse gases responsible for climate change; • BVm^b^o^c\ZcZg\nZ[ÃX^ZcXnVcYYZbVcY"h^YZbVcV\ZbZciidb^c^b^oZi]ZÃcVcX^VaVcYZck^gdcbZciVa costs of energy development; • Ensuring the involvement of the private sector to the “greatest degree possible” throughout the energy sector; • Ensuring that Liberia takes all requisite actions on a timely basis to integrate its domestic energy policies into Economic Community of West African States (ECOWAS) Protocol and other regional and international egd_ZXih!Xdbb^ibZcih!hiVcYVgYhVcYdWa^\Vi^dch# Rural and Renewable Energy. The National Energy Policy calls for the establishment of the Rural and Renewable Energy Agency, the Rural Energy Fund and the need to develop the Rural Energy Master Plan in order to promote renewable energy technologies as a key tool and development program to achieve universal energy access in Liberia. '( The following key Policies and Principles shall apply to the Rural Energy Strategy and Master Plan: &# AZVhi 8dhi YZkZadebZci iV`^c\ VXXdjci d[ i]Z ZXdcdb^X! ÃcVcX^Va! hdX^Va VcY Zck^gdcbZciVa [VXidgh and the special needs of the poor through the use of targeted and transparent capital subsidies. The Rural Energy Master Plan shall be developed on the basis of a “Least Cost Universal Access” long term vision. 6aaadXVi^dch!eZdeaZ!Wjh^cZhhZhVcYhZgk^XZhh]VaaWZZaZXig^ÃZYjh^c\i]ZiZX]cdad\ni]Vib^c^b^oZhi]ZXdhi of service to that particular location, person or business. Only in such a way will Liberia be able to achieve universal access at the lowest cost possible. Subsidies for the poor will be transparently applied to the least cost solution. '# :fj^in VXgdhh gZ\^dch! hdX^Va XaVhhZh VcY \ZcYZgh l]^aZ WVaVcX^c\ Z[ÃX^ZcXn dc i]Z VaadXVi^dc of available resources. All Liberians, independently if they are at Montserrado, Maryland or other parts of the country, independently if they are rich or poor or independently if they are men or women, have equal right to access energy services. However, resources are limited and therefore the Master Plan has to decide who idZaZXig^[nÃghiVcYl^i]l]^X]aZkZad[hZgk^XZdghjeedgi·Xdch^YZg^c\Vahdi]Z[VXii]VihdbZegZXZYZci investments may be required to electrify a given area or location. The Master Plan is formulated on the basis d[lZaa"YZÃcZYegd_ZXihZaZXi^dcVcYeg^dg^i^oVi^dcXg^iZg^Vl]^X]Xdch^YZghÃghi:fj^inWjiVahd:[ÃX^ZcXn# (#Eg^dg^inidZaZXig^ÃXVi^dcd[Xdbbjc^inhZgk^XZhVcY]ZVai][VX^a^i^Zh# Key decision makers across Liberia h]VgZi]ZeZgheZXi^kZi]ViZaZXig^ÃXVi^dch]djaYhiVgil^i]=ZVai];VX^a^i^Zh!i]VcHX]ddahVcYEjWa^XA^\]i^c\ (Education and Security), and only after households and businesses. The common services shall have priority relative to the individual solutions.

4. Use of indigenous and renewable resources in a sustainable way while avoiding dependence on solutions with very high running costs. If it is possible to use indigenous and renewable resources instead of importing oil or other fuels in a competitive and reliable way, the Master Plan shall opt for the use of such indigenous VcYgZcZlVWaZgZhdjgXZh#HjhiV^cVW^a^inbZVch!Vbdc\di]Zgi]^c\h!i]Vii]Zji^a^oVi^dcd[W^dbVhhdgdi]Zg sources of renewable energy do not contribute to deforestation or to food insecurity. Diesel only based ZaZXig^ÃXVi^dc^hXdch^YZgZYVhkZgnZmeZch^kZidbV^ciV^c!Zck^gdcbZciVaanjc[g^ZcYanVcYjchjhiV^cVWaZ#

5. Facilitating private sector investment through the unbundling of power sector activities, the implementation of clear and transparent award and remuneration mechanisms and the targeted use of subsidies and grants. It is the Government intention to involve the private sector to the “greatest degree possible”. Unbundling of Power Sector activities and the award of some of those activities to Independent Private Operators through clear and transparent mechanisms will facilitate private sector participation. The Government shall ensure i]Z adc\ iZgb ÃcVcX^Va k^VW^a^in d[ edlZg hZXidg eaVnZgh Vaadl^c\ [jaa Xdhi"gZXdkZgn Vi V[[dgYVWaZ iVg^[[h by reducing capital expenditure (CAPEX) and remuneration through the targeted use of “grants” and capital subsidies.

6. Transparent and independent regulatory process to ensure safe, secure, reliable and sustainable power ViVXdhi"gZÄZXi^kZWjiV[[dgYVWaZeg^XZ# Regulation is the most effective mechanism of control for natural monopolies such as Power Transmission or Distribution. Regulation offers transparency and also risk b^i^\Vi^dcl]^X]XVcegdk^YZXdcÃYZcXZWdi][dgeg^kViZ^ckZhidgh!YdcdghVcYaZcYZgh#8dhi"gZÄZXi^kZcZhhVcY affordability trade-offs in rural areas can be also mitigated through the use of regulatory mechanisms. Where feasible the regulator shall promote free and fair competition – namely in Generation and in Procurement of goods and services – to enable consumers to get the best prices.

7. Promoting regional cooperation. Liberia is a member of the Economic Community of West African States. Rural Energy Strategy shall promote the participation of the key actors in the regional market to enhance ^ciZgcVi^dcVa igVYZ d[ ZaZXig^X^in VcY id bVm^b^oZ deedgijc^i^Zh [dg Xdhi gZYjXi^dc! [dg ^ckZhibZci VcY [dg Xgdhh"WdgYZgZaZXig^ÃXVi^dc# ') RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Sustainable Development Goals and Sustainable Energy for All. The National Energy Policy established iVg\Zih ^c a^cZ l^i] i]Z B^aaZcc^jb 9ZkZadebZci <dVah ]Vk^c\ '%&* ^cid eZgheZXi^kZ# I]Z B^aaZcc^jb Development Goals have been updated with the Sustainable Development Goals which incorporate the Sustainable Energy for All initiative and goals of universal energy access, doubling of renewable energy VcY ZcZg\n Z[ÃX^ZcXn# A^WZg^V ^h [jaan Xdbb^iiZY id i]Z HjhiV^cVWaZ :cZg\n [dg 6aa ^c^i^Vi^kZ VcY i]ZgZ[dgZ i]ZGjgVa:cZg\nHigViZ\nVcYBVhiZgEaVcjeYViZhi]ZgjgVaZcZg\niVg\Zihl^i]i]Z'%(%]dg^odcVcYcZl more ambitious goals into perspective. ECOWAS Renewable Energy Policy. The ECOWAS Renewable Energy Policy was adopted by the 43rd Ordinary HZhh^dc d[ i]Z :8DL6H 6ji]dg^in d[ =ZVYh d[ HiViZ VcY <dkZgcbZci! l]^X] ]ZaY ^c 6Wj_V! C^\Zg^V! [gdb &, id &- ?jan '%&(# I]^h eda^Xn dc gZcZlVWaZ ZcZg\n V^bh Vi Zchjg^c\ ^cXgZVhZY jhZ d[ gZcZlVWaZ ZcZg\n sources such as solar, wind, small-scale hydro and bioenergy for grid electricity supply and for the provision of access to energy services in rural areas. The ECOWAS region set a clear target to increase the share d[gZcZlVWaZZcZg\n^ci]ZgZ\^dc¼hdkZgVaaZaZXig^X^inb^mid&%^c'%'%VcY&.^c'%(%#>cXajY^c\aVg\Z ]nYgd! i]Z h]VgZ ldjaY gZVX] (* ^c '%'% VcY )- ^c '%(%# 6gdjcY '* d[ i]Z gjgVa :8DL6H edejaVi^dc l^aaWZhZgkZYWnb^c^"\g^YhVcYhiVcY"VadcZhnhiZbhWn'%(%# '* 3 VISION AND OBJECTIVES FOR RURAL ENERGY UNTIL 2030 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 (#&LONG TERM VISION Least Cost Long term vision. The starting point for the Rural Energy Master Plan was the development d[ V adc\ iZgb k^h^dc [dg i]Z jc^kZghVa ZaZXig^ÃXVi^dc d[ Vaa A^WZg^Vch " bdhi a^`Zan dcan VX]^ZkVWaZ dc i]Z '%*% ]dg^odc " jh^c\ i]Z bdhi VYkVcXZY \Zd"heVi^Va cZildg` VcY d[["\g^Y eaVcc^c\ iddah YZkZadeZY by Earth Institute of Columbia University. The resulting Medium Voltage optimal network was than processed by the Consultant to develop a conceptual High Voltage infra-structure with adequate levels of tension for Zhi^bViZYadVYhVcYadXVi^dcd[=K$BKhjW"hiVi^dchVcY\ZcZgVi^dcXZciZghi]ViXVcb^c^b^oZ^ckZhibZcih ^c=K^c[gV"higjXijgZl]^aZd[[Zg^c\VYZfjViZc"&gZYjcYVcXn#I]Zk^h^dc^hegZhZciZY^cFigure 3.1. Voinjama Foya Town SH Connection Lofa Small Hydro Zorzor Arcelor Mital Electric System HV Substation Yekepa WC III Ganta WC II Extension Existing Power Lines (kV) Bo Mano WC I SP2 Gbarnga SP1 Saclepea '' Tubmanburg Totota Robertsport Kle Bong Mine 33 Bogota Madina 66 Mt. Coffee Kakata Tappita Virginia Kru Town Capitol RIA Projected Power Lines (kV) HX]Z[Ä^Zc Zwedru 33 66 Buchannan 66kV Buchannan 225kV ''* River Cess Hydro Putu Mine River Cess Long-Term Power Lines (kV) '' Fish Town 33 Greenville 66 ''* Barclayville Pleebo Harper City ;^\jgZ(#&·K^h^dc[dgi]Zadc\iZgbcVi^dcVa\g^Yd[A^WZg^V# ', Long term grid results. As can be seen, the resulting National Grid covers a great part of the Country’s populated areas and connects all County Capitals. In the long term the national grid will connect more than -.d[VaaedejaVi^dc!XdggZhedcY^c\id.,d[idiVaZcZg\nYZbVcY#6ai]dj\]i]ZbV_dg^ind[i]ZedejaVi^dc ^h\g^YXdccZXiZY!dcan)%d[i]Z^c]VW^iZYhZiiaZbZcih3*%%%VgZXdkZgZYWni]Zadc\iZgb\g^Y#;dgi]Z gZbV^c^c\+%3,%%%!i]ZaZVhiXdhidei^dclVhi]Zd[["\g^Yhdaji^dcWVhZYdchdaVg]dbZhnhiZbh#I]ZhZ d[["\g^YadXVi^dchVgZbV^canhbVaah^oZhZiiaZbZcihl^i]VcVkZgV\Zh^oZd[&&*^c]VW^iVcihhXViiZgZYVXgdhh the country far away from the main roads. Backwards to 2030. The Rural Energy Master Plan studied four alternative scenarios for the electricity sector ^c'%(%!VhhZZc^c;^\jgZ(#'!idgZÄZXii]Zk^h^dcVcYZmeZXiVi^dchd[i]ZY^[[ZgZcihiV`Z]daYZgh^ciZgk^ZlZY# 6aai]ZhXZcVg^dhlZgZWVhZYVcYbdkZYidlVgYhi]Zadc\iZgbk^h^dc!WjikVg^ZYi]ZZaZXig^ÃXVi^dcVeegdVX] and the level of ambition: • HXZcVg^d&6[dXjhZYdcigVY^i^dcVa\g^YZmiZch^dcl^i]ViVg\Zid[(*gjgVaZaZXig^ÃXVi^dcWn'%(%0 • HXZcVg^d&7egdedhZYVcVXXZaZgViZYVcYbdgZYZXZcigVa^oZYZaZXig^ÃXVi^dcVeegdVX]idgZVX](*0 • HXZcVg^d'6YZ[ZcYZYVcV\\gZhh^kZcVi^dcVa\g^YZmiZch^dcidgZVX]*%gjgVaZaZXig^ÃXVi^dcWn'%(%0 • HXZcVg^d'7YZ[ZcYZYVcV\\gZhh^kZ^ckZhibZciegd\gVbWdi]dccVi^dcVa\g^Y!aVg\ZYZXZcigVa^oZY\g^Yh VcYb^c^"\g^YhidgZVX]*%# Scenario analysis.HXZcVg^dhi]ViiVg\ZiZY*%^bea^ZYVidiVa^ckZhibZci^cZmXZhhd[JH9&7^l]^X]ldjaY represent a non-realistic implementation and funding challenge. Scenarios that were in line with Government d[ A^WZg^V iVg\Zi d[ (* gZbV^c VbW^i^djh Wji gZfj^gZ V [jcY^c\ aZkZa i]Vi XVc WZ gZVa^hi^XVaan bdW^a^oZY# IgVY^i^dcVa \g^Y ZmiZch^dc VaiZgcVi^kZ ldjaY XdcXZcigViZ i]Z ZaZXig^ÃXVi^dc Z[[dgi VgdjcY i]Z <gdli] 8dgg^Ydg l^i] hdbZ 8djci^Zh gZbV^c^c\ ^c '%(% l^i] kZgn adl ZaZXig^ÃXVi^dc gViZh VcY ldjaY gZfj^gZ VYY^i^dcVa ^ckZhibZci id ZmiZcY i]Z =^\] KdaiV\Z ^c[gV"higjXijgZ# HXZcVg^d &7 lVh hZaZXiZY VcY kVa^YViZY Vii]ZhiV`Z]daYZgldg`h]de]ZaY^c<WVgc\Vdc;ZWgjVgn'%&+# 6 YZXZcigVa^oZY VcY Zfj^iVWaZ igVch^i^dc id i]Z ¹aVg\Z \g^Yº adc\ iZgb k^h^dc# The Government of Liberia deiZYcdiidYZaVnVXXZhhidZcZg\n[dgi]dhZ[VgVlVn[gdbi]ZZm^hi^c\CVi^dcVa<g^YVcYidWZcZÃi[gdbi]Z Xdjcign¼h^bbZchZgZcZlVWaZediZci^Va^cZcVWa^c\i]ZhZijed[b^c^VcYYZXZcigVa^oZY\g^Yh#I]Zeg^dg^in for rural energy is to start building the least cost long term vision based on Medium Voltage investments, 9ZXZcigVa^oZY<g^YhVcYGZcZlVWaZ:cZg\^Zhi]ViXVcbVm^b^oZcjbWZgd[XdccZXi^dch^cVcZfj^iVWaZlVn VXgdhhi]ZXdjcignjci^a'%(%·[gdbBdcgdk^VidX^i^ZhVcYidlch![gdbX^i^ZhVcYidlchidbdgZgjgVaVgZVh# '- RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 '. Voinjama 1A Zorzor Yekepa Ganta Bo Mano Tubmanburg Gbarnga Saclepea SP1 Bong Mine Robertsport Kle Madina Bogota Virginia Kakata Tappita Kru Town Stockton Town Capitol Congo Town RIA HX]Z[Ä^Zc Zwedru Buchannan 66kV Buchannan 225kV 1B Yekepa Ganta Bo Mano Tubmanburg Gbarnga Saclepea SP1 Bong Mine Robertsport Kle Madina Bogota Virginia Kakata Kru Town Electric System Stockton Town Capitol Congo Town RIA HV Substation HX]Z[Ä^Zc Buchannan 66kV Buchannan 225kV Generation Plants (kV) '' 33 66 ''* :aZXig^ÃZYEd^cih Proposed MV Grid (Technology) On-Grid Settlements Generation Plants Large Isolated Grid (Connected to National Biomass Micro-System or Large Isolated Grids) Micro-Hydro Hydro Plants Solar Villages 7^dbVhh$9^ZhZa=nWg^Y HdaVg$9>ZhZaHnhiZb ;^\jgZ(#'·;djghXZcVg^dhhijY^ZY[dgi]Z'%(%]dg^odc# (% RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Foya Town Voinjama '6 Zorzor Yekepa Ganta Bo Mano Tubmanburg Gbarnga Saclepea Bong Mine Robertsport SP1 Totota Kle Madina Bogota Virginia Kakata Tappita Kru Town Stockton Town Capitol Congo Town RIA HX]Z[Ä^Zc Zwedru Buchannan 66kV Buchannan 225kV SH_Cestos River Cess Greenville Barclayville Pleebo Foya Town Voinjama '7 SH Connection SH Substation Yekepa Ganta Bo Mano Tubmanburg Gbarnga Saclepea SP1 Bong Mine Robertsport Kle Madina Bogota Virginia Kakata Tappita Electric System Kru Town Stockton Town Capitol HV Substation Congo Town RIA HX]Z[Ä^Zc Zwedru Generation Plants (kV) Buchannan 66kV Buchannan 225kV '' 33 66 ''* :aZXig^ÃZYEd^cih Proposed MV Grid (Technology) On-Grid Settlements Generation Plants Large Isolated Grid (Connected to National Biomass Micro-System or Large Isolated Grids) Micro-Hydro Hydro Plants Solar Villages 7^dbVhh$9^ZhZa=nWg^Y HdaVg$9>ZhZaHnhiZb ;^\jgZ(#'·;djghXZcVg^dhhijY^ZY[dgi]Z'%(%]dg^odc# (& (' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 (#'RURAL ELECTRIFICATION ACCESS TARGETS AND MAP In line with the Sustainable Energy 4 All initiative and the Sustainable Development Goals, Liberia aims to achieve the following in terms of rural electricity access: • :aZXig^ÃXVi^dcgViZ[dgi]ZedejaVi^dcdjih^YZd[Bdcgdk^Vd[&%^c'%'%!'