Table 8 shows the tariffs for power on the LEC system. The domestic tariff was set at M0.839/kWh (roughly US$0.08/kWh) and the general purpose tariff was M0.941/kWh. Against this the high voltage (hv) industrial tariff was M0.149, the same as the high voltage commercial tariff . The lv tariffs for industrial and commercial consumers are equally low at M0.161/kWh.
Lesotho is a small land-locked state within the borders of South Africa. It is one of Africa’s poorest nations and suffers from overcrowding, forcing many of the working age population to emigrate to its larger neighbour. The electricity network in Lesotho is limited with around one quarter of the population provided with access to the grid. Most of the country’s power is provided by one hydropower plant, but this cannot meet national demand and the shortfall is supplied from South Africa and Mozambique via the South African Power Pool. Supply constraints within Southern Africa are making it more difficult for countries like Lesotho to import power and the country needs to expand its own capacity if it is to avoid serious load shedding problems in coming years. The country has significant hydropower potential, which there are already plans to develop in conjunction with South Africa, and also wind potential. However all such development with depend on outside investment, as the country does not have the resources to fund development itself.
This report is a Country Profile, covering:
- Power generation capacity by fuel input
- Electricity networks
- Current power market trends
- Generation growth
- Investment opportunities
- Future project plans
- An overview of the electricity market in Lesotho.
- Power supply data covering production, imports and exports and the main production sources.
- Power demand data by market sector and tariff data.
- An overview of the structure of the electricity sector with government and private sector companies as well as the regulatory status.
- Power demand forecasts and the development of the power sector to meet expected growth.
- Transmission system expansion plans.
Key Findings of the Report
- Annual consumption of refined petroleum products was estimated to be 1,777 barrels/day, all imported.
- The Lesotho transmission system is restricted to the lowland region of the north west and south west of the country.
- The main transmission system voltage is 132kV, used to bring power from Muela to the main urban centres, and to interconnect with the South African grid.
- The largest sector by consumption was the domestic sector, which consumed 193,210MWh during the year
- Overall tariffs have increase steeply in recent years, in order to match the cost of supply.
Key Questions Answered
- How does Lesotho generate its electricity?
- What is the status of the national electricity market?
- What are the key developments in electricity infrastructure?
- Who are the key players in market?
- What are the future prospects for investment in Lesotho?
Date Published / Pages / Format
January, 2014 / 25 pages / PDF