Lesotho Energy Situation

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Lesotho

Capital:

Maseru

Region:

Coordinates:

29.0000° S, 28.0000° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

30,360

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

2,311,472 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

70 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

2,117,962,451 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

916.28 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

50.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

no data

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

0.00 (2007)

Source: World Bank

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Introduction

The Kingdom of Lesotho is an enclaved, landlock country in southern Africa completely surrounded by South Africa. It is just over 30,000 km² (11,583 sq mi) in size and has a population slightly over two million. Its capital and largest city is Maseru. 

Energy Situation

Overview

Power Sector
Electrical capacity 2015   75 MW
Share of Thermal/hydro2 0%/ 99.7%
Electricity access rate (total) 20121 20.6%
Electricity access rate (rural) 20121 6%

Energy Resources
Hydropower, total2 74.8 MW
Hydropower, small2 0.2 MW
Wind potential, average4 3.5-25 m/s
Annual average solar radiation per day  5.4 kWh/m²
Coal, known deposits -
Electricity imports (2012)  255 GWh

Key Problems of the Energy Sector

Key challenges in the energy sector

• Very low access to electricity; only 6% of rural households are connected to the national grid.
• Stagnant generation capacity in the last decade and problems in the maintenance of facilities contrasts with rising demand, 6% annual average for period 2003-2010.
• Import dependency from Mozambique and South Africa.
• Weak policy and institutional framework lacking holistic approach and incentives for private sector involvement.
• Low awareness on renewable energy technologies and limited knowledge of potential resources.

Policy Framework, Laws and Regulations

Policies

National Strategic Development Plan 2012/13–2016/17

The NSDP is a strategy that aims to contribute the broader National Vision 2020. The document makes explicit the potential for energy generation based on renewable sources provided that financial resources are available. The energy sector is regarded as a source of economic growth; climate change mitigation; and eventually export revenues. For that the strategy articulates three goals:
1. Increase clean energy production capacity to attain self-sufficiency, export and have a greener economy.
2. Expand electricity access to centres of economic activity, other sectors and households.
3. Increase energy conservation, safety and access to alternative (non-electricity) energy products and efficient technologies.

Lesotho Energy Policy 2015-2025

The policy document aims to achieve the goals articulated in the NSDP. The policies pivot around principles such as sectoral integration, stakeholder participation, environmental sustainability, gender equity or public private partnerships. The Energy Policy establishes 15 sub-policies which can be grouped in the following themes and is further disaggregated in general strategies, but no specific activities and monitoring indicators are set:
• Institutional and regulatory framework and improvement information systems.
- Establish and sustain a platform for energy stakeholder coordination
- Develop standards, codes of practice and specifications for mini and off-grid solutions.
- Impose and collect levies on energy services and products
- Develop a database of local institutions and resources currently available to undertake energy-related research and analysis, and thereafter, assess skills and expertise thereof.
- Establish a support programme for the co-financing of energy research activities.
- Create an enabling environment that encourages investment in the energy sector. This may include facilitating the establishment of international/local and/or public/private partnership and Renewable Energy Feed-In-Tariffs (REFIT) programme.
• Promotion of bioenergy resources and renewable energy technologies and services.
- Promote research and development in the field of bioenergy and associated technologies for power generation, heat and fuel production
- Facilitate the establishment of Rural Energy Service Companies (RESCOs)
• Enhancing efficiency of electricity equipment and upgrading and expansion of facilities for power generation, power transmission and distribution.
- Support applied research and development in energy efficiency programmes and activities
- Develop power purchase agreement (PPA) framework that will allow the private sector and cooperative associations to participate as Independent Power Producers (IPPs) in mini or micro hydro, wind, solar and biomass power generation
- Create a conducive environment for local entrepreneur participation in the electricity sector
- Introduce a wholesale tariff regulation that supports increased participation of private sector and cooperative associations in bulk purchasing and retailing of electricity
• Increase market efficiency, ensuring fair and transparent pricing and promoting private investments with attractive business environment.
- Develop legal, regulatory and institutional frameworks to ensure security of energy supply and increased number of players in the electricity supply industry
• Ensuring the access and security of electricity and petroleum products.
- Establish price setting mechanisms for recovering the cost of service
Authority (Universal Access Fund) 2011
The purpose of this facility is to channel funds towards the development and expansion of electricity service infrastructure. Furthermore, funding training programmes for communities and research to promote the access to electricity in sidelined areas.

Institutional Set up in the Energy Sector

Ministry of Natural Resources or Ministry of Energy, Meteorology and Water Affairs

Acording to SE4ALL report for Lesotho, The Ministry of Natural Resources through the Department of Energy is responsible for the overall administration and coordination of energy in Lesotho. Other relevant institutions and entities responding to the Department of Energy include the Petroleum Fund (PF), Lesotho Electricity Company (LEC), Lesotho Electricity Authority (LEA), Appropriate Technology Services (ATS), Lesotho Electrification Unit (LEU), National Rural Electrification Fund (NREF) to be established and Lesotho Electricity Generation Authority (LEGA). However, the Energy Policy 2015-2025 does not mention the Ministry of Natural Resources and refers instead to the Ministry of Energy, Meteorology and Water Affairs. This could mean that there has been a change in the names of the Ministries in the recent times.

