Historical Context and Importance of the Energy Sector
Liberia's energy sector has been central to its post-war recovery, with the Liberia Electricity Corporation (LEC) playing a pivotal role in addressing infrastructure deficits and expanding energy access. The country's power infrastructure, once a symbol of progress, was devastated by decades of civil war, leaving the nation in near darkness and making energy a critical focus for economic revival and social development.
Prior to the civil war that began in 1989, Liberia's electricity sector was relatively robust for its time. The Liberia Electricity Corporation (LEC), established in 1973, had a total installed generation capacity of 191 MW, serving about 35,000 customers in the capital Monrovia, representing approximately 7% of the country's population[4]. This included 63 MW from the Mt. Coffee hydropower plant and 124 MW from heavy fuel oil plants[4]. Additionally, 13 MW from ten small isolated power systems supplied rural county capitals[4].
However, the prolonged civil conflict, which lasted from 1989 to 2003, had catastrophic consequences for Liberia's power sector. By the end of the war, almost all electricity infrastructure, including generation facilities, transmission, and distribution networks, had been destroyed or looted[4]. The Mt. Coffee Hydropower Plant, once the largest source of power and a symbol of Liberia's progress, was decimated, leaving the country in near darkness[3]. LEC was forced to cease operations, rendering the sector non-operational[4].
The destruction of the power sector had far-reaching implications for Liberia's post-war recovery. After 14 years of civil war, there was no functional electric grid or commercial electricity service in the country, and LEC was moribund, with no infrastructure or customers[9]. This lack of reliable electricity posed significant challenges for industrial growth, education, healthcare, and overall national stability.
Recognizing the critical importance of electricity for post-conflict stabilization and economic recovery, the Liberian government and international partners prioritized the rehabilitation of the energy sector. Following the peace treaty and successful elections in 2006, massive donor resources were mobilized to implement Emergency Power Programs (2006-2012)[4]. These efforts led to the reestablishment of LEC's operations and allowed for the installation of up to 22 MW of high-speed diesel generators and the reconstruction of basic transmission and distribution infrastructure in limited areas of Monrovia[4].
The restoration of grid electricity, however, was not achieved until 2015, a full 25 years after the onset of the civil war[14]. This restoration was made possible through assistance from development partners, including the World Bank, African Development Bank, European Union, United States Government (USAID, MCC), Government of Germany (KfW), Government of Norway (NORAD), Government of Japan (JICA), and the European Investment Bank[14].
A landmark project in Liberia's energy sector recovery was the rehabilitation of the Mt. Coffee Hydropower Plant. Recognizing its critical importance, the Millennium Challenge Corporation (MCC) and the Government of Liberia, along with other stakeholders, worked to restore this national asset[3]. The rehabilitated Mt. Coffee can now produce 88 megawatts of power, more than doubling the power generation capacity of the entire country[3]. This investment has brought reliable, more affordable electricity to the capital city of Monrovia, benefiting homes and businesses and lighting the way toward a brighter future for Liberians[3].
Despite these significant strides, Liberia's energy sector still faces considerable challenges. As of 2024, only a fraction of Liberians, predominantly in urban areas, enjoy consistent electricity access. The World Bank reports that Liberia aims to increase electricity access to 70 percent by 2030 from the current rate of 28 percent[6]. This goal underscores the ongoing importance of the energy sector in Liberia's development agenda and the critical role that LEC continues to play in expanding access to reliable and affordable electricity across the nation.
Monie Captan's Legacy: Achievements and Missed Opportunities
Achievements
As Monie R. Captan concludes his tenure as Chief Executive Officer of the Liberia Electricity Corporation (LEC) on November 30, 2024, his 2.5-year leadership leaves a mixed legacy of notable achievements and persistent challenges. This analysis examines the key areas of progress and the opportunities that remain for LEC's future leadership.
1. Revenue Growth and Financial Management
Under Captan's leadership, LEC experienced significant revenue growth, demonstrating improved financial management:
- Revenue increased from $24 million in 2022 to $54.66 million in 2023[4].
- Projected revenue for 2024 is estimated at $68 million[4].
- Net losses reduced from $27.2 million in 2022 to a projected $11 million by the end of 2024[4].
