Written By: Faith Jemosop
Liberia’s Regulatory Advances in Electricity Face Harsh Reality of Fragile Infrastructure
Liberia’s electricity sector stands at a critical crossroads, one marked by meaningful regulatory reforms on paper but still hobbled by outdated, fragile infrastructure and persistent power shortages. In recent years, the Liberian government, supported by international partners, has rolled out a series of policies to modernize and regulate its energy sector. However, these gains are being undermined by physical limitations in power generation, transmission, and distribution, posing a serious challenge to reliable electricity access across the country.
Electricity access in Liberia remains one of the lowest in the world. According to the World Bank, as of 2024, only around 30% of the population has access to electricity, with rural areas severely underserved. This imbalance not only exacerbates inequality but also hampers economic development, education, healthcare, and security. Although the country has made bold moves to create a robust regulatory framework, including the establishment of the Liberia Electricity Regulatory Commission (LERC), such efforts have yet to result in tangible improvements for most citizens.
A Glimpse into the Reforms Regulation and Governance Take Center Stage
The creation of the Liberia Electricity Regulatory Commission in 2015 under the 2015 Electricity Law was a watershed moment. The LERC was empowered to issue licenses, set tariffs, enforce service standards, and ensure fair competition in the electricity market. In 2020, LERC issued its first-ever electricity licenses, a major milestone in unbundling Liberia’s electricity sector from a monopolistic model to a more liberalized and accountable system.
With donor support, especially from USAID’s Power Africa initiative and the Millennium Challenge Corporation (MCC), Liberia began to adopt performance-based regulations, implement cost-reflective tariffs, and promote private sector participation. The LERC also introduced consumer protection rules and technical standards to bring consistency and transparency to electricity delivery.
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Yet, these gains have struggled to deliver real results due to poor infrastructure and low generating capacity. As of 2024, Liberia’s total installed capacity stands at just over 130 megawatts (MW), with the Mount Coffee Hydropower Plant supplying the majority. Unfortunately, distribution losses remain high, estimated at over 50% due to technical inefficiencies and power theft.
The Infrastructure Bottleneck
Liberia’s power infrastructure is among the weakest in sub-Saharan Africa. The destruction wrought by 14 years of civil conflict from 1989 to 2003 left the country’s power grid in ruins. Since then, rebuilding efforts have focused primarily on donor-funded projects. However, infrastructure remains limited to Monrovia and its environs, with transmission lines, transformers, and substations overstretched or obsolete.
The state utility, Liberia Electricity Corporation (LEC), is burdened by operational inefficiencies, financial mismanagement, and a limited customer base. Most of the country, particularly rural and remote areas, still relies on diesel generators or has no access to power at all. Where grid electricity is available, reliability remains a major issue. Outages can last hours, sometimes days, frustrating households and crippling businesses.
Mount Coffee, once heralded as the flagship of Liberia’s generation revival, has underperformed due to seasonal hydrology issues and maintenance delays. While the plant has the capacity to generate 88 MW, its effective output fluctuates significantly during the dry season. This forces LEC to resort to expensive thermal power or load-shedding.
Tariffs and Affordability
Despite regulatory reforms pushing for cost-reflective tariffs, the average Liberian finds electricity prohibitively expensive. LEC’s standard tariff of approximately $0.35 per kilowatt-hour (kWh) is among the highest in Africa, far above the regional average of $0.14/kWh. This high cost is a result of inefficient systems, reliance on imported diesel, high technical losses, and lack of economies of scale.
For small businesses and industries, these costs are stifling. Many opt to remain off-grid or use diesel generators despite the environmental and financial toll. Meanwhile, attempts to attract private investment in renewable mini-grids are often discouraged by policy inconsistency and a lack of long-term incentives.
To bridge the affordability gap, the government has implemented a lifeline tariff for low-income users. However, the sustainability of this subsidy is questionable given LEC’s financial instability and low collection rates.
Donor Dependency and Regional Integration
Liberia’s energy sector recovery has relied heavily on international funding. The Millennium Challenge Corporation invested over $257 million in rehabilitating Mount Coffee and strengthening the sector. Power Africa and the African Development Bank have also contributed significantly to policy reform and capacity building.
However, overdependence on external support raises concerns about the sector’s long-term sustainability. Several donor projects are winding down, yet Liberia still lacks a clear domestic financing mechanism for capital-intensive energy projects. Moreover, political interference in LEC and weak institutional capacity continue to undermine progress.
Liberia has taken steps to integrate into the West African Power Pool (WAPP), including signing cross-border energy trading agreements with Ivory Coast and Guinea. These connections promise cheaper and more stable power imports, especially during Liberia’s dry season. Yet, such reliance exposes the country to external supply shocks and diplomatic uncertainties.
Rural Electrification and Renewable Energy
Liberia’s rural electrification strategy remains sluggish, despite being crucial to inclusive development. More than 70% of Liberia’s population lives in rural areas, yet grid expansion has barely touched them. Donor-supported projects like the Rural and Renewable Energy Agency’s (RREA) solar mini-grids offer hope, but progress is slow and scattered.
There is huge potential for decentralized renewable energy in Liberia, including solar, biomass, and small hydro. The regulatory framework now allows for independent power producers (IPPs), but investment is stymied by unclear permitting processes, currency risk, and the lack of a supportive market structure.
Pilot projects, such as the Paynesville solar mini-grid and community solar installations in Bong County, have shown promise. But for scale-up, Liberia needs targeted investment incentives, stronger policy coordination, and improved local capacity to manage off-grid systems.
