Sustainable Energy for All (SE4ALL)Action Agenda for Sierra Leone

Status: Validated by national stakeholders and to be adopted by Cabinet Ministers in November 2015

WWW.ECREEE.ORG

Ing. Benjamin Kamara, Director of EnergyMinistry of EnergyRepublic of Sierra Leone

Republic of Sierra Leone

• July 2013: Adoption of regional policies for renewable energy and energyefficiency by ECOWAS Heads of State, decision to develop national actionplans

• March 2014: ECOWAS member states agreed on templates and process fordevelopment of National Renewable Energy Action Plans (NREAPs), NationalEnergy Efficiency Action Plans (NEEAPs) and SEALL Action Agendas

• June – November 2014: Stakeholder consultations in Sierra Leone

• December 2014: Technical validation of all three action plans in Sierra Leone

• November 2015: Adoption by Cabinet Ministers

Background

2

Sierra Leone Overview and Energy Situation

3

Year: 2013

Area: 72,300 km2

Population: ~ 6 million

GDP per capita: ~ 680 US$

Electricity Production: ~179 GWh,78.4% from Renewables

Installed Capacity: ~98 MW ofwhich 58.5 MW Renewables(~59%)

Access to Electricity: ~12.5%

Access to Modern Energy forCooking: ~1%

Sierra Leone Overview

4

Sierra Leone Energy Sector Reform

• The electricity act of 2011

• Unbundled the National Power Authority into two entities The Electricity Generation and Transmission Company EGTC

The Electricity Distribution and Supply Authority EDSA

The Electricity and water regulatory act 2011 Electricity and water regulatory commission

5

Total Primary Energy Supply

in Sierra Leone

• In 2013, total primaryenergy supply was 3.9million toe

Biomass92%

Fossil8%

Renewable0%

6

50%

4%

46% oil

Solar PV

hydro

Power Generation in Sierra Leone

Electricity source

• In 2013, total electricity generatedwas 179 GWh

Source: SE4ALL Action Agenda report7

Sierra Leone’s Energy Strategy for 2030

8

Sierra Leone National Energy Policy and Action Plans Objectives

ENERGY ACCESS• By 2018: all District Headquarter towns have electricity

• By 2030: universal access to electricity (92% in the AA and NREAP)

• By 2016 Cooking energy policy objectives; developed and commenced implementation

ENERGY EFFICIENCY • By 2020 (2030) 60% (100%) of light bulbs sold for on grid application will be energy efficient (CFL or

LED)

• By 2020 (2030) 70% (100%) of light bulbs sold for off grid application will be energy efficient (mostlyLED)

• By 2020 (2030) 85% (100%) of street lights will be energy efficient (HVS or LED)

GENERATION CAPACITY• By 2018: Increase generation and T and D installed capacity up to 1,000 MW including renewable

energy (National Strategy Plan 2014-2018)

9

Sierra Leone Energy Future: VisionBy 2035, Sierra Leone aspires to be an inclusive, green, middle-income countrywith the following energy related features:

• Private sector-led growth, creating value-added products, and providing jobs for our people

• An effective environmental management system in place that protects biodiversity and iscapable of pre-empting environmental disasters

• To be a model in responsible and efficient natural resource exploitation

The energy sector will be the main instrument for economic development.

Renewable energy clusterSierra Leone as a provider of energy servicesTourism based on green and efficient hotels

Energy efficient economyEnergy efficient societyEnergy efficient familiesRenewable energy production

Healthier familiesGender-friendly society

10

Sierra Leone – Primary Energy Supply Baseline Scenario in 000 toe

• The reliance on biomass energy has risen dramatically in absoluteterms and is expected to continue to grow at an accelerated pace

11

Sierra Leone – Energy Access

12

Targets on Energy Access

• By 2018• all District Headquarter towns have electricity

• By 2020• 44% of the population will have access to electricity

• 45% of the population will use improved cook stoves

• 15% of the population will use modern cooking fuels (e.g. LPG)

• By 2030• 92% of the population will have access to electricity

• 75% of the population will use improved cook stoves

• 25% of the population will use modern cooking fuels (e.g. LPG)

13

Planned Increase in Electrification

• Increase the number ofhouseholds electrified(on grid and off grid)from 26,000 to 94,000per year• There is a major scale-

up between 2015 and2020

• The largest effort is onincreasing access tomini-grids and stand-alone systems in theshort term

