-LEC discloses Plans for Improved Power Supply in Dry Season
By Jerromie S. Walters
Monrovia, Liberia – September 12, 2024 – In a recent panel discussion, Mr. Kwame Kpekpena, Chief Operating Officer of the Liberia Electricity Corporation (LEC), addressed the pressing challenges of electricity supply during the rainy season and outlined the corporation’s strategic plans for the upcoming dry season.
Kpekpena detailed LEC’s dual strategy, which includes the introduction of solar energy and the expansion of electricity imports. “The dry season plan we have are [two], introduction of solar and expansion of import because to be honest for the near time, the only way we can meet dry season demand is from import. Last year, our contract with CIE [Cote d’Ivoire] was a 25-megawatt capacity. We didn’t get that.
Last year, LEC had a contract with Côte d’Ivoire for a 25-megawatt capacity, which unfortunately did not materialize. This year, the contract has increased to 50 megawatts, but Kpekpena noted that they are still not receiving this amount. “Last year, our contract with CIE [Cote d’Ivoire] was a 25-megawatt capacity. We didn’t get that. This year, our contract says 50 [Megawatt capacity], we are not getting it and so we reached out to our other neighbor, Ghana, and Ghana has committed to giving us 50 Megawatt capacity. That should be enough to meet dry season demand here because we have the dam, we have the turbine, we have three sets of plants.”
Kpekpena: “Last year we only used two, this year we have resuscitated the third one so we have an additional ten megawatts to add to the 28 we had last year so we are ready for the dry season. We are working feverishly to get the power from Ghana and again we have the World Bank supporting us in making the arrangement.”
He revealed that LEC has reached out to neighboring Ghana, which has committed to supplying 50 megawatts. He highlighted improvements in LEC’s operational capacity, noting that last year they utilized only two plants, but this year they have successfully resuscitated a third, adding an additional ten megawatts to their existing 28-megawatt capacity. We are doing everything we can to make sure that next dry season, we don’t have the problem we had this year,” he affirmed.
Kpekpena also emphasized the collaborative efforts underway with the World Bank to facilitate arrangements for power imports. “We have to go to Cote d’Ivoire. That’s the only challenge. Ghana is willing, the transmission companies are ready, and TRANSCO is ready. Our only challenge here is bringing CIE to the table.”
Looking ahead, he mentioned a crucial meeting scheduled for the first week of October to discuss the situation with Côte d’Ivoire. “We have a meeting arranged for the first week of October and last month we were in Ghana and we have all the arrangements from Ghana in place so we are working now on Cote d’Ivoire so we are not resting, [and] we are not sleeping on the job,” Kpekpena said.
The World Bank report
Mr. Kwame Kpekpena, Chief Operating Officer of the Liberia Electricity Corporation (LEC) comments come following a recent World Bank report which speaks to challenges of the Liberia Electricity Cooperation (LEC) and indicates that the financial health of the institution is weak, primarily due to issues such as power theft and unpaid bills, which hinder the utility’s ability to maintain and develop infrastructure and attract much-needed private investments.
The report states that the LEC’s financial instability and inability to cover operating costs and settle debts pose a significant fiscal burden on the government. “However, challenges persist, such as weak financial health of the utility due to power theft and unpaid bills, which hampers its ability to maintain and develop infrastructure and attract private investments and capital needed to Implement these plans. The LEC’s financial instability and inability to cover operating costs and settle debts present a substantial fiscal burden for the government. Additionally, weak regulatory enforcement has limited private sector participation in the energy sector, further constraining opportunities for reliable electricity supply and access expansion.”
It continues, “Addressing the sector’s challenges requires a comprehensive action plan to enhance sector revenues, improve distribution efficiencies, promote private sector participation, and implement new energy projects. Ambitious reforms are needed for private sector participation in the economy and energy sector.”
Moreover, the report says weak regulatory enforcement has limited private sector participation in the energy sector, constraining opportunities for expanding reliable electricity supply. It adds that the current generation capacity remains insufficient to meet rising demand, leading to frequent blackouts, particularly during the dry season. These outages adversely affect households and businesses, resulting in increased costs and lost productivity.
With growing electricity demand driven by improved access and economic growth, the development of generation plants utilizing low-cost renewable energy sources becomes increasingly critical for Liberia’s goal of achieving middle-income status by 2030.
“The current generation capacity, however, is insufficient to meet the demand, often resulting in persistent blackouts that worsen during the dry months and have adverse implications on households and firms in terms of costs and productivity loss. With a growing demand for electricity, driven by improved access and economic growth, development of generation plants through low-cost renewable sources is ever more critical for Liberia’s goal of achieving middle-income status by 2030,” the report states.
Liberia’s Priority Investment Plan outlines key projects, including the expansion of the Mt. Coffee hydropower plant, the installation of utility-scale solar photovoltaic plants, the development of the Saint Paul 2 hydropower plant, and improvements to grid infrastructure to ensure a reliable and affordable electricity supply.
Howbeit, the report says recent strides made by the Liberia Electricity Corporation (LEC) indicate that the country is progressing toward its ambitious electricity access targets, with notable achievements in reducing commercial losses and increasing customer connections.
The LEC has successfully decreased its commercial losses from approximately 47.7 percent in 2021 to around 31.4 percent in 2023. Concurrently, the number of customer connections has nearly doubled, rising from 142,947 in 2021 to 282,505 in 2023. Despite these advancements, significant urban-rural disparities persist, with about two-thirds of the population still lacking reliable access to electricity.
To address these disparities, the report acknowledges that the Government of Liberia has implemented a National Electrification Strategy, supported by international development partners, which aims for universal electricity access by 2030. This strategy encompasses a combination of grid expansion, densification, utility revenue protection programs, and off-grid solutions. The Liberia Electricity Sector Strengthening and Access Project (LESSAP), in its first and recently approved second phases, is a key initiative financed by the World Bank to support these efforts.
It suggests: “Concerted efforts and reforms are needed to sustain and advance these gains. The country has embarked on extensive legal and institutional reforms, including the establishment of the Liberia Electricity Regulatory Commission (LERC) in 2015 to improve governance in the sector and a successful transition from a Management Service Contract to a full-time local management team at LEC which led to substantial improvements in its operations and management. Liberia has also tripled its electricity generation capacity over the past decade, raising access from less than one-tenth to about one-third.”
Also, to overcome these challenges, the World Bank recommends a comprehensive action plan is required to enhance sector revenues, improve distribution efficiencies, and promote private sector participation in new energy projects. Ambitious reforms are essential to facilitate increased private sector involvement in both the economy and the energy sector.
