World Small Hydropower Development Report 2016
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1 World Small Hydropower Development Report 2016 Lesotho
2 Key facts Lesotho Wim Jonker Klunne, Energy and Environment Partnership Programme (EEP) Southern Africa Population 2,109,197 1 Area 30,360 km 2 Climate Topography Rain pattern General dissipation of rivers and other water sources A temperate climate with cool to cold winters and hot, wet summers. The maximum temperature can exceed 30 C in the lowlands in January, whereas in the mountains the temperature can fall down to 20 C in winter. 3 Lesotho is completely surrounded by the Republic of South Africa. It is also the only country in the world entirely situated above 1,000 m in altitude. Approximately one-quarter of the land area is lowlands located in the west, varying in altitude between 1,500-1,600 m above sea level. The remaining three-quarters are highlands rising up to 3,482 m above sea level at Thabana- Ntlenyana in the Maluti Range. 1 Rainfall is seasonally distributed with up to 85 per cent of the total received from October-April. Average annual precipitation is 788 mm varying from 300 mm in the western lowlands to 1,600 mm in the north-eastern highlands. 3 Two of the largest rivers in Southern Africa, the Orange (Senqu) River and the Tugela River, and tributaries of the Caledon River, have their source in the northern region of the country. The country is entirely located within the Orange River basin with the Orange draining two-thirds of the country and its tributaries the Makhaleng and the Caladon covering the rest. 1,3 Electricity sector overview Lesotho does not have any proven domestic reserves of oil, coal or natural gas and heavily depends on biomass fuels in the forms of wood, shrubs, animal dung and crop residues to meet the needs of the majority of the rural population. The only other fuels consumed in significant quantities are mineral coal and paraffin. At the same time, the country has a good potential for the development of renewable energy (RE), in particular wind, solar and hydropower. 14 The electricity sector is relatively small, contributing just 3 per cent of the total energy consumed. The total installed is 76 MW (Figure 1), all of which comes from hydropower, mainly from the 72 MW Muela hydropower plant, which was commissioned in 1998 as part of the Lesotho Highlands Water Project. The project is being developed by the Governments of Lesotho and South Africa and aims to provide electricity as well as a source of income for Lesotho and to provide water to Gauteng province of South Africa. 17 As of 2013, 29 per cent of households in Lesotho had access to electricity, primarily concentrated in the urban and growth centres where infrastructure services are relatively well-developed in terms of transmission and distribution. 18 In 2012, only 10 per cent of the rural population had access to electricity. 2 The Government aims to achieve a 40 per cent national electrification rate by FIGURE 1 Installed electricity in Lesotho by source (MW) Large hydropower Small hydropower Source: Reegle 4 4 In 2013 Lesotho generated GWh of electricity, down from GWh in The national demand for electricity continues to exceed local generation, which has stayed more or less unchanged for more than two decades. In 2013, more than 50 per cent of electricity consumption was met by electricity imports. 14 Lesotho imports electricity from Eskom in South Africa and Electricidade de Moçambique within the Southern African Power Pool. The electricity sector in Lesotho is regulated by the Lesotho Electricity Authority (LEA), which is in charge of licensing, electricity pricing, setting and monitoring quality of supply and service standards as well as complaints handling and resolution. LEA regulates all aspects of the industry: generation, transmission, distribution, supply, import and export of electricity. 16 The electricity sector is dominated by two state-owned entities, the Lesotho Electricity Company (LEC) and
3 World Small Hydropower Development Report 2016 The Lesotho Highlands Water Development Authority (LHWDA). LEC is a parastatal entity established under the Electricity Act 7 of 1969, and responsible for electricity generation, distribution, transmission and supply. LHWDA is the agency responsible for electricity generation from the Muela hydropower station. Activities of these two bodies are regulated by the 1993 Policy on the LHWDA/ LEC interface. 4 Independent power producers (IPPs) are allowed to produce electricity for sale to the national utility as well as to distribute generated electricity to the communities. However, their participation has been constrained by the lack of a defined framework. 17 TABLE 1 Consumer electricity tariffs in Lesotho 2015/2016 Customer Category Approved energy charges (LSL (US$) per kwh)* Industrial high voltage (0.0248) Industrial low voltage (0.0267) Commercial high voltage (0.0248) Commercial low voltage (0.0267) General purpose (0.1582) Domestic (0.1409) Street lighting (0.0835) * Includes customer and electrification levies Source: LEWA 13 Consumer tariffs range from LSL (US$0.0248) per kwh for high voltage commercial and industrial consumption to LSL (US$0.1582) per kwh for domestic customers (Table 1). 13 generator respectively. The design head is 35.5 m. As a result of flooding in 2006, the plant has been out of operation. 9 A rehabilitation process has been commenced with the support of the African Development Bank (AfDB), as part of the Lesotho Electricity Supply Project. 