Lesotho: Proposed SE4All Technical Assistance Activities Under NIP 2014 - 2020

EU Technical Assistance Facility
for the "Sustainable Energy for

All" Initiative (SE4ALL) - Eastern
and Southern Africa
Lesotho: Proposed SE4All TA
Activities under NIP 2014-2020
European Commission
25 July 2014 (revised version)
in Consortium with
EU Technical Assistance Facility for the "Sustainable Energy for All" Initiative (SE4ALL) - Eastern and Southern Africa
Lesotho: Proposed SE4All TA Activities under NIP 2014-2020
Notice
This document and its contents have been prepared and are intended solely for European Commissions
information and use in relation to the EU Technical Assistance Facility for the Sustainable Energy for All
Initiative (SE4ALL) Eastern and Southern Africa Contract no.336063.
WS Atkins International Ltd assumes no responsibility to any other party in respect of or arising out of or in
connection with this document and/or its contents.
This document has 14 pages including the cover.
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Atkins Lesotho: Proposed SE4All TA Activities under NIP 2014-2020 | Version 1.0 | 16 April 2014 | 5127711
Table of contents
Chapter
Pages
1.
Energy baseline situation
2.
Energy sector objectives of the Government of Lesotho
3.
National Indicative Programme (NIP) 2014-2020
4.
Proposed SE4All TA activities in the energy sector
10
5.
References
13
(Please note that all information and proposed activities in this document are based on the reference
material mentioned in section 0. It is strongly recommended that the observations and conclusions are
verified and further detailed in direct discussion with relevant stakeholders in the country.)

1.
Energy baseline situation
With regard to SE4All objectives, the energy situation in Lesotho is characterised as follows:
Still relatively high reliance (about 75% of total energy demand) on traditional biomass resources
(wood, shrubs, animal manure and agricultural residues), although only about 50% of households
use wood for cooking, while the share of LPG is high compared to other countries in the region.
Lesotho has no known indigenous fossil energy sources, such as oil, coal or natural gas.
According to the Second National Communication to the UNFCCC, the demand for energy .is
expected to be almost ten times higher by 2030 than it was in the base year 2010.
About 29% of households are connected to electricity (Sept. 2013), with much lower rates in rural
areas (other sources mention a far lower access rate); infrastructure services in terms of
transmission and distribution are relatively well developed in urban and growth centres, while less
than 6% of the area serviced by grid is defined as rural; the Government of Lesotho (GoL) has set an
annual target of 8,000 new customers. Between 2008 and 2010, an average of 10,000 new
connections was made as result of significant subsidies for rural electrifications. In 2013/14 (?),
15,000 new connections were made, covering both households and institutions. At current rate of
electrification, it is expected that a total of around 144,500 connections will be achieved by 2015, and
around 243,000 by 2020.
Industry is the biggest electricity consumer at 39%, followed by the residential sector at 34%. The
annual per capita electricity consumption is 253 kWh, significantly below the African average of 579
kWh and the world average of 2,777 kWh.
About 56% of households use firewood for cooking, 39% use gas/paraffin, 1.6% electricity and
3.5% other sources of energy; about 56% of households use gas/oil for lighting, 38% candles, 10%
electricity and less than 1% other forms of energy; about 67% use biomass fuels as main source for
space heating, 27% use paraffin, 4% coal, 3% LPG or electricity.
76% of the population live in rural areas, with the majority of villages lacking electricity and the
probability of connecting them with grid electricity in the near future is very low. Where electricity is
available, it is used mainly for lighting, TV and radio. Some households and tradesmen in rural areas
use small diesel gensets, but at very high generation costs.
A Generation Master Plan study has been completed in 2012. This followed a National
Electrification Master Plan of 2007, which estimated that around US$ 420 million would be
required to meet the governments target of 40% electrification by 2020.
The Lesotho Electricity Authority (since 2008 Lesotho Electricity and Water Authority LEWA)
has been established in 2004 as regulator of the sector on the basis of the Lesotho Electricity
Authority Act 2002. The creation of the regulator was consequence of the Lesotho Utilities
Reform Project (2002-2007), financed by the World Bank and the African Development Bank with a
small contribution of the European Union. LEWA has the mandate for issuing licenses, approving
electricity tariffs, handling disputes between suppliers and customers and monitoring the
implementation of Quality of Service and Supply Standards. The Utilities Reform Project included a
component that consisted of a comprehensive study on the future options related to
hydroelectric power in Lesotho and it identified and developed alternative method for sustainable
electricity service delivery outside the service territory of LEC (see below).
Electricity is being transmitted, distributed and supplied by the wholly government-owned utility
Lesotho Electricity Corporation (LEC) that started operation in 1969. While those services are
monopolies of LEC in defined service territories, in generation other actors may engage as well. In
February 2001, a task force was appointed to improve operational efficiency and financial
performance, but attempts to sell shares of LEC within this process to the private sector failed. The
reforms were meant to address the problems of inefficiency and lack of financial resources.

