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Dependent on South Africa for most of its electricity supply, Lesotho is making progress on renewable generation projects that officials say will allow the mountain kingdom to become self-sufficient and even eventually a net power exporter, writes Tonderayi Mukeredzi.

Analysis of the latest information on the African Energy Live Data platform shows that over half of the 23.4GW electricity generation capacity expected online by 2027 across southern Africa will come from public procurement rounds, some 12.5GW of it from renewables and hybrid technologies.

A new majority equity holder and developer for the 20MWp Neo I independent power project (IPP) in Mafeteng is expected to be announced in the coming months, following the exit of Norway’s Scatec from the project.

Construction of the Polihali dam is due to start in November, with work on the transfer tunnel starting the following month, providing fresh momentum for the second phase of the Lesotho Highlands Water Project.

Too often ignored except in times of extreme crisis, Lesotho is looking to emerge from years of political instability and economic malaise under previous coalition governments, as the Basotho population counts on newly-elected tycoon Prime Minister Sam Matekane to usher in transformative change.

The new Revolution for Prosperity (RFP)-led government has a tough agenda of reforms to enact if it is to turn around Lesotho’s fortunes.  Prime Minister Sam Matekane’s administration has ambitions to make Lesotho self-sufficient in energy, by increasing generation capacity to an extent that the landlocked kingdom could become an electricity (as well as a water) exporter.

The first five mini-grids being developed by renewable energy company OnePower are due to start delivering electricity to customers by the end of September. The projects – at Tlhanyaku, Lebakeng, Ketane, Mashai and Sehonghong – are part of a wider plan to develop ten mini-grids.

The Muela hydroelectric power (HEP) station is being rehabilitated after one of its three 24MW turbines developed a fault and caused all three to be shut down on 16 July.

Local developer OnePower has reached financial close on its 1.7MW Sotho mini-grid portfolio project. Using ZAR107m ($7m) of senior debt and ZAR43.2m ($3m) of equity financing from the European Union’s Electrification Financing Initiative (ElectriFI) and the UK’s Renewable Energy Performance Platform, the portfolio has become one of largest project financed mini-grid initiatives in Africa. OnePower chief executive Matthew Orosz spoke to African Energy about the details.

Local developer OnePower is awaiting financial close on its $10m Lesotho Highlands mini-grid project, pending an appraisal process by exchange control regulator the Central Bank of Lesotho (CBL), chief executive Matthew Orosz said.

Scatec signed a 25-year power purchase agreement (PPA) with Lesotho Electricity Company (LEC) on 25 November for the country’s first privately-financed, utility-scale solar PV power plant, the Neo I 20MWp project. The ceremony in Maseru was attended by Prime Minister Moeketsi Majoro.

The Department of Energy is inviting expressions of interest from consultants to prepare 16 mini-grids for tendering and identify a further 14 mini-grid sites. The World Bank Group’s International Development Association and the Scaling Up Renewable Energy Programme are supporting the $52.9m Lesotho Renewable Energy and Electricity Access Project (LREEAP) to increase access to electricity in rural and peri-urban areas. The project aims to extend the grid in peri-urban areas and use mini-grids in rural and remote areas.

Lesotho’s Department of Energy is inviting expressions of interest from consultants to prepare 16 mini-grids for tendering and identify a further 14 mini-grid sites.

Investors, contractors and financiers have been reassessing southern Africa’s potential to emerge as a natural gas producer, supply hub and importer of molecules and electrons for gas-to-power (GTP) schemes. Mozambique’s emergence as an LNG exporter gives it potential to develop new gas-based industry and infrastructure. Developments in southern Mozambique further suggest it could drive a wider regional industry, with more gas exported by pipeline.

Local developer OnePower has embarked on an ambitious plan to roll out nine solar PV mini-grids in Lesotho’s rural areas, including Thaba-Tseka, Mohale’s Hoek, Qacha’s Nek, Mokhotlong and Quthing. The company is already developing Lesotho’s first utility-scale solar PV plant, a 20MW PV plant in Mafeteng (AE 394/11, 358/13).