Main-grid - Sierra Leone

Project’s Introduction

  • Date: July 2017 to June 2018

  • Project: Regulatory Strengthening and Tariff Development Support

  • Donor: Millennium Challenge Corporation (USA)

  • Consultancy Firm: DH Infrastructure (USA) & AARC Consultancy (Ireland)

One of the project’s main objectives was to assist the regulator in the development of a tariff framework for the power sector. This included:

  • Assessment and development of a tariff methodology;

  • Development of modelling tools and technical assistance in utilising these tools for the purposes of evaluating tariff requirements and submissions;

  • Development of a proposed tariff framework to guide the establishment of a financial model for the power and water sectors which captures revenue from consumers as well as projected GoSL financial subsidies and subventions;

  • Technical assistance to develop a financial model for the power sector;

The Terms of References gave a very detailed description of the specifications that this modelling tool had to fulfil.

Prodegee’s Implementation

This project has been so far the largest contributor to the development of Prodegee for the Power Sector. It helped transform Prodegee’s generic edition into a tool capable of assisting in the planning and regulation of the power sector of an entire country. This included the elaboration of electricity masterplans, least cost studies, tariff policies, regulation of renewable energy production, support to regulatory authorities, mini-grid or independent production regulation, and energy access masterplans.

Projected demand

Projected electricity exchange

Unserved demand

Note: the above graphs are provided as an example and data to generate them has been modified to maintain confidentiality of the original output data.

Because the power sector edition was built on top of the generic edition, it maintained the same approach of being focused on the forward looking financial performance instead of being a “Cost of Service” model.

A Cost of Service model is generally used to compute tariff levels and, given proper levels of detail, assist in defining efficient tariff structures for customer groups. Prodegee does the opposite. It projects financial statements based on a set of inputs, among them a tariff, instead of having the tariff as the main output and the desired financial performance as the main input.