Most electricity is generated by Lesotho Highlands Development Authority (LHDA) in its only
large hydropower station Muela (72 MW, commissioned in late 1998). LHDA is also state-owned.
The responsibilities and roles of the two utilities are defined in the 1993 Policy on the LHDA/LEC
Interface. Muela is part of the first phase of the Lesotho Highlands Water Project (LHWP), which
was financially supported by the European Commission and the European Investment Bank (EIB).
LEC is operating only four small hydropower stations. Total power generation capacity amounts to
about 76 MW, all based on hydropower (with exception of some stand-alone PV).
The hydropower plant Muela is coupled to the grid of Eskom/South Africa and not to the main
electricity grid of Lesotho. A pump storage plant of 1,200 MW is in preparation under the second
phase of the LHWP, connecting the water reservoirs of Katse and Kobong, and is thought to be
realized by end of 2022. Phase II of LHWP was officially launched at end of March 2014. Financing
of the 7.6 billion M project is supposed to be carried by Lesotho alone.
In the recent past, the diamond mining sector has been the main driver for increased electricity
demand; volatile and precarious situations of power shortage are leading to load shedding as
demand exceeds local power generation and supply. Even more serious power shortages are
expected for the near future, in particular since the dependence on imports from South Africa and
Mozambique is very fragile, due to both countries own energy needs. Lesotho has already suffered
under the power crisis in South Africa in the winter of 2008.
Power importation agreements exist with EDM, Mozambique, (40 MW) and ESKOM, South Africa
(27 MW). But both contracts are short-term and can be cancelled; LEC seeks for generating power
locally and reduce dependence on external utilities. Currently, Lesotho depends on imports at peak
demand times (about 138 MW in 2011). More than one third of electricity consumed is being
imported. At the present growth rate, peak power demand is expected to reach 160 MW in 2020 and
275 MW by 2030.
The partly outdated and inefficient electricity distribution network needs to be revamped to improve
safety and reliability and to expand connections to households and potential growth areas, including
institutions such as mines that are currently off-grid.
Electricity tariffs are low and not cost-reflective.
Independent Power Producers are in principal allowed, but have so far not been invited to
participate in the electricity market.
The World Bank has recently funded the Lesotho Electricity Supply Project, which addressed
generation shortage, distribution constraints and new connections.
LEC is responsible for electrification within its defined service territory, i.e. within 3.5 km distance of
the existing distribution network. Outside, rural electrification efforts are currently mainly managed by
the Rural Electrification Unit (REU) of the Department of Energy, which was set up to use subsidy
to turn rural electrification into an attractive business opportunity; LEC undertakes connection efforts
outside of its territory only upon provision of subsidies. LEWA has set up a Universal Access Fund
for subsidizing capital costs of electrification projects; fund money is coming from an electrification
levy charged by LEC and international donations. Connection fees in the LEC area amount to
usually more than US$ 500, which is prohibitive for potential rural customers. The upfront payment
has therefore been reduced to US$ 75, with the balance to be collected with energy charges over a
period of up to seven years and coming from subsidy programmes.
The national budget allocated towards rural electrification projects is low, which in turn means that
Lesotho is highly dependent on external aid for such purposes. For the Rural Electrification Program
2014-2018, a budget of about US$ 7.3 million has been allocated.
Currently there are three mini-hydropower plants (up to 2 MW) unconnected to the central grid,
and one connected to the national grid with diesel backup. Total installed capacity of these units is
about 3.25 MW. LEC owns and operates them. The Semonkong hydropower plant is in operation,
while the Mantsonyane plant has recently been rehabilitated with support of the African
Development Bank. The other two are not operating due to poor maintenance, siltation and flooding

