Mbabane – Minister of Natural Resources and Energy, Prince Lonkhokhela, says the Power Purchase Agreement (PPA) signed between Ubombo Sugar Limited (USL) and the Eswatini Electricity Company (EEC) marks another decisive step in the country’s efforts to expand local electricity generation using renewable energy resources.
The minister made this remarks during the signing ceremony of the 40MW cogeneration PPA. He described this development as a unique model that brings together three sectors that are critical to the growth and development of national economy, these sectors are; agriculture, manufacturing and electricity generation.
Prince Lonkhokhela commended the joint Procurement Team made up of EEC, ESERA, the Ministry of Natural Resources and Energy and the Ministry of Finance for working closely with USL to ensure the project reached this stage. He also thanked the African Legal Support Facility (ALSF) for providing transactional advisory support, saying their input ensured the agreement aligned with international best practice.
The minister said the project offered measurable benefits to the country, including reduced dependence on electricity imports, increased local generation capacity, job creation and improved resilience against external price shocks associated with imported power.
He noted that the cogeneration expansion would be funded largely by local banks, adding that this demonstrated the strength of the country’s technical institutions and the financing capability of Eswatini’s banking sector. He said the success of such Independent Power Producer (IPP) initiatives reflected government’s continued commitment to enabling private-sector participation in power generation.
Prince Lonkhokhela revealed that related contracts including the Engineering, Procurement and Construction (EPC) agreements for this project would be signed shortly, with construction expected to begin during the current off-crop season. He said such progress is aligned with the spirit of Nkwe, which continues to underpin the nation’s development vision.
He stated that the overall investment for both the cogeneration plant and the expansion of the sugar mill stood at around E2.4 billion, bringing new employment opportunities during construction and future operational phases.
The minister said the project would export a maximum of 40MW to the national grid by June 2028, contributing an additional 24MW to current supply. Once stable, the plant is expected to deliver close to 141 GWh of electricity annually, which is equivalent of approximately 14% of Eswatini’s energy needs.
He added that government was continuing to push ahead with other renewable energy projects. Last week, a 20MW solar plant was launched at Ndumo, and another 15MW plant will be commissioned at Ndzevane in the coming weeks. Combined with existing capacity at Lower Maguduza and EEC’s generation fleet, the minister said these developments would raise domestic production to 63.4% of national requirements once fully operational.
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