10 FIGURE 2 SHP capacities in Lesotho (MW) Sources: Various 5,7,8,9,10,16 Note: The comparison is between data from WSHPDR 2013 and WSHPDR Plant name Potential Installed TABLE 2 SHP plants in Lesotho (MW) Installed (MW) Year commissioned Status Mantsonyane Non-operational Tlokoeng Non-operational Katse Operational Tsoelike Non-operational Semonkong Operational Total 3.82 Source: Various 7,8,9, Small hydropower sector overview and potential There is no official definition of small hydropower (SHP) in Lesotho. However, this report assumes a definition of plants with an installed of less than 10 MW. Current installed is 3.82 MW with a total potential of 20 MW. This indicates that approximately 19 per cent of the country s SHP potential has been developed. However, it should be noted that not all of the installed is currently operational. In comparison with the World Small Hydropower Development Report (WSHPDR) 2013, neither installed nor potential has changed (Figure 2). 16 As of 2015, the country had five SHP plants, namely Mantsonyane (2 MW), Tlokoeng (670 kw), Katse (570 kw), Tsoelike (400 kw, and Semonkong (180 kw). Out of these five, only Katse and Semonkong are currently operational (Table 2). The Mantsonyane hydropower plant, located on the Mantsony ane River in central Lesotho, was financed by a grant from Norway and commissioned in The power station is connected to the LEC grid through the Mantsony ane substation on the 33 kv Mazenod-Taba Tseka line. It is equipped with two Francis turbines of 1,500 kw and 500 kw, coupled with a 1,900-kVA and a 650-kVA The 570 kw Tlokoeng plant is located in the eastern part of the country and is serving the town of Mokhotlong. Built in 1990 with French development aid, the plant has two Francis turbines of 460 kw and 210 kw and two diesel generators as backup. Over its operational life the plant provided on average 27 per cent of the electricity demand of Mokhotlong, ranging from a low of 2 per cent in 1999 to a maximum of 47 per cent in The station had a number of technical problems, including bearing failures, exciter problems and flooding in The plant was decommissioned in 2002 when Mokhotlong was connected to the Letseng diamond mine through a 33 kv transmission line. Since then there have been plans to use the plant for peak loading and/or operation as an IPP, but no concrete steps have been taken to this effect. Furthermore, the difficult access situation and limited availability of spare parts for the original French equipment have inhibited development of the site. The Katse plant, with a of 570 kw, is located on the Katse Dam, which is the second largest dam in Southern Africa. It was commissioned in 2000 and has one horizontal Francis turbine and an 800 kva synchronous generator. The plant is not connected to the LEC grid and serves as the main power source to the Katse Dam electricity requirements. However, it is planned to link the plant to the national grid
4 1.4 The Tsoelike hydropower plant, consisting of two Francis hydro turbine generation units with a combined of 400 kw, was commissioned in 1990 to serve the town of Qacha s Nek in the south of Lesotho as part of the French development assistance. The two turbines are supplemented by a 200-kVA diesel generator set located on a ledge next to the power station as well as a 320 kva set in Qacha s Nek. The station was decommissioned when Qacha s Nek was connected to the South African Eskom grid in The Semonkong hydropower plant with an installed of 180 kw, supplemented by a 120 kw diesel generator was commissioned in 1980 as part of the Norwegian development aid project to support the development of hydropower in Lesotho. Currently, due to considerable wear on the Sorumsand Verksted turbine, the equipment is able to produce only 125 kw of energy. The diesel generator has been upgraded twice since its installation and is currently a 180 kw Cummins unit. The plant powers an isolated mini grid that serves the town of Semonkong and has 161 customers, consisting of 113 households and 48 commercial connections, all on prepaid meters. In the powerhouse, ample space is allotted for a second turbine. However, installation is only feasible if a larger dam is constructed for increased water supply. 11 All locally generated electricity in Lesotho is hydropower based, with the 72 MW Muela plant providing the majority, currently only augmented by the two operational mini hydropower plants. The Lesotho Highlands Water project does offer opportunities for more hydropower development and several studies have been conducted on possible pumped-storage plants as well. The large-scale hydropower potential of Lesotho is estimated at approximately 450 MW. A number of studies have been carried out to investigate the country s SHP potential. By 1990, 22 sites for both mini and microhydro power with a total of 20 MW had been identified. 5 In the range of 100 kw to 1,000 kw, the French company Sogreah (today part of Artelia) studied nine potential sites and completed feasibility studies on three preferred sites (Tlokoeng, Motete and Qacha s Neck). In the micro range of hydropower, a report by the NERCA estimates that there are from 20 to 40 feasible sites in the country with an average of 25 kw. 6 supplement the capital requirements for new projects. 5 However, the reality on the ground has proven to be difficult for international partners to find viable business models for the development of SHP in Lesotho. Tarini Hydro Power Lesotho Ltd., a subsidiary of Tarini in India, has been trying for a few of years to launch two hydropower projects (the 80 MW Oxbow plant and the 15 MW Quithing project), but still has not been able to have construction started. It is hoped that the renewed interest in RE in the South African Development Community will help Lesotho in developing its SHP potential. Large-scale hydropower, particularly pumped storage, has been part of Phase 2 of the Lesotho Highlands Water Project. This includes the 1,200 MW Kobong Pumped-Storage project, which is currently in the feasibility phase. Furthermore, in 2009, the AfDB approved a loan for a program aimed at the electricity supply of Lesotho, including a study of the 1,000 MW Monontsa pumped-storage project. 