INCREASING ENERGY ACCESS IN SIERRA LEONE
Summary
The report analyzes the mini-grid sectors in Sierra Leone and Nigeria, focusing on regulatory frameworks, tariff structures, subsidies, and the productive use of energy (PUE). It highlights that while Sierra Leone has established a regulatory framework, its market is nascent and characterized by a top-down, donor-funded approach, whereas Nigeria has a more mature, private-sector-led market. Key findings emphasize the need for Sierra Leone to shift toward a bottom-up approach, implement results-based financing (RBF), and integrate PUE to improve the commercial viability of mini-grids and reduce end-user tariffs.
Key insights
- Sierra Leone's national electrification rate is 26 percent, dropping to 6 percent in rural areas, while Nigeria's national rate is 57 percent with a rural access rate of 31 percent.
- Mini-grid tariffs in Sierra Leone are generally higher than in Nigeria; average tariffs for RREP sites in 2019 were USD 0.85/kWh, decreasing to an average of USD 0.79/kWh for combined WP-1 and WP-2 sites, compared to a Nigerian average of about USD 0.58/kWh.
- The Rural Renewable Energy Project (RREP) in Sierra Leone has primarily used a top-down, public ownership/private management model, whereas Nigeria's development has been more bottom-up and private sector-led.
- Productive use of energy (PUE) is critical for the commercial viability of mini-grids in Sierra Leone, with milling and refrigeration identified as the most common applications.
- In Nigeria, the Nigeria Electrification Project (NEP) utilizes a results-based financing (RBF) mechanism, including performance-based grants (PBG) of USD 350 per connection, to incentivize private developers.
- Sierra Leone's mini-grid site selection for the RREP initially prioritized the existence of Community Health Centres (CHCs) and population density (minimum 250 structures), with less emphasis on demand-side considerations in the first phase.
- Nigeria's Rural Electrification Agency (REA) uses georeferenced data and a platform called Odyssey to streamline site selection and provide demand forecasting to developers.
- The report recommends that Sierra Leone adopt a hybrid up-front cash grant/RBF scheme to reduce project development costs and lower tariffs.
- The report identifies high up-front equipment costs, lack of access to finance for SMEs, and limited technical capacity as major barriers to PUE growth in Sierra Leone.
Cite the original document
- APA
- Sustainable Energy for All (2021). INCREASING ENERGY ACCESS IN SIERRA LEONE. https://www.seforall.org/system/files/2021-05/Energy-Access-SierraLeone-SEforALL.pdf
- Chicago
- Sustainable Energy for All. INCREASING ENERGY ACCESS IN SIERRA LEONE. 2021. https://www.seforall.org/system/files/2021-05/Energy-Access-SierraLeone-SEforALL.pdf.
- Wikipedia
- {{cite report |author=Sustainable Energy for All |title=INCREASING ENERGY ACCESS IN SIERRA LEONE |date=1 March 2021 |url=https://www.seforall.org/system/files/2021-05/Energy-Access-SierraLeone-SEforALL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{sustainableenergyforall2021increasing, author = {{Sustainable Energy for All}}, title = {{INCREASING ENERGY ACCESS IN SIERRA LEONE}}, institution = {Sustainable Energy for All}, year = {2021}, month = mar, url = {https://www.seforall.org/system/files/2021-05/Energy-Access-SierraLeone-SEforALL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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