Institutional Overview Energy Sector in Lesotho

Department of Energy	Policy, Plans, Strategy, Programs formulation, enforcement and information dissemination.
Petroleum Fund	Funding viable energy projects and research and development in the petroleum sector
Lesotho Electricity Authority	Electricity Sector Regulation
Lesotho Electricity Generation Authority	Development and management of electricity generation projects to supply Lesotho and the region with electricity
Lesotho Electricity Company	Electricity transmission, distribution and supply in urban and financially viable areas of the country.
Lesotho Electrification Unit	Build operate and Transfer of electricity transmission, distribution and supply network and management of NREF
National Rural electrification Fund	Rural electrification –NREF is still at concept level.
Appropriate Technology Services	Technology development

 

Lesotho Electricity Authority (LEA)

From August, 2004 until April, 2013 the Authority was mandated with regulating the electricity sector. In 2007 the Government decided that the Lesotho Electricity Authority (LEA) should be transformed to be a multi-sector regulatory body assuming additional powers to regulate urban water and sewerage services in the country. LEWA officially started regulating both electricity and urban water and sewerage services sector on May, 2013. The Authority independently deals with matters such as electricity pricing, complaints handling and resolution and the supervision of the implementation of the Quality of Service and Supply standards (QOSSS) by its licensees.

There are other Ministries or agencies with overarching influence over the energy sector: Ministry of Development Planning; Ministry of Finance; Ministry of Mining; Ministry of Public Works and Transport; Water Commission; and Lesotho Revenue Authority.

Stakeholders

Public Entities

Lesotho Electricity Corporation (LEC)

Lesotho Electricity Corporation (LEC) generates, transmits, and distributes electricity. The company also owns and operates hydro power stations. LEC is wholly owned by the Government of Lesotho (GoL).

Basotho Enterprises Development Corporation (BEDCO)

The Basotho Enterprises Development Corporation (BEDCO) is a parastatal of the Government of Lesotho. The primary responsibility of the Corporation is the establishment and development of Basotho-owned enterprises. The main focus of BEDCO has been on entrepreneurial capacity building to promote the development of entrepreneurship in Lesotho. BEDCO has formal working relationships with both local and international business support stakeholders.

Appropriate Technology Section

The  Appropriate  Technology  Section  (ATS)  of  the  Ministry of Communication Science and Technology,  an  institution  that  was  mandated  to  undertake  appropriate  technology  research,  the development and application of these technologies, and the dissemination of economically viable results thereof.

Independent Power Producers

Lesotho Highlands Power Project

In November 2011, Lesotho revealed plans for the Lesotho Highlands Power Project, under which a 10 gW renewable energy power-plant will be built. Unnamed Chinese firms will provide loans to finance about 80% of the project which is expected to cost 110 billion ZAR. Equity for the project will come from Breeze Power, a joint venture between the Lesotho government and South Africa's Harrison and White Investments.
Of the 10 gW of power, 6 gW will come from wind energy, and 4 gW will come from pumped-storage hydro power. Construction on the first phase of the project is slated to begin in 2012 with the construction of a 150 mW wind farm. By 2016, 600 mW of the wind capacity is planned to be online. As part of this project, manufacturing facilities will be built in Lesotho and South Africa.

PowerNET Developments (Pty) Ltd

The project involves the development of 42-turbine Letseng wind farm and has been approved by the Lesotho government. Lesotho’s first 25-35MW wind facility will be located near the diamond mine of Letseng La Terai in the highlands of Lesotho. PowerNET Developments (Pty) Ltd is a joint venture between South African energy consultancy NETGroup and Lesotho’s Powerdev Group.

Private sector associations and civil society organisations

The Lesotho Council of Non-Governmental Organisations (LCN)

The Lesotho Council of Non-Governmental Organisations (LCN) is an umbrella organization for NGOs in Lesotho. It was established in May 1990 with an objective of providing supportive services to the NGO Community. The Council implements this through networking and leadership training and development, information dissemination, capacity building, coordination, advocacy and representation when dealing with the government and the international community.

Lesotho Association of Engineers

Among other goals the LAE seeks to foster and promote the art and science of Engineering and its application in Lesotho and to facilitate the exchange of information. For that matter, they will cooperate with educational institutions and public educational authorities for the furtherance of education and training in Engineering Science and Practice.

Lesotho Solar Energy Society

Lesotho Solar Energy Society (LeSES) acts as a platform for the industry and clean energy expert groups to exchange information and implementation of an industry code of practice.