%^c'%'*VcY(*^c'%(%# LZ^ciZcYidZaZXig^[ndjih^YZd[Bdcgdk^VbdgZi]Vc+*%%%XjhidbZghVagZVYnWn'%'%!&)%%%%Wn'%'* VcY'+*%%%Wn'%(*0 • Electrify at least 2 000 settlements with grid infra-structure (national, decentralized or mini grids) connecting at least 50% of those settlement’s population by 2030; • 6aa8djcinXVe^iVahl^aaWZVagZVYnZaZXig^ÃZYWZ[dgZ'%'*#:aZXig^ÃXVi^dcd[8djcin8Ve^iVahZ^i]Zgi]gdj\] i]ZCVi^dcVa<g^Y!9ZXZcigVa^oZY<g^YhdgIgVch^i^dcVaB^c^"<g^Yhl^aaWZVeg^dg^ind[i]Z<dkZgcbZci# • 6aa=ZVai][VX^a^i^ZhVcYHZXdcYVgnhX]ddahZaZXig^ÃZYVagZVYnWZ[dgZ'%'*# We intend to bring electricity id Vaa ]ZVai] [VX^a^i^Zh VcY Vaa hZXdcYVgn hX]ddah ^c A^WZg^V Z^i]Zg i]gdj\] \g^Y"WVhZY ZaZXig^ÃXVi^dc dgi]gdj\]&%%hdaVgWVhZY^cY^k^YjVahdaji^dch#AZkZgV\^c\Zc]VcXZYZcZg\nVXXZhh[dg^begdkZbZcih in education, health and economic development; • &% aVg\Zhi hZiiaZbZcih ^c ZkZgn 8djcin l^aa WZ ZaZXig^ÃZY VcY cd 8djcin l^aa ]VkZ aZhh i]Vc &* ZaZXig^ÃXVi^dcgViZWn'%(%# We intend to take electricity to the largest settlements across the country guaranteeing equity between Counties; • Establish a credit/subsidy mechanism for connection of poor and woman-led households through REFUND and promote active participation of women in the jobs that will be created for electrifying the country. Energy access has to be inclusive offering opportunities for women and poorer settlements. 33 GjgVa :aZXig^ÃXVi^dc bVe# The following map in Figure 3.3 shows the future map of the power sector ^c[gV"higjXijgZh ^[ i]Z iVg\Zih VgZ bZi VcY Vaa egd_ZXih d[ i]Z BVhiZg EaVc VgZ ^beaZbZciZY Wn '%(%# I]ZCVi^dcVa<g^Yl^aaWZXdbeaZbZciZYWnAVg\Z9ZXZcigVa^oZY<g^Yh^cAd[V!i]ZHdji]ZVhi8djci^ZhVcY <gVcY<ZYZ]i]Vil^aaZmiZcY[gdbi]Zdc"\d^c\HG:EVcY8gdhh7dgYZg^c^i^Vi^kZh#Bjai^eaZHdaVg$9^ZhZaAdl KdaiV\Z IgVch^i^dcVa b^c^"\g^Yh l^aa ZcVWaZ i]Z ZaZXig^ÃXVi^dc d[ i]Z &% aVg\Zhi hZiiaZbZcih ^c ZVX] 8djcin in anticipation of the National Grid. Electric System HV Substation Existing Power Lines (kV) '' 33 66 Projected Power Lines (kV) Yekepa 33 Ganta 66 Mano Gbarnga ''* Tubmanburg Saclepea Kle SP1 Bong Mine Rural Power Lines (kV) Bogota Mt. Coffee Kakata '' 33 Kru Town Virginia Paynesville Capitol RIA 66 Congo Town HX]Z[Ä^Zc Buchannan 66kV Buchannan 225kV Generation Plants (Connected to National or Large Isolated Grids) Hydro Plants 7^dbVhh$9^ZhZa=nWg^Y :aZXig^ÃZYEd^cih (Technology) On-Grid Settlements Large Isolated Grid Biomass Micro-System Micro-Hydro Solar Villages HdaVg$9>ZhZaHnhiZb ;^\jgZ(#(·BVed[i]ZA^WZg^V¼hEdlZgHnhiZb^c'%(%# 34 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Combining grid extension with decentralized grids to electrify 1.3M people. The National Grid will develop bdhian^ci]Z<gdli]8dgg^YdgVgZVl]ZgZi]ZbV_dg^ind[i]ZedejaVi^dcVgZXdcXZcigViZYi]jhZaZXig^[n^c\ ++ d[ Vaa gjgVa XdchjbZgh# I]Z aVg\Z YZXZcigVa^oZY \g^Yh l^aa gZegZhZci ', d[ i]Z XdchjbZgh l^i] *[dgb^c^"\g^Yh#>cY^k^YjVad[["\g^Yhdaji^dchl^aadcanWg^c\ZaZXig^X^inid&-.%%eZdeaZVgdjcY&#(( l^aaWZhZgkZYWnYZXZcigVa^oZY\g^Yh^cZmXZhhd[i]Z'*iVg\ZiZhiVWa^h]ZYjcYZgGZcZlVWaZ:cZg\nEda^Xn d[:8DL6H#I]ZcjbWZgd[eZdeaZZaZXig^ÃZYeZgineZd[iZX]cdad\n^c'%(%^hh]dlc^cFigure 3.4. &!+%%#%% &!)%%#%% 18.9 1338.9 71.3 358.6 1% &!'%%#%% Thousand People &!%%%#%% 890.1 -%%#% +%%% )%%#% '%%#% % National Grid 9ZXZcigVa^oZY<g^Y Mini-Grid Individual Off-Grid Total ;^\jgZ(#)·CjbWZgd[eZdeaZeZgineZd[iZX]cdad\n^c'%(%·cVi^dcl^YZkVajZh# 35 B^c^bjbgjgVaZaZXig^ÃXVi^dcgViZeZg8djcind[&*#GjgVaZaZXig^ÃXVi^dcgViZl^aakVgneZg8djcinVXXdgY^c\ to the level of concentration of population and the proximity to the existing grid infra-structure, as depicted in Figure 3.5. CZkZgi]ZaZhh! YZXZcigVa^oZY \g^Yh Vaadl [dg V bdgZ Zfj^iVWaZ ZaZXig^ÃXVi^dc l^i] cd 8djcin ]Vk^c\aZhhi]Vc&*d[^ihedejaVi^dcZaZXig^ÃZYWn'%(%# +% 53% 50% 50% 46% *% )% 35% 33% 31% 31% 29% 28% (% 24% 21% 20% 19% '% 15% &% % an d o ad bi ba de h ssa fa m i Ge e ng Kr u nt no e po u ss gi N Lo Bo Bo ou l ce yl rr ar im Ge Ba ve nd M Si ar er ar ts M d r Gb Ri M e an d an Ri Gr pe v M a Ca on Gr Gr an d Gr ;^\jgZ(#*·GjgVaZaZXig^ÃXVi^dcgViZeZg8djcin^c'%(%# 36 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 3.3 RENEWABLE ENERGY TARGETS AND ENERGY MIX In line with the ECOWAS Regional Renewable Energy Policy, the Sustainable Energy for All initiative and the Sustainable Development Goals, Liberia aims to achieve the following in terms of renewable electricity to be installed outside Monrovia: • Total share of renewable electricity in the electricity mix from renewable energies excluding large hydro (mini-hydro, solar and biomass) of 10% in 2020 and 19% in 2030.>ca^cZl^i]i]ZiVg\Zid[&%^c'%'%VcY &.^c'%(%ZhiVWa^h]ZYjcYZg:8DL6HGZ\^dcVaGZcZlVWaZ:cZg\nEda^Xn0 • Total share of renewable electricity (including large hydro) in the electricity mix in excess of 45% by 2020 and 75% by 2030.8dch^YZg^c\i]ZcZliVg\Zid[&%VcY&.[dggZcZlVWaZhl^i]djiaVg\Z]nYgdeajh i]ZeaVccZY'%%BLaVg\Z]nYgdYZkZadebZcihd[Bdjci8d[[ZZ!Hi#EVjaVcYK>6gZhZgkd^g#>cZmXZhhd[i]Z 48% regional target; • Develop a Renewable Atlas and Strategy for Liberia, including a more detailed and comprehensive hydro potential assessment. In order to select the most adequate locations and renewable energy mix for the \dVad[&%VcY&.^cXdgedgVi^dc0 • Installation of at least 150 MW of renewable generation - excluding large hydro - by 2030 and 45 MW already by 2020.IVg\ZiXVeVX^inZhi^bViZYVXXdgY^c\idiZciVi^kZgZcZlVWaZb^mVcYi]Z\dVad[&%VcY &.^cXdgedgVi^dc0 • On the National Grid: More than 25 MW until 2020 and 100 MW until 2030; • Outside the National Grid: More than 20 MW until 2020 and 50 MW until 2030. • On Solar Energy: At least 20 MW on the National Grid by 2020 and 60 MW by 2030. 6iaZVhi&*d[idiVa Zhi^bViZYeZV`adVYXVcWZ^beaZbZciZYl^i]djih^\c^ÃXVci^beVXidci]ZhnhiZbVcYcdgZfj^gZbZci for storage – being already competitive with HFO; • On Biomass: At least one 5 MW biomass power plant on the National Grid already by 2020. In large YZXZcigVa^oZY\g^Yhid^chiVaaVhbjX]Y^ZhZaXVeVX^inVhW^dbVhh\Vh^ÃZgh^cdgYZgidb^c^b^oZY^ZhZa generation.7^dbVhhZcZg\nh]djaYWZYZkZadeZY^cVgZVhVcY^cVlVnl^i]djih^\c^ÃXVciXdbeZi^i^dcl^i] biomass for charcoal; • Jc^kZghVaVXXZhhidV[[dgYVWaZhdaVggZcZlVWaZaVbehidVaacdc"ZaZXig^ÃZYedejaVi^dcl^i]i]ZiVg\Zi of 250.000 solar renewable lamps sold in Liberia by 2030. (, Renewable share. Figure 3.6 shows the estimated evolution of electricity consumption in all of Liberia (both Monrovia and rural) that results from combining the Least Cost Power Development Plan (LCPDP) with the Rural Energy Master Plan. The large hydro generation results from the proposed development plan d[i]ZA8E9El]^X]Xdch^YZghi]Z^beaZbZciVi^dcWZ[dgZ'%(%d[Bdjci8d[[ZZ!K>6gZhZgkd^gVcYHi#EVja ]nYgdhX]ZbZh^cVidiVad['%%BLVcY&(+.<L]\ZcZgVi^dceZgnZVg#I]Zdi]ZggZcZlVWaZhHdaVg!7^dbVhh and Mini-hydro) result from the Rural Energy Master Plan and the targets set above. Estimated generation Wn =;D$9^ZhZa VcY ^bedgih l^aa YZeZcY dc VkV^aVWaZ gZ\^dcVa deedgijc^i^Zh# 7ZilZZc '%'% VcY '%'* Vh^\c^ÃXVci\gdli]^ccdc"gZcZlVWaZ\ZcZgVi^dcl^aaWZgZfj^gZYVhi]ZHi#EVja]nYgdhX]ZbZl^i]&'%BL ^hdcanZmeZXiZYidXdbbZcXZYZa^kZgnV[iZg'%'*# '!*%%#%% 2,298 14% '!%%%#% 7% 1,715 19% Energy (GWh) 18% &!*%%% 1,173 35% &!%%%#% 26% 28% 16% 60% *%%#% 10% 113 31% 36% 100% %#% '%&* '%'% '%'* '%(% Large Hydro Non-Renewable Other Renewable Imports ;^\jgZ(#+·:aZXig^X^inhjeeanb^m[dgA^WZg^VBdcgdk^VVcYGjgVajci^a'%(%# 38 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Flexibility for project location in the National Grid. Rural Energy Master Plan targets the installation d[ V idiVa d[ &*% BL d[ gZcZlVWaZ WVhZY \ZcZgVi^dc jci^a '%(%! Vh h]dlc ^c Figure 3.7. Dc 9ZXZcigVa^oZY <g^Yh i]Z adXVi^dch [dg egd_ZXi ^chiVaaVi^dc ]VkZ VagZVYn WZZc hZaZXiZY! hjW_ZXi id bdgZ YZiV^aZY [ZVh^W^a^in studies. On the National Grid the possibilities are innumerous for the location of solar, biomass dgb^c^"]nYgdedlZgeaVcihVcYZkZcY^[[ZgZciXdbW^cVi^dchidVX]^ZkZi]Z&%VcY&.iVg\ZihVgZedhh^WaZ# I]Z GjgVa :cZg\n BVhiZg EaVc egdedhZh V iZciVi^kZ Y^hig^Wji^dc l^i]dji ^YZci^[n^c\ XdcXgZiZ egd_ZXih dg adXVi^dch# 6 XdbegZ]Zch^kZ gZcZlVWaZ ViaVh VcY higViZ\n iV`^c\ ^cid Xdch^YZgVi^dc i]Z aZkZa^oZY Xdhi of electricity of the different options, the technical feasibility and the capacity of the grid to absorb such egd_ZXihh]djaYWZXdbeaZiZYVcYViZcYZg^c\AZ\^haVi^kZ!GZ\jaVidgnVcY6Yb^c^higVi^kZ[gVbZldg`YZÃcZY# &,*#% 3.5 153.8 11.4 &*%#% 10.3 38.0 0.1 0.9 Renewable Installed Capacity in RESMP 2.2 15.5 &'*#% 76.0 20.3 101.0 &%%#% ,*#% 60.0 25.6 *%#% 10.0 52.2 '*#% 31.0 % National Grid 9ZXZcigVa^oZY<g^Y Mini-Grid Off-Grid Total B^Xgd$HbVaa=nYgd Biomass Solar ;^\jgZ(#,·8VeVX^inidWZ^chiVaaZYjci^a'%(%WnineZd[gZcZlVWaZZmXajY^c\aVg\Z]nYgd# 39 )% RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 3.4 ENERGY EFFICIENCY AND COOKING FUELS TARGETS Other than power. Rural Energy is not only about consumption of electricity. It is also about the electricity one does not consume because it makes better options on usage and appliances and also about the thermal energy used for cooking or water heating. In line with the Sustainable Energy 4 All initiative, the Sustainable Development Goals and ECOWAS Regional Renewable Energy Policy which establishes clear targets also for cooking fuels, Liberia aims to achieve the [daadl^c\^ciZgbhd[ZcZg\nZ[ÃX^ZcXnVcYXdd`^c\[jZah/ • Universal use of pre-paid meters from 2020 onwards and availability of 1 Amp social tariff to make electricity affordable to the Poor and less wealthy. Universal access means also affordability which depends not only on the price of electricity but also on the ability to pay and control your consumption. ;^mZYiVg^[[hl^i]djiVkVg^VWaZX]Vg\ZYdcdiegdbdiZZcZg\nZ[ÃX^ZcXnVcY\ddYjhZd[gZhdjgXZh0 • Total energy losses on rural electricity below 12% by 2030. Current levels of losses reported by LEC are h^\c^ÃXVcil^i]gZaZkVci^beVXidci]ZZXdcdb^Xhd[i]ZedlZghZXidgVcYdc^ckZhibZci#GZYjX^c\edlZg sector losses also outside of Monrovia will be a key priority; • Jc^kZghVa VXXZhh id Z[ÃX^Zci a^\]ih! IKh! gZ[g^\ZgVidgh VcY [gZZoZgh Vi V[[dgYVWaZ eg^XZh# Electricity V[[dgYVW^a^in ^h cdi dcan VWdji ZaZXig^X^in eg^XZ# >[ Veea^VcXZh VgZ ^cZ[ÃX^Zci i]Z gjcc^c\ Xdhi XVc WZ h^\c^ÃXVcian]^\]ZgVcYi]ZdkZgVaaYZbVcYl^aaWZjccZXZhhVg^an]^\]#EZdeaZiZcYidbV`ZYZX^h^dchdc initial price and available budget – not considering many times the total cost; • Solar Water Heating suppliers and installers available in every County Capital. Availability of services and Zfj^ebZci[dgHdaVgLViZg=ZVi^c\^hV`ZnÃghihiZe[dg^ihVYdei^dcVh]^\]eg^XZhd[ZaZXig^X^inbV`ZhjX] technology already least cost; • Cooking gas available in all County Capitals and gas stations at affordable prices with at least one reception and storage facility in Liberia. >cXZci^k^o^c\ Xdd`^c\ \Vh ^h i]Z bdhi Z[[ZXi^kZ lVn id gZYjXZ charcoal consumption and reduce the pressure on deforestation; • Jc^kZghVaVXXZhhidV[[dgYVWaZVcYZ[ÃX^ZciadXVaanbVcj[VXijgZYXdd`hidkZhl^i]i]ZiVg\Zid['*%#%%% Z[ÃX^Zci Xdd` hidkZh hdaY jci^a '%(%# :[ÃX^Zci Xdd` hidkZh VgZ VagZVYn WZ^c\ bVcj[VXijgZY ^c A^WZg^V# Increased adoption should be promoted; • >cXgZVhZi]Zh]VgZd[Z[ÃX^ZciX]VgXdVaegdYjXi^dcid+%Wn'%'%VcY&%%Wn'%(%# In line with ECOWAS Renewable Energy Policy goals. )& 4 RURAL ENERGY INVESTMENT AND ACTION PLAN RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 )#&RURAL ENERGY PROGRAM STRUCTURE * Egd\gVbh [dg gjgVa ZaZXig^ÃXVi^dc d[ A^WZg^V# I]Z BVhiZg EaVc ^h dg\Vc^oZY jcYZg * bV^c egd\gVbh! hjW"Y^k^YZY ^cid '& ^c^i^Vi^kZh l]^X] VgZ i]Zc XdbedhZY d[ .' XdcXgZiZ egd_ZXih VcY ^ckZhibZcih! h]dlc in Figure 4.1: GTG: Growing the National Grid Program. The Program includes all rural energy investments related with the CVi^dcVa<g^Y!Z^i]Zg9^hig^Wji^dc!