Next 5 year Power Roadmap Minister of Energy

1. Next 5 year Power RoadmapMinister of Energy 2 July 2013

2. GoSL vision GoSL vision Impact 1000 MW • Increased access • From 10% to 20% (doubled the number of people connected to the grid) • Head quarters town electrified + Transmission network • Better reliability • From 6-7 hours of power cut per day to only 1 hour + Efficient distribution

3. What is needed across the supply chain for GoSL vision to be realised? Your vision Delivery Regulation ? ? ? ? Reforms ?

4. Generation Hydro presents large potential but won’t be sufficient to provide 1000 MW equivalent production Energy produced by hydro sites in Sierra Leone GWH Gap equivalent of 524 MW Source: ME

5. Generation Bsi Besides, hydro present high seasonal variability and long construction time Power variability MW Construction time (years)

6. Generation Gas and coal are 2 cheaper sources of power that GoSL should explore Cost of power of different power sources USD Cents per KWH Cost of thermal power produced in SL USD Cents per KWH in 2013 seasonal seasonal Source: proposal received by ME; NPA data

7. Generation Priorities– 600 MW + connection to mining companies + kick start 750 MW hydro potential Current challenges Recommended priorities • Integrate mining company to the power sector • Define the right business model (Join venture/consortium/Semi captive) 1 524 MW generation gap + • Add 600 MW thermal (gas/coal) • Launch feasibility study • Find IPP partner 2 High seasonality + • Kick start 750 MW of hydro (Bumbuna 2 + 5 others) • Complete Bumbuna • Kick start 5 other hydro potential 3 Expensive HFO + diesel

8. Generation Implementing those priorities could take up the country capacity to ~1200 MW by 2017 Expected generation roadmap MW 1208 With network losses cut to 20% and Bumbuna bottleneck solved, consumer will feel an increase of power supplied 566 235 165 105 • Addax (15MW) • 10 MW solar • 70 MW HFO/Gas (phase 2) • Phase 1 Thermal (200MW) • Phase 2 Thermal (400MW) New capacity installed (MW) • Bekongor 2 (39MW) • Betmai 2 (60MW) • Bumbuna 2 (16MW, incremental to 50MW) • Bumbuna 2 (200MW) • WAPP (40MW) • 50 MW HFO/Gas (phase 1)

9. Transmission Priorities on transmission– execute WAPP and develop a transmission network Current challenges Recommended priorities Load centre • Build the national transmission network • Reinforce Bumbuna line to evacuate more power to Freetown • Connect headquarter town to the grid • Expected $300k per km for 900 km 3 4 • Execute WAPP • Expected delivery in 2016 • PPA to be negotiated with Cote D’Ivoire • Identify power purchase opportunities from MRU countries (timing and quantum)

10. Distribution New investment in Western Area required to reduce losses and bottlenecks, concessioning in other regions explored Bottleneck in the network to absorb full potential of Bumbuna High network losses Network losses Average load of Bumbuna 1 MW 20MW lost

11. Distribution Priorities– turnaround of the utility, electrify head quarter towns Current challenges Recommended priorities Bottleneck in the network to absorb full potential of Bumbuna Turnaround the utility in Freetown 6 + High network losses • Electrify head quarter towns • Complete first phase cities (Kabala, Magbruka, Lunsar, Kono, Pujehun) • Launch second phase cities (Port loko, Moyamba, Bonthe, Kailahun) 7 + 10% access 8 • Rural electrification • Roll out barefoot college • Pilot biomass digester

12. Priorities– Set up regulator, implement unbundling and restructuring Reform ad regulations Current challenges Recommended priorities No regulator in place 9 Set up the regulator + 10 • Unbundle and restructure the sector • Create regional distribution SPU and do PPP Electricity act implementation in process but requires significant resourcing + 11 Strengthen capacity of the ministry and institutions Low capacity

13. Appendix

14. Time line and sequencing of priorities – 1/2 Illustrative Years of political and tangible impacts Years of reform 2013 2014 2015 2016 2017 2018 Negotiation with mining companies Agreement Integrate mining company to the power sector G 1 Identify and negotiate with partner Delivery Phase 1 Delivery Phase 2 Prefeasibility Design Build 600 MW thermal (gas/coal) 2 Construction Decision on solution Project starts Delivery Phase 1 Delivery Phase 2 Negotiation Design Construction Bumbuna 2 Kick start 750 MW of hydro (Bumbuna 2 + 5 others) Project starts Delivery Betmai/Bekongor 3 3 Design Selection Other hydro Construction Delivery Phase 1 Delivery Phase 2 Delivery Phase 3 Prefeasibility Negotiation Design T 4 Build the national transmission network Construction Delivery Environment study Design WAPP execution 5

15. Time line and sequencing of priorities – 2/2 Illustrative Years of political and tangible impacts Years of reform 2013 2014 2015 2016 2017 2018 D Turnaround the utility in Freetown 6 Select management contract Operate turnaround Electrify head quarters down 7 Kabala, Magbruka, Lunsar Kono, Pujehun Port loko, Moyamba, Bonthe, Kailahun Barefoot program (5000 HH per year) Rural electrification 8 Biomass project Consultant Staffing In place R Set up the regulator 9 Asset transfer & Liability management Creation of distribution and generation companies and asset unit Unbundle the sector 10 Staff energy division 11 Strengthen capacity of the ministry

16. Potential map of national grid