Liberia: Hydropower – the Key Component to Liberia’s Industrialization & Economic Growth Into the 21st Century and Beyond

Industrialization is the process by which an economy is transformed from primarily agricultural (subsistence farming) to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production, and craftsmen are replaced by assembly lines. Characteristics of industrialization include economic growth, more efficient division of labor, and the use of technological innovation to solve problems as opposed to dependency on

conditions outside human control. Liberia’s Subsistence Agro-Economic Sector was decimated back in the mid 1920’s with the introduction of rubber on an industrial scale.

The Industrial Revolution is the name given to the enormous changes that took place with technology, mining, manufacturing, transportation and farming from the middle of the 18th Century through to the middle of the 19th Century. These changes had a significant impact not only on the economic and social conditions of the people but on their social and cultural life.

The industrial revolution was one of the biggest events in Human History. It began in Great Britain in the second half of the 18th Century. One of the main reasons is because Great Britain had in abundance the natural resources it needed to power and make the machines that were required for its industrialization. This resulted in new innovations as well as new ways to make iron and steel cheaper and easier to produce. In other words, Great Britain had a cheap source of power.

Instead of people using hand tools to make products at home, factories sprung up to house the new manufacturing machines and the need for human involvement was dramatically reduced. Working practices were increasingly decided according to the needs of the machines. People had to travel to the factories each day, where their time and effort were closely monitored for efficiency.

Many animals, particularly horses which for centuries had been used for farming, transport, and other tasks were replaced by machines,

The Industrial Revolution brought about much better economic conditions for most people. More efficient production meant that everyday necessities like clothing, shoes, and household tools were more plentiful and

cheaper to buy. Health care improved rapidly, and children were less likely to die young. The increased needs for technical skills and knowledge led to improved education and scientific advances. More specialists and professionals were needed in the newly industrialized cities and towns, which led to a rapid growth in the middle class and higher wages.

When the Industrial Revolution started, the amount of carbon sitting underneath Great Britain in the form of coal was as big as the amount of carbon sitting under Saudi Arabia in the form of oil. It was this carbon that powered the Industrial Revolution in Great Britain.

In Great Britain, the industrial revolution was well underway by the end of the 18th Century. Industrialization then spread to Western Europe, North America, and many other places around the world. However, there are still many modern countries in Africa and Asia that have yet to experience industrialization. These countries are sometimes referred to as “Third World” countries or “Developing” nations.

By this definition, Liberia has not yet experienced industrialization even though industrialization has been around for over 200 years and Liberia has been around for about 177 of those 200 plus years. In other words, when Liberia declared its independence in 1847, the Industrial Revolution has just begun. It was about 27 years in progress. Unfortunately, after 177 years of existence, Liberia is still a “Third World” nation because it has not yet experienced industrialization.

Therefore, for Liberia to leave the “Third Word” status and join the industrialized nations of the world, there must be a paradigm shift in the Energy Sector. Liberia needs to switch from fossil fuel, which she does not produce, and is awfully expensive, to a renewable source of energy; one that is free or less expensive and is in abundance, just like coal was in Great Britain at the start of the Industrial Revolution. These Renewal Energy sources are Hydro and Solar, two cheap sources of energy in Liberia.

Sources of Renewable Energy

Liberia has two seasons: About 6 months of heavy rainfall in a year, referred to as the Rainy Season and about 6 months of sunshine also referred to as the Dry Season. The amount of water running through the rivers of Liberia in the form of hydropower, relatively in comparison, is as big as the amount of carbon sitting under some of the industrialized nations today in the form of oil or coal. It is the hydropower from these rivers coupled with solar power from the sun that will launch the Industrial Revolution in Liberia; eventually paving the way for the industrialization of the country.

Although, there are many sources of renewable energy in Liberia, the focus of this report is on hydropower. This is because hydropower supports greater integration of renewable energy (wind/solar) into the grid.

Hydro-power Development

Hydropower development is a form of development which focuses on identifying sites which can be used for hydropower and exploiting their available energy.

Many nations all over the world rely on hydropower for some of their energy needs. Studies indicate that only a few nations are utilizing all their hydropower resources.

Liberia, on the other hand falls in the category of nations that are not utilizing or are barely utilizing their hydro power resources. These nations rely in part or solely on fossil fuel to meet their energy needs. Fossil fuel is an expensive source of energy, especially for a non-oil producing country such as Liberia.