=^\]KdaiV\ZigVchb^hh^dc3+%`KdgGZcZlVWaZ\ZcZgVi^dc#>i^hXdbedhZY d[)^c^i^Vi^kZhVcY&*egd_ZXih# DG: Decentralized Grids Program.I]ZEgd\gVb^cXajYZhVaa¹\g^YWVhZYºgjgVaZaZXig^ÃXVi^dc^ckZhibZcih ^cVgZVhidWZXdccZXiZYidi]ZcVi^dcVa\g^YdcanV[iZg'%(%!hjX]VhAVg\Z9ZXZcigVa^oZY<g^Yh!HdaVg$9^ZhZa igVch^i^dcVab^c^"\g^YhVcY\ZcZgVi^dcidhjeeani]dhZ\g^Yh#>i^hXdbedhZYd[)^c^i^Vi^kZhVcY')Egd_ZXih# BTG: Beyond the Grid Program. I]ZEgd\gVb^hYZY^XViZYidZaZXig^ÃXVi^dcWVhZYdchiVcY"VadcZ^cY^k^YjVa hdaji^dch·bdhiandjih^YZd[i]Z[jijgZcVi^dcVa\g^Y#>i^cXajYZhi]ZZaZXig^ÃXVi^dcd[Xdbbjc^inhZgk^XZhVcY ejWa^XWj^aY^c\hl]ZgZi]Z\g^Y^hcdiZmeZXiZYWZ[dgZ'%'*!i]ZZaZXig^ÃXVi^dcd[[jijgZd[["\g^Yk^aaV\ZhWVhZY on Solar Home Systems and the supply and incentive to individual solar lamps. It is composed of 3 initiatives VcY.egd_ZXih# OTP: Other than Power Program. I]ZEgd\gVb^hYZY^XViZYidZcZg\nZ[ÃX^ZcXnVcYVXXZhhiddi]ZghdjgXZh d[ZcZg\n[dgXdd`^c\dg]ZVi^c\#>i^hXdbedhZYd[)^c^i^Vi^kZhVcY&'egd_ZXih# BC: Building Capacity Program. The Program is dedicated to creating the capacity, the institutional framework, i]Zdg\Vc^oVi^dc!i]Z^c[dgbVi^dchnhiZbhVcY]jbVcgZhdjgXZhid^beaZbZcii]ZBVhiZgEaVc#>i^hXdbedhZY d[+^c^i^Vi^kZhVcY('egd_ZXih# 43 National Grid 4 initiatives extension • &*Egd_ZXih I. GTG Growing the National Grid HdaVg$9^ZhZaigVch^i^dcVa 4 initiatives b^c^"\g^Yh!YZXZcigVa^oZY grids and renewable energy • ')Egd_ZXih II. DG 9ZXZcigVa^oZY Grids Small scale off-grid initiatives 3 initiatives in non-grid and rural areas • .Egd_ZXih III. BTG Beyond the Grid AE<VcYZ[ÃX^ZciXdd`hidkZ 4 initiatives :cZg\n:[ÃX^ZcXn • &'Egd_ZXih IV. OTP Other than Power Building capacity and systems 6 initiatives for implementation and operation • ('Egd_ZXih V. BC Building Capacity ;^\jgZ)#&·Djia^cZd[i]Z*GjgVa:cZg\nBVhiZgEaVcEgd\gVbh# 44 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 45 )#'PROGRAM CALENDAR A 3 Phase Approach. The Program is structured in 3 main phases, as presented in Figure 4.2: • E]VhZ & · ;gdb cdl jci^a '%'% l^i] V higdc\ Zbe]Vh^h dc i]Z hZije d[ i]Z gjgVa ZcZg\n bVhiZg eaVc VcYi]Z^beaZbZciVi^dcd[dc\d^c\$eaVccZYegd_ZXih0 • E]VhZ'·;gdb'%'%id'%'*!l^i]VXXZaZgVi^dcVcYgdaadjid[i]ZbV^c^c^i^Vi^kZh0 • E]VhZ(·;gdb'%'*id'%(%!i]ZXdchda^YVi^dce]VhZl]ZcbdhieZdeaZl^aaWZZaZXig^ÃZY# The following maps show the rural energy sector infra-structures already deployed at the end of each phase: E]VhZ& Electric System HV Substation Yekepa Existing Power Lines (kV) '' Mano 33 66 Kle Mt. Coffee Kakata Projected Power Lines (kV) Virginia Bushrod Island Stockton Town Gardnerville 33 Kru Town Paynesville Capitol RIA 66 Congo Town HX]Z[Ä^Zc ''* Buchannan 225kV 2030 Rural Master Plan (kV) '' 33 :aZXig^ÃZYEd^cih 66 (Technology) On-Grid Settlements Generation Plants Large Isolated Grid (Connected to National Biomass Micro-System or Large Isolated Grids) Micro-Hydro Hydro Plants Solar Villages 7^dbVhh$9^ZhZa=nWg^Y HdaVg$9>ZhZaHnhiZb ;^\jgZ)#'·:kdaji^dcd[A^WZg^V¼hEdlZgHnhiZb·E]VhZh&!'VcY( 46 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 E]VhZ' Yekepa Ganta Mano Gbarnga Tubmanburg Kle Bogota Mt. Coffee Kakata Virginia Bushrod Island Stockton Town Gardnerville Kru Town Paynesville Capitol RIA Congo Town HX]Z[Ä^Zc Buchannan 225kV Phase 3 Electric System HV Substation Yekepa Existing Power Lines (kV) Ganta '' Mano Gbarnga 33 Tubmanburg Saclepea 66 SP1 Bong Mine Kle Bogota Mt. Coffee Kakata Projected Power Lines (kV) Virginia Bushrod Island Stockton Town Gardnerville 33 Kru Town Paynesville 66 Capitol RIA Congo Town HX]Z[Ä^Zc ''* Buchannan 66kV Buchannan 225kV 2030 Rural Master Plan (kV) '' 33 :aZXig^ÃZYEd^cih 66 (Technology) On-Grid Settlements Generation Plants Large Isolated Grid (Connected to National Biomass Micro-System or Large Isolated Grids) Micro-Hydro Hydro Plants Solar Villages 7^dbVhh$9^ZhZa=nWg^Y HdaVg$9>ZhZaHnhiZb ;^\jgZ)#'·:kdaji^dcd[A^WZg^V¼hEdlZgHnhiZb·E]VhZh&!'VcY( ), 48 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 4.3 GROWING THE NATIONAL GRID I. GTG Growing the National Grid GTG – Growing the National Grid Program: I]Z<I<Egd\gVbgZegZhZcihVidiVa^ckZhibZcid[JH9**%B VcYl^aaZcVWaZi]ZZaZXig^ÃXVi^dcd[&+)%%%]dbZhVcY-(%i]djhVcYeZdeaZVcYi]ZVYY^i^dcd[&%%BL of renewable based generation to the National Grid. The GTG Program investment will occur mostly in Phase 'VcY(l]ZgZbdhiXa^Zcihl^aaWZXdccZXiZY#8jggZcian!ZmXZei[dg\ZcZgVi^dc!bdhid[E]VhZ&^h[jcYZY l^i] idiVa hZXjgZY [jcY^c\ Zhi^bViZY id WZ JH9 **B ^c hZkZgVa dc"\d^c\ egd_ZXih! cdiVWan 8AH< gZaViZY ZaZXig^ÃXVi^dcVcY\g^YZmiZch^dcVgdjcYBdcgdk^V# The GTG Program is composed of four main initiatives: <I<#&·Bdcgdk^VXdgg^YdghZaZXig^ÃXVi^dc^c^i^Vi^kZ#I]ZdW_ZXi^kZd[i]^h>c^i^Vi^kZ^hidegdbdiZi]ZZmiZch^dc d[Bdcgdk^V¼hZm^hi^c\cZildg`idi]ZLZhi!Cdgi]VcY:Vhid[i]Z8Ve^iVa#H^megd_ZXihVgZidWZ^beaZbZciZY gZ\VgY^c\i]ZigVchb^hh^dccZildg`VcYbV_dgX^i^ZhZaZXig^ÃXVi^dc!VhlZaaVhgjgVaY^hig^Wji^dc!^ci]Zi]gZZ mentioned regions. <I<#'·<WVgc\VXdgg^YdghZaZXig^ÃXVi^dc^c^i^Vi^kZ#I]ZdW_ZXi^kZd[i]^h>c^i^Vi^kZ^hidegdbdiZi]ZZmiZch^dc of the national network from the future substation of Gbarnga, which due to its location presents a strategic point for the future grid expansion. It is located near a proposed future switching station of the CLSG and can Vaadli]ZZmiZch^dcd[i]Z\g^Yidhjeedgii]ZYZch^ÃXVi^dcd[Y^hig^Wji^dc^cC^bWV8djcinVcY!^ci]Zadc\ iZgb!i]Z^ciZgXdccZXi^dcd[i]ZAd[VVcYOlZYgj9ZXZcigVa^oZY\g^Yhidi]ZCVi^dcVa<g^Y# <I<#(·8AH<ZaZXig^ÃXVi^dc^c^i^Vi^kZ#I]ZdW_ZXi^kZd[i]^h>c^i^Vi^kZ^hidegdbdiZi]ZZmiZch^dcd[i]ZcVi^dcVa network from the future substations of the CLSG system, and from the power line itself, since it is planned [dg^iidWZegZeVgZY[dgY^hig^Wji^dci]gdj\]^ihh]^ZaYl^gZh#;djgegd_ZXihVgZidWZ^beaZbZciZY!bV^can regarding client connection and rural grid extension in the counties of Nimba, Bong, Grand Bassa and Grand Cape Mount. GTG.4 – On-Grid Renewable IPP.I]ZdW_ZXi^kZd[i]^h>c^i^Vi^kZ^hidaVjcX]i]ZegdXjgZbZcid[gZcZlVWaZ on-grid generation based on solar, biomass or mini-hydro. Table 4.1hjbbVg^oZhi]Z^ckZhibZcihVcY^beVXieZg^c^i^Vi^kZVcYi]ZZhi^bViZYaZkZad[VagZVYnhZXjgZY funding. A map outlining the geo-location of the investments of the GTG Program is presented in Figure 4.3. 49 Electric System HV Substation Existing Power Lines (kV) '' 33 66 Projected Power Lines (kV) 33 66 ''* 2030 Rural Master Plan (kV) '' :aZXig^ÃZYEd^cih 33 (Technology) 66 On-Grid Settlements Large Isolated Grid Generation Plants Biomass Micro-System (Connected to National Micro-Hydro or Large Isolated Grids) Solar Villages Hydro Plants HdaVg$9>ZhZaHnhiZb 7^dbVhh$9^ZhZa=nWg^Y 88B8HdaVg$9>ZhZaHnhiZbh ;^\jgZ)#)·9ZXZcigVa^oZY<g^YhEgd\gVb>c[gVhigjXijgZ Impact Investments per phase (MUSD) Estimated funding committed (MUSD) Number Committed of People Phase 1 Phase 2 Phase 3 funding (Thousands) MW Phase 1 Phase 2 Phase 3 Total Committed Committed Committed (estimate) III. BTG - BEYOND THE GRID PROGRAM 18.93 .5 8.14 .7 3.2 16.00 .0 0.00 .0 0.0 7I<#& Solar Villages & Home Systems &-#.' #' 3.)' #& %#96 .5 %#%% #% %#%% #% 7I<#' Solar Community Services %#%& .3 '#-% #, %#54 #% %#%% #% %#%% #% BTG.3 Solar Portable Lamps %#%% #% &#-& .8 &#85 .5 %#%% #% %#%% #% Table 4.3 - Investments and impact of the GTG initiatives *% RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 4.4 9:8:CIG6A>O:9 GRIDS II. DG 9ZXZcigVa^oZY Grids DG - Decentralized grids program: I]Z 9< Egd\gVb gZegZhZcih V idiVa ^ckZhibZci d[ JH9 '.'B VcY l^aa ZcVWaZi]ZZaZXig^ÃXVi^dcd[.+-%%]dbZhVcY)-.i]djhVcYeZdeaZVcYi]ZVYY^i^dcd[*(BLd[YZXZcigVa^oZY gZcZlVWaZ \ZcZgVi^dc# I]Z 9< Egd\gVb ^ckZhibZci ^h bdgZ XdcXZcigViZY ^c i]Z Ãghi e]VhZ YjZ id i]Z HdaVg$9^ZhZaigVch^i^dcVa\g^Yhl]^X]ZcVWaZi]Zh]dgiiZgbZaZXig^ÃXVi^dcd[hZkZgVa8djcin8Ve^iVahVcYaVg\Z X^i^Zh#8jggZcian!JH9+%BVgZZhi^bViZYidWZ[jcYZY·bdhianYZY^XViZYid]nYgd"l^i]hZkZgVaegd_ZXih dc"\d^c\#I]Z^ckZhibZcihVcY^beVXih[dgi]Z9<egd\gVbVgZegZhZciZY^cIVWaZ)#'IVWaZ)#&!VcYVbVe of the DG Program infrastructure is presented in Figure 4.4. Decentralized Grids Program is composed of main initiatives: • DG.1 – Diesel/Solar transitional mini-grids initiative. I]Z dW_ZXi^kZ d[ i]^h >c^i^Vi^kZ ^h id egdbdiZ i]Z Vci^X^eVi^dcd[ZaZXig^ÃXVi^dc^chZkZgVaaVg\ZVcYbZY^jbh^oZYhZiiaZbZcih!adXViZY^cVgZVhl]ZgZi]Z \g^YXdkZgV\Z^hcdiZmeZXiZY^ci]Zh]dgiVcYbZY^jbiZgb#>cidiVa[djgbV^cegd_ZXihVgZidWZZmZXjiZY ^c Vaa gZ\^dch d[ i]Z Xdjcign# I]ZhZ egd_ZXih l^aa Xdch^hi ^c i]Z ^beaZbZciVi^dc d[ hdaVg$Y^ZhZa ]nWg^Y hnhiZbhVcYi]ZZaZXig^ÃXVi^dcd[i]Zidlc¼hgZh^YZci^VaVcYhZgk^XZhXa^Zcih#I]ZY^hig^Wji^dc\g^YhVgZ to remain in operation when grid coverage is available; • DG.2 – Decentralized grids and cross border consolidation initiative. I]Z dW_ZXi^kZ d[ i]^h >c^i^Vi^kZ is to promote the consolidation and extension of the Cross Border grids connected to Cote d’Ivoire, and i]ZXgZVi^dcd[AVg\Z9ZXZcigVa^oZY<g^Yhi]Vil^aa]VkZhdbZZmiZci!Vai]dj\]cdiWZ^c\XdccZXiZYidi]Z cVi^dcVahnhiZb#>cidiVa!Z^\]iegd_ZXiZYVgZidWZ^beaZbZciZY^cGZ\^dch&!'VcY)0 • DG.3 – Generation for decentralized grid initiatives. This Initiative relates with the construction d[ \ZcZgVi^dc egd_ZXih [dg ZcZg\n hjeean id i]Z egZk^djhan bZci^dcZY 9ZXZcigVa^oZY <g^Yh# >c idiVa! i]^h ^c^i^Vi^kZ ^h XdbedhZY Wn hZkZc bV^c \ZcZgVi^dc egd_ZXih id WZ ^beaZbZciZY ^c Y^[[ZgZci eVgih d[ i]Z country; • DG.4 - Micro Systems. Biomass and micro-hydro generation. This Initiative relates with the implementation of micro-generation systems in several communities using hydro and biomass resources, as well as i]ZZaZXig^ÃXVi^dcd[i]dhZXdbbjc^i^Zh#I]^h^c^i^Vi^kZ^hXdbedhZYWnÃkZegd_ZXihidWZ^beaZbZciZY in Gbarpolu, Grand Cape Mount, Lofa, Nimba, River Cess and River Gee counties. *& Electric System HV Substation Existing Power Lines (kV) '' 33 66 Ganta Projected Power Lines (kV) Tubmanburg Gbarnga Saclepea 33 Bong Mine 66 Kle Bogota ''* Kakata Virginia HX]Z[Ä^Zc RIA 2030 Rural Master Plan (kV) '' 33 :aZXig^ÃZYEd^cih Buchannan 66kV 66 (Technology) On-Grid Settlements Generation Plants Large Isolated Grid (Connected to National Biomass Micro-System or Large Isolated Grids) Micro-Hydro Hydro Plants Solar Villages 7^dbVhh$9^ZhZa=nWg^Y HdaVg$9>ZhZaHnhiZb Figure 4.3 – Growing the Grid Program Infrastructure Impact Investments per phase (MUSD) Estimated funding committed (MUSD) Number Committed of People Phase Phase Phase Phase 1 Phase 2 Phase 3 funding (Thousands) MW 1 2 3 Total Committed Committed Committed (estimate) I. GTG - GROWING THE GRID PROGRAM 831 100 102 220 230 551 55 26 08 1 <I<#& Monrovia Corridors Electrification (.& %) 85 85 & &*, ), &+ %+ 3 <I<#' Gbarnga Corridors Electrification '&' %% (& 68 &%% %% %% GTG.3 CLSG Electrification ''- %, '* '& *' -& %% &- GTG.4 Renewable On-Grid Generation % &%% ), &%* .% ')' %% %% IVWaZ)#&">ckZhibZcihVcY^beVXid[i]Z<I<^c^i^Vi^kZh *' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 4.5 BEYOND THE GRID III. BTG Beyond the Grid BTG - Beyond the Grid Program: I]Z 7I< Egd\gVb gZegZhZcih V idiVa ^ckZhibZci d[ JH9 &+B VcY l^aa ZcVWaZ i]Z ZaZXig^ÃXVi^dc d[ ( +%% ]dbZh VcY &. %%% eZdeaZ VcY i]Z VYY^i^dc d[ '#' BL d[ YZXZcigVa^oZY gZcZlVWaZ \ZcZgVi^dc# I]Z 7I< Egd\gVb ^ckZhibZci ^h bdhian YZY^XViZY id i]Z Ãghi e]VhZ l]ZgZ bdhi d[i]ZZaZXig^ÃXVi^dcd[]ZVai]Xa^c^XhVgdjcYi]ZXdjcignl^aadXXjg#8jggZciancd[jcY^c\^hXdbb^iiZYidVcn d[i]Z.Egd_ZXihd[i]ZEgd\gVb#I]Z^ckZhibZcihVcY^beVXih[dgi]Z9<egd\gVbVgZegZhZciZY^cTable 4.3, and a map of the DG Program infrastructure is presented in Figure 4.5. Beyond the Grid Program has three main initiatives: • BTG.1 – Solar Villages & Home Systems initiative. This initiative is associated with the creation of solar k^aaV\Zhi]gdj\]djii]Z8djcign#I]ZhZhnhiZbhVgZ^ciZcYZY[dgXdbbjc^i^Zhi]Vi!YjZid^ihhbVaah^oZ (and consequently reduced consumption levels) and high distance to electric grids, are not viable for grid XdccZXi^dc^ci]Zadc\iZgb#Jci^a'%(%!ÃkZXdbbjc^i^Zh^cZVX]8djcinl^aaWZXdccZXiZYl^i]i]ZhZ hnhiZbh!idiVa^c\,*hdaVghnhiZbhcVi^dcl^YZ# • BTG.2 – Solar Community Services initiative. This initiative consist in implementing solar systems ^ccdc"ZaZXig^ÃZY^bedgiVciXdbbjc^inhZgk^XZh!gZaViZYl^i]=ZVai]!HZXjg^inVcY:YjXVi^dc·=dhe^iVah! health centers and clinics, police stations and courthouses and secondary schools. This initiative ^hXdbedhZYWni]gZZegd_ZXih!e]VhZYi]gdj\]i]ZnZVgh#>ci]ZÃghie]VhZ!Vaa]ZVai][VX^a^i^Zhl^aaWZcZÃi! VcYi]ZVci^X^eVi^dcd[VaahZgk^XZhi]Vil^aaWZZaZXig^ÃZYdcanWZilZZc'%'*VcY'%(%Wni]ZcVi^dcVa\g^Y will also be implemented. In the second phase and third phase solar community services will gradually WZ^beaZbZciZY^c[VX^a^i^Zhi]ViVgZcdiZmeZXiZYidWZZaZXig^ÃZYWni]ZcVi^dcVa\g^YWZ[dgZ'%(%# • BTG.3 – Solar Portable Lamps initiative. This initiative consists on the continuation and reinforcement of the existing Solar Portable Lamp initiative through the creation of the Rural Services Unit(s) who will bVcV\Z i]Z ^bedgih l]^aZ GG:6 l^aa bV^ciV^c gZhedch^W^a^in [dg egdXjgZbZci VcY [dg Xdbbjc^XVi^dc$ information campaign. Additionally, a tender to attract the best rental model operators to Liberia will also WZaVjcX]ZY#I]^h^c^i^Vi^kZ^hXdbedhZYd['egd_ZXih# 53 Bafehun Balagwalazu Wuomai Wumuyeazu VIllage AMA Sign Board Mbama Kpawolozu Camp Alpha Manunvordor Sorbeh Zuanni 1 Bo-Mafa Zulo Gbesseh Memeh Totoquelleh Building Camp Palala Bemah Mulbah Gbai David Village Kpakla Nangbo Gayea Kalagban Beagona Zeyan Bukai Quimen Jae-na Gblo/Bar Taywaye Civil Freeman Sackie Town/Sway VIllage Compound Wrilyee Bentley Mining Camp :aZXig^ÃZYEd^cih Qwrakpo Tarloe Weh Yolo Troyah Toffoi Baliken Geeyah Solar Villages Dorgbor Zean Boe-Geewon Koryou I T I Camp Garwru Solar Community Services Zanwonjah Judu Primary and Secondary Schools Makla Kayweah Wrejah Zion Police Station Sumliken Kaytoken Courthouse Dodruken Rock Town Niplaihkpo Seator Clinics & Health Centers Sawtoken Konosu Hospital Joploken Tarworken Zoroken Yorken Piddy Figure 4.5 – Beyond the Grid Program impacted locations Impact Investments per phase (MUSD) Estimated funding committed (MUSD) Number Committed of People Phase 1 Phase 2 Phase 3 funding (Thousands) MW Phase 1 Phase 2 Phase 3 Total Committed Committed Committed (estimate) III. BTG - BEYOND THE GRID PROGRAM 18.93 .5 8.14 .7 3.2 16.00 .0 0.00 .0 0.0 7I<#& Solar Villages & Home Systems &-#.' #' 3.)' #& %#96 .5 %#%% #% %#%% #% 7I<#' Solar Community Services %#%& .3 '#-% #, %#54 #% %#%% #% %#%% #% BTG.3 Solar Portable Lamps %#%% #% &#-& .8 &#85 .5 %#%% #% %#%% #% Table 4.3 - Investments and impact of the GTG initiatives 54 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 4.6 OTHER THAN POWER IV. OTP Other than Power OTP: Other than Power Program: I]Z DIE Egd\gVb gZegZhZcih V idiVa ^ckZhibZci d[ JH9 ')B VcY l^aa ZcVWaZi]Z^chiVaaVi^dcd[egZ"eV^YbZiZgh^cVaagjgVaZaZXig^X^inXa^ZcihVcYegdbdiZi]ZjhZd[ZcZg\nZ[ÃX^Zci Veea^VcXZh!d[Xdd`^c\\VhVcYZ[ÃX^ZciXdd`hidkZhVXgdhhA^WZg^V#I]ZDIEEgd\gVb]Vhh^\c^ÃXVcihZije ^ckZhibZcih^ci]ZÃghie]VhZ!WjidcegZeV^YbZiZgh\gdlhl^i]i]ZcjbWZgd[ZaZXig^ÃZYXa^ZcihWZ^c\Vahd h^\c^ÃXVci^cE]VhZ(#I]ZEgd\gVb]Vhcd[jcY^c\Xdbb^iiZYVii]ZegZhZcihiV\Z!Vhh]dlc^cTable 4.4. Other than Power Program is composed of 4 main initiatives: • DIE#&·:[ÃX^ZciA^\]i6eea^VcXZh^c^i^Vi^kZ#I]^h^c^i^Vi^kZ^ciZcYhidgZYjXZi]ZVXfj^h^i^dcd[^cZ[ÃX^Zci appliances and lamps in Liberia, thus making power consumption more affordable to people living in rural VgZVh# >i ^cXajYZh i]Z XgZVi^dc d[ V gVi^c\ hnhiZb VcY WgVcY [dg ZcZg\n Z[ÃX^Zci Veea^VcXZh VcY aVbeh l]^X]l^aaWZgZfj^gZYiddWiV^c^bedgiiVmZmZbei^dch!i]jhbV`^c\i]ZbdgZZ[ÃX^ZciVeea^VcXZhVcY aVbehbdgZXdbeZi^i^kZ#I]ZiVml^aaWZVY_jhiZYidVkd^YgZYjXi^dc^ciVm^cXdbZ#I]Z^c^i^Vi^kZ^cXajYZh also the creation of service centers across the country to support installation of Solar Water Heating systems. • OTP.2 – Prepaid meters and power loss reduction initiative. This initiative intends to enable the universal use of prepaid meters in Liberia with a similar tariff structure across the country and to deploy the bZiZg^c\^c[gV"higjXijgZi]ViVaadlh[dgVXaZVg^YZci^ÃXVi^dcd[l]ZgZedlZgadhhZhVgZ\ZcZgViZY#<^kZc i]ZediZci^Va[dgbjai^eaZXdbeVc^ZhVXi^c\^ci]ZY^hig^Wji^dcVgZV!i]^h^c^i^Vi^kZl^aaVaadl[dgVXZcigVa^oZY management of the prepaid metering system and support the creation of an adequate georeferenced information system. • OTP.3 – City cooking gas initiative. This initiative intends to make cooking gas bottles available in the main cities of the country and increase competition in retail through an obligation to petrol sellers to sell cooking gas in their stations. Additionally, to increase competition and access to LPG import, storage and Ãaa^c\^c[gVhigjXijgZ!VcZl[VX^a^inl^aaWZWj^ai^c^i^VaanWnAEG8Wjil^i]i]Z^ciZci^dcidWZeg^kVi^oZYVcY owned also by petrol sellers and other private entities. • DIE#) · :[ÃX^Zci W^dbVhh [dg Xdd`^c\ ^c^i^Vi^kZ# I]^h ^c^i^Vi^kZ ^ciZcYh id ^cXgZVhZ Z[ÃX^ZcXn ^c i]Z ji^a^oVi^dc d[ W^dbVhh [dg Xdd`^c\ ^c dgYZg id gZYjXZ YZ[dgZhiVi^dc VcY ZcZg\n Xdhih [dg XdchjbZgh# >i^cXajYZhhjeedgiid^begdkZbZcihdcZm^hi^c\Z[ÃX^ZciXdd`hidkZbVcj[VXijg^c\VcYbVg`Zi^c\VXi^k^in! ^cXajY^c\i]Zdg\Vc^oVi^dcd[bjai^eaZig^VahZhh^dchl]ZgZediZci^VaXdchjbZgh^cVXdbbjc^inVgZ\^kZc training and borrowed a cook stove for trial and possible future acquisition. Additionally, it includes also VEgd_ZXiYZY^XViZYidWgVcY^c\VcYXZgi^ÃXVi^dcd[Z[ÃX^ZciX]VgXdVaegdYjXi^dc# 55 Impact Investments per phase (MUSD) Estimated funding committed (MUSD) Number Committed of People Phase 1 Phase 2 Phase 3 funding (Thousands) MW Phase 1 Phase 2 Phase 3 Total Committed Committed Committed (estimate) IV. OTP - OTHER THAN POWER 0.00 .0 10.35 .8 8.2 24.30 .0 0.00 .0 0.0 DIE#& Efficient Light & Appliances %#%% #% %#-% #' %#'& #' %#%% #% %#%% #% DIE#' Prepaid meters & loss reductioc% #% %#%* .5 3.8 +#' &*#)% #% %#%% #% %#% OTP.3 City cooking gas %#%% #% (#% &#%& #% 5.%% #% %#%% #% %#% OTP.4 Efficient cooking biomass %#% %#%& #& %#.% .9 '#-% #% %#%% #% %#% Table 4.4 - Investments and impact of the OTP initiatives 56 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 )#,7J>A9>C<86E68>IN V. BC Building Capacity BC: Building capacity: The BC Program is transversal to all the other four and supports the implementation VcY^beVXid[Vaai]Zdi]Zgegd\gVbh#I]ZidiVaZhi^bViZY^ckZhibZcid[i]Z78Egd\gVb^hJH9*'B!h]dlc in Table 4.5. Building Capacity Program is composed of 6 main initiatives: • BC.1 – Public sector scale up initiative. This initiative intends to strengthen the internal capacity of key ejWa^XhZXidgZci^i^ZhYZY^XViZYidgjgVaZcZg\n#GG:6l^aa]VkZV`ZngdaZVcY^ihdg\Vc^oVi^dcVahigjXijgZ VcYXdbeZiZcX^ZhcZZYidWZVY_jhiZYidi]ZX]VaaZc\Zhd[i]ZBVhiZgEaVcVcYVigV^c^c\VcYXVeVX^in building plan needs to be designed. The initiative includes funding for the creation of several new units inside RREA, MLME and LERC for the management of the Rural Energy Master Plan Programs and initiatives. Additionally, the initiative includes also the creation of a Rural Energy Management Information System (MIS) which will support monitoring and reporting of the progress of the Master Plan. • BC.2 – Owners engineering and procurement initiative.I]^h^c^i^Vi^kZ^ciZcYhidWg^c\ZmiZgcVafjVa^ÃZY hjeedgi id i]Z YZeadnbZci d[ i]Z `Zn egd_ZXih VcY ^ckZhibZcih aZY Wn i]Z ejWa^X hZXidg l^i] \gVci or concessional loan funding. “Owners engineering” contracts are to be celebrated for most of the ^ckZhibZcih id WZ YZeadnZY ^cXajY^c\ YZh^\c d[ iZX]c^XVa heZX^ÃXVi^dch! bVcV\ZbZci d[ egdXjgZbZci process and supervision of construction. This initiative also includes the support to setup and manage the renewable IPP procurement program and the “affermage” contracts to be celebrated for management d[Y^hig^Wji^dcVXi^k^i^Zh^c9ZXZcigVa^oZY<g^Yh·l^i]YZÃX^iZmeZXiZYbdhian^ce]VhZ&# • BC.3 – Sector reorganization initiative. This initiative intends to support the creation of the new institutional framework. It includes creation of laws and regulations, the support and operational budget for the Rural Services Unit(s), all activities regarding the setup of the Regional Distribution Companies and the restructuring of LEC to separate the Distribution activities from the Transmission and Power sourcing. • BC.4 – Rural Energy Training and accreditation Centers initiative. This initiative intends to create four Rural Energy Training and Accreditation Centers for Rural Energy, one in each of the country’s regions, l]dl^aaigV^cVcY$dgVXXgZY^iZaZXig^X^Vch!bZX]Vc^XhVcYdi]ZgiZX]c^X^VchgZfj^gZY[dgi]ZdeZgVi^dc of the future rural energy infra-structure. The Centers will be created in existing educational entities and l^aaXdggZhedcYidVCZl9ZeVgibZcid[hjX]Zci^i^Zh#6hX]daVgh]^eegd\gVbid^cXZci^k^oZi]ZZcgdaabZci of women will be created. *, • BC.5 – REFUND initiative.I]^h^c^i^Vi^kZ^ciZcYhidhiVgii]ZdeZgVi^dcVa^oVi^dcd[i]ZGjgVa:cZg\n;jcY l^i]XdcXgZiZegd_ZXihVcYbZVhjgZh#>i^cXajYZhi]ZXgZVi^dcd[hiVWaZhdjgXZhd[gZkZcjZ"i]ZEdlZg and Petrol Contribution (PPC) and the Lease Fee (LF) – and the creation of several credit lines to be made VkV^aVWaZ Wn adXVa WVc`h id gZiV^aZgh/ [dg VXfj^h^i^dc d[ Z[ÃX^Zci Veea^VcXZh0 id 9^hig^Wji^dc 8dbeVc^Zh/ [dg\g^YXdccZXi^dcVcY]djhZZaZXig^ÃXVi^dcidWZgZXjeZgViZY[gdbXa^ZcihdcVbdci]anWVh^hVcY$dg[dg other growth investments; to new companies and business models such as Solar Portable Lamp rental dgZ[ÃX^ZciXdd`hidkZbVcj[VXijg^c\#6YY^i^dcVaan!i]ZjhZd[G:;JC9idhjeedgigZcZlVWaZd[["iV`^c\ together with Partial Risk Guarantee schemes will be studied. • BC.6 – Communication initiative. This initiative includes the communication on the implementation of the Rural Energy Master Plan to key stakeholders, the communication to the general public on areas that gZfj^gZbdgZVlVgZcZhhhjX]VhHdaVgEdgiVWaZAVbeh!Z[ÃX^ZciXdd`^c\dgVeea^VcXZh!VcYÃcVaani]Z communication to potential donors for fund raising. Impact Investments per phase (MUSD) Estimated funding committed (MUSD) Number Committed of People Phase Phase Phase Phase 1 Phase 2 Phase 3 funding (Thousands) MW 1 2 3 Total Committed Committed Committed (estimate) V. BC - BUILDING CAPACITY 0.00 .0 24.2 14.2 13.6 51.90 .0 0.00 .0 0.0 78#& Public sector scale up %#%% #% &#)% .9 %#93 #' %#%% #% %#%% #% 78#' Owners engineering & procurement %#%% #% &)#98 .4 ,#- (&#&% #% %#%% #% %#% BC.3 Sector gZdg\Vc^oVi^dc %#%% #% 3.*& #% &#%* .5 %#%% #% %#%% #% BC.4 Rural Energy Training and Accreditation Centerh% #% %#%& #' &#'& #' 3.*% #% %#%% #% %#% BC.5 REFUND %#%% #% '#,' .3 '#(, #' %#%% #% %#%% #% BC.6 Communication %#%% #% %#,% .5 %#*& .6 %#%% #% %#%% #% Table 4.5 - Investments and impact of the BC initiatives 58 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 59 5 FUNDING REQUIREMENTS AND STRATEGY RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 *#&FUNDING GAP, SOURCES AND CONSTRAINS JH9 .(*B ^ckZhibZcih [dg gjgVa ZaZXig^ÃXVi^dc# The graph in Figure 5.1 shows a summary of the Rural Energy Master Plan investments per Program and type of investment (Generation, High Voltage IgVchb^hh^dc!9^hig^Wji^dcVcYdi]Zg#I]Z<I<VcY9<Egd\gVbhgZegZhZciVgdjcY.%d[i]ZidiVa^ckZhibZci l^i]h^\c^ÃXVci^ckZhibZcihWdi]^c\ZcZgVi^dcVcYY^hig^Wji^dc#<I<Egd\gVbWn^ihZa[gZegZhZcihbdgZi]Vc *%d[i]ZGjgVa:cZg\nBVhiZgEaVc^ckZhibZcih# &!%%%#% 51,9 934,9 .%%#% 24,3 16,0 81,7 291,8 5,5 10,5 -%%#% 122,0 ,%%#% 328,4 169,8 +%%#% 550,9 Investments (M$US) *%%#% 102,5 206,5 )%%#% (%%% 102,5 422,3 '%%#% 242,0 &%%#% % I. GTG II. DG III. BTG IV. OTP V. BC Total Generation HV Transmission Distribution and MV Extensions Other ;^\jgZ*#&·>ckZhibZcieZgEgd\gVb# +& USD 749M still to be funded mostly for the period between 2020 and 2030, as shown in Figure 5 .2. From i]ZgZfj^gZYJH9.(*B!VgdjcYJH9&)%BVgZVagZVYnXdbb^iiZYVcYVcVYY^i^dcVaJH9)*BhZXjgZYVcY cdinZiVaadXViZY!gZegZhZci^c\VidiVad[JH9&-*B·bdhian[gdb6[g^XVc9ZkZadebZci7Vc`!LdgaY7Vc` VcY :jgdeZVc Jc^dc# Bdhi d[ i]Z hZXjgZY [jcY^c\ l^aa WZ YZeadnZY ^c i]Z Ãghi e]VhZ! gZegZhZci^c\ Vh^\c^ÃXVcieVgid[i]ZZhi^bViZY^ckZhibZcid[JH9'+'B#6\Ved[JH9,)+BgZbV^chid^beaZbZcii]ZGjgVa :cZg\nBVhiZgEaVcl^i]VYY^i^dcVaJH9&%'BWZ^c\gZfj^gZYjci^a'%'%!JH9(%(BWZilZZc'%'%VcY'%'* VcYJH9())Bjci^a'%(%# &!%%%#% 344,4 934,9 .%%#% -%%#% 344,4 ,%%#% +%%#% 328,9 749,2 *%%#% Million $US 303,1 )%%#% (%%% 261,7 25,7 '%%#% 101,6 45,0 45,0 &%%#% 140,8 115,0 % E]VhZ& E]VhZ' Phase 3 Total Commited funding (estimate) Secured fund Non secured Investment needs ;^\jgZ*#'·>ckZhibZcieZgE]VhZVcY;jcY^c\\Ve# +' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Potential sources of funding.IldbV^cineZhd[[jcY^c\XVcgZhedcYidi]ZJH9,).B\Ve# • Country Funding: Funding by other countries or multilateral institutions which aim to support the YZkZadebZci d[ A^WZg^V# I]ZhZ ^cXajYZ D[ÃX^Va 9ZkZadebZci 6hh^hiVcXZ D96 <gVcih dg 8dcXZhh^dcVa AdVch#<gVcihVkV^aVWaZ[dggjgVaZaZXig^ÃXVi^dcVgZXdchigV^cZYWnYdcdgh¼VkV^aVW^a^inVcYegZ[ZgZcXZh! and also by Liberia’s priorities and the need to share the available funds with other key sectors such as health, education or roads. Concessional loans are available for Least Developed Countries and have very low interest rates and very long maturities, but the available amount is limited by the country’s level of income, capacity to repay such debt and International Monetary Fund (IMF) policy on acceptable level of indebtedness. • Project related funding: ;jcY^c\ i]Vi XVc WZ gZeV^Y [gdb XVh] Ädlh \ZcZgViZY [gdb i]Z ^ckZhibZci# These include Development Finance, Commercial Finance and Equity – each with different requirements ^ciZgbhd[gViZd[gZijgc!iZcdgVcYi^X`Zi#9ZkZadebZci;^cVcXZ>chi^iji^dch]VkZWZZceaVn^c\VbV_dg gdaZ^ci]ZÃcVcX^c\d[egd_ZXih^ci]ZgZ\^dc#EdiZci^VaYZeZcYhdc;gZZ8Vh];adlhl]^X]VgZXdchigV^cZY by willingness and capacity of consumers to pay, by available generation alternatives and running costs and by capacity of Distribution Companies to avoid losses. Potential also depends on Risk - If debt repayment risk is high than less entities will be available to fund, the funding costs will be higher and less [jcY^c\l^aaWZgV^hZY[gdbi]ZhVbZXVh]Ädlh# 8dcXZhh^dcVa ÃcVcXZ VcY Egd_ZXi gZaViZY [jcY^c\ igVYZ"d[[h VcY XdchigV^ch# Given the current situation d[i]ZA^WZg^VcedlZghZXidg!i]ZjcegZY^XiVW^a^ind[[jijgZgjgVaYZbVcYVcYi]ZÃcVcX^Vah^ijVi^dcd[A:8 ^i ^h Y^[ÃXjai id ZmeZXi! ^c i]Z h]dgi iZgb! aZcYZgh id WZ l^aa^c\ id [jcY ZcZg\n hZXidg ^ckZhibZcih l^i]dji hdbZ`^cYd[<dkZgcbZcigZeVnbZci\jVgVciZZ#=dlZkZg!hjX]ejWa^X\jVgVciZZldjaYgZÄZXidci]ZaZkZa of publicly guaranteed debt, thus limiting the country’s access to additional concessional loans with very attractive conditions. Preference will go to concessional loans and to the implementation of risk mitigation dg XgZY^i Zc]VcXZbZci bZX]Vc^hbh i]Vi Vaadl Egd_ZXi gZaViZY [jcY^c\ l^i]dji _ZdeVgY^o^c\ XdcXZhh^dcVa ÃcVcXZ# I]Z bZVhjgZh jhZY ^cXajYZ! Vbdc\ di]Zgh/ eda^i^XVa g^h` ^chjgVcXZh! Xdb[dgi aZiiZgh! ZhXgdl accounts and partial risk guarantees. 