In Liberia, the energy sector is the largest contributor to GHG emissions, accounting for over 67% of national emissions primarily due to the intensive use of gasoline and diesel in power generation. Liberia’s NDC aims to render Liberia carbon neutral by 2050 and also lays out a scenario of increasing the share of renewable electricity in the country to 30% by 2030. The country needs to attract national and international investments in renewable electricity to achieve these NDC commitments, and estimates that a total of 100 MW of renewable energy generation (solar, biomass and small hydro) and investments of about USD 242 million will need to be made by independent Power Producers (IPP). Liberia has not yet been successful in attracting private IPP investments to achieve the renewable energy IPP programme because of the absence of the necessary regulatory and policy framework and associated institutional capacity, the lack of an appropriate de-risking mechanism, and the absence of a paradigm shifting pipeline development.
The central aim is to put in place the much needed policy, regulatory, and investment frameworks, and procedures to implement the renewable IPP programme and to carry out the necessary steps to develop a transformative project concept note in partnership with an accredited entity. This technical assistance will establish an investment framework for renewable energy, implement a de-risking mechanism, and develop and submit a high-quality Project Concept Note to GCF.
This readiness support will contribute to national climate change strategies, the National Rural Energy Master Plan, the Liberian Agenda for Transformation 2030, and achievement of the country's NDC. The impacts of the readiness support will be evidenced by the subsequent availability of GCF support for a renewable energy project in Liberia. The impacts will also be measurable in 2030 as the share of renewable electricity in the Liberian electrical system that can be attributed to this readiness support. The beneficiaries are the Rural and Renewable Energy Agency, Liberia Electricity Regulatory Commission, Liberia Electricity Corporation, public and private renewable energy investors and banking and financial institutions. A significant share of the 79% of the population which does not currently have access to electricity will also benefit from electricity access as a result of increased renewable electricity capacity additions coupled with electrification efforts.