MBABANE – Eswatini must realise energy self-sufficience and reduce its heavy reliance on imported power.
This was the centre of the Standard Bank Eswatini Energy Indaba talks that brought together key stakeholders on Thursday.
They held the same view – to accelerate the country’s transition toward energy self- sufficiency.
The event highlighted the successful development of the Lower Maguduza Hydro Power Project, a milestone that promises to significantly improve Eswatini’s energy security.
The 13.5MW hydro project, financed to the tune of E1.1 billion, is a collaboration between Standard Bank, the Public Service Pensions Fund (PSPF), and Old Mutual Group.
Developed by African Clean Energy Developments (Pty) Ltd, it will operate under a 30-year Power Purchase Agreement with the Eswatini Electricity Company (EEC).
Standard Bank Eswatini contributed E567 million in debt financing, positioning itself as a key infrastructure financier in the region.
Eswatini currently imports around 80 percent of its electricity, with 65 percent of that supply coming from South Africa’s Eskom.
However, rising costs and uncertainties linked to Eskom’s domestic energy crisis have increased pressure on Eswatini to bolster its domestic energy generation.
Standard Bank’s Head of Corporate and Investment Banking, Barry Schutzler, noted that the country faces mounting challenges, especially after EEC’s proposed 15 percent tariff hike this year.
Government intervention capped the increase at 8 percent, pledging to subsidize the remaining 7 percent.
This dynamic, he warned, may not be sustainable given the changing terms of energy imports.
The event also featured updates on Eswatini’s renewable energy initiatives. These include small-scale embedded generation (SSEG) systems like grid-tied solar PV and hybrid solar systems.
Over 30MW of embedded generation systems are already connected to the national grid.
The Maguga expansion project and geothermal initiatives were cited as future plans to increase local capacity. Transmission reinforcement and stakeholder collaboration were also emphasized as essential to sustaining energy growth.
As load-shedding and high energy costs persist, the Energy Indaba called for all stakeholders including government, regulators, and private investors — to collectively chart a path toward a resilient and affordable energy future for Eswatini.
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