63 *#'TAX POLICY AND GOVERNMENT INCENTIVES Investment incentive code. Liberia has a liberal business climate intended to attract foreign investment and stimulate economic growth and development. Incentives granted under the Investment Incentive Code include ZmZbei^dc[gdbXjhidbYji^Zh!^cXdbZiVm!hiVbe[ZZhVcYdi]ZgWZcZÃihidcZlVcYZmeVcY^c\Wjh^cZhhZh! VcY [dg VeegdkZY ^ckZhibZci egd_ZXih ^c bVcj[VXijg^c\! V\g^XjaijgZ! [dgZhign! Ãh]^c\! b^c^c\! Wj^aY^c\ VcY XdchigjXi^dc!igVchedgiVcYXdbbjc^XVi^dc#6eegdkZY^ckZhibZciegd_ZXihbVnVahdWZZa^\^WaZ[dghjeedgi in securing loans and guaranteeing credit by the Central Bank. • Exemptions from Trade Taxes: 3 BVX]^cZgn!Zfj^ebZci!gVlbViZg^Vah!hZb^"Ãc^h]ZYegdYjXihVcYdi]Zghjeea^ZhidWZjhZY^cVegd_ZXi VgZZmZbei[gdb^bedgiYjinjeid.%d[i]Z^gYji^VWaZkVajZ0VcY 3 BVcj[VXijgZY\ddYhZmedgiZY[gdbi]ZegdYjXi^dcd[i]Zegd_ZXiVgZZci^iaZYid[jaagZWViZdc^bedgi duties and full refund of both income tax and excise tax. • Exemptions from Income Tax: 3 GZ^ckZhiZYegdÃihVgZZmZbei[gdb^cXdbZiVm# 3 EgdÃihcdigZ^ckZhiZYVgZZmZbei[gdb*%d[i]Z^cXdbZiVmdi]Zgl^hZeVnVWaZ# • Di]ZgWZcZÃih/ 3 6eegdkZY^ckZhibZciegd_ZXihbVngZXZ^kZXZgiV^cVYY^i^dcVaWZcZÃihdcVeea^XVi^dcidi]Z\dkZgcbZci! such as the lease of land in government-owned industrial parks at a preferential rate, reasonable tariff egdiZXi^dc!ejgX]VhZd[egd_ZXiegdYjXihWn\dkZgcbZciV\ZcX^Zh!ZiX# Tax regime for energy. Currently the application of existing exemptions to energy is not clear. Applicable taxes XVcgZVX]'*Z#\#^ci]ZXVhZd[HdaVgEdgiVWaZAVbehVcYbVn[jgi]Zg^cXgZVhZi]ZVagZVYnh^\c^ÃXVci ^ckZhibZci^YZci^ÃZYVWdkZ·l]^X]Y^Ycdi^cXajYZiVm#6iVmgZ\^bZ[dggjgVaZaZXig^ÃXVi^dcVcYgZcZlVWaZ energy investments will be developed to limit import duties and Goods and Services Tax (GST) impact on the total investment and funding required. The future regime will also include tax exemptions for private sector ^ckZhibZcidcZcZg\n^cdgYZgid^cXZci^k^oZeg^kViZVcYXdbbZgX^Va[jcY^c\# 64 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 5.3 FUNDING STRATEGY Exploring all potential sources of funding. Given the high amount of funding still required, the Rural Energy Master Plan shall explore all possible funding sources, giving always priority to those that generate smaller yearly costs (with lower interest rates and higher maturities). Country related funding Development Assistance. Although Liberia is sometimes seen as a very high ODA recipient country on a GDP WVh^hi]ZÃghi^cHjW"HV]VgVc6[g^XVhjX][VXiYZg^kZhcdihdbjX][gdbi]ZaZkZad[D96gZXZ^kZYWji[gdb the very low income of the country – due to one of the most severe and long-lasting civil wars in Africa and, bdhigZXZcian!YjZidi]Z:WdaVdjiWgZV`#8dch^YZg^c\D96idiVakVajZ!dcVkZgV\ZWZilZZc'%%+VcY'%&)! A^WZg^VlVhdcani]Z''cYHjW"HV]VgVc6[g^XVcXdjcign^ciZgbhd[D96gZXZ^kZY!VhhZZc^cFigure 5.3. Average ODA Grants per year, USD Millions % &!%%% '!%%% (!%%% )!%%% Congo, Dem. Rep. of the Ethiopia Nigeria IVcoVc^V BdoVbW^fjZ Sudan Uganda Egypt Kenya Ghana OVbW^V Côte d’Ivoire South Sudan, Republic of Malawi Mali Cameroon Burkina Faso Rwanda Senegal South Africa $790M/year over Morocco 2006-2014 Liberia % '% )% +% -% &%% ODA Grants as % of GDP D96<gVcih$NZVg ;^\jgZ*#(·D96aZkZaeZgXdjcign^c6[g^XV'%%+"'%&)# ODA Grants as % of GDP 65 Maintaining energy sector as ODA priority may generate funding in excess of USD 474M. ODA has been and is expected to continue being the main source of funding for the needed infra-structure on roads, energy VcYXdbbjc^XVi^dch#D96hiVi^hi^Xhh]dli]ViA^WZg^VVaadXViZYdcVkZgV\Z&%#*d[^ihidiVaD96gZXZ^kZY WZilZZc'%%+VcY'%&(idi]ZZcZg\nhZXidg!bjX]VWdkZLZhi6[g^XVcXdjcig^ZhVkZgV\Zd[(#(#8dch^YZg^c\ an intermediate allocation of future ODA to energy (6.9%) and a more balanced allocation of funding to rural ZcZg\nkh#Bdcgdk^VZaZXig^ÃXVi^dcV[iZg'%'%!D96[jcY^c\[dggjgVaZcZg\nXdjaYgZVX]JH9),)Bjci^a'%(%# It could even be higher if priority to energy and rural areas is also higher. Concessional loans with limited funding potential. L]^aZA^WZg^VgZXZ^kZYdcVkZgV\Z+%d[^ih<9EVhD96 ZkZgnnZVgh^cXZ'%%+!^ihidiVaXjbjaViZYYZWi^hXjggZcianVgdjcY)&d[<9E·bZVc^c\i]Vii]ZidiVaYZWi incurred over the last years is only a portion of the average ODA received each year and that additional debt will be dependent on GDP growth. If we consider IMF policy and limitations on Heavily Indebted Poor Countries (HIPC) and similar criteria to grants on the allocation of country available concessional loans between sectors VcY![dgZcZg\n!WZilZZcgjgVaVcYBdcgdk^VZaZXig^ÃXVi^dc!i]ZZhi^bViZY[jcY^c\ediZci^Vad[XdcXZhh^dcVa adVchldjaYWZdcanJH9,*B# A compelling case for Grant and Concessional funding.I]ZBVhiZgEaVcWZcZÃih[gdbVhigdc\^c^i^Va[dXjh dci]ZZaZXig^ÃXVi^dcd[i]ZbV^cX^i^ZhVcYidlchdjih^YZBdcgdk^V+*d[VaagjgVaXa^Zcih^c'%(%l]ZgZ there is business activity and some capacity to pay for energy services. The support studies show that if initial investments have a strong component of grants and if consumers are charged for what they consume based dcegZ"eV^YbZiZghVcYgZVhdcVWaZiVg^[[h!^i^hedhh^WaZidXgZViZVÃcVcX^VaanhjhiV^cVWaZhnhiZbi]ViXVc maintain the assets, pay for running costs and fund a part of the growth investments… potentially leveraging on a robust Rural Energy Fund to mitigate risks and reduce interests. Project related funding Free Cash Flow analysis. Figure 5.4 h]dlh V h^bjaVi^dc d[ i]Z gjgVa ZcZg\n hZXidg XVh] Ädlh dcVc^ciZgbZY^ViZnZVg]Va[d['%(%#I]ZediZci^VaedlZghZXidggZkZcjZh]VkZWZZcZhi^bViZYXdch^YZg^c\ YZbVcY VcY Vc ZaZXig^X^in eg^XZ! ^cXajh^kZ d[ <HI! d[ %#(* JH9$`L]# I]Z gZkZcjZh VgZ Y^hXdjciZY of the operational expenditures (OPEX) associated with generation, transmission and distribution of power XdchjbZYVcYadhi#DcVc^ciZgbZY^ViZnZVgi]ZEdlZgHZXidgXdjaY\ZcZgViZJH9*%Bd[;gZZ8Vh];adl# However, with commercial loans and private sector equity required returns such Free Cash Flow would only allow for the repayment of approximately one third of the USD 935M required. This means running costs can be paid by the Power Sector at reasonable prices and some funding could be raised by the HZXidg!WjibV_dg^ind[ZcZg\n^c[gV"higjXijgZ^ckZhibZcidg86E:M^cgjgVaA^WZg^VcZZYhVh^\c^ÃXVciaZkZa of Grants and external support. 66 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 USD 303M Funding potential mostly on the National Grid. The Free Cash Flow Analysis also shows that around 85% of the Free Cash Flow generated would come from the National Grid where generation cost is lower due to regional imports and large scale hydro investments. This offers the potential to have On-grid Renewables and part of the National Grid Distribution investments around Monrovia and the Growth Corridor funded by Development Finance Institutions together with Regional Distribution Companies or Independent EdlZg EgdYjXZgh# 6c Zhi^bViZY [jcY^c\ d[ JH9 (%(B XdjaY WZ gV^hZY Xdb^c\ [gdb 9;> JH9 '('B VcYEg^kViZHZXidgJH9,&B# Tariff structure. Demand can have a relevant impact on Free Cash Flow if tariff structure is based only on average costs. Generation units have different marginal costs. As tariffs go below the price of diesel most of the self-generated consumption in National Grid is expected to connect into the grid creating a sudden increase in demand that will require response from expensive backup generation or result in blackouts. I]Z hVbZ e]ZcdbZcV iZcYh id ]VeeZc ^h hbVaaZg HdaVg$9^ZhZa b^c^"\g^Yh l]ZgZ Xdchjbei^dc \gdli] requires more diesel and the response tends to be the reduction in the number of hours of service. Power sector sustainability requires a progressive tariff structure that increases to marginal cost as consumption approaches the available generation capacity. .% 85 -22 3 2 -% 10 22 ,% 10 -10 +% 3 7 -2 50 *% 8 $M USD )% (% 60 '% 42 &% % Revenues Gx OPEX Tx & Dx OPEX Losses Free Cash Flow Off-grid Mini-grids 9ZXZcigVa^oZY\g^Yh National grid ;^\jgZ*#)·:hi^bViZYGjgVa:cZg\nHZXidgidiVa;gZZ8Vh];adl^c^ciZgbZY^ViZnZVg]Va[d['%(%# +, Funding sources summary and other funding Funding summary. The following graph in Figure 5.5 hjbbVg^oZh i]Z ediZci^Va d[ i]Z Y^[[ZgZci hdjgXZh d[[jcY^c\idlVgYhi]ZgZfj^gZYJH9.(*B^ckZhibZciVgdjcYJH9+%B$nZVg#<gVcihVcYD96[jcY^c\l^aa be the key source of funding. On-Grid renewables and part of the National Grid investments will be funded mostly by DFI – representing the second largest contribution to funding the Master Plan. Concessional loans and commercial lending or equity will have a smaller but still relevant role. Need for other funding. An additional USD 83M funding is required to reach the USD 935M. The Master Plan proposes the creation of a Power and Petrol Contribution and of Lease Fees that can be directed to REFUND VcYaZkZgV\ZYl^i]ÃcVcX^Va^chi^iji^dchiddWiV^ci]Zb^hh^c\JH9-(B# &!%%%#% 83 -%%#% 71 232 +%%#% $M USD 75 935 )%%#% 474 '%%#% % Grant Concessional DFI 8dbbZgX^Va$ Other Total Equity Figure 5.5 – Funding strategy summary. 68 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 5.4 REFUND Objective of the Fund.6heZgi]Z6Xii]ViXgZViZYi]ZGjgVa:cZg\n;jcY!^ihdW_ZXi^kZ^hidegdk^YZ[dgi]Z XddgY^cViZYVcYhjhiV^cVWaZÃcVcX^c\d[egd_ZXihVcYegd\gVbh[dgi]ZYZkZadebZcid[gjgVaVcY$dggZcZlVWaZ ZcZg\negd_ZXihVcYYZa^kZgnd[bdYZgcZcZg\nhZgk^XZh[dggjgVaYZkZadebZci^cVbVccZghjX]i]Vii]Z;jcY WZXdbZh V X]VccZa i]gdj\] l]^X] YdbZhi^X VcY ^ciZgcVi^dcVa ÃcVcX^Va gZhdjgXZh ^ciZcYZY [dg gjgVa VcY renewable energy delivery in Liberia shall be managed. Financial management and asset ownership. REFUND is not a single bank account into which funds are paid VcYY^hWjghZY#>i^hVÃcVcX^VabVcV\ZbZcihnhiZb[dgX]VccZa^c\kVg^djhhdjgXZhd[[jcY^c\^cVXddgY^cViZY manner. Additionally, given the important role of grant based funding and the fact that many donors can only fund public held assets, it will be necessary for REFUND to own part of the assets and lease them to private Distribution Companies. Transparency, accountability and use of funds. Transparency and accountability is critical for donors. Also most donors want and need to decide on which investments their contribution will be applied to. As currently the resources of REFUND can be used to pay operational costs and remunerations many donors prefer to manage their grants independently. Towards the future, REFUND shall allow donors to direct their Xdcig^Wji^dchidhZeVgViZVXXdjcihY^gZXiana^c`ZYVcYdcanjhZY^cheZX^ÃXegd_ZXih#6ahd!deZgVi^dcVaXdhih shall be paid only by Sector generated revenues and not by Donor contributions. REFUND revenues. G:;JC9 deZgVi^dcVa^oVi^dc gZfj^gZh i]Z XgZVi^dc d[ hiVWaZ hdjgXZh d[ gZkZcjZ# The Power and Petrol Contribution to REFUND will be created. The PPC consists of a small levy (initially &d[ÃcVaeg^XZX]Vg\ZYidZaZXig^X^in\ZcZgVidghVcYY^ZhZa$\Vhda^cZl]daZhVaZgh#6YY^i^dcVaan!G:;JC9 will charge a Lease Fee to Regional Distribution Companies for the assets owned by REFUND and managed by the Regional Distribution Companies. The Lease Fee – to be agreed with LERC - will depend on the calculated tariff level and on the results of revenue collection, mitigating demand risk and reducing tariff differences among Distribution areas. Credit lines with local banks and Partial Risk Guarantee. REFUND will promote the creation of several XgZY^i a^cZh id WZ bVYZ VkV^aVWaZ Wn adXVa WVc`h id egdbdiZ VXfj^h^i^dc d[ Z[ÃX^Zci Veea^VcXZh! ÃcVcX^c\ of grid connections, household internal wiring or other grid growth investments as well as innovative business models and activities. REFUND will reduce risk and will only be used as a guarantee mechanism to support *%d[i]ZZkZcijVaYZ[Vjaih# Risk mitigation for renewable off-taking. The use of REFUND as a means of risk mitigation for renewable off-taking will be explored either through the creation of ESCROW accounts to secure payments or as an ^ciZg[VXZ[dgEVgi^VaG^h`<jVgVciZZhX]ZbZhl^i]bjai^aViZgVadg\Vc^oVi^dch# 69 6 INSTITUTIONAL FRAMEWORK AND PRIVATE SECTOR PARTICIPATION RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 +#&STRUCTURE AND ROLES CZZY [dg Vc VYZfjViZ ^chi^iji^dcVa [gVbZldg`# An effective and successful implementation of the Rural Energy Master Plan requires not only adequate funding, but also competent and well aligned entities with clear roles for implementation, both on the public and private sectors. 