(among those the Tsoelike small hydropower plant with 400 kW run-of-river installation near the town
Quachs Nek, connected to the Eskom grid).
Additional 22 small hydropower sites had been identified in a number of studies by 1990, for the
purposes of harnessing hydropower potential of about 20 MW total capacity in mini and micro plants.
The French company Sogreah (now part of Artelia) has studied nine potential sites in the range of
100 to 1,000 kW and completed feasibility studies on three preferred sites. In the micro range of
hydropower, it is estimated that a potential of 20-40 feasible sites exist with an average capacity of
25 kW.
The Department of Energy (DOE) has started to facilitate development of a Renewable Energy
Feed-in Tariff (REFIT) policy with support of LEWA; furthermore, a renewable energy policy is
currently being finalized and should be adopted by 2014, with implementation to follow.
Lesotho is in the process of contracting consultancy services for the Design of Regulatory
Framework for the Development of Renewable Energy Resources, financed with a grant from
the African Development Fund; this should lead to framework guidelines and legal instruments for
power producers, determination of RE tariffs, standardized Power Purchase Agreements for RE
electricity and guidelines for the procurement of power.
Lesotho has significant potential of wind power (6,000 MW) and pumped storage (4,000 MW). A
pre-feasibility study for a pump storage scheme (Monontsa) has been completed. The possibility for
exploiting wind resources has been assessed through measurements at three different sites,
focusing on large-scale and isolated generation of electricity. The construction of a 150 MW wind
farm in the Maluti Mountains near Oxbow within the so-called Lesotho Highlands Power Project
(LHPP) has been considered by the company Breeze Power (a joint venture between the South
African industrial group Harrision & White and the Lesotho government). A MoU has been signed
with the government, and a Chinese turbine supplier has been selected, but realization is still open.
Another wind farm with 42 turbines (25-35 MW, supplier Gamesa, 800 million M investment) is
planned by PowerNET Developments in north-eastern Lesotho at Letseng-La-Terae, which borders
the Royal Natal National Park and the uKhahlamba-Drakensberg World Heritage Site. This project
has come under scrutiny, because it could endanger two vulture species. According to news of
January 2014, the project has received permission for erection by the Lesotho Government.
PowerNET Developments is a joint venture between South African energy consultancy NETGroup
and Lesothos Powerdev Group.
The Ministry of Energy, Meteorology and Water Affairs (MoEMWA) will update the draft 2003
Energy Policy.
So far, only one CDM project has been realized (still ongoing), aimed at distributing efficient wood
stoves.
The small-scale solar PV sector has been strengthened through the UNDP/GEF-funded Lesotho
Renewable Energy-Based Rural Electrification Project (LREBRE) 2007-2012 that was
implemented by the Department of Energy through the REU. The target was the installation of 5,000
Solar Home Systems countrywide. In fact, 1,537 homes had received such systems with 65 W
each by the end of 2012 through the project in the targeted provinces (Mokhotlong, Thaba Tseka
and Quachas Nek), while country-wide about 5,250 systems were installed. The project also
promoted solar pumps for irrigation and strengthened the Lesotho Solar Energy Society. It further
introduced and trained on the use of the Lesotho PV Code of Practice and launched a solar PV
installers certification programme (while there still remain a number of uncertified and unqualified
installers). Community participation and the establishment of cooperatives had been encouraged.
The Ministry of Health and Social Welfare (MHSW) and the Millennium Challenge Corporation
(MCC) have supported the use of PV and Solar Water Heating systems in clinics located in
remote and rural areas. There are also effort by civil society and NGOs such as Technologies for
Economic Development (TED) to promote animal and human-waste linked biodigesters and
efficient cook stoves. The Bethel Business and Community Development Centre (BBCDC) has
also been promoting the development and promotion of solar devices, such as cookers, solar water
heating, PV systems including PV pumps and solar crop dryers. BBCDC also runs a two-year
residential course which includes solar technology.