This financial turnaround improved LEC's public image and donor confidence, stabilizing operations and partnerships[3][4].
2. Reduction in Commercial Losses
Captan's administration made substantial progress in reducing commercial losses:
- Commercial losses decreased from 41.3% in 2022 to 31.4% by 2023 and 27.5% by October 2024[4].
- This reduction was achieved by establishing an Anti-Power Theft Task Force, improving metering systems, and conducting more customer audits[4].
3. Improved Power Generation and Reliability
Captan's tenure saw significant improvements in power generation and reliability:
- Total energy capacity increased from 56 MW in 2022 to 107 MW by mid-2023[4].
- Thermal generators at Bushrod were repaired, adding 28 MW to the grid[4].
- A Power Purchase Agreement with Côte d'Ivoire's CIE/CI Energies allowed for the import of up to 27 MW of electricity[4].
- The frequency of power interruptions reduced from 22 per year to 5 per year[4].
- Average outage durations decreased from 31 hours to less than 9 hours[4][6].
4. Expansion of Electricity Access
Captan's leadership saw notable efforts to expand electricity access:
- The Gap Communities Electrification Project connected more than 9,000 households in 19 communities to the national grid[4].
- LEC's customer base grew from 199,441 in 2022 to 306,433 by October 2024, a 53.6% increase[7].
- New substations were constructed in Congo Town, Roberts International Airport (RIA), and Schieffelin, expanding coverage to previously underserved areas[4][6].
Missed Opportunities and Ongoing Challenges
1. Persistent Electricity Theft
Despite reductions, electricity theft remains a significant challenge:
- While commercial losses decreased, they still represent a substantial 27.5% of LEC's output as of October 2024[4].
- This ongoing issue continues to erode LEC's financial stability and operational efficiency.
2. Limited Rural Electrification
- While successful, the Gap Communities Electrification Project only reached 19 communities[4].
- Expanding access to rural areas remains a significant challenge for LEC.
3. Financial Sustainability
Despite revenue growth, LEC continues to operate at a loss:
- The corporation is projected to have a net loss of $11 million by the end of 2024[4].
- This ongoing financial strain limits LEC's ability to invest in infrastructure and expand services.
4. Infrastructure Challenges
While improvements were made, significant infrastructure challenges persist:
- The need for further upgrades to the power grid and generation facilities remains a priority for LEC's future leadership[4][6].
Monie Captan's tenure at LEC saw notable improvements in revenue generation, reduction of commercial losses, and expansion of electricity access. However, persistent challenges in electricity theft, rural electrification, and financial sustainability remain. The next CEO will need to build on these achievements while addressing the ongoing issues to ensure LEC's long-term viability and its ability to meet Liberia's growing energy needs.
Future Challenges in Liberia's Energy Sector
1. Continuity of Leadership
The leadership vacuum created by Captan's exit raises concerns about consistency in policy implementation. The looming expiration of Captan's contract, along with that of Chief Operating Officer Kwame Kpekpena, could suggest a critical pathway for LEC's and the electricity sector's future[15].
2. Governance and Political Stability
Energy reforms require protection from political interference, a persistent issue in Liberia's governance structure. The potential for political appointments and dismissals following Captan's departure could destabilize LEC's operations[15].
3. Infrastructure and Theft
Aging infrastructure and electricity theft are major barriers. Despite improvements, power theft remains a significant issue at 40%[15]. The reliance on expensive emergency power solutions underscores the need for long-term investments in grid modernization.
4. Economic Importance of Energy
Energy access is directly linked to economic growth, particularly in sectors like manufacturing, services, and agriculture. Inconsistent power supply hampers productivity, inflates costs, and deters investment. The World Bank's Liberia Economic Update highlights the crucial role of reliable energy in fostering sustainable growth[12].
Opportunities for Growth
1. Renewable Energy Expansion
Liberia has abundant renewable energy resources, including hydropower, solar energy, and biomass. The country has significant hydropower potential, which remains underutilized[16]. Expanding hydropower generation and solar power, particularly in rural areas, can provide affordable and clean energy to underserved populations.
2. Public-Private Partnerships (PPPs)
Encouraging private-sector investment can bring capital, innovation, and expertise to address infrastructure and operational gaps. PPPs can be particularly effective in power generation, transmission, and distribution[16].
