Sierra Leone’s Energy Gamble: The Growing Economic Strain of Karpowership Deal

Sierra Leone’s Energy Gamble: The Growing Economic Strain of Karpowership Deal

By: Musa Kamara

As Sierra Leone grapples with mounting economic pressure, concerns are intensifying over the country’s continued reliance on Karpowership for electricity generation. In a recent interview on SLIK TV, prominent and often controversial journalist Thomas Dixon issued a stark warning, citing a World Bank assessment that maintaining Sierra Leone’s current electricity expenditure is "unsustainable" and could potentially crash the economy.

“The World Bank has warned that relying on Karpowership without reform will lead to serious economic problems,” Dixon stated, pointing to the ballooning costs and debts associated with the power agreement. His remarks underscore a growing national debate about energy policy and fiscal responsibility.

At a high-level stakeholder engagement hosted by the Electricity Distribution and Supply Authority (EDSA) last Thursday, Deputy Minister of Energy I, Ing. Edmond Nonie, revealed that over $320 million has been paid to Karpowership over the years. Despite these significant outflows, EDSA still owes the Turkish energy provider approximately $70 million.

These figures spotlight the heavy financial burden that the long-standing power agreement has placed on Sierra Leone’s public coffers. Even more concerning is the fact that EDSA purchases electricity from Karpowership at $0.22 per kilowatt-hour (kWh), only to sell it to consumers at $0.18 per kWh, a loss-making model that demands consistent and substantial subsidies from the Ministry of Finance.

Beyond the unfavorable pricing structure, EDSA faces widespread technical and commercial losses. Electricity theft by households and businesses is rampant, exacerbating the authority’s financial strain and undermining its ability to operate sustainably.

Despite these challenges, Sierra Leoneans remain desperate for reliable and uninterrupted electricity. However, experts caution that energy access should not come at the cost of fiscal collapse.

Amid these economic concerns, a shift in leadership at the Ministry of Energy has sparked hope for long-term reform. Dr. Kandeh Yumkella, now leading the sector, has outlined a vision aimed at achieving reliable, efficient, and affordable electricity without overburdening the national budget.

While acknowledging that change will not happen overnight, Dr. Yumkella’s administration is spearheading a series of renewable energy projects that aim to gradually transition Sierra Leone toward energy independence.

“There is a clear commitment to building a power sector that no longer drains the national treasury,” said one energy official familiar with the ministry’s plans. “We’re working toward a future where Sierra Leoneans have access to power that is both dependable and affordable.”

As pressure mounts on the government to address the unsustainable costs of its power supply, the Karpowership deal stands as both a cautionary tale and a rallying point for reform. Whether Sierra Leone can successfully pivot toward renewable sources and escape the grip of costly energy imports will be a defining challenge for the current administration.

In the meantime, the question remains: How long can Sierra Leone afford to keep the lights on this way?

It is important to note that, as of 07:00 am 16/06/25 (Monday), power received from other sources is 49Mw including Kapower's 6Mw. This shows a drastic reduction of reliance on Karpowership for electricity supply to Freetown.