INVESTING IN SIERRA LEONE Energy and renewable energy
INVESTING IN SIERRA LEONE Energy and renewable energy Mr Cyril Grant, Project Manager, Ministry of Energy June 2019 UK – SL Trade and Investment Conference
Reliable, affordable and accessible power is the cornerstone to the development of our economy. The vision to diversify the economy with an expansion in Manufacturing, Agriculture and corollary investment in value-added production, requires the need for electricity in all areas of the country. Our sector strategy is made up of four dimensions: v Universal Access to Energy v Financial Sustainability v Reform of the Energy Sector v Significant Increase in Renewable Energy 2
Reformed Energy Sector to Encourage Private Capital Investment and Participation Electricity and Water Regulatory Commission The National Electricity Act 2011 unbundled the vertically integrated utility and created : The Electricity Generation and Transmission Company, (EGTC) and the Electricity Distribution and Supply Authority, (EDSA). EGTC is responsible for the generation of electricity and transmission at 66 k. V and higher, whereas EDSA is responsible for the sub-transmission and the distribution network. Electricity Distribution and Supply Authority Ministry of Energy Electricity Generation and Transmission Company The sector is monitored by the Ministry of Energy (Mo. E) and the Electricity and Water Regulatory Commission (EWRC) acts as a regulator. Electricity tariffs are set in accordance with the Electricity Act (2011). 3
Generating Capacity Network Map Locations • Freetown (EGTC) 26. 5 MW 10 MW • Lungi 6 MW 2 MW • Kono 6 MW 0. 4 MW 6 MW 2 MW • Makeni 3. 6 MW 2 MW • Magburaka 0. 8 MW • Lunsar 1 MW • Bumbuna (Hydro) 50 MW 12 MW 6 MW 1. 5 MW 130 MW 60 MW 25 MW 10 MW 6 MW 237 MW 97. 5 MW • Port Loko Bumbuna Line (Existing) Western Area Network Installed Available • Bo • Kenema (Goma Dam) • Karpower • Sunbird (Biomass) • Mini Grids TOTAL 4
Number of Customers Network Map Region Freetown Bumbuna Line (Existing) No. of Customers. 143, 721 Lungi 5, 730 Kono 3, 475 Bo 12, 714 Bumbuna 1, 005 Kenema 8, 961 Makeni 14, 154 Lunsar 1, 641 Magburaka 739 Gos. L 363 Diplomatic 59 Port Loko 152 Total 193, 579 5
Sector Challenges • Low access rate at 15% nationwide • Capacity deficit / Low capacity utilization • Load Shedding and unreliability of the Transmission & Distribution network • High operating costs and Government subsidies • High commercial (including illegal connections) and technical losses at 38% • Insufficient funds for capital investment. • Poor quality supply service to electricity intensive customers 6
Transmission Lines Existing 161 KV (Bumbuna to Freetown) Completed In Progress 225 KV CLSG (Cote D’Ivoire-Liberia-Sierra Leone-Guinea) Completion 2020 Existing 33 k. V (Bo-Kenema) Under Repair and expansion Completion 2020 In Progress 225 k. V India Exim Funded (Yiben, Fadugu, Port Loko, Waterloo, Kent, Sussex, Goderich) Completion 2021 Proposed 225 k. V (Waterloo –Bo – Kailahun Moyamba – Lanti – Pujehun) Unfunded 7
Energy Goals 1 Universal Access to Energy 2 Financial Sustainability 3 Reform of the Energy Sector 4 Significant Increase in Renewable Energy 8
Sector Roadmap Process Parliament Ministry of Energy Ministry of Justice The Roadmap is the outcome of workstreams from various MDA’s and aims at encouraging and supporting private investment into the Generation and Distribution of electricity both locally and for export. • Enabling legal framework (legal amendments, ratification) • Enabling policy framework (policy advances) Ministry of Finance Min. of Economic Development EDSA & EGTC EWRC PPP Unit • Enabling public finance framework (financial commitments) • Procurement framework (efficient and transparent solicited and unsolicited process) • Enabling regulatory framework (regulatory changes) • Improved viability and bankability of State-Owned electric utilities (EDSA, EGTC) • Development of off-grid supply services (sustainable pro-poor option) 9
Market Demand Solutions Rural Area Villages è Mini-grid and off Grid solutions è Solar and Hybrid Generation è Pico Hydro è Connection to Mining Generation Surplus The Rural Renewable Energy Project: With grant funding from DFID and implementation through UNOPS, government has rolled out one of the most ambitious mini-grid projects in the region. è Phase 1 and 2 will see the connection of 94 minigrid communities. These are being operated by private concession with incentive for investment and sustainability. è Feasibility studies are proposed for further expansion of the project to a total of 154 sites by 2021. è USTDA funding feasibility for expansion in the S and SE Areas. For 40 Sites. 10