The Africa Adaptation Programme (AAP) with funding of the Government of Japan has also
supported the use of renewable energy for income generating activities in rural un-electrified areas
as well as developing a renewable energy policy framework.
The National University of Lesotho which has research and academic expertise on clean energy
has been operating a training and accreditation effort for solar energy technicians under LREBRE
(see above).
The Lerotholi Polytechnic offers diploma courses in engineering and technology where the
curriculum also includes solar energy, hydropower and plumbing for Solar Water Heaters.
RE-related imports, such as Solar Home System components are still subject to VAT and excise
duties. An exemption or reduction is in discussion.
Due to the temperate climate, there is a strong need for water heating. Electric water heaters are
currently the preferred choice of heating, but solar water heaters have also been introduced,
although with mixed results due to low quality products.
A 280 kW solar PV plant is being constructed at the main airport with assistance of the Japanese
Government. It meets electricity of the terminal building and feeds excess electricity to the national
grid.
A 50 MW solar PV plant is planned by the company Kajulu near Mafeteng.
Lesotho has signed up to the SE4ALL initiative and has prepared and approved a Rapid
Assessment and Gap Analysis for SE4ALL in 2013 with support by UNDP. It is now committed to
undertaking the remaining Country Action Agenda and Investment Prospectus as stipulated by the
SE4ALL Secretariat (see below).
The company African Clean Energy (ACE) has established a manufacturing facility for efficient
biomass cook stoves in Maseru. The facility is supposed to have a capacity to produce 100,000
cook stoves per year and currently employs about 60 people.
The African Development Bank is supporting the installation of 350 Solar Home Systems at
Mphaki as well as LEC transmission and distribution extension and household electrification in
Maseru, Mphaki and Hlotse.
LEC has conducted actions to address demand side management by undertaking direct marketing
through house-to-house advisory services and public gatherings in villages. Consumers were made
aware of the safe and efficient use of electricity.
In 2013, Lesotho has expressed interest to participate in the Scaling-up Renewable Energy
Program (SREP) for low-income countries, which is financed through the Strategic Climate Fund
and implemented jointly by Multilateral Development Banks. At the end of June 2014, the
participation of Lesotho as one of the pilot countries in this programme has been approved. Within
SREP support has been requested for establishing an IPP to serve a mini-grid with electricity from
RE sources and for distributing pre-wired PV systems for lighting and cell phone charging, as well as
energy saving cook stoves.
UNDP and the Government of Lesotho have recently developed the Lesotho Energy Alternatives
Programme (LEAP).
In March 2014, UNDP has submitted a project concept (PIF) for GEF funding (US$ 3.5 million) under
the title Development of Cornerstone Public Policies and Institutional Capacities to accelerate
Sustainable Energy for All (SE4ALL) Progress. The project intends to improve the energy
database and information system, to develop the SE4ALL Country Action Agenda and an Investment
Prospectus and to provide energization schemes for 60 village communities using mini-grids and
other clean energy technologies through competitive selection of private service providers. The EU
has allocated an initial 750k for the preparation of policy/strategy documents and improved sector
coordination.

2.
Energy sector objectives of the

Government of Lesotho
Lesotho has established electrification targets in its Vision 2020 of 2005:
35% of population having access to electricity by 2015 and 40% by 2020.
In the current National Strategic Development Plan 2012-2017 the following strategic objectives have
been named:
Increase clean energy production capacity to attain self-sufficiency and export

- Evaluate renewable power generation options and negotiate financing arrangements to expand
national generation capacity.
- Explore opportunities and negotiate regional power pool linkages.
- Develop small-scale electricity generation models that are viable for communities, where connection
to the national power grid is not cost-effective.
Expand electricity access to industry, commercial centres, households and other institutions
- Maintain the existing power generation infrastructure.
- Extend transmission and distribution networks and increase connectivity rates through community
initiatives and by reviewing the tariff policy and terms for connections.
- Evaluate the rural electrification programme for technical and cost efficiency and implement
recommendations.
Increase energy conservation, security and distribution efficiency of alternative sources

- Raise awareness and promote use of energy efficient technology.
- Develop and disseminate guidelines for specific industries and types of firms to increase energy
conservation/efficiency.
- Promote appropriate technology for biofuel use.
- Promote forest/tree planting and regeneration of other important biofuel species.
- Undertake research to assess market and distribution efficiency of other sources of energy.
- Develop and implement medium long-term energy security strategy, including alignment with land
and mining rehabilitation policy.
- Promote research in solar and other potential niche energy markets.
The Second National Communication to the UNFCCC is proposing as most promising options for
mitigating GHG emissions more ambitious objectives:
Revision of electrification targets (2015: 40%, 2020: 50%, 2030: 60%)

Reduction in the use of kerosene for heating to reach 10% in 2020 and 5% in 2030;
To disseminate efficient charcoal stoves to reach a penetration rate of 30% in 2030;
To reduce progressively the use of wood for heating in order to reach 10% by 2030;
To disseminate SHS to reach 15% of the non-electrified population by 2030 and subsequently
reduce the use of paraffin for lighting.

