Power Africa is a market-driven, U.S. Government-led public-private partnership that aims to double access to electricity in Africa. It offers private sector entities tools and resources to facilitate doing business in Africa’s power sector. In 2016, the Electrify Africa Act institutionalized Power Africa. Learn more about the full Power Africa toolbox or other opportunities offered by Power Africa.
Energy development in Eswatini is guided by the National Energy Policy of 2018. Since then, the country’s energy sector has been undergoing rapid transformation with the liberalization of the electricity sector to encourage private sector investment. The changes include the introduction of new policies, enactment of new laws, establishment of the energy regulator, and initiation of electricity standards. The changes are driven by Eswatini’s desire to improve energy security, access to reliable, adequate, and affordable electricity, and the mitigation of potential detrimental impacts on the environment because of the growing energy demand.
The Eswatini Electricity Company (EEC), a state-owned power utility, owns and operates four hydro power plants that provide 60.4 MW of power and contribute 15 to 17 percent of the total energy consumed in Eswatini. in addition to this are five independent power producers (IPPs) operating power plants in Eswatini with a total installed capacity of close to 110 MW made up of hydro, biomass and solar PV plant technologies. The rest of the electricity required is imported from South Africa (Eskom) and occasionally Mozambique (EDM), particularly when issues emerge relating to Eskom’s supply.
In 2022 the Eswatini Government has brought online a 10MW solar plant and will be awarding a solar generation license for the 50 MW to an IPP by late 2023. The government has scrapped the establishment of a 200 MW anthracite coal power plant to be setup at Lubhuku and decided to export the said coal . The overall electricity access rate in Eswatini is estimated by Power Africa at 83 percent in rural areas and 95 percent in urban areas. GKoE has taken actions to encourage energy battery storage, including offering an SEZ to a company seeking to build a vanadium-flow battery farm funded in part by the Export-Import Bank of the United States.
The Eswatini Energy Regulatory Authority (ESERA) which regulates the sector (Electricity and Petroleum ) using various instruments guiding the application of licenses and has in the past engaged with the Southern African Trade and Investment Hub on crafting the independent power-producers policy.
Leading Sub-Sectors
- Financing energy infrastructure projects
- Forming Independent Power Producers on renewable energy
- Solar panels and generators
- Transmission and distribution equipment
- Hydro power generation equipment
Opportunities
Renewable energy production is now a priority for the GKoE. U.S. renewable energy subject matter experts can approach the Eswatini Energy Regulatory Authority (ESERA) indicating their wish to operate as IPPs in Eswatini. Small-scale generators who generate less than 100 kilowatts for their own consumption do not need to apply for a license, however, if the generation for own use produces electricity that is above 100 kilowatts, this generator now needs to apply for an exemption from the obligation to hold a license.
Web Resources
Eswatini Energy Regulatory Authority - https://www.esera.org.sz/
Eswatini Electricity Company - https://www.eec.co.sz/