Sierra Leone
With a cumulative score of 1.38, Sierra Leone ranks number 65 among emerging markets and number 94 in the global ranking.
- Emerging markets
- Middle East & Africa
1.68 / 5
Power score
0.68 / 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
Sierra Leone does not yet have a net-zero goal.
Nationally Determined Contributions (NDC)
The country submitted an updated Nationally Determined Contribution (NDC) – a non-binding plan to achieve the goals set out in the Paris Agreement – to the United Nations Framework Convention on Climate Change (UNFCCC) in July 2021. It aims to lower its CO2 emissions by 5% by 2025, and 10% by 2030, versus a business-as-usual scenario from 2015 levels. In the longer-term, Sierra Leone is targeting a 25% reduction in emissions by 2050.
Fossil fuel phase-out policy
As part of its NDC, Sierra Leone says that reducing emissions from power plants and other fossil-fuel based energy sources is a priority for the energy sector. However, it does not yet have a specific fossil fuel phase-out policy.
Power
Power policy
Sierra Leone approved its first and only clean energy policy in March 2017, setting a target for 80% and 84% of final energy to come from renewables by 2020 and 2030, respectively. Little progress has been made on these targets, however, since the country depends on external funding to reach them.
The government’s Action Plan for 2014-17 aimed to increase renewables capacity from 75 megawatts (MW) to 1,000MW. However, no progress has been made as the state of the main grid has prevented new generation assets from being connected. The only incentive for renewable energy is a reduction in import taxes on solar products.
Power policies
Power prices and costs
Sierra Leone’s grid customers are from the residential, small commercial or public sector. Electricity prices are regulated by the Water and Electricity Regulatory Commission, and they have been kept stable since the rise back in 2019. As of 2020, grid electricity prices are subsidized for the residential sector at 644 leone ($0.07) per kilowatt-hour (kWh) for the first 25kWh, and 1,600 leone/kWh for further consumption. A 15% tax rate is applied in both cases. Commercial users and institutions pay around 1,800 leone/kWh plus a 15% tax. Large energy users generate and consume their own power or have on-site power purchase agreements, since the country’s electricity grid is not reliable.
Off-grid electricity prices in mini-grid sites are regulated, but generally not subsidized. The European Union funded three sites with capacities ranging from 66-127kW, in a project called PRESSD-SL, and the United Nations Office for Project Services (UNOPS) funded a mini-grid project that identified 94 sites. By 2020, 60 sites with an individual capacity of around 6-14kW were built. Unsubsidized electricity prices in PRESSD-SL sites were around $0.25/kWh for residential, and around $0.40/kWh for commercial.
Power market
In Sierra Leone’s power market, only generation is open to private participation. Most of the power plants are publicly owned and seem to operate in poor conditions. Independent Power Producers or IPPs must sell their electricity to the Electricity Distribution and Supply Authority (EDSA), the state-owned main utility, although the regulator can provide retail licenses to other suppliers in areas where the grid is not available.
Sierra Leone’s power system only has one transmission grid, which joins the main hydro power plant with the capital city, Freetown. In addition, there are some isolated distribution grids systems, which join small diesel or run-of-river plants with inhabited areas. The grid situation in the country is the main barrier for further project development, limiting peak demand in Freetown to 80MW.
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
A renewable energy policy and mini-grid regulation are in force. The government's first objective is to improve and expand the current grid. On the other hand, the Parliament has ratified some mini-grid regulations as a consequence of the Rural Renewable Energy Project (UNOPS).
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
The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.
EV policy
There are no specific laws.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The government has yet to implement any substantive policy support in this sector and the market remains at an early stage.
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 specific laws.
Buildings policies
Additional insights
from BNEF
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