SIERRA LEONE Boost for Sierra Leone electricity capacity Sierra Leone has an installed electricity generation capacity of 92 MW, but it has ambitions to increase this to 1,000 MW over the next five to seven years. S ierra Leone’s hands-on minister of energy and water, Oluniyi Robbin-Coker, refers to his country as not simply energy poor, but energy starved. “In 2012 Sierra Leone’s economy grew at 25% and we have lofty ambitions but little resources. The biggest barrier is the starved energy environment.” Sierra Leon’s energy options for electricity generation are somewhat limited. The country has no known coal resources, though it may have some gas potential. It has about 2,000 MW of hydroelectric potential, but this is seasonal and would entail a load factor of some 55%. Robbin-Coker believes solar energy has a role to play in the country. He says that when dealing with the Bretton Woods and other development finance institutions the policies take on a cookie-cutter form and the country is looking at more innovative alternatives. “In particular, we want the private sector to come and invest in the electricity sector.” The country, because it recently qualified for debt relief, is not in a position to offer many guarantees though. In 2011 Sierra Leone passed legislation to unbundle the country’s electricity sector. “Some of our partners have said there is not much to unbundle.” The minister of energy and water has insisted that the electricity tariffs be cost reflective. The average tariff in Sierra Leone’s capital, Freetown, is US28c/kWh, with the lowest economic bracket consumers paying US11c/kWh and the highest tariffs reaching US33c/kWh. The country does have the Addax bioenergy sugar cane plantation project underway, which will produce some 32 MW and supply 15 MW of this to the grid. This project is due to bring supply to the grid in the first quarter of 2014. “We took a risk with Addax, an unknown bioenergy company from an oil and gas background and it is looking to be working.” Robbin- Coker hopes this venture illustrates the entrepreneurial approach the country is trying to take in upgrading its electricity sector. In addition, Endeavor Energy, a privately owned independent power development and generation company, is working with international power developer Joule Africa to develop and construct the US$700 million Bumbuna phase II hydroelectric project, which is to add an additional 202 MW to the existing 50 MW at Bumbuna phase I. However, Robbin-Coker reiterates that hydro won’t solve the country’s energy problems. “We have a good appetite for thermal plant, and we will do coal if it makes sense to do coal. We have empty sea-going vessels coming to Sierra Leone to pick up iron ore and these ships have countries such as Indonesia and South Africa en route, so we could bring in coal.” He is also asking entrepreneurial thinkers to come in and offer options related to gas. 34 Sierra Leone minister of energy and water, Oluniyi Robbin-Coker. Robbin-Coker notes that dealing with generation capacity without taking into account the distribution network is foolhardy. “At the moment the country’s electricity distribution network cannot absorb the generation on offer. We have been looking to attract investment into the distribution network.” Two years ago the government of Sierra Leone issued a tender for the provision of power, and a company called Blue Flare Power responded. Negotiations proceeded for the provision of 128 MW of thermal generation capacity. This project will be implemented in phases and total costs will be over US$300 million, representing one of the largest private sector investments into Sierra Leone in recent years. The “We knew Blue Flare did not have everything required for success. At the time I was in the private sector, acting as an advisor, and progress was limited and concerning.” ESI AFRICA ISSUE 4 2013