2015 Electricity law of Liberia. The Senate and House of Representatives of the Republic of Liberia approved ^cDXidWZg'%&*VW^aaZci^iaZY'%&*:aZXig^X^inAVld[A^WZg^V#I]ZcZlZaZXig^X^inaVlhZihi]Z\j^Y^c\eg^cX^eaZh [dgi]ZedlZghZXidgdg\Vc^oVi^dcVcY\^kZhhdbZ\j^YVcXZdci]ZgdaZhd[i]ZY^[[ZgZciZci^i^Zhl^i]djiidd bjX]YZiV^a#I]ZAVld[[Zghhj[ÃX^ZciÄZm^W^a^in[dgY^[[ZgZci^chi^iji^dcVaVeegdVX]ZhgZ\VgY^c\gjgVaZcZg\n# The Master Plan study evaluated different alternatives, all with pros and cons, and proposes the ones with the potential to be more effective. Power sector structure. Although now-a-days all power sector activities are provided by Liberia Electricity Corporation, the new Electricity Law structures the power sector in the following different activities which all – except system operation - can now be licensed to the private sector: • Generation; • Transmission; • Transmission system operation; • Distribution; • Import and export of electricity; • Trading of electricity. Micro-utilities. Micro utilities or operations, such as “Community Current” – common business in Liberia where an entrepreneur operates and distributes power from a small diesel generator – can be exempted from licensing. LEC. LEC is the State owned Utility which by law continues to be the transmission system operator and the national grid company and is entitled to engage in all other activities at its election. As transmission system operator LEC has to guarantee an instantaneous balance at any given time between the total generation and the total consumption of power taking account of the power exchanges with interconnected foreign systems. I]ZgdaZVcYhXdeZd[i]Z¹CVi^dcVa<g^Y8dbeVcnº^hcdiXaZVganYZÃcZY^ci]ZAVl# Ministry of Lands, Mines and Energy. Ministry is responsible for the formulation and development of national energy policies and the administration of the Law. Liberia Electricity Regulatory Commission. LERC is the newly created regulatory agency in charge of licensing activities, issuing regulations to implement the electricity law, approving tariff setting methodologies and to establish, monitor and enforce technical, performance and security regulations and standards. Rural and Renewable Energy Agency. RREA is an autonomous agency owned by the Government of Liberia l^i]i]ZdW_ZXi^kZd[VXi^c\[dgVcYdcWZ]Va[d[i]Z<dkZgcbZciidegdbdiZZcZg\nVXXZhh^cgjgVaVgZVhl^i] an emphasis on locally available renewable resources. ,& +#'6AI:GC6I>K:BD9:AH AND PROPOSED POWER H:8IDGDG<6C>O6I>DC Alternative models for Distribution. Distribution is by Law a licensed activity that can be executed by different companies. Different models for the long term functioning of the Distribution activity were considered: • LEC as the National Grid Distribution Company, with transitional grids being managed by Local Companies transitorily until they are connected to the National Grid and transferred to LEC. • Regional Distribution Companies. Country being divided into regions with each region awarded to VY^[[ZgZcigZ\^dcVaY^hig^Wji^dcXdbeVcn#GZ\^dcVa9^hig^Wji^dc8dbeVc^ZhbVndeZgViZdcYZXZcigVa^oZY grids or on the National Grid. • Local Distribution Companies or Cooperatives. Transitional grids managed by multiple small Local Companies that would remain as independent Distribution Companies even after connected to the National Grid. Regional Distribution Companies. The Regional Distribution Companies model was selected as it allows for a stronger private sector involvement in the future with a scale that can attract robust private sector companies. A:8bdYZaldjaYbV^ciV^ci]ZbdgZXZcigVa^oZYejWa^XhZXidghiVijhfjd!egZk^djhidi]ZcZlaZ\^haVi^dc! l^i]V]^\]g^h`d[Xdci^cjZYaVX`d[[dXjhdci]ZgjgVaVgZVhVcYY^[ÃXjainid^beaZbZcihjX]VaVg\Z^ckZhibZci egd\gVb# I]Z 8ddeZgVi^kZ bdYZa ldjaY gZegZhZci V g^h` d[ idd bVcn jcYZg"XVe^iVa^oZY VcY jcYZg"hiV[[ZY distribution companies without scale or capacity to adequately respond to the challenge of implementing the Master Plan. Model for Transmission and System Operation: “The National Grid Company or Unit”. The Rural Energy BVhiZg EaVc YdZh cdi egdedhZ Vcn =^\] KdaiV\Z IgVchb^hh^dc 3+% `K ^ckZhibZci djih^YZ i]Z CVi^dcVa Grid. The Electricity Law mandates LEC as the “National Grid Company” and transmission system operator. Therefore, all Transmission in the National Grid – except for CLSG which is owned and operated by TRANSCO CLSG - should be operated by LEC. The Medium Voltage infra-structure will be operated by Regional Distribution Companies and LEC will transfer electricity to Distribution Companies in the future Sub-stations i]ViigVch[dgbZcZg\n[gdb=^\]KdaiV\ZidBZY^jbKdaiV\Z#8dcÄ^Xid[^ciZgZhiXdb^c\[gdbA:8WZ^c\Vahd a Distribution operator recommends that the Transmission and System Operation be set up as an autonomous unit or even company inside LEC – the National Grid Company or Unit. ,' RURAL ENERGY RURAL ENERGY STRATEGY STRATEGY AND AND MASTER MASTER PLAN PLAN FOR FOR LIBERIA LIBERIA UNTIL UNTIL 2030 2030 Alternative models for wholesale activities of trading and import/export.:aZXig^X^inigVY^c\VcY^bedgi$Zmedgi of electricity are licensed activities under the new Law and normal activities in developed power markets where generation unit dispatch is decided primarily by the market – meaning arrangements between generators and suppliers or clients. However, the Electricity Law awards the responsibility to dispatch generation units connected to transmission to the Transmission System Operator. Several alternative models are possible: • Unique Buyer. Each Grid has a unique Buyer, responsible to procure, dispatch generation in its grid, guarantee all imports and exports and to sell to Distribution at a regulated price. Model can be applied dcanidCVi^dcVa<g^YdgVahdid9ZXZcigVa^oZY<g^Yh# • Regulated or Last Resource Buyer. A regulated entity is in charge of off-taking renewable Independent EdlZgEgdYjXZgh!VcY]^\]anhjWh^Y^oZYhdjgXZhd[\ZcZgVi^dc^ci]Z<g^YVcYgZhZaai]Zbid9^hig^Wji^dc Companies at a regulated price. However, Distribution Companies are allowed, under certain limits established by LERC, to procure part of their power either in Liberia or West African Power Pool (WAPP). • Multiple Buyers or free market. Each Distribution Company is free to procure its electricity in Liberia or in the West African Power Pool. Each generation unit is free to sell its electricity. Transmission System Operator manages dispatch after receiving information on bilateral agreements. Regulated Buyer model. The Regulated Buyer model was selected as it offers security for Renewable >cYZeZcYZciEdlZgEgdYjXZgh[Vkdg^c\^ckZhibZci!^iVaadlhidh]VgZi]ZWZcZÃihd[\gVcihdc\ZcZgVi^dc among Distribution Companies and large industrial clients and it mitigates price differences across the country while offering opportunities to progressively start a more competitive market approach. The Unique Buyer model limits private participation dynamics and the Free Market model brings in the current stage of the Liberian Power Sector too much risk to investors in Generation and Distribution. The National Grid Company or Unit will be the Regulated Buyer in the National Grid.>cZVX]9ZXZcigVa^oZY Grids – until it is connected to the National Grid - a Regional Distribution Company will be awarded the role of Regulated Buyer. Model for Generation. Each and all generation units will act under the Independent Power Producer model with a Power Purchase Agreement to be celebrated, after approval of LERC, with either a Regulated Buyer, a large industrial client or the trading unit of a Regional Distribution Company. Agreements with Regulated Buyers – except for own generation - require transparent and competitive procurement processes. ,( Proposed Power Sector organization. Figure 6.1 hjbbVg^oZh i]Z hZaZXiZY bdYZah VcY egdedhZY edlZg hZXidg dg\Vc^oVi^dc djia^c^c\ i]Z gZhedch^WaZ Zci^i^Zh [dg ZVX] EdlZg HZXidg VXi^k^in Vadc\ i]Z kVajZ X]V^c according to the type of grid. The proposed system will not apply to off-grid villages and systems where rural XddeZgVi^kZhl^aaWZ^cXZci^k^oZYidegdbdiZ]^\]Zg^ckdakZbZcid[adXVaXdbbjc^i^Zh!bdgZadXVa_dWXgZVi^dc and to facilitate more fractioned payments. Generation Wholesale System Transmission Distribution Supply Operation (HV > 66kV) (MV & LV) Monrovia Grid National LEC National Grid Grid Regional Distribution Cross Companies Border IPPs (including LEC Grids Not in Monrovia) WAPP Applicable Regional Distribution in the Other large Medium decentralized Companies in charge of procurement outside Term. Grids national grid No Transitional transmission. Mini-Grids Off-grid villages Rural Cooperatives / local entities and systems Individual RREA and Private Companies / Distributors Solutions ;^\jgZ+#&"EgdedhZYEdlZgHZXidgdg\Vc^oVi^dc ,) RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 6.3 PRIVATE SECTOR PARTICIPATION IN THE ENERGY SECTOR Context.Eg^kViZhZXidg^ckZhibZci^ci]ZHjW"HV]VgVc6[g^XVcZaZXig^X^inhZXidghiVgiZY^ci]ZZVgan.%¼h#7VX` then, with the support of international development institutions, some African countries started to restructure their electrical systems, unbundling generation, transmission and distribution, and providing incentives for eg^kViZ^ckZhibZci^ci]ZhZXidg#6XXdgY^c\idi]ZLdgaY7Vc`!WZilZZc&..%Z'%&(bdgZi]Vc&*%egd_ZXih gZVX]ZYÃcVcX^VaXadhjgZ^cHjW"HV]VgVc6[g^XV# Value chain. Similarly to what happens at a global scale, generation was the segment with more private ^ckZhibZci^ci]ZgZ\^dc!idiVa^c\&),egd_ZXihl]^X]^cXajYZYV\ZcZgVi^dcXdbedcZci!&'-d[l]^X]lZgZ ZmXajh^kZan\ZcZgVi^dcegd_ZXih#9^hig^Wji^dclVhi]ZhZXdcYhZ\bZcil^i]bdhiegd_ZXih/d[i]Z'+egd_ZXih XdciZbeaVi^c\Y^hig^Wji^dc!*lZgZZmXajh^kZanY^hig^Wji^dcegd_ZXih#;^cVaan!igVchb^hh^dclVhi]ZhZXidgi]Vi gZXZ^kZY i]Z aZVhi eg^kViZ ^ckZhibZci! ]Vk^c\ ]VY &. egd_ZXih! d[ l]^X] dcan dcZ lVh ZmXajh^kZan YZY^XViZY to transmission. Participation models. Current practice in Sub-Saharan Africa is not much different from what happens ldgaYl^YZ#I]Z7DD7j^aY!Dlc!DeZgViZbdYZalVhVahdi]ZbdhijhZY!idiVa^c\+(egd_ZXih!Vaad[i]Zb \ZcZgVi^dcegd_ZXih#I]ZhZXdcYbdhijhZYEjWa^X"Eg^kViZEVgicZgh]^ehEEEbdYZalVh7DI7j^aY!DeZgViZ! IgVch[Zg! l^i] ', egd_ZXih! Vabdhi Vaa ^c i]Z \ZcZgVi^dc hZXidg# 6YY^i^dcVaan! gZciVa dg deZgVi^dcVa aZVh^c\ ^hVahdXdbbdc^c\ZcZgVi^dcegd_ZXih#Table 6.1egdk^YZhi]ZcjbWZgd[egd_ZXihl]ZgZZVX]ineZd[XdcigVXi was used. In Distribution, the lease or “affermage” model seems to be the most used - also common in water and sanitation. In the water sector in recent years in West Africa, a hybrid affermage$XdcXZhh^dc VggVc\ZbZci has been adopted successfully in Cote d’Ivoire, Senegal, Cameroon and other countries. Public Private Partnership principles. The implementation challenge requires strong private sector involvement – in line with the recently approved energy legislation. However, the need to combine a strong grant component to achieve affordable tariffs, requires also strong donor involvement with competent public sector interface and an acceptable asset ownership model. Objectives of private sector participation.6bdc\i]ZbV^cdW_ZXi^kZhd[eg^kViZhZXidgeVgi^X^eVi^dcVgZ^i]Z on-time implementation of the investment program, targeting the increase of electricity access and renewable ZcZg\n!VcY^^i]Z^begdkZbZcid[i]ZZXdcdb^XZ[ÃX^ZcXnd[i]ZhZXidg!l^i]i]Zdei^b^oVi^dcd[^ckZhibZci and the reduction of technical, non-technical and commercial losses. • On-time implementation of the investment program. It is expected that the private sector accelerates i]Z ^beaZbZciVi^dc d[ i]Z ^ckZhibZci egd\gVb [dg gjgVa ZcZg\n! Xdcig^Wji^c\ idlVgY i]Z bdW^a^oVi^dc d[VYY^i^dcVaÃcVcX^Va!]jbVcVcYbViZg^VaVhhZih# • >begdkZbZci d[ i]Z ZaZXig^X hZXidg¼h ZXdcdb^X Z[ÃX^ZcXn# Additionally, private sector participation h]djaYXdcig^WjiZidi]Z^begdkZbZcid[i]ZZaZXig^X^inhZXidg¼hZXdcdb^XZ[ÃX^ZcXn#I]^h^begdkZbZci bVngZhjai!ZhhZci^Vaan![gdbi]Zdei^b^oVi^dcd[Xdhih!gZ\VgY^c\i]Za^[Z"XnXaZd[i]Zegd_ZXi!dg[gdbi]Z bVm^b^oVi^dcd[i]ZegdÃih!WngZYjX^c\i]ZhnhiZb¼hidiVaadhhZh# ,* License model. The new Electricity Law considers private participation under a “License” model, with clear asset ownership clause by the licensee (Section 6.6 of the Law). Such license model is close to a BOO model of participation of the private sector which may constitute a constrain for Donor and Grant participation ^ci]ZGjgVa:cZg\nBVhiZgEaVc·ZkZc^[i]ZAVlZhiVWa^h]Zhi]ViiVg^[[hh]VaacdigZÄZXiXdhihd[V¹gZ\jaViZY entity’s asset base that was acquired by contribution from a third party”. Asset ownership guidelines.>cdgYZgidbVm^b^oZ[jcY^c\!i]Z7DDbdYZal^aaVeeanidA:8VcYidgZcZlVWaZ on-grid generation companies that will procure their funding from Development Finance Institutions. Off-grid VcYYZXZcigVa^oZY\g^Y^ckZhibZcihVcYVhhZih·Xdb^c\bdhian[gdb\gVcih·l^aaWZbVcV\ZY^cV]nWg^Y a^XZchZ$V[[ZgbV\Z bdYZa l]ZgZ \gVci"[jcYZY VhhZih l^aa WZ dlcZY Wn G:;JC9 VcY ¹aZVhZYº id a^XZchZY private operators who will operate, maintain and upgrade such assets in exchange for a variable lease fee. Licensees will be allowed to invest and own new assets which are not grant funded. Other sectors. Private participation in other sectors can be done through traditional commercial approaches: [dg ZmVbeaZ! eg^kViZ deZgVidgh bVn WZ ^ckdakZY ^c gZciVa dg gZiV^a$hjeean d[ hdaVg edgiVWaZ aVbeh! ZcZg\n Z[ÃX^ZcXn dg Xdd`^c\ \Vh gZaViZY Zfj^ebZci# I]Z GjgVa HZgk^XZh Jc^ih l^aa VXi Vh ^bedgiZg# 7jnZg VcY l]daZhVaZgd[HdaVgEdgiVWaZAVbehVcYZ[ÃX^ZciXdd`hidkZh#Dc8^in<Vh!EZigdagZiV^aZghl^aaWZgZfj^gZY id Y^hig^WjiZ VcY bV`Z VkV^aVWaZ Xdd`^c\ \Vh ^c Y^[[ZgZci h^oZh Ydlc id Vi aZVhi + `\ eZg WdiiaZ# AEG8 l^aa support also LPG imports and storage. Contract Generation Transmission Distribution Mixed TotalI Investment (BUSD) PPP BOO 63 %% %+ 3 &&#+% BOT ') &% '' ,) #%% BLT '% %% '% #&% BROT '% &( +& #,% ROT )% %) -% .5' RLT &% && (% #&' Management contract &% && && 3- Privatization +% %& ,& #,% Lease %% '% '% #%% Rental '* %% %' 5- Total 128 15 22 156 19.74 IVWaZ+#&"Eg^kViZ^ckZhibZci^cHjW"HV]VgVc6[g^XV&.