Sierra leone Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in sierra leone, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Energy Infrastructure
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Overview

Sierra Leone’s power sector is undergoing a transition, characterized by persistent challenges and emerging opportunities. Electricity access remains limited, with only 30% of the population connected nationally and less than 5% in rural areas. Supply is unreliable, tariffs are high, and the country relies heavily on traditional biomass and imported fossil fuels. Total installed generation capacity is under 250 MW of which between 100 MW and 150MW is available at any given time, with energy consumption dominated by fuelwood and petroleum imports.

The energy mix is primarily hydropower and thermal sources, with the Bumbuna I Hydroelectric Plant as a key contributor during the rainy season. However, seasonal fluctuations impact hydro output and outdated grid infrastructure and poor utility performance lead to significant transmission and distribution losses. The government restructured the sector in 2015, unbundling the National Power Authority into the Electricity Generation and Transmission Company (EGTC) and the Electricity Distribution and Supply Authority (EDSA), under the regulatory oversight of the Electricity and Water Regulatory Commission (EWRC). To address ongoing weaknesses in the sector, the government is pursuing the privatization of electricity utilities.

The government has launched various reforms and initiatives to improve access and diversify supply to energy. These include rural electrification programs, mini-grid and off-grid solar projects, and the expansion of Independent Power Producers (IPPs) through Public-Private Partnerships (PPPs). The 225 kV Côte d’Ivoire–Liberia–Sierra Leone–Guinea (CLSG) transmission line is boosting regional electricity trade, while projects like the U.S.-supported LNG terminal and the upcoming 105 MW Nant Gas-to-Power Plant aim to strengthen energy supply. Sierra Leone also has significant renewable energy potential, including over 1,000 MW in hydropower, 240 MW in solar capacity, and untapped biomass resources from agricultural waste.

To attract investment, the government is streamlining Power Purchase Agreements (PPAs) and offering fiscal incentives. International partners, including the U.S. Government’s Millennium Challenge Corporation (MCC) and the African Development Bank (AfDB) are supporting efforts to improve governance, transparency, and financial sustainability in the sector. The MCC compact consists of $480 million in U.S. funding and $14.2 million in funding from the Government of Sierra Leone. The total $495 million program, signed in September 2024 and currently in implementation, aims to strengthen and extend the electricity grid through critical infrastructure and policy advancements.

Sierra Leone’s power sector faces challenges in infrastructure, regulation, and capacity. However, ongoing reforms, regional integration, and abundant renewable energy resources position it for sustainable growth. The sector offers increasing opportunities for investment in clean energy generation, rural electrification, and grid modernization.

Leading Sub-sectors

Sierra Leone’s power sector is built on four key sub-sectors essential to its modernization and development: generation, transmission, distribution, and off-grid/mini-grid electrification. Electricity generation is primarily driven by hydropower, thermal plants (using diesel and heavy fuel oil), and an increasing contribution from solar energy, particularly in rural areas. Electricity demand is projected to increase significantly by 2030, reaching levels between 300 and 500 MW, while the functional installed capacity currently ranges from 100 to 150 MW. Hydropower contributes approximately 50 MW during the rainy season, thermal generation provides 30-80 MW, and solar systems add 10-20 MW. However, operational output is often lower due to infrastructure challenges, fuel supply issues, and seasonal variability in hydro output. Closing these gaps is critical to improving energy access and meeting future demand, with international partners, including the United States, recognizing the sector’s importance in driving economic growth.
 

With less than 500 miles of transmission lines currently in Sierra Leone, the country’s extremely limited grid means most citizens do not have access to power. The transmission sub-sector faces significant challenges, including outdated infrastructure and high technical losses. The national grid primarily serves Freetown and a few regional centers. The CLSG Interconnection Project, which connects Côte d’Ivoire, Liberia, Sierra Leone, and Guinea, is a major step toward integrating with the West African Power Pool (WAPP), improving cross-border electricity trade and grid stability. Expanding the transmission network is also essential for integrating decentralized systems and advancing rural electrification.
 

Electricity distribution, managed by EDSA, delivers power to end-users but struggles with aging infrastructure, low collection rates, and power theft. Efforts to modernize the sub-sector focus on expanding distribution networks, improving efficiency, and reducing losses, supported by public-private partnerships and donor-funded initiatives.
Off-grid and mini-grid electrification is increasingly important for providing electricity to underserved rural communities. Programs like the Rural Renewable Energy Project (RREP) and Energy Africa Sierra Leone are driving decentralized solar solutions that power homes, schools, and health facilities, fostering local development. Together, these sub-sectors form the backbone of Sierra Leone’s evolving energy landscape, offering significant opportunities for investment, innovation, and policy engagement.

Opportunities

Sierra Leone’s energy sector offers diverse investment opportunities across hydropower, solar, wind, thermal, biomass, and off-grid solutions. With much of the population, particularly in rural areas, lacking access to reliable electricity, there is increasing demand for decentralized energy systems such as solar mini-grids, home systems, and micro-hydro projects. The government’s target of achieving universal electricity access by 2030, supported by initiatives like the RREP, provides a favorable environment for private sector involvement and PPPs.

The country’s abundant untapped renewable energy resources, including over 1,000 MW of hydropower potential, strong solar radiation, and biomass from agricultural waste, offer significant opportunities for clean and sustainable energy development. Additionally, there is substantial potential in modernizing transmission and distribution infrastructure, which remains outdated and limited. Integration into the WAPP through the CLSG interconnection is enhancing grid reliability, enabling regional electricity trade, and creating opportunities for cross-border investments.
Ongoing reforms in the energy sector such as regulatory improvements, utility unbundling, and incentives for Independent Power Producers (IPPs) are fostering a more transparent and investor-friendly environment. Coupled with growing domestic demand, international support, and a clear national electrification agenda, these developments position Sierra Leone as a promising market for energy investment and sustainable growth.

Resources

Sierra Leone Ministry of Energy
Website
Email: info@moe.gov.sl
Telephone: (+232) 78 535009

U.S. Millennium Challenge Corporation, Sierra Leone Compact 
Website 
•    Sierra Leone Compact 
•    Program Implementation Agreement
•    Compact Development Funding Agreement 
 

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