Electricity and Power in Lesotho

Writes Lawrence Keketso

Lesotho’s energy sector is one of the most infant and under-developed, with the country’s efforts towards self-sufficiency in electricity generation well on course and in line with the national development strategy goals. The country is already enjoying benefits of an almost 100 percent clean energy, with a mix of hydro, wind and solar power generation catching and attracting capital budgeting and investments in recent years.

With the 72MW hydro-power plant in ‘Muela being the only major electricity producer in the country, the recently commissioned construction of the 30MW solar electricity project in Mafeteng at Ha Ramarothole, could see the country lower its annual electricity imports by almost 50 percent, while also likely to attain total self-sufficiency in the next twenty years

In further pronouncing its commitment to developing the sector, the government has stated in its recent fiscal policy statement: “…in an effort to increase electricity generation in the country, the Ministry of Energy signed the eight concession agreements with a private company to develop mini grids in rural areas to provide electricity to 6,000 households. Furthermore, 10 agreements with four private companies were signed to establish energy shops for energy efficiency and solar lanterns in five districts of Mokhotlong, ThabaTseka, Quthing, Qacha’s Nek and Mohale’s Hoek. The Lesotho Electricity Generation Company (LEGCO) has been established to oversee the construction and the commencement of phase I and phase II of Ramarothole Solar Electricity Generation Facility in Mafeteng which will generate 30MW solar electricity. Furthermore, the implementation agreement was finalised with an Independent Power Producer to start the construction of 20MW solar generation. The Lesotho Renewable Energy and Energy Access Project for off-grid electrification and grid extension to 6 industrial zones (Butha-Buthe Ha-Belo, Maseru Tikoe I and II, Mokhotlong, Berea and Qacha’s Nek) was launched in the third quarter of 2020/21 fiscal year.”

The statement by the Minister of Finance in his budget speech in February also adds that during the 2021/22 fiscal year, about 1,100 households and two schools will be electrified at Belo Industrial Zone in Butha-Buthe district and 16 mini grids will be launched in rural areas.

While the government of Lesotho is focusing on a number of small to medium power generation projects, the second phase of the Lesotho Highlands Water Project (LHWP II) has commenced, and the advance infrastructure programme is at an advanced stage. It is expected that expenditure under the LHWP II activities will be in the order of M4 billion in the fiscal year 2021/22. The tender for the construction of the main works, water transfer works (dam and tunnel) and for the consultancy services for the design and construction supervision of the hydropower component will be advertised in the first and second quarter of 2021/22 fiscal year, according to the Minister of Finance.

The commencement of the works at Polihali also brings a new hope for a much larger hydro-power facility once the feasibility study has been completed.

The electricity supply industry in Lesotho is dominated by two state owned entities, namely the Lesotho Electricity Company (LEC), which is the monopoly transmitter, distributor and supplier of electricity, and the Lesotho Highlands Development Authority (LHDA), which is the main generator of electricity through its ‘Muela Hydro Power Station. The generating station is part of the Lesotho Highlands Water Project.

Changes took place in the electricity industry in the post-2000 period, when, as part of its programme on the restructuring of state-owned assets, the Government decided that LEC would be privatised, while ‘Muela hydro generation would be ring-fenced within the LHDA to ensure that its costs were known.

The Lesotho energy policy framework primarily targets to address these constraints within the framework of environmental protection. The Energy Policy Vision for the Kingdom of Lesotho states that; Energy shall be universally accessible and affordable in a sustainable manner, with minimal negative impact on the environment.

Energy Policy Goals presented in the Energy Policy Framework are based on the following energy goals: Contributing towards the improvement of livelihoods, where the energy sector will contribute towards poverty alleviation in Lesotho. This according to the national document will be achieved through the creation of income generating opportunities that sustain and improve the lives of people in the country through facilitating the provision of affordable technologies and services.

The energy sector in Lesotho is also set to contribute towards economic growth through initiatives that emphasize efficiency in energy sector management, job creation as well as those that position Lesotho as a competitive player in the SADC region. Emphasis should be placed on the creation of conditions that encourage private investment, but which ensure, where appropriate, that ownership of energy sector resources continues to rest locally.

The Government of Lesotho will ensure security of energy supplies to meet the national requirements from diversified sources that are subject to local resources, regional agreements and economic feasibility and thus contributing towards the protection of the environment where energy resources will be used in such a way that international, regional and local environmental agreements and protocols are observed.

Lesotho also has a number of potentials in bioenergy and mini-hydropower plants where the private sector and especially local players through community cooperatives can reap some investment benefits.

In 2018, the government and the Lesotho Electricity Company (LEC) signed a Power Provision Agreement with Electricidade de Mozambique to provide Lesotho with up to 30 MW of power, which has managed to secure LEC’s electricity supply and sustained the quality of electricity service, LEWA reported.

The years 2015/16, total electricity connections to the main grid had increased to 235,000, translating to more than 200,000 households connected to electricity, this is equivalent to about 39 percent of Lesotho households connected to the main grid, the 2016 population census reported.

Lesotho Energy forecast reported that imported petroleum products, hydroelectricity, coal, and liquid petroleum gas comprise 34% of primary energy demand in Lesotho.

“While part of electricity produced is on hydropower from Muela Plant and has the capacity to produce 72 MW, and the other four mini-hydropower plants have a combined capacity of 3.25 MW, Lesotho continues to operate on an electricity deficit that is offset by electricity imports from South Africa and Mozambique,” LEWA noted It indicated that Lesotho’s average power demand is around 145 MW, with peak demand around 152 MW.

The NSDP further indicated that regardless of abundant renewable energy resources, Lesotho’s power infrastructure supply has not kept pace with the rising demand.

“The proposed industrialisation plans will likely drive private sector jobs, leading to increased household incomes. It is expected that energy demand will surge to 200 MW by the end of NSDP II. Focus areas during NSDP II will include: rural energy needs to provide sustainable energy solutions to the 62% of people without electricity, on-grid power generation using private investment for renewable energy power development, and demand-side management for more efficient and cost-effective use of energy,” the NSDP said adding that energy intensity (KW/GDP) is a good proxy and indicates that Lesotho is above the average energy intensity of middle income countries.

RENEWABLE ENERGY

LEWA in its five-year strategy plans to develop a framework that would facilitate the acceleration to access of electricity and investments in the renewable energy sector. The Authority noted that it has collaborated with Department of Energy among other key stakeholders with regards to the proposed Ramarothole PV Solar plant.

The Authority has issued a license exemption to Doe for the operation of the Electrification Access Pilot Project (EAPPs) at Qholaqhoe, Ha Sekake and Dilli-Dilli/Sixondo,”LEWA said. The Authority’s move is not far from the government’s plan to harness energy from wind, solar and water to provide sustainable energy solutions to the 62% population without electricity.

Lesotho’s main source of power generation is the 72MW Muela hydropower plant. There is also a small 281kW solar photovoltaic (PV) installation at the Moshoeshoe I International Airport and several small hydropower plants in the country totalling around 3 MW capacity. Some large-scale PV and wind projects are currently promoted and studied by private investors, which may lead to several public private partnerships (PPP) or independent power producers (IPP) in the next few years,” the report has said.

Lesotho’s 2015-2025 Energy Policy commits the government to provide universal power access, up from just over one third of households today. In line with the AOP 2019 theme #MakeEnergyWork, the government further states its intention to use energy to create new jobs, stimulate private sector involvement and increase Lesotho’s competitiveness within the Southern African Development Community region. Key projects included the building of new hydropower and wind generation facilities, and transmission infrastructure to meet increased demand.