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In Lesotho, about 47 percent of households have access to electricity, concentrated mainly in urban areas.  The government has not achieved its goal of increasing the electrification rate to 75 percent of households by 2022.  Lesotho has identified hydropower, wind generation, and solar power as potential renewable energy sources to help reach these targets and are proactively seeking development partners and investors to help it achieve this goal.

Currently, Lesotho generates 72 megawatts of hydropower through the ‘Muela Hydropower plant, which does not satisfy domestic demand.  The country will generate 80 MW following the construction of the Polihali Dam expected to be completed in 2028.   There is potential, and there are plans, to expand hydropower capacity and establish wind farms.  The majority of the population primarily lives in small, rural communities, which makes the country a good market for solar energy products.  The government is interested in taking advantage of carbon credits; this may be a business opportunity for consulting companies in the renewable energy space.   

Sub-Sector Best Prospects   

• Electricity generation plants
• Wind farms
• Water turbines
• Wind turbines
• Generators
• Solar panels 

Opportunities 

According to Lesotho’s Department of Energy, Lesotho could potentially produce 450 MW in hydropower and several hundred more with wind power.  However, only 17 percent of this potential is being exploited, 96 percent of it at the ‘Muela hydro-power plant and the rest from mini hydro-power plants at Mants’onyane, Mokhotlong, Tsoelike, and Semonkong.  Breeze Power, a company owned jointly by  GOKL and Harrison & White Investments, is investigating twelve sites for wind power generation.  Energy demand is growing in South Africa and the rest of the region, and Lesotho has the potential to export renewable power.  Opportunities exist for U.S. companies to supply renewable energy products or to develop renewable power generation in Lesotho.  U.S. company OnePower received a grant through Power Africa to undertake a feasibility study in generating 20 MW solar energy in Mafeteng District.  Power Africa is a market-driven, U.S. government-led public-private partnership aiming to double access to electricity in sub-Saharan Africa.  It offers tools and resources to private sector entities to facilitate doing business in sub-Saharan Africa’s power sector.  The Electrify Africa Act of 2015 institutionalized Power Africa.  Learn more about the full Power Africa toolbox or other opportunities offered by Power Africa at https://www.usaid.gov/powerafrica.  The government has also engaged China Sinoma International Engineering and TBEA Xinjiang New Energy to construct solar power plant that will produce 70 MW.

Resources 

Lesotho Electricity and Water Authority (LEWA)

Lesotho Electricity Company (LEC)

Lesotho Highlands Development Authority (LHDA)

Contacts 

The Department of Energy 

P.O.Box 772 

Tel; (266) 22310520 

Website: Ministry of Energy and Metereology | Government Of Lesotho (www.gov.ls)