3.
National Indicative Programme (NIP)

2014-2020
During the first years of the 11th EDF, the NIP will support the implementation of Lesothos National
Development Plan (NSDP) 2012/13 to 2016/17. It has been agreed in the NIP that Energy will be a focal
sector. The EU wants to support this sector with a proposed 28 million.
The NIP mentions the following priority areas for change in the energy sector:
Increase energy generation to attain self-sufficiency, with the possibility of exporting clean energy.
Expand access to electricity for industry, commercial centres and households; and
Promote energy conservation and efficiency.
Specific objectives:
Effective governance of the energy sector at the national level;

A more sustainable and cleaner energy sector providing universal access to modern, affordable and
reliable energy with a reduced reliance on biomass.
Results have been formulated for the objectives above and qualitative indicators have been established.
Central target is the preparation and approval of a long-term energy sector plan that includes a mediumterm strategy/implementation framework setting out the roles and responsibilities of all actors in energy
regulation, generation and distribution. Success indicators have been named, but will partly need to be
quantified in further agreements with the GoL:
Increase in number of households connected to electricity: 40% by 2020

Increase in number of commercial and industrial consumers connected electricity: tbd.
Increase in amount of electricity generated in Lesotho: tbd.
Reduced use of biomass for household consumption (cooking): tbd.
According to the NIP, EDF interventions could include a combination of sector reform contract, project
approach and a blending of financial instruments in cooperation with other donors.

4.
Proposed SE4All TA activities in the

energy sector
Possible intervention/support areas are:

a.
Improved access to modern, safe and sustainable energy services

-
Support to the promotion of stand-alone systems and mini-grids based on PV and hydropower with
financing from the Universal Access Fund and other sources. In particular, private investors will need
to be guided in setting up bankable business plans, doing prefeasibility studies, and attracting state
guarantees.
(Rationale: Despite rich solar and water resources and a number of site assessments and feasibility studies, the
electricity access of remote areas, which will not be reached by grid extension, is moderate. New efforts are
therefore needed to exploit the huge potential and provide electricity in off-grid areas.).
Support to the rehabilitation of decommissioned mini-hydropower plants and the negotiation of

Power Purchase Agreements, where electricity has to be fed into the grid. Furthermore, provide
assistance in getting access to spare parts and enhance capacity on the operation of small
hydropower stations.
(Rationale: Some hydropower stations have been decommissioned after a relatively short lifetime due to
technical problems. They should again be brought on line and feed into the national grid, where this is now
available. The lack of spare parts apparently has prohibited the rehabilitation in at least one case.)
Support to the Rural Electrification Unit and LEWA in optimizing and enforcing rules for the operation
by private entities, NGOs, communities of off-grid rural electrification systems (mini-grids), in
particular in terms of supply quality (periods of power delivery, compensation in case of blackouts,
allowed deviations of voltage and frequency, etc.), connection fees, energy supply tariffs, etc.
(Rationale: Specific rules have already been established for off-grid operation by entities other than LEC to
protect consumer rights and establish sound conditions for a long-term economically viable operation. Those
rules need to be optimized and enforced.)
Support in setting up long-term plans for grid extension and off-grid supply of electricity
(Rationale: To attract private investment in off-grid electricity supply it is essential that long-term guarantee
exists that their investment will not be stranded due to competition from central grid by unexpected extension of
transmission and distribution lines; it is therefore necessary that long-term planning for on- and off-grid rural
areas takes place.)
b.
Diversifying energy mix and mobilising RE

-
Support in setting up competitive tenders for utility-scale (> 10 MW) wind and PV projects by IPPs,
including design of model Power Purchase Agreements (PPAs) and other enabling regulations for
such purpose.
(Rationale: Despite huge potential for wind and solar power there are currently no concrete projects for any
large plant installations at utility scale; private investors could be attracted if adequate framework conditions are
in place, such as long-term PPA, financial guarantees, priority dispatch for intermittent electricity, gridconnection rules, etc.; see the example of South Africa).
TA support for selection of sites for mini-grids based on hydropower or hybrid generation systems
(diesel in combination with RE sources), feasibility studies, rules and application of Environmental
and Social Impact Assessments, selection of operators, financial support mechanisms).

