Liberia
With a cumulative score of 0.94, Liberia ranks number 95 among emerging markets and number 124 in the global ranking.
- Emerging markets
- Middle East & Africa
1.10 / 5
Power score
0.56 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Liberia does not have a net-zero emissions target.
Nationally Determined Contributions (NDC)
Liberia's targets through 2030 include mitigation strategies (reduction of emissions by 10%, improving energy efficiency by 20%, and raising the share of renewables to be 40% of electricity production, and 30% of consumption) and adaptation strategies (in agriculture, hydroelectric energy, forestry, and health), which support a stated long-term goal of being carbon-neutral by 2050. It has recently added clean cooking to its emissions reduction strategy. The renewable energy target is an increase from the original targets set in 2009. The carbon-neutral target is easily attainable due to its large carbon sinks in the form of moist forests.
Fossil fuel phase-out policy
Liberia has plans to phase out fossil fuel use, including the diesel plants that are supporting the main source of power at Mount Coffee, in favor of solar PV. Small hydro plants are being built on rivers with solar PV as a complement, sponsored by funds from the European Union. Liberia estimates that it needs foreign investment of $490 million to implement their plans.
Power
Power policy
The Liberia Electricity Corporation (LEC) is currently the sole supplier of retail grid power. LEC is a state-owned monopoly responsible for generation, transmission, distribution, and system operation in Liberia. The utility owns and operates a small fleet of mostly hydroelectric generators, including the 88MW Mount Coffee Hydropower Plant, which was returned to service in December 2016 after being offline for 26 years through civil turmoil and the ebola outbreak.
Power policies
Power prices and costs
The National Energy Policy is currently being revised to provide an open market structure to public and private interventions, prepare for an open distribution network, and retain transmission responsibilities. LEC has signed one license agreement with Jungle Energy Power for distribution in Nimba County. This distribution comes off the imported power from Ivory Coast under the West African Power Pool agreement.
Power market
The Liberian Electricity Regulatory Commission (LERC) was recently established. It renegotiated the country’s one franchise agreement in 2021 to change it to a license agreement with Jungle Power and LERC will likely assign assets to them in the future. Draft regulations for power purchase agreements, grid extensions, new interconnections and private electricity suppliers have been formally submitted for government review. In 2022, the president issued an executive order suspending import duties on solar PV products and components of mini grids. The solar market is expanding into retail through new entrants such as Easy Solar who now offer pay-as-you-go service.
Liberia’s retail electricity prices have declined significantly in recent years because of the refurbishment of the Mount Coffee Hydropower Plant, which brought low-cost supply to the heavily constrained power system. Substantial investment is required in the LEC grid, which may increase prices over time. Small river-based hydro projects are being installed and supplemented by solar PV which will increase the rate of electrification in the country.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
The lack of a transparent and uniform policy framework has hindered clean energy investment in Liberia to date, but the country is focused on incentivizing private investment. There is significant potential for new solar projects, especially as the regulatory and policy framework continues to improve.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
There is no electric vehicle market in Liberia.
EV policy
The government has yet to implement any substantive policy support in this sector and the EV market remains as a future ambition only. Liberia is a member of the Economic Community of West African States (Ecowas), which has recommended protocols for all vehicles to be 'clean emitters' by 2050. Currently, Liberia is focused on lowering emissions by only allowing vehicles to be registered in the country that are less than 10 years old. Taxes on the permits of vehicles older than 10 years have been increased in order to disincentivize imports of older vehicles.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
There is effectively no heating in Liberia. From an efficiency perspective, the government is just beginning to review possible energy efficiency improvements for government owned buildings.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
There are no current policies in place; standards for public buildings are included in the draft National Energy Policy but there is no funding source for improvements unless outside donors contribute.
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
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