3. Decentralized Solutions
Expanding off-grid and mini-grid systems, especially in rural areas, can increase access faster than grid expansion alone. The Liberia Renewable Energy Access Project (LIBREAP) supports mini-grids powered mainly by renewable energy in small towns and rural areas[14].
Recommendations
1. Strategic Leadership: The next LEC head must combine Captan's reform-oriented mindset with grassroots engagement and a hands-on approach. This is crucial given the sector's complex challenges [15].
2. Anti-Theft Campaigns: Strengthen enforcement against electricity theft while involving communities in reporting and prevention. The reduction from 65% to 40% shows progress, but further efforts are needed[15].
3. Long-Term Investment: Prioritize partnerships with international donors for infrastructure upgrades and renewable energy projects. The World Bank and other international partners have supported Liberia's energy sector[12].
4. Focus on Rural Electrification: Launch targeted initiatives for rural areas to foster economic inclusion and reduce energy inequality. The National Electrification Strategy of Liberia aims to achieve universal energy access by 2030 through a combination of grid expansion, densification, utility revenue protection programs, and off-grid solutions[12].
5. Public Education: Increase awareness of energy conservation and the cost of theft on the nation's development. This is crucial for addressing the persistent issue of power theft[15].
Conclusion
Monie Captan's exit from the Liberia Electricity Corporation (LEC) on November 30, 2024, marks the conclusion of a significant chapter in Liberia's energy sector and the beginning of a critical phase for the country's power infrastructure. While Captan's tenure saw notable achievements, it also highlighted persistent challenges that will shape the sector's future trajectory.
During Captan's leadership, LEC made substantial progress in several key areas:
1. Revenue Growth: LEC experienced a remarkable 183% increase in revenue, from $24 million in 2022 to a projected $68 million by the end of 2024[3][12].
2. Reduction in Commercial Losses: Initiatives like the Anti-Power Theft Task Force decreased commercial losses from 41.3% in 2022 to 27.5% by October 2024[3][12].
3. Expanded Energy Access: The customer base grew by 53.6%, from 199,441 in 2022 to 306,433 by October 2024[3].
4. Improved Power Generation: Total energy capacity increased from 56 MW in 2022 to 107 MW by mid-2023[12].
5. Renewable Energy Initiatives: Captan spearheaded projects such as the ongoing construction of a 20 MW solar farm and planned expansion of the Mount Coffee hydroelectric facility[3][4].
However, significant challenges persist:
1. Financial Sustainability: Despite revenue growth, LEC continues to operate at a loss, with projected net losses of $11 million by the end of 2024[12].
2. Government Debt: As of October 2024, the Liberian government owed LEC $18.9 million[8].
3. Electricity Theft: While reduced, commercial losses still represent 27.5% of LEC's output as of October 2024[12].
4. Rural Energy Access: Liberia's overall electricity access remains low, particularly in rural areas, with only about 20% of the population having access to electricity[6].
5. Infrastructure Needs: Significant investment is required to upgrade and expand the power grid and generation facilities[5].
The future of Liberia's energy sector hinges on addressing these challenges while building upon the progress made. Key focus areas for the incoming leadership should include:
1. Financial Stabilization: Implementing strategies to achieve financial sustainability, including addressing government arrears and further reducing commercial losses.
2. Rural Electrification: Accelerating efforts to expand energy access in rural areas, potentially leveraging initiatives like the Rural Energy Strategy and Master Plan[11].
3. Renewable Energy Transition: Continuing and expanding investments in renewable energy sources to reduce reliance on imported power and fossil fuels.
4. Infrastructure Modernization: Securing investments to upgrade and expand power generation, transmission, and distribution infrastructure.
5. Capacity Building: Developing local expertise to reduce dependence on external consultants and improve long-term sustainability[13].
The World Bank's recent $80 million financing agreement for governance and energy initiatives provides a timely opportunity to address some of these challenges[13]. This funding, aimed at enhancing transparency and expanding rural energy access, could drive the sector forward.
As Liberia continues its journey toward energy sufficiency, the importance of robust and visionary leadership cannot be overstated. The incoming management team, led by Thomas Z. Gonkerwon as Interim Managing Director[8], faces the daunting task of building on Captan's achievements while addressing the sector's persistent challenges.
