Public Disclosure Authorized ReCOMMeNDATiONS Recommendation #1: Reduce barriers to regional integration.Regional integration offers themost cost-effective pathway to reduce liquid fuel dependence in West Africa. However, amongthe 14 countries in the West African Power Pool (WAPP), only seven percent of electricity iscurrently traded. Unlocking the full potential of regional trade requires national least-costplanning aligned with regional strategies, balancing domestic solutions, trading opportunities,and energy security. Strengthening trust in power trade and attracting investments requiresregional infrastructure planning and independent regulatory oversight for the regional electricitymarket to reduce payment arrears and improve contract reliability. Adopting clear transmissionpricing regimes can help mitigate financial uncertainty. Recommendation #2: Optimize the use of existing network and generation resources.There are several opportunities for West African countries to mitigate the impacts of liquidfuels in the near term by making better use of existing resources. These include implementingdispatch efficiency studies and grid stability analyses to optimize resource use and reduceliquid fuel reliance, in particular in countries that have other resources to provide baseloadpower. These studies are relatively low cost but have translated to significant reductionsin liquid fuel usage and costs in other regions, even without the need for major newinfrastructure. Similarly, opportunities exist to convert both utility-owned and rental liquidfuel generators to more cost-effective fuels such as gas (to the extent that gas resources arereadily available). Recommendation#3:improvemanagementofliquidfuelgenerationcontracts.Renegotiating liquid fuel contracts as they approach expiry presents opportunities to securemore favorable terms in line with international best practice, including through competitiveprocurement where possible. Strengthening contract management capacity and creatingdedicated contract management units can help improve oversight, reduce costs, enhancetransparency, and ensure that energy supply agreements are aligned with long-term nationalgoals. Building stronger public contract management capacities will further support theseobjectives. Additionally, coordinating emergency power generation arrangements acrossmultiple interconnected countries could improve capacity utilization, thus lowering costs forboth offtakers and generators. Recommendation #4: Make use of the growing range of innovative mechanisms tailored todifferent contexts to scale up solar PV and other renewables.At the utility scale, this couldinvolve containerized rental solar solutions that provide rapid, scalable access to solar PV +storage in situations where power is needed at short notice or where procurement frameworksaren’t yet sufficiently robust for IPPs; meanwhile, at the consumer scale, this could involve solarlease rentals where customers pay for industrial-scale solar equipment over time rather thanpurchasing it outright. In particularly challenging environments with limited access to privatecapital, public financing can have an important role in securing new renewable supply, but shouldbe accompanied by reforms and (where possible) regional procurement aggregation to reducecosts and set a pathway to private capital in future. Senegal and Ghana lead West Africa in liquid fuel capacity, representing 1,169 MW and 890 MWrespectively, which together account for around half of the region's total.Other major contributorsinclude Burkina Faso with 393 MW, Guinea with 305 MW, Mali with 460 MW, and Mauritania with260 MW. In contrast, Sierra Leone, Guinea-Bissau, Togo, and Liberia have lower liquid fuel capacities:nevertheless, these capacities form a substantial portion of their total power generation capacitiesin relative terms. Small or fragile countries like The Gambia, Guinea-Bissau, Burkina Faso, and CaboVerde are 80–100 percent reliant on liquid fuels, while Mauritania, Senegal, Niger, Sierra Leone, andMali have over 50 percent dependency. At the regional level, liquid fuel accounts for 14 percent of the total energy mix and 16 percentof installed power capacity.Despite gas and hydropower being primary energy sources, liquidfuel’s outsized impact significantly escalates power costs and creates major fiscal challenges for thecountries concerned (Figure 1.3). The impacts of HFO generation on sector costs and public finances can be seen across the region. The average cost of electricity service in West African countries stands at US$ 0.26 per kWh and iscorrelated with reliance on liquid fuel in energy generation (Figure 1.4). Fuel costs make up 73 percentof annual power generation expenses in the region (Figure 1.5) amounting to US$ 3.8 billion, or1.4 percent of total GDP (excluding Nigeria). The high costs of liquid fuel generation in West Africa are exacerbated by weak planning andprocurement.Liquid fuel generati