By: Thoboloko Ntšonyane
MASERU
The African Development Bank estimates that the Southern African Development Community (SADC) region has a hydropower potential of about 1,080 terawatt hours per year (TWh/year), yet the actual capacity currently stands at just under 31 TWh/year. A terawatt is equal to one million megawatts (MW). This disparity highlights the significant untapped potential in renewable energy within the region, emphasising both the energy security and climate resilience goals that many SADC countries are pursuing.
There have been increasing calls to advance renewable energy projects in the region. These projects could bring economic benefits while simultaneously supporting the broader objectives of energy security and climate resilience.
Prime Minister Samuel Matekane has announced an ambitious plan for Lesotho to achieve energy self-sufficiency, positioning the country as a contributor to the SADC Power Pool.
The United Nations Environment Programme (UNEP) suggests that investing in renewable energy could substantially enhance economic growth, create jobs, and improve overall well-being in the region. UNEP highlights that such investments represent just 0.3% of the region’s GDP annually, yet they create more jobs per dollar compared to other forms of stimulus spending.
Lesotho has identified hydropower, wind, and solar power as key sources for renewable energy. The International Monetary Fund (IMF) acknowledges that investing in hydropower could not only boost economic growth but also generate additional fiscal revenue through electricity exports. With renewable energy reportedly contributing immensely for Lesotho’s electricity capacity, further investment in this sector promises to foster job creation, economic growth, and improved living standards.
During the recently concluded SADC Sustainable Energy Week, which took place from February 24 to 28 and was attended by energy ministers from the region, we spoke with the Minister of Natural Resources, Hon Mohlomi Moleko, about the opportunities available for Lesotho in regional energy collaboration and potential investments.
The Minister expressed optimism, emphasising that Lesotho has much to offer and stands to benefit from the region’s energy initiatives. “Given our abundance of water resources, we have several hydropower potentials that could provide base-load power to the region. Alongside our wind and solar resource potentials, and considering the power supply deficits in the region, Lesotho remains a prime contender for clean energy exports.”
He further highlighted the opportunities for investors in Lesotho’s energy sector and noted that the introduction of the Independent Power Producers (IPP) framework has created a favourable investment environment. This, he said, allows the country to position itself as an attractive destination for clean energy initiatives in Southern Africa.
Energy is central to development in Southern Africa. It drives infrastructure projects that are crucial for regional integration and economic growth. As the region continues to industrialise, reliable energy production and distribution will become increasingly important.
In 1996, SADC adopted the Protocol on Energy, which aims to promote cooperation on energy policy among Member States to ensure security, reliability, and sustainability. However, despite the region’s immense solar irradiation and significant wind energy potential, a report by Boston University’s Global Development Policy Center reveals that only 1% of these renewable resources have been utilised.
The falling costs of solar photovoltaic (PV) and wind energy technologies, coupled with the discovery of transition minerals essential for low-carbon economies in several SADC countries, have made the region an increasingly attractive destination for renewable energy investment. Nonetheless, the report warns that achieving large-scale renewable energy development will require a pipeline of well-prepared and bankable projects, along with an increase in both financial resources and technical expertise.
In his keynote speech at the inaugural SADC Sustainable Energy Week, President Duma Gideon Boko of Botswana urged SADC Member States and stakeholders to act decisively to achieve energy security in the region. “The time for talk is over. It’s time to act! Let’s work together to build a future where every home, business, and industry in SADC has access to clean, affordable, and reliable energy,” he said.
He highlighted that investing in sustainable energy is not only an environmental decision but also an economic necessity. He called on Member States to fully exploit the region’s vast renewable resources solar, wind, hydropower, and geothermal for socio-economic benefit.
President Boko also appealed for increased participation from the private sector, noting that private capital could be pivotal in realising these ambitions. “From small and medium enterprises to global investors, we invite you to partner with us not only to build infrastructure but to cultivate the talent and knowledge necessary to sustain it.”
SADC Executive Secretary Elias M. Magosi emphasised that energy security and universal access to energy are essential drivers of regional integration and economic development across all sectors.
Lesotho has set an ambitious objective of becoming a net exporter of clean energy by 2030. This aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG No. 7, which calls for affordable, reliable, sustainable, and modern energy for all, and SDG No. 13, which urges urgent action to combat climate change and its impacts.
Moleko said, “By harnessing our resource endowments, all of which are green sources, not only are we meeting power market competitiveness through clean energy exports, but we are also contributing to the achievement of the country’s Nationally Determined Contributions (NDC) target under the Paris Climate Agreement.”