Like any form of development, hydropower development is not entirely unproblematic. There are a few issues to consider when evaluating potential sites for hydropower facilities. These issues range from energy needs to concern about fish populations. These problems can be mitigated through proper planning and project design.

In the case of hydropower development, the goal is usually to generate electricity, by damming a river, for example, and using the energy of the flowing or falling water to turn turbines for the purpose of making electricity. Such a dam is referred to as hydropower or hydroelectric dam.

Other benefits of hydropower dams include, but are not limited to, irrigation for agriculture, drinking water supply, flood control, public and industrial water supply, community recreation (fishing & boating), water for sanitation and various other benefits such as tourism, etc.

A hydropower plant, once constructed, can potentially generate energy for many years with minimal production of pollution. Compared to fossil fuels, hydropower dams provide an environmentally friendly alternative. Careful analysis should be made during the planning and design phases of the project to mitigate the environmental impacts on the ecosystem both upstream and downstream of the river on which the dam is built.

Categories of Hydropower Plants

Hydropower plants are classified into categories based on their size. The table below shows the categories from the smallest to the largest.

Hydropower Plant Categories

Capital Intensive Power Projects

In his book, Hydropower, 2018, Paul Breeze explained why hydropower plant projects are capital-intensive power projects. This is because much of the cost of the project is associated with the construction of the plant and very little is associated with its operation. Compared to fossil fuel, the source of energy for the plant, the flowing water, is free. As a result, the operational costs are exceptionally low. The plant, once built, has low maintenance and an exceedingly long lifespan; normally 100 years or more. Because of the high upfront cost for these projects, most of the funding must be available at the outset which is a problem for financially stricken nations. The easiest path for such nations is to use fossil fuel as an energy source. As a result, many large projects in developing countries are built with government funding, with assistance from foreign governments and international agencies such as the World Bank., African Development Bank, etc.

Such funding is not always readily available and if they do, they come with unbearable restrictions for the recipient. It is now time that developing nations take bold steps and identify new sources and methods of funding for major projects. In the case of Liberia, the government needs to declare hydropower as a key component of its Industrial Revolution and identify entities (banks, private investors, consultants, governments, etc) that are willing to be genuine partners; partners that have the interest of the Liberian People at heart.

Industrialized Nation’s Average Electricity Rates By Select Countries 2016

In countries that rely on hydropower for most of their electricity needs, the average electricity rates are lower compared to those that do not. For example, Norway, a country in Europe, relies on hydropower for 95% of its electricity needs. Norway has about 1600 hydropower stations: most of them small or medium size.

In 2018, the price for electricity for Norwegian industrial consumers was 8.25- euro cents (9 US cents) per kilowatt hour for users with an annual consumption between 500 and 2,000 megawatt hours. During the same period, household electricity prices for a consumption between 1,000 and 2,000 kilowatt hours amounted to 26.94 euros cents (29 US cents) per kilowatt hour. It is no coincidence that the sale of electricity grew at record levels due to increase in consumption because of the cheap price.

Other countries that rely on hydropower for most of their electricity need are Paraguay (100%), Ethiopia (88%) and Venezuela (68%).

Average Electricity Rates in Africa

According to an article published by T. Wang in August 2019, Liberia has the highest price per maegawatt hour of electricity on the entire continent of Africa. The average retail prices for electricity in Africa vary widely from 490 U.S. dollars per megawatt hour in Liberia to 24.4 U.S. dollars per megawatt hour in Ethiopia. Ethiopia relies on hydropower for 88% of its electricity needs.

Currently in Liberia there is inadequate capacity of electricity in the country. Although the government is trying to expand electricity output, those with access to the electricity grid, in the capital Monrovia, often experience blackouts due to shortages in capacity and/or failures along the infrastructure system. As a result, more consumers and businesses are turning to backup generators as reliability remains uncertain. A large part of the country has limited or no access to electricity, which is a major obstacle to development. Where there is access to electricity, the cost is so high that it is not affordable. The only reliable source of energy in these parts of the country that can provide cheap, reliable, and affordable power thereby attracting consumers and businesses in those areas is hydropower. This is because the energy source (river)is abundant and free.