RREP Installation Mambolo CHC Kukuna CHC
RREP Site Selection The project focused on providing access to locations in rural districts that are not already targeted for access by other electrification programmes. District Breakdown (WP 1) – Phase I District Community selection by consultation with a wide range of stakeholders according to a series of pre-defined criteria. CHCs Bo 1 Bombali 6 Bonthe 3 Kailahun 3 Kambia 8 Kenema 2 Koinadugu District Breakdown (WP 2) – Phase II District CHCs Bo 5 Bombali 1 Bonthe 3 4 Kailahun 8 Kono 6 Kambia 2 Moyamba 10 Kenema 4 Port Loko 6 Koinadugu 8 Pujehun 3 Kono 0 Tonkolili 2 Moyamba 3 Total 54 Port Loko 3 Pujehun 1 Tonkolili 2 Total 40 https: //www. facebook. com/watch/? v=962 629760611857 The criteria started with a list of villages with CHCs provided by MOHS. Sites were chosen with the view to ensure, an equitable distribution per district, and also based on ■ The distance of the CHC to the center of the community, ■ The size of the community ■ The distance of the community to any existing or planned transmission lines and the existence or plan for any other electrification project
Market Demand Solutions Urban Areas/Towns Provincial HQ Electrification è Mini-grid and off Grid solutions è Solar and Hybrid Generation Kabala è Connection to the CLSG Kamakwi e è Connection to Large Hydro è Connection to Mining Generation Surplus Kambia Makeni Port Loko è District Capital Electrification Project. World Bank is conducting feasibility studies for 7 Towns Lunsar è New Niti Port: Construction of a new international sea port at Nitti (anchored around mineral resources and agricultural industrialization, produce and goods movements, and transport logistics to serve the South and East of the country. Matotok a Kono Mile 91 è New Airport Terminal at Lungi, and establishment of a Free-Trade Zone at Lungi, Tran-shipment industries, è Construction of a new City and Tourist hub at Lungi in conjunction with the Lungi Bridge. Magburak a Kailahun Moyamb a Bo Kenema Bonthe Pujehun WAPP Line (Planned) è Major Agricultural Processing and Industrial development clusters in Bo and the South and Eastern Provinces. 13
Market Demand Solutions Import/Export è Large Hydro è Large LNG Plant è Connection to Mining Generation Surplus è The West Africa Power Pool (WAPP) will play a major role in delivering Sierra Leone’s energy security. è The CLSG transmission line will facilitate regional trade from the regional capacity surplus in Cote d’Ivoire Guinea, Ghana and Liberia. è The line traverses the country from north-West to the south-East, with 5 substations at: Kenema, Bikongor Bumbuna, Fadugu and Kamakwie and provides innumerable connectivity potential for domestic, commercial and industrial activity along the 700 KM long power corridor. WAPP Line (Planned) 14
Market Demand Solutions Mining, Industrial and Agro Processing è Connection to the CLSG è Connection to Large Hydro è The development of Bikongor 3 Hydro site (Sewa River) è Large LNG Plant With mining, Government is encouraging investors to move away from vertical integration of power in their production processes, to make room for private investments in the generation and distribution sub-sectors. The conservative estimates of energy required by the mining companies and agro-business potentials in the country range between 650 MW and 850 MW. è Tonkolili Iron Ore Mine is supplied by 20 MW thermal power plant. There is plan to supply Tonkolili from Bumbuna Hydro. è Marampa Iron Ore Mine (near Lunsar) is supplied by 15 MW thermal power plant. è Sierra Rutile is supplied by 23 MW thermal power plant. Other sites developed by Sierra Rutile include Lanti and Gangama. è Vimetco Bauxite mine is supplied by 4 MW thermal power plant in the port of Nitti and has scheduled to develop a 300 t/h wash plant at Gondama. è Nitti should be connected to the South transmission line. è Pujehun Iron ore Mine is supplied by 8 MW thermal plant, and can be supplied by a 66 k. V line linking Bo and Kemena through the South è Koidu Diamond Mine is supplied by a 6 MW thermal plant and has plan to develop a new site at Tonguma. Koidu should be supplied from the Bikongor substation on the CLSG Transco line è Nimini Gold Mine (near Komahun) è Baomahun Gold Mine è Sulima Iron and Gold mine 15
Energy Investment 1. Significant Hydro Power Generating Potentials 2. Ready and significant Local Demand 3. The creation of the power corridor with the CLSG, providing Access to Mining, Agro and Industrial potential development as well as an Energy Export Market. 4. An underinvested Transmission and Distribution Network 5. An active roadmap and established PPP Framework
THANK YOU
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