Private Sector Companies

Name	'Product'Types	'Service'Types	Location
AF-Power Lesotho	n.a.	n.a.	n.a.
African Clean Energy	Efficient Cookstove	n.a.	Plot 24, Ha Thetsane Industrial Park Maseru 100
Bethel Business and Community Development Centre	Solar energy and education	Energy generation and capacity building	PO Box 53, Mt. Moorosi 750, Lesotho Facebook: Bethel Business and Community Development Centre
Enex Energy	Energy Efficiency and Renewable Energy Technologies Automation, Software Engineering	Consultancy	Consttec Construction Premises Off Nelson Mandela Road, Sebothoane Hlotse, Leribe, Lesotho. www.enexxenergy.com
HPL Consortium	Bio-energy	Consultancy	P.o. Box 8913, Maseru 100, Lesotho Metcash Building, Suit 167 Maseru 100 Khubetsoana Lesotho https://hplconsortium.com/
Mountain Power	n.a.	n.a.	n.a.
Planet Wind Power Systems	n.a.	n.a.	n.a.
Solar Lights	n.a.	Social Enterprise	P.O. Box 14008, Maseru 100, Lesotho solarlights@web.de
Technologies for Economic Development	Decentralized renewable energy production (biogas and solar) and energy saving technologies (stoves), technical training.	NGO	Technologies for Economic Development Polo Ground 49/3 PO BOX 14621 Maseru 100,  LESOTHO http://www.ted-biogas.org/

Further Information

Renewable Energy Training and Education in Lesotho

SESSA – Sustainable Energy Society Southern Africa (SOLTRAIN Project)	SOLTRAIN is a regional project on capacity building and demonstration of solar thermal systems financially supported by the Austrian Development Cooperation. SOLTRAIN started in 2009 in South Africa, Namibia, Mozambique and Zimbabwe. In October 2014 it was launched in Lesotho. The project partner is the Bethel Business and Community Development Centre (BBCDC) in Mt. Moorosi. The project aims to build up training capacities in Lesotho in the field of solar thermal technology. Focused training courses are carried out in co-operation with the partner organization BBCDC, ranging from practical hands-on trainings to a university level course.
Solar Turbine Group (STG)	STG has developed a formalized training program focused on solar energy technologies as part of a UNDP GEF-SGP sponsored program with their partners in Lesotho. The course was first piloted in 2013-2014, training over 25 professionals, instructors, and partner engineers/technicians in classroom, hands-on, workshop, and manufacturing topics related to concentrating solar power (CSP) – a type of solar systems STG has designed and built. The course forms the basis of both a theoretical understanding of how concentrating solar power works and the training for manufacturing of solar systems. As such, STG is working with the National University to build on intense short modules to develop appropriate undergraduate curriculum components, as well as modules for use in the Masters’ program under development for Renewable Energy, also as part of the UNDP GEF-SGP grant program.
Bethel Business and Community Development Center	The Bethel Business and Community Development Center (BBCDC) is a commercial and technical school located in a remote rural district of Lesotho that began operations in 1993 on barren land with institutional support from UNICEF and the local RC Mission Church. The Center provides training in the overall subject of solar energy utilization and sustainable development.
Taung Skills Center	The Center provides courses in carpentry, building, solar energy equipment installation and agriculture.

'T'he Southern African Sustainable Energy Initiative (SASEI), National University of Lesotho

The Initiative is offering a series of free short courses targeted to trainers in the field of sustainable energy at tertiary/institutional level: Energy Economics and Climate Change (course held in April, 2016)[2]; Renewable Energy and Energy Efficiency; Bio-Energy; Solar Photovoltaic; Solar Thermal; Wind Energy; Hydropower; Electrical Power Systems; Energy Policy, Regulation and Environment; Energy Economics, Finance and Project Management; Engineering Design for Rural Villages.   SASEI, with the support of the European Commission, is undertaking a project to enhance the institutional, human and systems development capacity of the Consortium of Regional Universities in the area renewable energy and energy efficiency in partnership with the Namibia University of Science and Technology, the National University of Lesotho, University of Botswana, and Hochschule Darmstadt University of Applied Sciences (Germany). The project aims to establish a framework for joint graduate programme on renewable energy and energy efficiency studies, develop joint curriculum of graduate and undergraduate course modules and programmes within energy efficiency and renewable energy, and develop capacity amongst key researchers and trainers through exchange staff.

Energy Research Center (ERC), National University of Lesotho

The ERC is an independent entity in the university managed by the Department of Physics & Electronics (DoPE) and reporting to the Pro Vice-Chancellor. DoPE spearheads the centre with research activities in energy efficiency and renewable energy technologies (solar and wind). The ERC endeavors to conduct studies in energy efficiency and sustainable renewable energy to identify suitable technologies for Lesotho’s needs, develop capacity to assess and implement related projects and promote renewable energy adoption. It includes studies on Solar Energy, Wind Energy, Energy Modelling, Energy Management, Rural ICT Projects. There is on-going curriculum development exercise in the DoPE at NUL to introduce optional renewable energy modules in the existing B.Sc. and B.Eng. programmes and launch a postgraduate degree (B.Sc. (Hons) and/or M.Sc.) in Renewable Energy.