Paving Way For Private Mini-Grid Expansion
Monrovia, Liberia – After energy sector stakeholders approved extensive changes to the nation’s mini-grid and micro-utility regulations, Liberia is taking a significant regulatory step toward increasing power availability in rural regions. This move is anticipated to attract new private investment and expedite project completion.
Following a two-day validation workshop led by the Rural Renewable Energy Agency (RREA) and the Liberia Electricity Regulatory Commission (LERC), with assistance from R-DARES and INENSUS, the amendments were approved.
The updated laws target long-standing bureaucratic impediments that have impeded commercial engagement in rural electrification. Cllr. Minnie Paegar-Kallon, Director for Legal, Licensing, and Public Affairs at LERC, stated at the workshop’s conclusion that the assessment was long overdue and crucial to restoring trust in Liberia’s energy industry.
“These regulations have been in place for more than five years. Legally and practically, it was time for a comprehensive review, strong, predictable regulations are what investors look at first. With these changes, we expect increased participation in Liberia’s energy space,” Paegar-Kallon added.
Speaking about crucial regulatory reforms, she described that the validated amendments influence three primary regulatory instruments guiding mini-grid development. “Under the Micro-Utility Licensing Regulations, permit and license durations have been extended from five to seven years. The amendments also introduce compensation mechanisms for mini-grid developers when the national grid expands into areas already served by privately built systems,” she said.
According to her, the updated Mini-Grid Code simplifies project approval by removing the demand for several consecutive licenses. Developers can apply concurrently for a provisional license from LERC after obtaining a construction permit from RREA. This change is intended to reduce risk and increase funding accessibility.
Regarding Tariff Regulations, she clarified that after reviewing a number of proposals, LERC upheld its exclusive statutory authority over tariff approvals. She also mentioned that the commission rejected suggestions that would have permitted development partners or subsidizing organizations to directly participate in tariff-setting.
According to Madam Paegar-Kallon, energy authorities claim that the changes bring Liberia closer to its counterparts in the area, including Benin, Sierra Leone, Guinea, Chad, and the Central African Republic, all of whom are members of the Regional DARES program, which is funded by the World Bank.
Advancing national electrification goals, Steven Payma, Business Development Specialist at the Rural Renewable Energy Agency (RREA) described the outcome of the workshop as a significant boost to Liberia’s National Electrification Plan and the continental “Mission 300” initiative, which aims to achieve universal electricity access by 2030.
“These amendments remove key legal and regulatory barriers that have discouraged private sector participation, with a more predictable and less risky framework, we can accelerate the delivery of affordable and reliable electricity, particularly in rural Liberia,” he said.
Payma said that the regional electrification effort is scheduled to take effect after the Ministry of Finance and Development Planning signs a memorandum of understanding with the World Bank; noting, implementation is projected to commence between now and the second quarter of 2026.
