This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview                                                                                         

According to the Lesotho Electricity and Water Authority 2012/13 annual report, about 30.2% of households have access to electricity, concentrated mainly in urban areas. The government has set a goal of increasing the electrification rate to 35% of households by 2015 and 40% by 2020. Lesotho has identified hydropower, wind generation, and solar power as potential renewable energy sources to help reach these targets.
 
Currently, Lesotho generates 72 megawatts of hydropower through the Muela Hydropower plant, which does not satisfy domestic demand. Lesotho’s five diamond mines, which have plans to significantly grow their operations, are not connected to the national grid, relying instead on diesel generators. A proposal to connect them to either the national grid or South Africa’s grid would generate great interest. 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 renewable energy.   

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% of this potential is being exploited, 96% of it at the Muela hydro-power plant and the rest from mini hydro-power plants at Mantsonyane, Mokhotlong, Tsoelike and Semonkong. Breeze Power, a company owned jointly by the government of Lesotho 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 in supplying renewable energy products or developing renewable power generation in Lesotho.  

Web Resources 

Lesotho Electricity and Water Authority: http://www.lewa.org.ls/
Lesotho Electricity Company: http://www.lec.co.ls/
Lesotho Highlands Development Authority: http://www.lhda.org.ls/

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.