Renewable Energy

Liberia Electricity Sector Strengthening and Access Project Phase II (LESSAP II)

The Liberia Electricity Sector Strengthening and Access Project Phase II (LESSAP II) Solar Hybrid Mini-Grid Performance-Based Grant Programme aims to provide reliable and affordable electricity to households, businesses and social institutions in rural and off-grid communities in Liberia. RREA implements the programme, with AECF serving as Fund Manager. Performance-based grants help reduce investment barriers and encourage private developers to finance, build and operate sustainable mini-grids.

The component has a US$3.95 million public funding envelope under the Government of Liberia’s LESSAP II, supported by World Bank IDA and ESMAP financing. It builds on mini-grid pre-feasibility assessments and programme preparation under LESSAP I and seeks to demonstrate technically and commercially viable models that can be replicated and scaled across Liberia.

  • Programme objectives
    • Electricity access — Provide reliable and affordable electricity to households, businesses and social institutions in rural and off-grid communities.
    • Mobilize private sector investment — Use results-based grants to reduce investment barriers, leverage private capital and encourage private developers to finance, build and operate sustainable mini-grids.
    • Demonstrate a sustainable mini-grid market — Establish technically and commercially viable mini-grid business models that can be replicated and scaled across Liberia, while supporting productive use of energy and rural economic development.
  • Priority Technologies

    The programme supports solar-plus-storage mini-grids combining solar photovoltaic generation with battery energy storage systems. A minimum solar share is required, and diesel-only systems are not eligible. Each site must serve at least 100 customer connections, including household and productive-use customers. Defined lots of sites will form the basis of the Stage 2 competition.

    Mini-grids will serve households, businesses and social institutions. Productive uses of electricity, including agricultural processing, refrigeration and other enterprise activities, can strengthen electricity demand, improve commercial viability and support rural economic development.

  • Programme approach

    The programme combines a two-stage developer selection process with performance-based financing, implementation oversight and independent verification.

    • Stage 1 — Prequalification and shortlisting. Stage 1A checks completeness on a pass/fail basis. Stage 1B assesses technical, financial, environmental and social capacity, and local participation, with developer due diligence. Applicants must meet every mandatory gate, score at least 60 out of 100 overall and meet the technical and financial minimum scores. All qualifying applicants can advance; there is no cap on numbers.
    • Stage 2 — Lot-based technical and financial proposals. Qualified applicants are invited to compete for defined lots using the detailed site information, technical requirements, financial requirements, evaluation methodology and award rules provided in the Stage 2 package.
    • Private investment and affordability. Grants reduce the eligible capital cost to be financed by developers and support sustainable service delivery at tariffs rural customers can sustain. Detailed tariff and financial evaluation requirements will be set out in the Stage 2 documents.
    • Results verification and payment. Developers finance construction first. Grants are paid after verified customer connections rather than as upfront capital. The Independent Verification Agency verifies connections before each grant payment. AECF supports claims review and verification, and RREA approves payments under the Grant Agreement.
    • Market development and capital mobilization. AECF supports the development of a sustainable mini-grid market and the mobilization of private finance. Technical assistance and investment-readiness support for grantees follow award, on terms available to all grantees, consistent with the programme’s conflict-of-interest rules.

    Prequalification does not constitute a grant award or allocation of a site or lot. Stage 1 scores do not carry forward into the Stage 2 evaluation.

  • Funding opportunities

    The mini-grid component offers performance-based capital grants under one mini-grid financing framework. Grant awards are determined at Stage 2, subject to the selected lot, the successful proposal, verified eligible costs and the programme rules.

    • Public financing envelope: US$3.95 million, supported by World Bank IDA and ESMAP financing under LESSAP II.
    • Connection subsidy: US$612 per verified connection.
    • Grant ceiling: no more than 80% of verified eligible project capital expenditure, based on actual eligible costs incurred.
    • Private equity and construction financing: a minimum 20% private equity contribution is required. At Stage 2, developers must demonstrate liquid assets or committed equity of at least 20% of estimated project CAPEX for each lot bid for. Developers must finance construction first and mobilize the CAPEX balance beyond the grant, which may exceed 20%.

