Sierra Leone
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COUNTRY CHAPTER: SIERRA LEONE Author of Country Chapter On behalf of Michael A. Conteh (MSc. Eng.) Federal Ministry for Economic Cooperation and Development (BMZ) Coordination and Review of the Country Chapter Editorial staff Anton Hofer, (MSE, Dipl.-Ing. /FH, M.A.) Diana Kraft WIP-Renewable Energies Tel: +49 (0)6196 79 4101 www.wip-munich.de Fax: +49 (0)6196 79 80 4101 Munich, Germany Email: [email protected] Editor Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Department Water, Energy, Transport Dag-Hammarskjöld-Weg 1-5 65760 Eschborn, Germany www.gtz.de Renewable Energies in West Africa 211 Sierra Leone CONTENTS SIERRA LEONE AcRONYMS, ABBREVIATIONS AND MEASUREMENTS 213 SUMMARY 214 1 COUNTRY INTRODUCTION 216 1.1 Geography and Climatic Conditions 216 1.2 Political, Economic and Socio-economic Conditions 216 2 ENERGY MARKET IN SIERRA LEONE 217 2.1 Overview of the Energy Situation 217 2.2 Energy Capacities, Production, Consumption and Prices 217 2.3 Market Actors and Regulation Structures 222 3 POLICY FRAMEWORK FOR RENEWABLE ENERGIES 223 3.1 Policies, Strategies and Programs for Renewable Energy Promotion 223 3.2 Regulations, Incentives and Legislative Framework Conditions 223 4 STATUS AND POTENTIAL FOR RENEWABLE ENERGIES 225 4.1 Biomass/Biogas 225 4.2 Solar Energy 225 4.3 Wind Power 226 4.4 Hydro Power 226 5 MARKET RISKS AND BARRIERS 226 6 RENEWABLE ENERGY BUSINESS INFORMATION AND CONTACTS 228 7 BIBLIOGRAPHY 229 CONTENTS Renewable Energies in West Africa 212 Sierra Leone AcRONYMS AND AbbREVIATIONS SIERRA LEONE APC All People’s Congress BADEA Arab bank for economic development in Africa) BHEP Bumbuna Hydroelectric Project BKPS Bo-Kenema Power Services CFL Compact Fluorescent Lamp DANIDA Danish International Development Agency DC Direct Current EFA Environmental Foundation for Africa e.g. ex gregie/for example FOB Free of Board GDP Gross Domestic Product GoSL Government of Sierra Leone GTG Global Trading Group HDI Human Development Index IEL Income Electrix Limited IPP Independent Power Producer JICA Japan International Cooperation Agency KPS Kingtom Power Station Le Leone (Sierra Leonean currency) LPG Liquefied Petroleum Gas MAFS Ministry of Agriculture and Food Security MEP Ministry of Energy and Power MF Ministry of Finance MFO Marine Fuel Oil MLIRSS Ministry of Labor, Industrial Relations and Social Security MMR Ministry of Mineral Resources MoU Memorandum of Understanding MTI Ministry of Trade and Industry NCP National Commission for Privatization NP National Petroleum Company NPA National Power Authority PIU Project Implementation Unit PPP Public-Private Partnerships PSP Private Sector Participation PU Petroleum Unit PV Photovoltaic RE Renewable Energy SDF Saudi Development Fund SHS Solar Home System SLEDIC Sierra Leone Export Development and Investment Corporation UNAMSIL United Nations Mission in Sierra Leone UNECA United Nations Economic Commission for Africa UNIDO United Nations Industrial Development Organization USD United States Dollar AcronYMS, ABBreViationS and MEASUREMENTS Renewable Energies in West Africa 213 Sierra Leone MEASUREMENTS GWh gigawatt hour (1 GWh = 1,000,000 Kilowatt hours (kWh)) kg kilogram km2 square kilometer kWh kilowatt hour kVA kilovolt-ampere m/s meters per second m3 cubic meters mm millimeter MW megawatt (1 MW = 1,000 kW) MWh megawatt hour MT million tons toe tons of oil equivalent yr year t ton W Watt Wp Watt-peak ºC degree Celsius € Euro (1 Euro = 4,233.01 Le) AcronYMS, ABBreViationS and MEASUREMENTS Renewable Energies in West Africa 214 Sierra Leone SUmmARY The Country Study of Sierra Leone is to provide an overview of the country’s energy market and to support decision-mak- ing for private investments for the Renewable Energy (RE) sector in Sierra Leone. The study is structured as follows: Chapter one provides Background Information on Sierra Leone. This includes an overview of geographical and climat- ic conditions, as well as the most important facts in view of political, economic and socio-economic conditions of Sierra Leone. Chapter two summarizes facts and figures of Sierra Leone’s Energy Market including stakeholders and market actors involved as well as sector related regulations. Chapter three presents the currently existing Political Frame- work for Renewable Energies in Sierra Leone. This includes an overview of support mechanisms for RE technologies as well as other already existing regulations, incentives and legislative framework conditions. Chapter four provides a brief overview of the Status Quo and Potential for Renewable Energies in Sierra Leone. Chapter five summarizes the existing and potential Market Risks and Barriers in general with focus on RE. Chapter six presents a compilation of the most relevant Renewable Energy Business Information and Contacts of Sierra Leone. SummarY Renewable Energies in West Africa 215 Sierra Leone 1 COUNTRY INTRODUCTION 1.2 POLITICAL, EcONOMIC AND