Reducing Electricity Price of Liberia

The best way to reduce the price of electricity in Liberia and attract business to participate in its Industrial Revolution is to do what developed/industrialized nations have done in the past. That is to utilize the energy source it has in

abundance. Just as Britain did with coal and iron ore in the 1800’s and Saudi Arabia with oil, Liberia should focus great attention on the use of renewable energy, especially hydropower, to generate cheap electricity to fuel its industrialization.

There are about 6 major rivers in Liberia. The goal will be to build as many hydro-power plants as possible on these rivers to meet the energy needs of the country. In addition to electric power, these hydropower projects should provide water for drinking, irrigation, sanitation, and new and existing cities.

Micro Enterprise Zones

The Government should create Specific Industrial or Enterprise Zones (like the Free Zone in Monrovia) in specific areas around the country. Unlike the free zone in Monrovia, these Enterprise Zones would be created in proximity to the locations of the Hydropower dams. Each enterprise zone will comprise of industries or factories that will utilize the cheap source of power to efficiently produce products that will be cheaper for export and domestic markets. The goal is three-folds: 1. Gradually wain Liberia off Fossil Fuel, 2. Make Liberia self-sufficient (able to feed its population), and 3. Make Liberia an export nation of products that are more plentiful and cheaper to buy.

The newly industrialized cities created because of these Enterprises Zones will improve the economic conditions of the people by providing high paying jobs. This would lead to the development of a strong middle class while lifting thousands of people out of poverty. Because of the cheap source of energy, these Enterprise Zones will attract foreign and local investors and will serve as the engine that will propel Industrialization to the rest of the country.

One wonders, how will this system work and how will it impact the rest of the country? Here is a peek into how an Industrialized City might be created as result of an Enterprise Zone:

Let us say for example that a hydro power plant is built on the St. John’s River and because of its strategic location, the government creates an Agriculture Enterprise Zone in this area. This means that many of the industries and factories to be built in this zone will have one mean goal and that is to support the industrialization of the Agro-Sector of the country. Instead of exporting our Raw Materials to other countries, they will now be processed in the country and the finished products shipped for local consumption and export markets. This will yield more money for our farmers since they now have direct access to companies that can purchase their produce. Some industries and factories that might be set up in this zone include but are not limited to the following:

• A factory (Rice Mill) will now be processing rice and other affiliated products and supplying the finished product to local and export markets.
• Another factory will now process raw material (Cocoa) from farmers and supply the finished products (Chocolate, Chocolate Milk, etc) to local and export markets.

• Instead of exporting our logs, they will now be processed in the country into various sizes of lumber for local and export markets.
• Another factory will be able to make office and household furniture and other related products for local and export markets because our logs are being locally processed.
• Meat packaging plants could be set up to process and supply meat and meat-related products to the local and export markets.
• Poultry Packaging Plants could be set up to process and supply poultry related products to the local and export markets.
• Palm-related products (palm oil, palm butter, etc could now be processed and supplied as well to both local and export markets.
• Others as needed.

To provide the necessary raw materials for these industries, a major private sector investment in the Agro-Sector of the country would be necessary to shift from our current subsistence farming to mechanized farming.

Industrialized City

An industrialized city is a city that builds its economy and develops on commercial production and sale of goods. It is an area which has been specifically planned for a lot of factories. Here are some features of the industrialized city necessary to support the Enterprise Zone in the example above (the “Agriculture Enterprise Zone).

• Residential housing development for workers and their families and everyone else.
• Commercial Development to support the livelihood of the people (i.e., stores, hotels, shopping centers, saloon, restaurants, movie theater, etc)
• Recreation: Parks, ball fields, etc
• Private manufacturing
• Schools for inhabitants
• Vocational Training Schools
• Hospitals
• Water Treatment Plant
• Sanitation (Sewer)
• Utility Station
• Good Roads, streets, etc
• Good Communication

• Local Government (Full Service)
• Police
• Fire Department
• Others

The newly industrialized cities should be well planned, designed and built like any modern city. The revenue generated from these zones should be used by the government to maintain services in these areas and other parts of the country. The increase in export of goods from these zones will increase the GDP of the country. The duplication of these zones throughout the country will catapult Liberia to the status of “a newly industrialized nation” and eventually, an industrialized nation. Once again, making Liberia a Leader in Africa.

Funding

One may wonder, how is this possible? Where will the money come from and who will pay for all this new development?