(Rationale: Some parts of Lesotho can only be electrified economically through local grids; the involvement of
private investment in isolated rural electrification grids has been limited in the past. Some of the studies have
only been done more than two decades and will need to be updated.)
Support in developing standards for all types of solar electricity systems and their components and
making certification of installers a common requirement.
(Rationale: Solar electric systems have not always shown high quality in the past. Standards have played a role
in donor-funded procurements, but are not generally applied. Installers without sufficient know-how have
contributed to a negative image of solar PV systems.)
Support in establishing new businesses and financing mechanism for basic supply of electricity to
Base of Pyramid (BoP) customers for lighting and communication (e.g. solar lanterns and micro
PV)
(Rationale: A large proportion of the population will not have sufficient financial means in the near future. They
will have to rely on rudimentary electricity provision for basic needs, in accordance with their income capacities
and in line with current expenditures for energy. In order to achieve the GoL targets, upscale of the market is
needed with new business actors and adequate financing schemes.)
Support in developing tax reliefs and incentives for importation and application of components for
renewable energy use.
(Rationale: Investment costs for RE systems can be lowered by import duty and tax exemptions or other fiscal
incentives.)
Support in the deployment and dissemination of quality-proved Solar Thermal Collectors for hot
water production, including capacity building of installers and promotion activities.
(Rationale: Solar Water Heaters have not reached a sufficient degree of quality to be attractive enough for
applying them at large scale. The introduction of quality standards and capacity building of technical personnel
may help in improving consumer confidence.)
c.
Energy Efficiency improvement

-
Support in setting up Energy Efficiency Programmes and Incentives, including minimum

performance standards.
(Rationale: Currently there are no sufficient EE programmes and incentives in place to make better use of
energy; the viability of using and enforcing standards needs to be verified; activities in neighbouring South
Africa should be observed and followed, demand-side management initiatives should be established (e.g.
replacement programmes for outdated electrical equipment).)
Assist in setting up an Energy Efficiency and Conservation Fund.

(Rationale: In analogy to the Universal Access Fund, such fund for addressing the saving potential in all energy
consumption sectors could provide financial support for triggering relevant investments, in particular in the
public, commercial and industrial sector.)
Assist in setting up EE and conservation strategies at national and sector levels, including national
action plans and regulations (EE act), demand side programs, and in developing monitoring systems
for measuring progress.
(Rationale: Energy Efficiency has not received priority attention in the past, despite saving potentials in different
sectors and the need for a more efficient use of electricity and other types of energy in the residential, public,
commercial and industrial sector.)

Support measures for the reduction of technical and non-technical losses in transmission and
distribution of electricity.
(Rationale: Currently, losses are high due to inefficient equipment. In order to increase the financial
performance of the state-owned utility responsible for transmission and distribution, it will be necessary to
reduce those losses through adequate means, e.g. through improved metering and billing systems and
investment plans for replacing outdated equipment in transmission and distribution.)
d.
Overarching issues
-
Support to update the National Energy Policy.

(Rationale: The draft National Energy Policy of 2003 has never been officially approved; it is now time to draft a
new update that will reflect the changing environment and cover all energy sectors.)
Support in regularly updating the Generation Master Plan with a focus on the integration of RE
sources (other than large hydro).
(Rationale: The Generation Master Plan will need constant update and revision according to changing
conditions and future planning and requirements of the electricity sector.)
Support in progress monitoring, incorporating the tracking mechanism developed in the framework of
SE4All.
(Rationale: The monitoring system for tracking progress in programme implementation is currently not adequate
and needs to be enhanced, while indicators may need to be adjusted. See also new proposed UNDP/GEF
project on this subject.)
Support in enhancing existing institutions or creating new facilities for assistance in renewable
energy investments, development of rural electrification and providing technical advice on energy
efficiency measures.
(Rationale: Currently all institutions are not sufficiently competent in supporting the private sector in relevant
questions of RE technology deployment, business development, EE measures etc.; therefore it needs to be
considered if existing entities can be strengthened through capacity building or new facilities should be
established (Energy Agency).)