Finally, Monie Captan's tenure at LEC has laid a foundation for progress in Liberia's energy sector. However, the road ahead requires sustained effort, strategic investments, and innovative solutions to overcome the remaining hurdles. The transformation of Liberia's energy sector is a technical challenge and a cornerstone for economic recovery, social development, and national unity. The success of this transformation will depend on the ability of new leadership to navigate complex challenges, leverage international partnerships, and implement sustainable solutions that meet the growing energy needs of all Liberians.
_________________________________________________________________________________
Get Involved
Do you have additional facts to add to this insight or an opinion you would like to express?
Email Us
References:
[1] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/40974682/9aab0376-2345-49c0-9489-def64e7770cd/paste.txt
[2] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/40974682/3564bff9-70b0-4d46-9fbc-b54624daf9da/paste.txt
[3] https://up-j-ga.ubiquityjournal.website/articles/10.5334/gia.ag
[4] https://lecliberia.com/news-releases/liberian-ceo-receives-major-regional-award-as-hon-monie-r-captan-wins-west-africa-exceptional-energy-leadership-award-at-the-ghana-energy-awards-in-accra-ghana/
[5] https://frontpageafricaonline.com/news/liberia-establishes-energy-sector-working-group-to-address-power-supply-challenges/
[6] https://lecliberia.com/news-releases/press-statement-performance-initiative-and-challenges-april-2024/
[7] https://www.greenclimate.fund/document/develop-renewable-energy-investment-framework-increase-share-renewable-energy-based
[8] https://rise.esmap.org/data/files/library/liberia/Electricity%20Access/Liberia_RURAL%20ENERGY%20STRATEGY%20AND%20MASTER%20PLAN_2016.pdf
[9] https://www.osti.gov/etdeweb/servlets/purl/21071418
[10] https://lr.linkedin.com/in/monie-captan-70086515
[11] https://analystliberiaonline.com/u-s-ambassador-praises-lec-for-progress-at-mount-coffee-plant/
[12] https://www.worldbank.org/en/news/press-release/2024/09/12/liberia-economic-update-energy-sector-shows-progress-but-significant-investment-needed
[13] https://africanclimateactionpartnership.org/13121-2/
[14] https://liberiaprojects.org/activities/830
[15] https://www.tlcafrica1.com/key-projects-and-staff-welfare-at-lec-under-threat/
[1] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/40974682/1f1c8fc1-1bab-4265-a15b-cf0ebdb3e479/paste.txt
[2] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/40974682/ef4a8109-f1bc-4041-8f22-afc96d7c2a04/paste-2.txt
[3] https://www.mcc.gov/news-and-events/feature/liberia-closeout/
[4] https://documents1.worldbank.org/curated/en/676921613664832883/pdf/Resettlement-Framework-Liberia-Electricity-Sector-Strengthening-and-Access-Project-LESSAP-P173416.pdfPowering Liberia's Future, Captan's Legacy, Energy Sector's Crossroads
[5] https://www.africaoutlookmag.com/energy-utilities/liberia-electricity-corporation-generation-for-the-nationPowering Liberia's Future, Captan's Legacy, Energy Sector's CrossroadsPowering Liberia's Future, Captan's Legacy, Energy Sector's Crossroads
[6] https://www.worldbank.org/en/news/press-release/2024/09/12/liberia-economic-update-energy-sector-shows-progress-but-significant-investment-needed
[7] https://www.worldbank.org/en/news/press-release/2021/03/12/liberia-to-power-its-economy-through-improved-energy-access-and-job-creation
[8] https://lecliberia.com/news-releases/press-statement-by-monie-r-captan/
[9] https://www.osti.gov/etdeweb/servlets/purl/21071418
[10] https://www.mfdp.gov.lr/index.php/media-center/press-release/liberia-secures-80-million-in-financing-for-governance-and-energy-initiatives
[11] https://www.mathematica.org/blogs/strengthening-liberias-energy-sector-requires-more-than-infrastructure
[12] https://liberiaruralenergy.gestoenergy.com/content/background
[13] https://lecliberia.com/projects/expansion-projects/
Comments