%%"'%&( ,+ RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 6.4 RENEWABLE INDEPENDENT POWER PRODUCERS Growing the Grid Renewable IPP initiative. The Growing the Grid Program includes the “On-Grid Renewable >EEº^c^i^Vi^kZl^i]&%%BLeaVccZY#I]Z>EEbdYZa]VhWZZchZaZXiZY\^kZci]ZaVg\Zgh^oZd[^ckZhibZcih! i]ZZVhZd[^ciZ\gVi^dcl^i]i]Z\g^Y·Wdi]cVi^dcVaVcY^ciZgcVi^dcVa·VcYi]ZZmeZXiZY[gZZXVh]Ädli]Vi can be generated on the national grid – allowing to obtain funding from Development Finance Institutions and Private sector investors. Renewable development in decentralized grids. >c 9ZXZcigVa^oZY <g^Yh gZcZlVWaZ YZkZadebZci jcYZg VejgZ>EEbdYZaldjaYWZX]VaaZc\^c\^ci]Zh]dgi$bZY^jbiZgbVhhnhiZbh^oZ^beanhbVaaZgegd_ZXihVcY potential issues on electricity off-taking due to technical restrictions. Also, the need to balance renewables l^i]bdgZZmeZch^kZY^ZhZaWVhZY\ZcZgVi^dca^b^ih[gZZXVh]ÄdlVcYi]ZXVeVX^inideVn[dghjX]^ckZhibZcih# HdaVg$9^ZhZaigVch^i^dcVab^c^"\g^YhVcY=nYgd\ZcZgVi^dc^c9ZXZcigVa^oZY<g^YhVgZZmeZXiZYidWZ[jcYZY by Grants and therefore should remain property of REFUND to be leased to private operators. Smaller scale IPPs to replace diesel.HbVaaZghXVaZ^ckZhibZcihhjX]VhW^dbVhh\Vh^ÃZghidgZeaVXZY^ZhZa could be successfully developed and operated by local entities under a pure IPP model – as long as such operators accept similar dispatch rules as diesel generators. Renewable IPP contractual schemes. GZcZlVWaZ >EEh VgZ cdgbVaan hjeedgiZY dc V 8dcXZhh^dc$A^XZchZ V\gZZbZciVcYVEdlZgEjgX]VhZ6\gZZbZci#I]Z8dcXZhh^dc$A^XZchZV\gZZbZciZhiVWa^h]Zhi]ZgZaVi^dch]^e WZilZZci]ZegdYjXZgVcYi]ZHiViZ!cdgbVaanVji]dg^o^c\XdchigjXi^dc!egdk^Y^c\ÃhXVa^cXZci^kZhdgY^[[ZgZci types of guarantees and potentially clarifying the transfer of assets to the State after a certain period. The Power Purchase Agreement establishes the relationship between the producer and the off-taker, normally establishing the tariffs by which electricity is sold to the off-taker and the rights and duties regarding dispatch of power plants. Renewable procurement program. Many options exist regarding the structure of a renewable procurement program. Further studies are proposed to clarify the Legislative, Regulatory and Administrative framework of renewable procurement in Liberia building on best practices and on a correct assessment of Liberia’s renewable potential. Such study shall develop and detail also the License and Power Purchase Agreements. ,, 6.5 REGIONAL DISTRIBUTION COMPANIES Creation of Regional Distribution Companies. The creation of Regional Distribution Companies is a key ZaZbZcid[i]ZGjgVa:cZg\nBVhiZgEaVcVcYVbV_dgX]Vc\Zidi]ZXjggZci^chi^iji^dcVa[gVbZldg`gZfj^g^c\ further and more detailed studies. The Master Plan and present chapter outline some of the key elements to be considered. Initial setup. The initial setup of Regional Distribution Companies can be complex. In Senegal, where the country was divided into several concessions, the setup took many years and still today the model faces h^\c^ÃXVciX]VaaZc\Zh#I]ZZm^hi^c\XgdhhWdgYZg\g^YhgZegZhZcih]dgiiZgbXdcXgZiZdeedgijc^i^ZhidhiVgi developing and testing the contractual structure. Additionally, the need to combine grants with private sector and to have REFUND as an asset ownership platform allows the investment process – supported in owners engineering services - to advance in parallel with the creation of the Regional Distribution Companies. Local presence and transition from “Community Current”. Selection process should give preference ideVgicZgh]^ehWZilZZcA^WZg^Vc8dbeVc^Zh·Xdb^c\[gdbdi]ZghZXidgh·l^i]h^oZVcYÃcVcX^VaXVeVX^in together with experienced utilities operating already in other countries. The process should also try to include “Community Current” entrepreneurs as preferred employees of the Distribution Companies as hundreds of such entrepreneurs may risk becoming unemployed and may constitute an obstacle to the new Distribution Companies. Affermage contracts. The need to have grant funded assets separated makes the use of Affermage or Lease Contracts a preferred option for Distribution activities in Liberia. In Leases and Affermages the operator does cdigZXZ^kZVÃmZY[ZZWjiX]Vg\ZhViVg^[[idXdchjbZgh#>ci]ZXVhZd[V[[ZgbV\Z·i]ZegZ[ZggZYbdYZa" i]ZdeZgVidg]Vh^ihgZbjcZgVi^dc\jVgVciZZYVhhjb^c\i]Vii]ZgZXZ^eihVgZhj[ÃX^ZciidXdkZgXdhihVcY it is REFUND that takes the risk on the rest of the receipts collected from customers. Hybrid License/Affermage model. Normally in pure Affermage contracts it is the asset owner that remains gZhedch^WaZ[dgÃcVcX^c\VcYbVcV\^c\^ckZhibZci^ci]ZVhhZihWVhZYdcVgZciVaeVnbZci#>ci]ZlViZg hZXidg ^c gZXZci nZVgh ^c LZhi 6[g^XV! V ]nWg^Y V[[ZgbV\Z$XdcXZhh^dc VggVc\ZbZci ]Vh WZZc VYdeiZY successfully – for example in Cote d’Ivoire - where it is the Private Company that assumes the management of the investment process in articulation with the asset owner. The Master Plan proposes a similar hybrid solution to be developed based on REFUND and LERC regulation that allows Licensees to lease grant funded assets, to own and invest in network expansion assets, while limiting demand risk and potentially reducing tariff differentiation among regions. Demand risk.GjgVaZaZXig^X^inYZbVcY[VXZhhi^aah^\c^ÃXVcijcXZgiV^ci^Zhl^i]^beVXidceg^kViZdeZgVidgh# >[gZkZcjZhVgZh^\c^ÃXVcianWZadlZmeZXiVi^dchi]VcÃmZYXdhihdg]^\]gjcc^c\XdhihhjX]VhY^ZhZabVn be hard to support in a sustainable way – limiting the level of service provided and population’s acceptance and VY]ZgZcXZ#I]Z6[[ZgbV\ZXdcigVXil^i]aZVhZ[ZZhidG:;JC9YZeZcYZcidcgZhjaihXVcb^i^\ViZh^\c^ÃXVcian demand risk impact on Distribution Companies economics. ,- RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Tariff and service differentiation.H^\c^ÃXVciiVg^[[VcYhZgk^XZY^[[ZgZci^Vi^dcWZilZZcGZ\^dcVa9^hig^Wji^dc Companies may not be well understood by population limiting acceptance and adherence. REFUND, through differentiated lease fees, can act as a balancing mechanism between Distribution Companies – avoiding h^\c^ÃXVciY^[[ZgZcXZh^ciVg^[[h#I]ZGjgVaHZgk^XZhJc^ih ^cX]Vg\Zd[bVcV\^c\i]ZegZ"eV^YbZiZgVcY billing infra-structure and software can also mitigate differences between Regional Distribution Companies in terms of service delivery and promote synergies. Regional structure. The map in Figure 6.2 represents a possible division of the country in 5 Regional Distribution areas based on the existing Region structure and taking into consideration the existing and eaVccZYXgdhhWdgYZg^c[gV"higjXijgZh#GZ\^dc'WZXVjhZd[^ihh^oZlVhY^k^YZY^cildY^[[ZgZciY^hig^Wji^dc VgZVh/Ad[VdcdcZh^YZVcY7dc\$C^bWVdci]Zdi]Zg#GZ\^dc(ldjaYWZbVcV\ZYWnA:89^hig^Wji^dcJc^i# Yekepa Ganta Mano Tubmanburg Gbarnga Saclepea SP1 Bong Mine Kle Mt. Coffee Bogota Kakata Kru Town Virginia Stockton Town Capitol RIA Electric System Congo Town HX]Z[Ä^Zc HV Substation Buchannan 66kV Buchannan 225kV Existing Power Lines (kV) '' 33 66 Projected Power Lines (kV) :aZXig^ÃZYEd^cih 33 (Technology) 66 On-Grid Settlements ''* Large Isolated Grid Biomass Micro-System 2030 Rural Master Plan (kV) Micro-Hydro '' Solar Villages 33 HdaVg$9>ZhZaHnhiZb 66 Regions Generation Plants G& (Connected to National G'6 or Large Isolated Grids) G' Hydro Plants R3 7^dbVhh$9^ZhZa=nWg^Y R4 ;^\jgZ+#'"EgdedhZYVgZVh[dgGZ\^dcVa9^hig^Wji^dc8dbeVc^Zh ,. 7 CROSS CUTTING ISSUES RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 ,#&<:C9:G:FJ6A>IN :aZXig^ÃXVi^dc]VhbVcnWZcZÃihidldbZcVcYidegdbdiZ\ZcYZgZfjVa^in#I]^hX]VeiZgl^aa]VkZV[dXjh dci]ZheZX^ÃXbZVhjgZh^cXajYZY^ci]ZGjgVa:cZg\nBVhiZgEaVcl]^X]l^aaWZcZÃi\ZcYZgZfjVa^in# Biomass as fuel affects primarily women. According to the International Energy Agency (IEA), World Energy Djiadd`'%&*!^cA^WZg^Vi]ZeZgXZciV\Zd[edejaVi^dcgZan^c\dcigVY^i^dcVajhZd[W^dbVhh[dgXdd`^c\lVh .- ^c '%&(# BdgZdkZg! i]^h eZgXZciV\Z ^h ]^\]Zg ^c A^WZg^V i]Vc ^c HjW"HV]VgVc 6[g^XV -%! VcY ^cYZZY Liberia is among the countries with highest percentage of the population relying on traditional use of biomass for cooking in the world. The burden of gathering wood and other types of fuel falls beneath the women’s responsibilities which imposes a setback on their education and economic involvement. Moreover, the use of biomass indoors contributes to respiratory illnesses which affect more women than men. With electricity, Xdd`^c\\VhVcYegdbdi^dcd[Z[ÃX^ZciXdd`hidkZhi]ZVbdjcid[lddYjhZY[dgXdd`^c\XVcWZhZg^djhan Y^b^c^h]ZY!i]jhYZXgZVh^c\i]ZWjgYZchZidcldbZcid\Vi]Zg^iVcYVahdegdbdi^c\Z[ÃX^ZcXn!bZVc^c\i]Vi the time consumed in these activities is reduced. Electric appliances allow women to save time and reduce effort. Di]Zg i]Vc egdbdi^c\ bdgZ Z[ÃX^Zci cooking fuels and options, by providing electricity to households women are also able to have other appliances l]^X] VgZ ZmigZbZan ]Zae[ja ^c i]Z^g YV^an VXi^k^i^Zh! hjX] Vh gZ[g^\ZgVidgh VcY [gZZoZgh id XdchZgkZ [ddY! and in a later phase washing machines for clothes and dishes and electric irons. Allowing women to cook food bdgZZ[ÃX^ZcianVcYegZhZgkZ^i[dgi]ZcZmiYVnjh^c\VgZ[g^\ZgVidgVcYedlZg^c\]djhZ]daYhl^i]dei^dch where they can obtain several appliances enables women to complete their usual tasks in less time and with less physical effort and some of the manual tasks that may be substituted with the use of electric appliances. Hence, by reducing the time women spend on these household activities they are able to employ more time in education and in their economic activity. 6YY^i^dcValVnhidegdbdiZ\ZcYZgZfjVa^in# Another way to promote gender equality is to involve women ^c i]Z YZX^h^dc bV`^c\ egdXZhh gZ\VgY^c\ gjgVa ZaZXig^ÃXVi^dc! Vh lZaa Vh ZYjXViZ ldbZc l^i] gZ\VgYh idZaZXig^ÃXVi^dchdi]Vii]ZnVgZVWaZidWZeVgid[i]ZXdchigjXi^dcVcYbV^ciZcVcXZd[i]ZZaZXig^X^in\g^Y# A scholarship program to facilitate women’s access to the training opportunities of the Master Plan is planned. Hence, there is a clear promotion for gender equality and to increase the livelihood of women. -& ,#'=:6AI= Health is one of the main priorities. Health facilities are, among key Liberian decision makers, the ide eg^dg^in ^c iZgbh d[ ZaZXig^ÃXVi^dc# <^kZc i]^h! i]Z ZaZXig^ÃXVi^dc iVg\Zi [dg ]ZVai] XZciZgh ^h d[ &%% Wn'%'*#;jgi]ZgbdgZ!i]ZgZ^hVXaZVgegd\gVb^ci]ZGjgVaBVhiZgEaVc[dXjhZY^ci]Z]ZVai]hZXidg^cdgYZg to provide affordable and reliable energy for health clinics and health centers. Electricity provides access to better health care services. With electricity, health centers are able to have better light and hence provide medical services at night but it also enables health facilities to have vaccine gZ[g^\ZgVi^dcVcY^XZeVX`[gZZo^c\!WZiiZgXdbbjc^XVi^dc!bdgZbZY^XVaVeea^VcXZh!hiZg^a^oVi^dcd[Zfj^ebZci and water supply and treatment. These are indeed basic needs for any health facility and hence reliable ZaZXig^X^in XVc ]VkZ h^\c^ÃXVci ^bea^XVi^dch [dg egdk^Y^c\ ]ZVai] XVgZ! ZheZX^Vaan [dg gZegdYjXi^kZ VcY X]^aY health. Using less biomass contributes to increased public health. More than providing better health care services, electricity also helps to increase public health in other areas. Indeed, as demonstrated above, a great part of the population in Liberia still relying on traditional use of biomass for cooking and the usage of lighting fuel is heavily reliant on kerosene lamps and other polluting alternatives. This use of biomass indoors contributes to household air pollution which emit large proportions of health-harming pollutants in their hbd`Z! [jgi]Zg YVbV\^c\ i]Z ]ZVai] d[ i]Z edejaVi^dc# >cYZZY! ^c '%&( i]Z eZgXZciV\Z d[ YZVi]h YjZ id]djhZ]daYV^gedaaji^dc[gdbhda^Y[jZah^cA^WZg^VlVh,#&&VgViZd[*)#'(YZVi]heZg&%%%%%!l]^X] ^h]^\]Zgi]Vci]ZeZgXZciV\Zd[idiVaYZVi]YjZid=>K$6>9H+#*.