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Rural Energy Strategy and Master Plan for Liberia Until 2030

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Rural Energy Strategy and Master Plan for Liberia Until 2030 Rural and Renewable Energy Agency Securing modern energy access for all Liberians RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 April 2016 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 TABLE OF CONTENTS FOREWORD .............................................................................................................................................................................. 1 EXECUTIVE SUMMARY.............................................................................................................................................................. 2 1 INTRODUCTION ............................................................................................................................................................... 7 2 COUNTRY CONTEXT AND BACKGROUND ......................................................................................................................... 8 2.1 COUNTRY BACKGROUND ........................................................................................................................................................... 8 2.2 LIBERIA’S ENERGY SECTOR AND POTENTIAL .................................................................................................................................. 10 2.3 RURAL ENERGY POLICY AND PRIORITIES ...................................................................................................................................... 14 3 VISION AND OBJECTIVES FOR RURAL ENERGY UNTIL 2030 ............................................................................................ 18 3.1 LONG TERM VISION ................................................................................................................................................................ 18 3.2 RURAL ELECTRIFICATION ACCESS TARGETS AND MAP ..................................................................................................................... 20 3.3 RENEWABLE ENERGY TARGETS AND ENERGY MIX .......................................................................................................................... 22 3.4 ENERGY EFFICIENCY AND COOKING FUELS TARGETS ....................................................................................................................... 25 4 RURAL ENERGY INVESTMENT AND ACTION PLAN.......................................................................................................... 26 4.1 RURAL ENERGY PROGRAM STRUCTURE ....................................................................................................................................... 26 4.2 PROGRAM CALENDAR ............................................................................................................................................................. 27 4.3 GROWING THE NATIONAL GRID ................................................................................................................................................ 28 4.4 DECENTRALIZED GRIDS ........................................................................................................................................................... 29 4.5 BEYOND THE GRID ................................................................................................................................................................. 31 4.6 OTHER THAN POWER ............................................................................................................................................................. 33 4.7 BUILDING CAPACITY................................................................................................................................................................ 34 5 FUNDING REQUIREMENTS AND STRATEGY ................................................................................................................... 37 5.1 FUNDING GAP, SOURCES AND CONSTRAINS ................................................................................................................................. 37 5.2 TAX POLICY AND GOVERNMENT INCENTIVES ................................................................................................................................ 39 5.3 FUNDING STRATEGY ............................................................................................................................................................... 40 5.4 REFUND ............................................................................................................................................................................ 43 6 INSTITUTIONAL FRAMEWORK AND PRIVATE SECTOR PARTICIPATION .......................................................................... 45 6.1 CONTEXT ............................................................................................................................................................................. 45 6.2 POWER SECTOR STRUCTURE, PUBLIC SECTOR ENTITIES AND ESTABLISHED ROLES .................................................................................. 45 6.3 ALTERNATIVE MODELS AND PROPOSED POWER SECTOR ORGANIZATION ............................................................................................ 46 6.4 PRIVATE SECTOR PARTICIPATION IN THE ENERGY SECTOR ................................................................................................................ 48 6.5 PRINCIPLES AND OBJECTIVES OF PRIVATE SECTOR PARTICIPATION ..................................................................................................... 49 6.6 RENEWABLE INDEPENDENT POWER PRODUCERS ........................................................................................................................... 50 6.7 REGIONAL DISTRIBUTION COMPANIES ........................................................................................................................................ 51 7 CROSS CUTTING ISSUES ................................................................................................................................................. 54 7.1 GENDER EQUALITY ................................................................................................................................................................. 54 7.2 HEALTH ............................................................................................................................................................................... 54 7.3 ENVIRONMENT ...................................................................................................................................................................... 55 7.4 RESEARCH AND INNOVATION .................................................................................................................................................... 56 8 COORDINATION, MONITORING AND COMMUNICATION .............................................................................................. 57 i LR.2016.R.002.2 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 8.1 COORDINATION STRUCTURE ..................................................................................................................................................... 57 8.2 MONITORING AND CONTROL .................................................................................................................................................... 58 8.3 MANAGEMENT INFORMATION SYSTEM....................................................................................................................................... 58 8.4 COMMUNICATION STRATEGY ................................................................................................................................................... 59 ANNEX 1 – PROGRAMS, INITIATIVES AND PROJECTS .............................................................................................................. 61 ANNEX 2 – ELECTRIFICATION PLAN ......................................................................................................................................... 65 ii LR.2016.R.002.2 RURAL ENERGY STRATEGY AND MASTER PLAN FOR LIBERIA UNTIL 2030 GLOSSARY OF ABBREVIATIONS AND ACRONYMS BC Building Capacity BOO Build, Own, Operate BOT Build, Operate, Transfer BTG Beyond the Grid CAPEX Capital Expenditure CLSG Côte d'Ivoire, Liberia, Sierra Leone and Guinea DFI Development Finance Institution DG Decentralized Grids ECOWAS Economic Community of West African States FDI Foreign Direct Investment GDP Gross Domestic Product GIS Geographic Information System GST Goods and Services Tax GTG Growing the Grid GW Gigawatt HFO Heavy Fuel Oil HIPC Heavily Indebted Poor Countries HV High Voltage IEA International Energy Agency IMF International Monetary Fund IPP Independent Power Producer kWh Kilowatt-hour LACEEP Liberia Accelerated Electricity Expansion Project LCPDP Least Cost Power Development Plan LEAP Local Enterprise Assistance Program LEC Liberian Energy Corporation LERC Liberia Electricity Regulatory Commission LF Lease Fee LISGIS Liberia Institute of Statistics and Geo-Information Services LPG Liquefied Petroleum Gas LPRC Liberia Petroleum Refining Company MIS Management Information System MLME Ministry of Lands, Mines and Energy MV Medium Voltage MW Megawatt ODA Official Development Assistance OPEX Operational Expenditure OTP Other Than Power PPC Power and Petrol Contribution PPP Public-Private Partnerships REFUND Rural Energy Fund RESMP Rural Energy Strategy and Master Plan RREA Rural and Renewable Energy Agency SHS Solar Home System SREP Scaling-up
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