Electricity Sector Outlook

Access to affordable, reliable, and sustainable electricity is vital for driving growth in Liberia’s key sectors—agriculture, services, and mining—by creating jobs and attracting investment. Achieving universal access and a successful energy transition requires strong electricity utilities. Mission 300 supports this goal by uniting governments, the private sector, and development partners to expand access, improve utility performance, attract investment, and enhance regional energy integration.

The last decade of Liberia’s electricity sector has been remarkable; access to electricity doubled (32.5%) and residential tariffs decreased by 53.8% from $ 0.52/kWh in 2014 to $ 0.24/kWh in 2024. The installed generation capacity increased from 22 MW in 2014 to 126 MW in 2024, with a 69.84% share of renewable energy. Today, the electricity import (50MW) has nearly doubled since the Power Purchase Agreement (PPA) of 27MW in 2022.

The current investment in the electricity sector is approximately $ 300 million, mostly public financing. The sector has fundamental institutional arrangements to accelerate the universal electricity agenda; however, governance reforms, the utility's financial viability, strengthening the policy and regulatory environment, and capacity development remain pivotal for private sector participation.

Amidst the steady growth, access to electricity is still low, and tariffs are high compared to countries in the sub-region. Rural-to-urban electricity access is disproportionate due to limited infrastructure, inadequate public funding, and limited private investment (Fig. 1).

The sector has a persistent power deficit during the dry season (December to April), resulting in frequent load shedding. The utility’s optimistic power demand projection is 388 MW in the next five years (by 2030), and the estimated installed capacity, based on existing generation and committed funding to date, will be 187 MW (Fig. 2). Investment in power generation is imperative to close the 51.8% supply gap and boost economic growth by 2030. In the short term, the utility depends on electricity imports to close the supply deficit.

Figure 1: Electricity Access in Mano River Union

Figure 2: Electricity Generation and Demand in Liberia

Utility Governance

The Liberia Electricity Corporation (LEC), a state-owned utility, resumed operations in 2010 after decades of dormancy due to civil unrest. Under an international Management Service Contract, LEC commissioned a 38MW thermal plant, rehabilitated the 88MW Mt. Coffee Hydropower Plant, and developed new transmission, substation, and distribution infrastructures.

In 2022, LEC leadership shifted to a full-time local team, which implemented key reforms to improve financial recovery and operational efficiency, such as connection regularization, anti-power theft campaigns, and faster customer service. That year, LEC signed a 27MW power purchase agreement to support dry-season supply. Despite ongoing challenges with power theft and unpaid public bills, the non-technical losses reduced significantly, from 41.3% in 2022 to 27.5% in 2024.

Figure 3: LEC Non-technival losses

Political Commitment  

Liberia’s energy sector has strong political backing, with the government taking concrete steps to accelerate infrastructure development and attract private investment. Executive Orders 137 and 138 establish a steering committee for key projects like the St. Paul River 2nd Hydropower and Solar IPPs, and grant tax exemptions for LEC. Under the National Energy Compact (M300), the government aims to expand electricity access to 100,000 households annually—raising national access to 75% by 2030—boost power generation by 150%, and attract $150 million in private investment.

The Way forward

Liberia has mobilized the minimum public investment to attract private capital mobilization in the energy sector.  However, reforms are essential to accelerate electricity access, boost the utility's performance, and increase power generation.

A major electricity reform is the development of a Corporate Governance Code (GCC) to promote transparent, accountable, and efficient utility management. The utility fundamentally developed an integrated management information system, and its full utilization will underpin the CGC implementation. Furthermore, reengineering and implementing a robust non-technical losses reduction strategy, and the 2019 Power Theft Law enforcement will enhance the utility’s financial performance.

Liberia’s limited power generation infrastructure remains a key investment opportunity. Nearly all current investment in the sector is publicly funded. The World Bank’s active portfolio of about $237 million takes a dual approach: expanding electricity access to more than 1.1 million people and improving utility performance. It includes developing a 20MW solar PV plant and adding 41MW to the country’s largest hydropower facility. This investment is expected to help attract private capital into the generation and distribution sectors.  

With the constrained public capital, private investment is essential to close Liberia’s 51.8% (201 MW) electricity supply gap by 2030. The World Bank’s new Country Partnership Framework (CPF) prioritizes energy, aligning with the government’s Agenda for Inclusive Development and Mission 300. By leveraging the One World Bank Group engagement, based on the existing investment, the utility can attract private investment in power generation, transmission, and distribution. The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) can mitigate the investment constraints through credit enhancement mechanisms such as guarantees and risk mitigation instruments to close the supply gap and accelerate electricity access to at least 75% by 2030.