#=ZcXZ!Wnegdbdi^c\Z[ÃX^ZciXdd`hidkZh and electricity to several households the health of the population is also improved. -' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 ,#(:CK>GDCB:CI Context. Sustainable development depends largely on successfully integrating the environment into economic eaVcc^c\ VcY YZX^h^dc bV`^c\# I]^h bV`Zh Zck^gdcbZci V eVgi d[ i]Z Ã[i] e^aaVg · 8gdhh"8jii^c\ >hhjZh# 6\ZcYV [dg IgVch[dgbVi^dc ]Vh Vh higViZ\^X dW_ZXi^kZh [dg i]^h e^aaVg i]Z YZkZadebZci VcY ^beaZbZciVi^dc of clear environmental policies and quality standards, in order to guide environmental management, and those include a National Plan for Low Carbon and Climate Resilient Economy. This all goes in line with the Millennium Development Goals, as one the main messages is the environmental sustainability of energy supply and consumption. Rural Energy Master Plan. The present Rural Energy Master Plan plays a role on these Liberian strategic dW_ZXi^kZh! h^cXZ i]Z ZcZg\n hZXidg ]Vh bV_dg ^cÄjZcXZ dc i]Z Zck^gdcbZci# 6 higdc\ Xdbb^ibZci id i]Z Zck^gdcbZcilVhXdch^YZgZY^cV\\gZhh^kZiVg\Zih[dggZcZlVWaZ\ZcZgVi^dcjci^a'%(%d[bdgZi]Vc,*! ^cÄjZcX^c\i]ZeZcZigVi^dcd[gZcZlVWaZVcYhjhiV^cVWaZZcZg\nhdjgXZh!hjX]Vh]nYgdedlZgeaVcih!hdaVg photovoltaic panels and biomass generation units. For example, off-grid solutions contain PV systems, which provide green electricity, not polluting the environment and not needing any fuel. Diesel and Biomass.6YY^i^dcVaan!Y^ZhZaVcYW^dbVhh\ZcZgVi^dcjc^ih[dgb^c^"\g^YhlZgZVcVanoZY#Jh^c\ biomass instead of diesel represents a strong decrease in the emissions of carbon and other pollutants, reducing the environmental impact of electricity generation and also its impact on human health. Moreover, using biomass resources for electricity generation may contribute to the reduction of residues that could damage the environment, especially when considering waste and urban resources. Despite this, a sustainable use of biomass resources is vital, as deforestation remains an issue in Liberia. Cook stoves. ;^cVaan!Wnjh^c\Z[ÃX^ZciXdd`hidkZhVcYdi]ZgYZk^XZh!A^WZg^VchXVchjWhiVci^VaanYZXgZVhZ the amount of resources spent in cooking activities, as well as lighting and heating, which contributes positively to the environment. 83 ,#)G:H:6G8= AND INNOVATION Context. Innovation drives growth and enables change. It is of the utmost importance for a country to be innovative, as it allows the country to discover new and better solutions for existing problems. Even though the results matter, the process of innovation allows people to learn, and enabling learning is the start of the road for development. 7^dbVhh\Vh^ÃZgh# Concerning the energy sector, Liberia’s innovative process can be observed in universities hjX]Vh7dd`ZgLVh]^c\idc>chi^ijiZ!^c@V`ViV#I]ZgZ!i]ZjhZd[hbVaaW^dbVhh\Vh^ÃZgh[dgedlZg\ZcZgVi^dc ]Vh^begdkZYVXXZhhidedlZg#I]ZhZ\Vh^ÃZghgZegZhZcihbVaa"hXVaZegd_ZXih![dgYZbdchigVi^dcejgedhZh! as the technology itself is not mature yet. In this way, Liberia is contributing to the testing and improvement d[ \Vh^ÃZgh! l]^aZ WZcZÃi^c\ [gdb i]Z edlZg \ZcZgVi^dc# ;jgi]ZgbdgZ! A^WZg^Vc eZdeaZ VgZ aZVgc^c\ VWdji the technology used, building capacity and acquiring practice with the power generation units and also with the use of natural resources. This is particularly important for the sustainable development and use of resources, raising awareness of these issues. Off-grid and decentralized solutions.8jggZci^ccdkVi^kZegdXZhhZhVgZ[dXjhZYdcd[["\g^YdgYZXZcigVa^oZY generation. The Rural Energy Master Plan encourages innovation in the energy sector, with the use of different and mostly sustainable technologies that represent a step forward compared to the already known diesel generation units. <ZcYZgZfjVa^in# Concerning learning and innovation, it is imperative to take into account gender equality issues, so as to allow both men and women to learn and to handle the devices and technologies used. 84 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 85 8 COORDINATION, MONITORING AND COMMUNICATION RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 -#&8DDG9>C6I>DC STRUCTURE Overall coordination. RREA will be in charge of coordinating, supervising and reporting progress of the implementation of the rural Energy Master Plan, as seen in Figure 8.1 below. The Ministry of Land, Mines and Energy will provide policy oversight and monitoring of the Master Plan. Ministry of Land Other County Mines and Energy Ministries Superintendents RREA Rural Energy Shared MIS Reporting Services (RESS) • MIS Program / Iniciative Responsible entity Responsible entity Responsible entity Coordinator Project 1 Project 2 Project ... ;^\jgZ-#&·8ddgY^cVi^dchigjXijgZ# -, High Level Rural Energy Committee. A High Level Committee with all relevant Ministries and Superintendents will meet at least once every year to guarantee the involvement of all key entities in the Rural Energy Master Plan and also an adequate articulation between MLME and those entities. RREA will act as Secretariat of the Committee. RREA and the Rural Services Unit(s). RREA will be the acting agency in charge of the Rural Energy Master Plan and overall coordination, monitoring and communication activities under delegation from Ministry of Lands, Mines and Energy. Additionally, RREA will act as Program Coordinator and, in some cases, as Responsible Entity. The Rural Services Unit(s) will host and manage the Management Information System and will support RREA in all reporting activities. Program/Initiative coordinators. :VX] Egd\gVb dg >c^i^Vi^kZ l^aa ]VkZ V Egd\gVb$>c^i^Vi^kZ 8ddgY^cVidg ^c X]Vg\Z d[ XddgY^cVi^c\ VcY bdc^idg^c\ i]Z ^beaZbZciVi^dc d[ Vaa i]Z egd_ZXih jcYZg i]Vi egd\gVb or initiative. The Program Coordinator will support the implementation but will not have a hierarchical gdaZ idlVgYh i]Z GZhedch^WaZ :ci^i^Zh [dg ZVX] egd_ZXi# Egd\gVb$^c^i^Vi^kZ 8ddgY^cVidgh l^aa WZ Veed^ciZY by the following institutions: • <I<Egd\gVbVcYDIEEgd\gVb$:[ÃX^ZciA^\]ih6eea^VcXZhVcYEgZeV^YbZiZgh^c^i^Vi^kZh/A:G8 • 9<!7I<!78Egd\gVbhVcYDIEEgd\gVb$:[ÃX^ZciXdd`^c\W^dbVhh^c^i^Vi^kZ/GG:6 • DIEEgd\gVb$8^inXdd`^c\\Vh^c^i^Vi^kZ/AEG8 Responsible entities. :VX] Egd_ZXi l^aa WZ Vhh^\cZY V GZhedch^WaZ :ci^in# I]Z GZhedch^WaZ :ci^in ]Vh id \jVgVciZZ i]Z ^beaZbZciVi^dc d[ i]Z Egd_ZXi# I]Z GZhedch^WaZ :ci^i^Zh l^aa Y^gZXian gZhedcY id BAB: dci]ZgZhjaihd[i]Z^gEgd_ZXih#I]Znl^aaegdk^YZ^c[dgbVi^dcidi]ZGjgVa:cZg\nBVcV\ZbZci>c[dgbVi^dc HnhiZbVcYl^aaVgi^XjaViZVcYgZfj^gZi]Zhjeedgi!^[cZZYZY!d[i]ZEgd\gVb$>c^i^Vi^kZ8ddgY^cVidg# 88 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 -#'BDC>IDG>C< AND CONTROL Multiple layers of control. Monitoring and control will be developed at all levels, from bottom to top. The GZhedch^WaZ :ci^in l^aa WZ i]Z Ãghi Zci^in ^c X]Vg\Z d[ bdc^idg^c\ VcY Xdcigdaa^c\ dc V YVn"id"YVn WVh^h i]Z ^beaZbZciVi^dc d[ i]Z Egd_ZXi VcY d[ jeYVi^c\ i]Z B>H# I]Z Egd\gVb$>c^i^Vi^kZ XddgY^cVidg Vahd ]Vh idXdcigdai]ZhiVijhd[i]Zegd_ZXi!Wji^hdcangZfj^gZYidYd^idcVfjVgiZganWVh^h#;^cVaan!GG:6l^aaegZeVgZ a bi-annual monitoring report to be presented to MLME and to the Rural Energy Master Plan Council. >c[dgbVi^dcÄdlh#>c[dgbVi^dcl^aaWZXdaaZXiZYViEgd_ZXiAZkZajcYZgVBVcV\ZbZci>c[dgbVi^dcHnhiZb# I]Z^c[dgbVi^dcl^aa\dY^gZXian[gdbEgd_ZXi6eea^XVi^dch!Egd_ZXiiZVbdgEgd_ZXiGZhedch^WaZ:ci^inidi]Z MIS. Rural Energy Master Plan Council. A Council with all Responsible Entities will be chaired by MLME under the secretariat of RREA and will meet twice every year. The Council will review the bi-annual monitoring report l^i]ZVX]Egd\gVb$>c^i^Vi^kZ8ddgY^cVidgegZhZci^c\i]ZhiVijhd[]^hEgd\gVbdg>c^i^Vi^kZ# Annual High Level Rural Energy Committee and Stakeholder Meeting. An annual report will be prepared by RREA and presented at the Annual Rural Energy Stakeholder Meeting. The annual report will also constitute the basis for the High Level Rural Energy Committee which will meet once every year. 89 8.3 MANAGEMENT INFORMATION SYSTEM Rural Energy Management Information System. A comprehensive information system will be developed, hosted and managed by the Rural Services Unit(s). The information system will be composed at least of the following key databases: • Prepaid meter and Client Connections database. The MIS will be interconnected with the pre-paid meter database and will have updated information on the number of electricity clients, their consumption and installed capacity, per County, District and Settlement. • Funding database. Information on committed or secured funding in order to identify the remaining gaps. • Project database.>c[dgbVi^dcdci]ZXjggZcihiVijhd[ZVX]Egd_ZXi!WjY\ZiVcY^cXjggZYXdhihVhlZaa as the level of completion and funding sources. • Geo-referenced asset database. Georeferenced information on the existing infra-structure. • Procurement database. Information on all ongoing tenders and status. • Generation database. Information on installed generation. Information update. >cdgYZgidb^c^b^oZZmigVXdhihVcYgZhdjgXZhdcYViVXdaaZXi^dcVcYegdXZhh^c\!i]ZB>H will try to interconnect with existing operational databases and, in some cases, develop useful applications that can support operations and, at the same time, collect the key information. Transparency. The MIS will not only serve for monitoring and control of implementation, but it will also be a key tool to maintain transparency and promote information exchange with all key stakeholders. .% RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 .& 8.4 COMMUNICATION STRATEGY Communication target audience and objectives. Communication is a key element of the Rural Energy Master EaVc^beaZbZciVi^dcl^i]i]Z[daadl^c\`ZndW_ZXi^kZh[dgY^[[ZgZciiVg\ZiVjY^ZcXZh/ For Liberian Population: • BVm^b^oZVXXZeiVcXZWnedejaVi^dcd[ZaZXig^X^inhZgk^XZhVcYegdk^YZghVcYegdbdiZVY]ZgZcXZidhjX] services; • 8]Vc\Z]VW^ihd[XdchjbZghdcXdd`^c\^cigdYjXi^dcd[X^in\VhVcYZ[ÃX^ZciXdd`hidkZh0 • 8gZViZVlVgZcZhhd[VkV^aVWaZegdYjXih!hZgk^XZhVcY_dWdeedgijc^i^ZhZ#\#HdaVgEdgiVWaZAVbeh!8gZY^i lines, training centers, …); • Reduce gender inequality and encourage stronger participation of women on rural energy sector activities VcY_dWh# For entities directly involved in the implementation of the Master Plan: • BVm^b^oZXddgY^cVi^dcVcY^c[dgbVi^dch]Vg^c\WZilZZci]Z^beaZbZci^c\Zci^i^Zh!cVbZani]ZEgd\gVb$ initiative coordinators and the Responsible entities; • Engage public sector institutions and public companies to secure their support and commitment to the implementation of the Master Plan and of the future institutional framework; • Procure participation of private sector companies in the implementation of the Master Plan; • For donors and other stakeholders; • EgdXjgZVcYhZXjgZi]ZXdbb^ibZcid[Ydcdgh!ÃcVcX^Va^chi^iji^dchVcYdi]Zg^ciZgcVi^dcVahiV`Z]daYZgh id[jcYi]ZGjgVa:cZg\nBVhiZgEaVcegd_ZXihVcY^ckZhibZcih0 • Engage stakeholders to secure their support and commitment to the implementation of the Master EaVci]gdj\]VXaZVgVcYigVcheVgZciXdbbjc^XVi^dcdcegd\gZhhVcY^ckdakZbZci$XdchjaiVi^dcdc`Zn elements of implementation. .' RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 Communication mix. Different methods and tools will be applied to communicate the right message to the different target audiences. Liberian population. GG:6 Xdbbjc^XVi^dc h]Vaa XdckZn i]Z WZcZÃih d[ ZaZXig^X^in! Z[ÃX^Zci Xdd`^c\ VcY appliances. It will be mostly based on “above the line” media such as billboards, social media, SMS campaigns VcYgVY^d!Wjil^aaVahd^cXajYZ¹WZadli]Za^cZºXdbbjc^XVi^dcl^i]egZhhgZaZVhZhVcYdg\Vc^oVi^dcd[ZkZcih# Regional Distribution Companies communication will also have a key role in consumer acceptance through its image and of its employees and through the availability of a clear web-site, of local outlets and of a call center where people can ask their questions and present their concerns. All Regional Distribution Companies will be required to approve a Communication Plan and be present at the more populated locations. Entities directly involved in the implementation of the Master Plan. Communication to this target will start by creating a “Rural Energy” brand and identity. Stationary such as caps or t-shirts will be distributed in key implementation events. Coordination and information sharing will be facilitated by a monthly Newsletter to be released by e-mail to all intervenient. The mailing list will be shared and used also to distribute Progress reports and other key information. The bi-annual Rural Energy Master Plan Council and the meetings of the Rural Energy High Level Committee will further reinforce communication and engagement. Donors and other stakeholders. A prospectus on the Rural Energy Master Plan will be distributed to key donors and stakeholders. A web-site will be developed by RREA to communicate the results of the Master EaVc!i]ZGjgVa:aZXig^ÃXVi^dcYViVWVhZVcYhiVi^hi^Xh!h]VgZi]Z`ZngZedgihVcYYdXjbZcihVhlZaaVh_dW$ procurement opportunities. An international mailing and roadshow to key potential donors will be implemented. 6hiV`Z]daYZgVccjVabZZi^c\l^aaWZdg\Vc^oZYWnGG:6i]gdj\]i]Z^beaZbZciVi^dcd[i]ZBVhiZgEaVc# 93 CREDITS Supervision Rural and Renewable Energy Agency (RREA) Augustus Goanue, Executive Director Stephen V. Potter, Sr., Program Director Development Gesto Energia Photos Gesto Energia Design Gesto Energia For all matters contact: Rural and Renewable Energy Agency (RREA) Newport Street, Monrovia Liberia IZa/ '(&,,+(%.--% Email: info@rrealiberia.org Website: www.rrealiberia.org ISBN:.,-".-."*)&.%"*"% Legal Deposit: xxx '%&+5<Zhid:cZg\^VH#6# www.gestoenergy.com