868 866 885 922

0

100

200

300

400

500

600

700

800

900

1000

0

10

20

30

40

50

60

70

80

90

100

2015 2016-20 2021-25 2026-30

Euro

pe

r h

ou

seh

old

Tho

usa

nd

ho

use

ho

lds

pe

r ye

ar

Annual number of electrified households and unit investment

On grid HH Off grid HH Inv per HH

14

Strategy to Achieve the Targets

• Extend the grid and increase the coverage of electricity supply• Develop and finalise the rural backbone grid to connect the remaining non-

electrified major localities and build secondary light T-off lines to connectminor dwellings in the vicinity or the backbone

• Develop off-grid supply for localities that will not be covered by the grid in theshort term

• Develop distributed energy options (solar kits) for smaller and scattereddwellings

• Roll out the barefoot college solar strategy/Women in Renewable Energy

• Develop multifunctional platforms (MFP) for community supply and productive use ofenergy

15

Strategy to Achieve the Targets

• Upgrade and secure the sustainable forest management models to slow downthe rapid deforestation process

• Participatory and sustainable forest management (PSFM) is the main option contributing tothe sustainable use of forestry resources.

• Accelerate the transfer of forestry management competence towards rural communities andcommunes, enabling the management of smaller forestry areas

• Enforce regulation and monitoring of charcoal production

• Emphasize energy efficiency though the fire wood / charcoal value chain• Develop and promote improved cook stoves

• Standards and labelling• Information dissemination

• Develop and promote improved charcoal kilns and best practices

• Promote substitution from charcoal to butane in urban areas

• Promote the development of biogas in rural areas

16

High Impact Actions

• Access to electricity• An enabling environment for off grid solutions implemented by the private sector

will permit to build a sustainable commercial infrastructure in order to offerworkable off grid supply solutions

• The actions relating to the construction of the grid backbone (and LV extensionprogramme) intending to reach all localities would put Sierra Leone’s electricitysupply sector in a position to offer a workable on grid supply solution to mostlocalities

• Access to modern cooking energy• The actions relating to both reductions in firewood demand through massive savings

(efficient cook stoves) associated with moving away from charcoal (LPG penetration),combined with measures to improve production levels would put Sierra Leone’sbiomass sector into a sustainable track

17

Sierra Leone – National Renewable Energy Action Plan - NREAP

18

Targets on Renewable Energy

• Increase installed RE generation capacity to 659 MW in 2020 and1,229 MW in 2030

• Increase access to RE off-grids solutions incl. mini-grids to 14% in2020 and 37% in 2030

• Increase number of residential houses with solar water heaters to 480in 2020 and 1,880 in 2030

• Increase share of efficiently produced charcoal to 36% in 2030

• Blending of petrol with bioethanol and of diesel with biodiesel

19

Planned Increase in Power Generation Capacity

• The share of renewable generation capacity will exceed 25% in 2020, thanks to investment in hydro• In order to reach 1,000 MW in 2018, about 800 MW of fossil fuel generation

will have to be installed

0%

10%

20%

30%

40%

50%

60%

70%

0

200

400

600

800

1000

1200

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Shar

e o

f R

en

ewab

le C

apac

ity

Inst

alle

dR

E ca

pac

ity

MW

Renewable Energy Generation Capacity Forecast

Hydro Solar Biomass RE share

20

Strategy to Achieve the Target

• Promote public private partnership for large scale RE power plants• Ownership of neighboring communities to hydro projects• Appropriate regulations for grid-connection and wheeling of electricity generated• Incorporate environmental externalities in tariff• Create a Public Benefit Fund to finance renewable energy projects

• Promote private investment for small scale RE power plants connected to the grid • Develop PPA and rules for tariff revision (FiT policy)• Custom tax waiver on RE equipment and RE generation tax credit

• Reduce the cost of domestic electricity bill (or diesel oil bill for gen-set) byinstalling kW scale roof-top PV capacities

• Optimize generation cost using RE modules for mini grids or isolatedsystems (such as RE only or hybrid schemes)

21

High Impact Actions

• Increase renewable energy generation capacity by creating anenabling environment for private investment in small/medium-size REpower plants

22

Renewable Energy Projects in the Pipeline

• Hydro projects• Bekongor (160 MW)• Mange (100 MW)• Bumbuna II (202 MW)• Bankasoka (2.2 MW)• Makali (0.12 MW)• Charlotte falls (2.2 MW)• Moyamba (10 MW)

• Biomass projects• Addax (30 MW of which 15 MW fed into the grid)

• Solar PV projects • Solar Park Freetown (6 MW)-IRENA• Solar Park for Bo (5 MW)-Solar Era• PRESSD Project-in 6 Districts (EU funded)• Environment foundation for Africa• Women in Renewable Energy (WIRE)• Barefoot women training institution

Location of future RE power plants

23

Sierra Leone– National Energy Efficiency Action Plan NEEAP

24

Targets on Energy Efficiency

• By 2020• 60% of light bulbs sold for on grid application will be energy efficient (CFL or LED)