    Grants are payable after independent verification of connections. Detailed eligible cost rules, usage requirements and payment arrangements will be specified in the Stage 2 documents and Grant Agreement. Other grants, subsidies and relevant supplier support must be disclosed as required.

  • Who can apply

    Eligible international and Liberian privately owned legal entities, partnerships, joint ventures and consortiums may apply. There is no nationality restriction. Liberian developers are strongly encouraged to participate. Local registration is not required at Stage 1; applicable requirements must be met before undertaking regulated mini-grid activity.

    Consortium members must hold equity, identify an authorized Lead Partner and accept joint and several liability. Membership must remain as assessed, subject to the REOI’s limited exceptions. International developers are encouraged to partner with Liberian entities. Local participation is optional and scored; a Liberian subsidiary can also qualify as local presence.

    Applicants must meet the published technical, financial, environmental and social, integrity and conflict-of-interest requirements. Stage 1B allocates 30 points to technical capacity, 50 to financial capacity, 10 to E&S compliance and 10 to local participation. Qualification requires at least 18 technical points, 30 financial points and 60 overall, plus all mandatory gates and satisfactory due diligence.

    Submit all forms with the required corporate, technical, financial and safeguards evidence. An Environmental and Social Management System and Occupational Health and Safety Policy are mandatory. Stage 1 does not require site selection, feasibility studies, engineering designs, tariff proposals, project financial models or site-specific safeguards documents.

  • Expected impact
    • The programme links rural electricity access with private investment and demonstration of a sustainable mini-grid market. Expected outcomes include:
      • Expanded electricity access — reliable and affordable supply for rural households, businesses and social institutions.
      • Productive use and rural development — electricity-enabled enterprise activities that improve productivity, support livelihoods and strengthen local economies.
      • Replicable business models — practical demonstration of technically and commercially viable mini-grids that can be scaled across Liberia.
      • Private capital mobilization — greater developer investment in financing, constructing and operating rural mini-grids, supported by performance-based capital subsidies.
      • Local market participation — opportunities for Liberian developers, partnerships, service providers and workers to participate in mini-grid delivery and operation.
      • Sustained service delivery — operating models supported by productive demand, appropriate technical design and independent verification of results.
  • How to apply

    Stage 1 applications must be submitted electronically through the Odyssey platform using the prescribed forms and supporting documents. Applicants should review the complete REOI, published clarifications and any addenda before submitting.

    Submit clarification questions through the platform by 7 November 2026; the final clarification notice is scheduled by 10 November. Email submission is permitted only with written Fund Manager confirmation of platform unavailability. Stage 2 dates and lot packages will be communicated to approved prequalified applicants.

  • Programme partners

    Rural and Renewable Energy Agency

    The Rural and Renewable Energy Agency (RREA) is a Government of Liberia agency responsible for promoting and facilitating rural electrification and renewable energy development. Under LESSAP II, RREA serves as the programme’s executing and contracting agency, responsible for overall governance, technical oversight and implementation supervision. It approves prequalification and grant award outcomes, signs Grant Agreements, approves payments and administers grievances and appeals. RREA also oversees implementation and verification, retaining responsibility for the programme’s environmental and social safeguards.

    World Bank

    The World Bank supports programme financing through IDA and ESMAP and provides oversight at key decision points. It issues no-objection where required under the financing arrangements and applicable programme procedures. It does not participate in the day-to-day evaluation of applications.

    AECF

    AECF serves as Fund Manager on behalf of RREA. It manages the Stage 1 EOI and Stage 2 competitive calls, screens and evaluates submissions, conducts developer due diligence and recommends qualification and grant award outcomes to RREA. It supports grant administration and implementation monitoring, reviews claims, coordinates independent verification and prepares disbursement recommendations. AECF also provides market development and capital mobilization support. Grant awards and payment approvals remain with RREA.

    Odyssey

    Odyssey Energy Solutions provides the digital platform for applicant registration, submission of applications and proposals, and written clarifications. The platform maintains application records and process documentation. RREA’s IT Department hosts and administers the platform, while AECF manages programme configuration, application workflows and applicant support.

AECF
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