SOCIO-ECONOMIC CONDITIONS The Republic of Sierra Leone was a former British colony that 1.1 GEOGRAPHY AND CLIMATIC CONDITIONS gained its independence in April 1961. It is a multi-party dem- Sierra Leone is a tropical country that stretches along the West ocratic sovereign state that has just got over a ten-year rebel coast of Africa between latitudes 7 ° North and 10 ° North, conflict, which devastated the country’s physical and social and longitudes 13 ° 30’ West and 10 ° 30’ West. It has a total infrastructures. According to the 1991 constitution, the three surface area of 72,000 km2 (≈ 28,000 square miles). Its bor- arms of the Government are the Executive, the Parliament, ders are the Atlantic Ocean with a coastline of approximately and the Judicial. The current president is Dr. Ernest Bai Ko- 340 km (≈ 210 miles) in the West, Guinea in the North West roma (as to 2009). He is the leader of the All People’s Congress and East and Liberia in the South East. (APC), which is the dominant political party in the country. For administrative purposes, the country is divided For over two decades, the institution of local govern- into three Provinces (Northern Province, Southern Province ments was on hold. In 2004, however, local governance was and Eastern Province) and one Area (Western Area that hous- once again reinstated through an Act of Parliament. 19 Lo- es the capital city of Freetown). The Provinces are further di- cal Councils (LCs) were established, covering all districts and vided into twelve districts. The western area is divided into the town centers in Sierra Leone, including the capital of Free- Western Rural District and the Western Urban District. The town. According to section 20 (1) of the Act, the LCs are the Western Rural District consists of the following wards: Koya, highest political authority in their localities. They have legis- Mountain rural, Waterloo and York rural, while the Western lative and executive power to be exercised in accordance with Urban consists of Central 1 and 2, East 1, 2 and 3 and West the Act or any other enactment. The LCs are responsible for 1, 2 and 3. promoting the development of their localities and the welfare of the people and are entitled to use any resources at their FIGURE1: disposal including resources and capacities they can obtain Map of Sierra Leone from the central government and its agencies, national and international organizations and the private sector. LIBERIA The LCs are financed through revenue collections of their own, by central Government grants for devolved func- Kabala tions and by transfers for services delegated from Government Loma Mansa ministries. In terms of political stability, civil liberties, and Kambia political rights, Sierra Leone is now comparable to the average Makeni of the West African region. According to the 2004 census, the Lungi Lunsar Koidu Pepel current population of Sierra Leone is 5,473,530 million with FREETOWN a growth rate of about 2.6 %. Women account for about 51 % Kailahun of the population. The population is youthful; those in the Bo Shenge Kenema age range of 15–64 years account for about 52 %. Over the years, the urban population has increased at a faster rate than Momaligi Bonthe the rural, largely due to rural neglect and the civil conflict. However, at least 65 % of the population still live in rural ar- eas and are mostly engaged in agricultural, mining and other North Sulima Atlantic Ocean non-farm activities. Table 1 shows the projected national population. The country’s population is expected to reach about 6.5 million by The climate of Sierra Leone is tropical with constantly high 2015. Future percentage of the rural population is envisaged temperatures and marked wet and dry seasons. The daily av- to decrease over the years due to migration to the urban areas erage temperature varies but little throughout the year. The for better life. lowest average temperatures occur in the mid-wet seasonal months of July and August with thickest cloud cover. The highest temperatures occur in March and April when insula- tion is high and cloud cover low. Sierra Leone’s mean tem- perature throughout the year is about 27 °C. The country has a fairly high rainfall; it records an average of about 2,950 mm of rainfall in 2003 making it one of the wettest countries in West Africa. taBLE 1 Projected Demographic Indicators for Sierra Leone (2006–2016) INDICATOR 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Population (x 1000) 5,217 5,343 5,474 5,610 5,747 5,189 6,038 6,190 6,348 6,506 Source: SSL, as of 2005 countrY introduction Renewable Energies in West Africa 216 Sierra Leone Though the country is endowed with substantial mineral re- Figure 3 shows the nation’s GDP at constant market prices in sources – diamonds, rutile, bauxite, gold and iron ore as well 2001 and inflation from 2001–2007. The average growth rate as rich agricultural and marine resources (which are the major (year-to-year) of the GDP is over 10 %.