12 Renewable energy policy Hydropower is the main source of electricity for Lesotho, whereas wind and solar power have been identified as potential RE sources as the country enjoys favourable conditions for their development. In particular wind power potential has been estimated at 6,000 MW with three sites being investigated for setting up a wind farm. 19 Solar power has been implemented in several schemes such as the World Bank project and the UNDP/GEF project. The Lesotho Energy Policy noted that renewable sources of energy and energy efficiency are expected to play a significant role in the country s future energy plans and explicitly stated the Government aim of improving access to RE services and technologies. Strategies and programs include facilitating the establishment of rural energy service companies (RESCOs) and developing a RE program to support fuel substitution. Additionally, the policy notes the need to establish power purchase agreements for IPPs of RE sources as well as creating an enabling environment for investors with the potential for establishing RE feed-in tariffs (FITs). 14 Barriers to small hydropower development Southern Africa Taele et al. summarize the current situation with SHP in Lesotho as follows: The environment is presently conducive for development of SHP systems in the country. First, the country has adequate hydropower resources. The settlement pattern of the country in the rural areas favours decentralized systems of which SHP is one of the viable means of improving access to electricity. The present legislation allows for independent power producers/distributors to operate in the country therefore there is no threat to International Partners willing to operate SHP plants. One of the duties of the regulator is to relax the standards slightly for rural electrification projects. This will lower the costs of providing electricity in the rural areas. Very soon, the National Rural Electrification Fund will be up and running. This will In order to boost SHP electricity production, viable business models for the development of SHP in Lesotho need to be found. Institutional barriers to SHP development include a lack of effective infrastructure, fragmented institutional responsibilities and a lack of integrated planning. From the economic and commercial point of view, SHP development in Lesotho can be hindered by the rather small size of the potential market and the limited ability to pay on the part of the rural population. Moreover, the country has limited skilled manpower required for SHP construction, operation and maintenance. The general awareness of SHP as well as other RE technologies is rather low. Finally, some sites are difficult to access and there is limited availability of spare parts in the local market
5 World Small Hydropower Development Report 2016 References 1. Government of Lesotho (2012). About Lesotho. Available from about%20lesotho/about_lesotho_menu.html. 2. The World Bank (2014). World Development Indicators. Lesotho. Available from data/reports.aspx?source=world-development-indicators. 3. Food and Agriculture Organization (2005). Lesotho. Available from countries_regions/lso/index.stm. 4. Reegle (2011). Country Energy Profile: Lesotho, Available from 5. Taele, BM., Mokhutšoane, L., Hapazari, I. (2012). An overview of small hydropower development in Lesotho: Challenges and prospects. Renewable Energy, 44: (July 2012). 6. Jackson, B., Johnson, M., (1982). Lesotho: recommended activities in small hydropower development. Washington: National Rural Electric Cooperative Association. 7. SAD-ELEC, PPA, ECON, DIALOG, UCSA and SECHA- BA, (2001). LEC Hydro Generation Station: Review and Recommendations. 8. LHWA (2003). Annual report 2002/ Grongstad, S. (2008). Mantsony ane hydropower plant after flooding November draft report - diagnostic study. 10. African Development Bank (2011). Specific Procurement Notice Lesotho Electricity Supply Project. Available from uploads/afdb/documents/procurement/project-related- Procurement/AOILesothoElectricity%20% pdf. 11. Skarstein, R., Chinemana, F., Lysne, DK. (1990). Minihydropower plants in Lesotho, Evaluation report HydroWorld (2015). Lesotho seeks bids to develop Polihali Dam; hydro project studied. 29 January Available from Lesotho Electricity And Water Authority (LEWA) (2015). Approved LEC Energy Charges 2015/16.Available from Charges%20for%20Electricity_2015_16.pdf. 14. The Kingdom of Lesotho (2014). Lesotho Energy Policy Available from ls/legislation/policy/energy%20policy%20.pdf. 15. United States Agency for International Development (USAID) (2008).Electricity Supply Industry of Lesotho; General Information for Potential Investors.Available from downloads/pdf/brochures/brochure-lesotho.pdf. 16. Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report United Nations Industrial Development Organization; International Center on Small Hydro Power. 17. Lesotho Highlands Development Authority (n.d.).objectives.available from lhda/objectives.php. 18. Kingdom of Lesotho and the European Union (2014). 11th European Development Fund. National Indicative Programme ( ) for co-operation between the Kingdom of Lesotho and the European Union. Available from nip-lesotho-2014_en.pdf. 19. Sustainable Energy for All (n.d.). Rapid Assessment and Gap Analysis for Lesotho.Sustainable Energy for All (SE4All).Prepared by Zhou, P. Available from Released.pdf. 20. Lesotho, Bureau of Statistics (2015) Energy, Air and Climate Change. Statistical Report No 13: Available from Environment%20and%20Energy/2014_Energy_Air_and_ Climate_Change.pdf. 172
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