5.
References
B.M. Taele, et.al.: Grid electrification challenges, photovoltaic electrification progress and energy
sustainability in Lesotho, in: Renewable and Sustainable Energy Reviews, January 2012
Energy Policy for the Kingdom of Lesotho, draft, 2003
European Commission: 11th EDF, Draft National Indicative Programme (2014-2020) for co-operation
between the Kingdom of Lesotho and the European Union
Government of Lesotho: Poverty Reduction Strategy Paper - National Strategic Development Plan
2012/13 2016/17, May 2012
IRENA: Analysis of Infrastructure for Renewable Power in Southern Africa, 2013
Lesotho Ministry of Energy, Meteorology and Water Affairs, Department of Energy: Expression of
Interest to Participate in SREP, 2013
Lesotho Ministry of Energy, Meteorology and Water Affairs: Lesothos Second National
Communication to the Conference of Parties (COP) of the United National Framework Convention
on Climate Change (UNFCCC), November 2013
Lesotho Utilities Sector Reform Project, Annual Report, 1 April 2004 to 31 March 2005
Parliament of the Kingdom of Lesotho, Budget Speech 2014/15, 20th February 2014
UNDP/GEF: Project Identification Form for Development of Cornerstone Public Policies and
Institutional Capacities to accelerate Sustainable Energy for All (SE4ALL) Progress, March 2014
UNECA: Assessment of energy for rural development in Lesotho, May 2012
UNEP-Ris: Emission Reduction Profile Lesotho, June 2013
United Nations Industrial Development Organization (UNIDO) and International Center on Small
Hydropower (ICSHP): World Small Hydropower Development Report 2013 Lesotho, 2013
World Bank: Utilities Sector Reform Project, Implementation Completion and Results Report,
September 29, 2008
The consultant did not have access to the following documents:
Lesotho Generation Master Plan study
UNDP: Lesotho Rapid Assessment and Gap Analysis for SE4ALL, 2013
Draft Lesotho Renewable Energy Policy of 2011
Terminal Evaluation report of the UNDP/GEF project Lesotho Renewable Energy-Based Rural
Electrification Project, 2013
UNDP Lesotho, Project Document, Lesotho Energy Alternatives Programme (LEAP), 2013

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Private and confidential

Energy baseline situation

Energy sector objectives of the Government of Lesotho

National Indicative Programme (NIP) 2014-2020

Proposed SE4All TA activities in the energy sector

Private and confidential

Energy baseline situation

Private and confidential

Electricity tariffs are low and not cost-reflective.

Private and confidential

Private and confidential

A 50 MW solar PV plant is planned by the company Kajulu near Mafeteng.

Private and confidential

Energy sector objectives of the

Lesotho has established electrification targets in its Vision 2020 of 2005:

35% of population having access to electricity by 2015 and 40% by 2020.

Increase clean energy production capacity to attain self-sufficiency and export

Increase energy conservation, security and distribution efficiency of alternative sources

Revision of electrification targets (2015: 40%, 2020: 50%, 2030: 60%)

Private and confidential

National Indicative Programme (NIP)

Effective governance of the energy sector at the national level;

Increase in number of households connected to electricity: 40% by 2020

Private and confidential

Proposed SE4All TA activities in the

Possible intervention/support areas are:

Improved access to modern, safe and sustainable energy services

Support to the rehabilitation of decommissioned mini-hydropower plants and the negotiation of

Diversifying energy mix and mobilising RE

Private and confidential

Energy Efficiency improvement

Support in setting up Energy Efficiency Programmes and Incentives, including minimum

Assist in setting up an Energy Efficiency and Conservation Fund.

Private and confidential

Support to update the National Energy Policy.

Private and confidential

Energy Policy for the Kingdom of Lesotho, draft, 2003

IRENA: Analysis of Infrastructure for Renewable Power in Southern Africa, 2013

UNECA: Assessment of energy for rural development in Lesotho, May 2012

UNEP-Ris: Emission Reduction Profile Lesotho, June 2013

The consultant did not have access to the following documents:

Lesotho Generation Master Plan study

Draft Lesotho Renewable Energy Policy of 2011

Private and confidential

Atkins Ltd except where stated otherwise.

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