20 July 2022
Opportunities in Eswatini and Lesotho’s Electricity Market.
In this webinar, we explored opportunities presented by Lesotho and Eswatini’s electricity markets.
Both countries are exploring various solutions for electrification and independence in energy supply.
Lesotho has an abundance of renewable energy (RE) resources such as solar, wind, and hydropower, which have the potential to surpass its relatively modest energy needs. Wind potential exceeds 1,000 W/m2 in certain pockets of the country, and global horizontal irradiation exceeds 5.3 kWh/m2 in most parts.
Known as the kingdom in the sky, Lesotho is a small, developing country crossed by mountain ranges and rivers, making it difficult to get electricity to rural regions. Recent estimates suggest that less than half of all households have electricity.
Investing in renewable resources is regarded as a way of tackling some of the energy sector challenges confronted by Lesotho, as it would contribute to reducing Lesotho’s dependence on electricity imports, lessening fuel imports and dependence on wood for fuel, and providing decentralised electricity for rural development and leveraging private sector investment.
Presenters shared very interesting perspectives on entrepreneurial opportunities in Lesotho’s energy and power sector.
Eswatini’s electricity is mainly supplied by the Eswatini Electricity Company (“EEC”). The electricity sector is dominated by EEC undertaking power generation, importation, transmission, distribution and supply. Other key players include co-generators from the sugar industry namely Ubombo Sugar limited (USL) and the Royal Swaziland Sugar Corporation (RSSC) which use bagasse and wood chips as fuel. USL has an installed capacity of 41.5 MW which is utilised for self-sufficiency and export to SEC. RSSC’s 65.5 MW generation is currently limited to self-consumption.
Eswatini’s energy sector has historically been unable to meet the country’s demand, relying heavily on electricity imports from South Africa.
The country is targeting universal access to electricity by 2022, which, given its relatively small geography and high rates currently is a realistic target. Private companies are active primarily in the generation component of the electricity supply sector in the country. One IPP is already operational and more are planned. The government recently released a coherent IPP policy which provides guidance to sector participants and indicates a generally positive policy direction. Transmission and distribution components remain in the national utility, however, some municipal councils have expressed interest in distributing energy. This may pave the way for unbundling and potential private participation. The country’s most recent Energy Masterplan published in 2018 highlights a national focus on promoting the use of renewable energy and enabling private sector participation to achieve this.
In 2019 the Kingdom of Eswatini began the procurement process for two new renewable energy plants. The national regulator is seeking IPPs to develop a 40 MW solar facility in 2020 and a 40 MW biomass plant in 2021 respectively. By October of 2019, the regulator had received 26 proposals, from which 13 bidders were selected.
This webinar had sterling presentations from Hitachi Energy and entrepreneurs that have managed to participate across multiple parts of the energy and power value chain.
Invest two hours of your time to download presentations and watch the webinar.
Programme | Content Framework: | Webinar 7 | Speakers |
Introduction | Introduction to AWEaP Purpose of the webinar and Introduction to the topics | AWEaP | MS. BERTHA DLAMINI |
Energy and Power Sector, Lesotho | Opportunities for Women Entrepreneurs | AWEaP Chairperson: | MS. LOLO MOTSAMAI |
Energy and Power Sector, Eswatini | Opportunities for Women Entrepreneurs | AWEaP Chairperson: | DR. CONSTANCE VAN ZUYDAN – MATSHEBULA AWEaP Chairperson: Eswatini |
Gold Sponsor: OEM | Access to Technology Wind Energy and Hydro Power | Sponsor | MS. SERENA CHETTY |
Utility 1 | Access to market: Utility strategy and focus Enabling Smart Cities & opportunities for SMMEs Integration of renewable energy Procurement process Gender mainstreaming | Eswatini | MR. JOSEPH NCWANE |
Utility 2 | Lesotho | Lesotho Electricity Company | |
OEM | Access to technology: Hitachi and Renewable Energy | Future of Renewable Energy Technology and Hitachi’s role | MR. STUART MICHIE |
IPP | Access to technology and market | Accessing multiple segments of the electricity value chain | MS. NONHLAHLA MOLOKO |
Entrepreneurs Testimony | Access to market, finance, networks and technology: | Entrepreneur 1 | MS. MATSEPISO MAJOR |
Entrepreneur 2 | MS TASMIA YOUNG | ||
Close | Closing Remarks: | AWEaP | MS. BERTHA DLAMINI |
Watch our webinar and download presentations shared by speakers:
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- Access to technology
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