By Bahle Gama
The Lubhuku Power Station in Mpaka, Lubombo Region, is set to begin operation in 2026 with an initial capacity of 150 MW, increasing to 300 MW by 2028.
The plant will use coal from local deposits, such as Maloma Coal Mine, which is expected to last 30 years.
According to the United Nations (UN) Eswatini Just Transition Energy policy brief, this project aims to ensure energy self-sufficiency, create 700-1000 direct jobs, and stimulate economic growth through increased domestic energy production and reduced energy import costs.
It could save Eswatini E1.2 billion to E1.6 billion (about US$67 million-88 million) annually on energy imports and potentially add 2-3 per cent to the country’s GDP, translating to an annual increase of US$80 million to US$120 million.
The UN policy brief examines the complex interplay of factors shaping Eswatini’s energy landscape, from security to coal development’s environmental, economic, and social implications. It outlines a roadmap for a Just Energy Transition in the Kingdom.
It also aims to align growth and development with Eswatini’s NDC commitment to generate 50 per cent of energy from renewable sources by 2030 and COP 28 goals to shift from fossil fuels to green energy by 2048.
The brief highlights that the Eswatini Electricity Company (EEC), a state-owned utility, operates four hydropower plants with a combined capacity of 60.4 MW, meeting 15-17 per cent of the country’s energy needs.
Five independent power producers (IPPs) also contribute around 110 MW using hydro, biomass, and solar PV technologies.
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However, over 80 per cent of Eswatini’s electricity is imported, mainly from South Africa’s ageing coal-fired plants, leaving Eswatini vulnerable to price fluctuations and supply disruptions due to the neighbouring country’s unreliable power supply.
Therefore, access to electricity stands at 85 per cent, with a current demand of 233 MW and growing.
Areas of unmet needs are in hard-to-reach places, where homesteads are widely dispersed and far from the current grid system, making connection economically unviable.
Only 49 per cent of households use clean cooking methods, and much of cooking in rural areas still relies on woodlands, impacting the environment.
“Electricity in rural areas is mainly used for lighting, not for productive needs, due principally to affordability.
Therefore, there is a need to ensure energy reaches the last mile and is used to drive catalytic sectors to facilitate SDG achievement,” said the UN.
Worth noting is that the government has launched several initiatives to accelerate the generation of sustainable baseload power to meet the country’s growing needs.
Such initiatives include the recently commissioned 10 MW solar plant in Lavumisa and a competitive bidding process to establish an additional 40 MW solar and 80 MW biomass generation capacity through IPPs.
These strategic efforts aim to enhance energy security and sustainability, reducing reliance on imported electricity while supporting domestic energy production.
However, these can only meet 71 per cent of the current energy needs, not factoring in private sector-led growth and development.
According to the UN, a seemingly straightforward solution to Eswatini’s energy security dilemma is constructing a 300MW coal thermal plant. This facility could effectively meet the country’s baseload power requirements.
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“Investment in this thermal plant would fuel the plant itself and stimulate the growth of the coal mining industry in Eswatini, boosting both domestic usage and exports.”
Under the preferred future scenario of the Energy Master Plan 2018, Eswatini aims to achieve 676MW of domestic capacity (including coal and renewable energy sources) by 2034 to meet the projected demand and provide adequate reserves.
Also, the impending expiration of Eswatini’s contract with ESKOM in 2025 further amplifies the urgency to secure a reliable and affordable energy future.
This intricate situation necessitates a nuanced approach to the just energy transition, carefully balancing economic development with environmental stewardship and social equity.