• 70% of light bulbs sold for off grid application will be energy efficient (mostly LED)

• 85% of street lights will be energy efficient (LED)

• Reduce electricity losses on transmission and distribution networks from 45% (2013) to 17%

• Improve the efficiency of the production of biofuel

• By 2030• 100% of light bulbs sold for on grid application will be energy efficient (CFL or LED)

• 100% of light bulbs sold for off grid application will be energy efficient (mostly LED)

• 100% of street lights will be energy efficient ( LED)

• Reduce electricity losses on transmission and distribution networks from 17% (2020) to 9%

• Curb the firewood demand below supply capacity

25

Planned Evolution of Biomass Consumption

• The promotion ofimproved cookstovesand LPG will permit tocurb the firewooddemand belowsustainable supplycapacity

0,0%1,9%

29,4%

44,8%

54,7%

-10%

0%

10%

20%

30%

40%

50%

60%

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

2012 2015 2020 2025 2030

Savi

ngs

ove

r B

AU

sce

nar

io

Fire

wo

od

dem

and

(to

nn

e /

year

)

Primary firewood demand

primary firewood BAU primary firewood SE4ALL savings (%)

26

Strategy to achieve the targets

• Lighting• Adoption of Minimum Energy Performance Standards (MEPS) for on-grid and off-grid

lighting devices• Supporting energy efficient lighting policies and measures through awareness raising

campaigns targeting final consumers• Establish a system for Monitoring, Verification and Enforcement (MV&E) of Minimum

Energy Performance Standards (MEPS) for lighting systems• Environmentally sound management through the implementation of a collection and

disposal system for energy efficient light bulbs

• Transmission and distribution grid loss reduction• Transmission grid expansion and voltage upgrade• Investment in additional MV/LV transformers to develop LV distribution• Improve customer database to monitor consumption

27

Strategy to Achieve the Targets

• Reduction of electricity consumption at user point • Efficient lighting (residential, public building and street lighting)• Efficient cooling (fridge, commercial and industrial)• Efficient electrical appliances through labelling• Thermal regulation for building• Solar water heaters• Solar protection of windows

• Improving energy efficiency in road transportation• Adopting additional fuel saving technologies specially addressing the lagging improvement in

fleet fuel economy as a result of the vibrant second hand vehicle market• Improving the road infrastructure, developing public transport and traffic plans• Biofuels blending

• Bio ethanol from cane sugar up to 30% of gasoline mix• Straight vegetable oil from jatropha up to 10% of diesel mix

28

High impact actions

• Increase the rate of energy efficiency• Adequate regulation and financing schemes will create an enabling

environment for energy efficiency solutions implemented by the privatesector and will permit to disconnect the energy demand growth with the GDPgrowth

• Energy-Health Nexus• Make the hospital or health clinic the centerpiece of a village mini-grid

29

The Energy-Health Nexus

• Promote the use of RE technologies in the health care sector• Power generation and electricity storage

• Lighting, fans, vaccine refrigeration and ice pack freezing

• Water heating, distillation, pasteurization, sterilization

• Water supply and clean water treatment

• Waste water treatment

• Solar-based radio and telephone communications

30

Sierra Leone – Investment requirement

31

Overall Estimation of Financial Needs to Implement the SE4ALL Action Agenda for Sierra Leone

• The financingrequirement forSE4ALL ActionAgenda amounts to2 billion € of which84% for electricityaccess andrenewable energy

39%

6%

45%

10%

0%Electricity Access

Access to moderncooking energy

Renewable Energy

Energy Efficiency

ImplementingAgency(ies)

32

Estimate of the Required Annual Investment

• The annual financingrequirement is around120 million Euros

0

20

40

60

80

100

120

140

2015 2016-20 2021-25 2026-30

Mill

ion

Eu

ros

per

yea

r

SE4ALL Action Agenda - Annual Financing Requirement

ImplementingAgency(ies)

Energy Efficiency

Renewable Energy

Access to moderncooking energy

Electricity Access

33

SE4ALL Action Agenda of Sierra Leone

Developed by the Ministry of Energy with technical and financial assistance of:

Supported by

Within the framework of

34

Thanks for listening

35

Planned Increase in LPG Consumption

• LPG consumption forcooking will increase upto 47,000 tonne by2030

• The number ofhouseholds gainingaccess to LPG willincrease from 5,000 to8,000 per year

-

20

40

60

80

100

120

140

160

180

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2012 2015 2020 2025 2030

kg L

PG

/ h

ou

seh

old

/ ye

ar

Ton

ne

LPG

LPG supply to households

LPG (tonne) kg LPG / household/ year

36