To provide the upfront cost for these hydropower projects, new partnerships must be formed with not only funding institutions but with financial and technical consultants who will negotiate on behalf of the people of Liberia. Funding could come from the government (loans, grants, etc), the private sector, and partnerships between the government and the private sector, non-governmental organizations (NGO’s), etc.

The need for a robust investment of foreign capital cannot be overemphasized. However, any or all agreements must be structured in such a way to protect the interest of the Liberian People. Provisions should be made to provide training for the Liberian workforce to eventually take over the operations and maintenance of these facilities.

There must be a paradigm shift in the way negotiations are done. Patriotism shall be the guiding principle for any or all negotiations and the result should always be a win-win for the Liberian People. Gone are the days of WIIFM (“what’s in it for me”) and now is the time for WIIFL (“what’s in it for Liberia”).

Management

Because hydropower will be a new phenomenon in Liberia and because it is doable, a group of individuals or business may decide to build their private dams on the rivers of Liberia for their own individual needs. This should not be allowed to happen. The construction of any dam on the rivers of Liberia must be permitted by the government and the use, as such, must be regulated as well.

In addition to generating cheap power, the hydropower dams in Liberia, when constructed, would also be used to store the waters of Liberia for Irrigation, drinking, recreation, and other uses. Because of these competing interests, all dams in Liberia should be managed by a separate agency of government called “The Liberia Bureau of Reclamation”, or “The Liberia Hydro Authority”, etc. This

“Agency” shall be responsible for the permitting and regulation of all dams in the Republic of Liberia to prevent the monopolization of this entity by any individual or groups which will defeat the goal of a cheap source of energy.

The agency should also be responsible for water resource management, making sure that the water stored in these dams are distributed properly for irrigation (farming), drinking water to cities and towns, water for industries and for recreation.

Benefits of Hydro-power Plants for Liberia.

Hydropower plants in Liberia will have several advantages and benefits over the current method of energy production. Here is list of some of the most obvious advantages and benefits:

1. Hydropower will launch the Industrialization of Liberia, setting the pace for the speedy and sustained economic growth of the country.
2. It will provide cheap and reliable electricity for the entire country.

• Because hydropower is cheap and renewable, it will boost manufacturing by attracting new industries to other parts of the country. New industries mean availability of new good paying jobs, good health care and the creation of a strong middle class.
• It will boost the economy of the country.

• It will improve the quality of life of the people, facilitate the expansion of existing towns, villages and the growth and development of new cities.
• Liberian specialists and professionals in the diaspora would now return home to help fill the need in the newly industrialized cities and towns.

• Better schools: Students in rural areas will have the same access to the world as their counterparts in Monrovia and other cities.
• Less maintenance and longevity

• It will boost the agriculture industry of the country: Improve food production through irrigation and mechanized farming. Liberia could finally feed itself and export to other countries.
• Improve the Health Care System by providing access to potable water and sanitation.
• Because hydropower is a clean source of energy (renewable), it will not pollute the environment like the current system. This could put Liberia in line to qualify for international grants intended for her efforts in reducing her carbon footprint by investing in clean renewable energy.
• Provide a better road network through investment in the transmission and distribution of electricity.
• Development of tourism

1. Because hydroelectric power is a domestic source of energy, it could allow each county or region to produce their own energy without being dependent on Monrovia (LEC) for international fuel sources (fossil fuel).
2. Facilitate the formation of private energy distribution companies. Relaxing constraints in the private sector growth will enhance development.
3. It will pave the way for total independence from fossil fuel.

1. Greatly enhance the electricity grid of the country and generate much needed capital from sale of excess power to the regional grid.

Good Legacy

The desire and aspiration of any good leader, whether for an organization, a company or a nation, is to leave the institution in better shape than he/she met it. The burden is a lot heavier on the leader of a nation because this is how history judges the success or failure of their administration. No matter what a government does, history will judge its success by the legacy it leaves behind. The more profound the legacy, the better it is etched in the memory of history.

What better legacy for any government or any ruling party to leave than to be the government that not only launched the Industrial Revolution in Liberia but to be the one that industrialized the country. Such a legacy will forever be etched in the memory of history.

Conclusion

Even though the Industrial Revolution started in Great Britain, it spread throughout the world to countries that utilized the source of energy that they had in abundance or could acquire cheaply from other nations. Those countries that took advantage of this opportunity are now called industrialized nations and those who did not and still do not, some by no fault of their own, are called developing nations.