Lesotho Bursts into Solar Power Amid Power Outages in South Africa

Writes Manyathela Kheleli

With a population of about 2.1 million, only 38% of Lesotho’s population has access to electricity. However, the rate of household electrification has continued to rise steadily in recent years, thanks to the Rural Electrification Project currently being implemented by the Ministry of Energy. With measures being taken to connect rural households to the national grid, a new challenge on the supply side has also come to haunt this development. Current data indicates that Lesotho needs at least 150 megawatts (MW) of peak power to meet her daily demands, but only generates 72Mw from the ‘Muela Hydropower Station run by the Lesotho Highlands Development Authority.  The deficit is augmented by imported power from the South African power utility, Eskom and Mozambique’s Electridade de Mocambique (EDM) within the Southern African Power Pool (SAPP). What is the future of supply looking like, and are there any prospects for export?

The major concern is that Lesotho imports about 53% of its power from very unstable sources. In particular, Eskom of South Africa that remains saddled by capacity challenges as evidenced by load shedding in the neighbouring country. Eskom supplies an average of 20% of electricity to the national grid. To give context to the South African power problem, it is estimated that the South African economy is losing an average of M1.5 billion daily to load-shedding.

The country has also encountered another setback, where unit 1 at ‘Muela Hydropower station failed to restart in June 2022.  From then on, the station was operating at two-thirds of its rated capacity until July 2023 when the Lesotho Highlands Development Authority, LHDA announced the successful restoration and return to operation of the unit.

For Lesotho, the fears that the country could also experience power cuts may not materialise. This is because the Lesotho Electricity Company (LEC) and Eskom have signed the Electricity Import and Export Agreement, which has shielded Lesotho from load-shedding, but it is clear that the country has to free itself from its heavy reliance on electricity imports.

In an effort to address the power deficit in the wake of growing demand, Lesotho has set itself to implement the 2015-2025 Energy policy, which sets out the strategic direction of the country’s energy sector developments. At the outset, the Energy Policy aligns with the National Strategic Development Plan II (NSDP II) towards the national vision to promote the development of environmentally cleaner renewable energy and to increase the share of clean energy in the country’s energy mix. Some of the policy’s key objectives on power generation are to: improve the security of power supply, to ensure that base load requirements are met through local generation, and to enhance the participation of private sector and cooperative associations in the electricity supply industry.

In ensuring the security of power supply in the country, the policy further commits to adopting strategies towards power generation using large, mini and micro-hydro power stations, as well as exploring other clean energy sources from wind and solar power. The government of Lesotho has approved the construction of the Oxbow Hydropower Scheme following the success of the feasibility studies and the Environmental and Social Impact Assessment (ESIA) as part of Phase II of the Lesotho Highlands Water Project. The scope of the Oxbow Hydropower dam includes a 100-meter high dam, two tunnels and a high-pressure steel pipeline as well as a power station that will produce an installed capacity of 80 MW of power from four turbines to ensure the country’s self-reliance with electricity. The capacity of Oxbow will add a total of about 40% to the grid.

It is anticipated that the Oxbow Hydropower Scheme will be commissioned in 2029, a year after the commencement of water transfer from Polihali to South Africa. The power generated from Oxbow will be transferred through a 132 kilovolts double circuit transmission line covering about 138 kilometers. On the other hand, in her maiden Budget Speech 2023/24, the Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane indicated that a mini-hydropower project is due to commence with funding from the Japanese Government grant valued at M184 million at Katse Dam.

Whereas the feasibility of wind power is currently being explored and poses great potential, it is solar energy projects that have taken off at full speed. The first solar generation facility of note is the 280 kilowatt plant at Moshoeshoe I International Airport commissioned in 2013. The major solar power installation in the country is the 30 MW Ramarothole Solar Plant which was handed over to the Government of Lesotho by the People’s Republic of China in June 2023. The Ramarothole plant in Mafeteng district is part of phase 1 of the 80MW solar power generation project. The initial arrangement of 70MW has subsequently been agreed to increase to 80MW. Phase II of the project will have a capacity of 50MW. The project is funded to the tune of US$150 million through China-Aid under the auspices of the Shared Future Initiative for African countries and financed by the Export-Import Bank of China.

The ground-mounted solar project which covers an area of over 220 hectares is expected to run at a full capacity of 80MW in December 2024. The project was launched in 2021 with the works carried out by two Chinese companies, China Sinoma International Engineering and TBEA Xinjiang New Energy.

Photovoltaic solar power projects will help Lesotho to optimise its energy mix and to cultivate solar power expertise in order to improve the economy and Basothoʼs livelihoods. The Ramarothole solar plant is owned and operated by the Lesotho Electricity Generation Company (LEGCO).  LEGCO is a company wholly owned by the Government of Lesotho that was established in 2020. It has been mandated to promote the generation of electricity in the country and to ensure the security of electricity supply.

Solar energy is the future for many countries. This is especially so for countries like Lesotho that have abundant sunlight throughout the year. Other solar projects in Lesotho include the project by OnePower, which received grant funding from development partners to set up 10 mini-grid photovoltaic (PV) projects in Lesotho’s rural areas. The mini-grid sites are Matsoaing, Thlanyaku, Sehlabathebe, Lebakeng, Tosing, Sebapala, Sehonghong, Mashai, Ribaneng, and Ketane. The Lesotho Energy Master Plan estimates that the country has a potential for solar energy generation at an annual average of 7 520 MJ/m2 per day on a horizontal surface.

With Lesotho boasting the highest lowest point in the world at 1400 meters, the country’s high altitude presents massive opportunities for wind farms. Estimates have indicated that there is potential to generate over 6 000 MW of wind power in Lesotho in the foreseeable future. This potential indicates that opportunities are abound for investors in this area. Current projects include the 35MW Letšeng Wind project, currently in the last stage of financial closure as well as the Semonkong Wind project, currently in a feasibility study with promising results.

However, by the very nature of the technologies used in wind or solar power generation, a lot of investment is needed in terms of the funds to purchase the equipment as well as the expertise needed to operate them.

With ‘Muela back to full capacity at 72MW and the additional 30MW from Ramarothole, Lesotho currently has energy security of over 65% of its power requirement based on current demand. This development also implies that Lesotho has effectively reduced power imports of about 54MW from July 2023, which is a significant saving by the country. The completion of Phase II at Ramarothole and the projected additional supply when the Oxbow Hydropower Plant is completed in 2029 will also add another 130 MW of power to the national grid. This development therefore implies that with such developments, Lesotho will become a net exporter of power to other countries within the Southern African Power Pool (SAPP).

Coupled with massive potential in wind energy, Lesotho has the required resources to produce clean energy for Southern Africa in abundance. Through donor agencies and development partners such as the United States of America, European Union, China, Japan, Germany and other wealthier countries, Lesotho can harness renewable energy to lessen the power supply gap that currently exists, and also explore opportunities for generating power for export in the future.

With additional contribution from LEWA News, April-June 2023.