Development

MBABANE - For years, electricity prices in Eswatini have been among the highest in the region and the country has relied heavily on imported power.

This has left consumers vulnerable to price hikes and supply disruptions beyond borders.

However, a series of bold reforms and strategic projects from the Eswatini Energy Regulatory Authority (ESERA) could put the nation on a path to cleaner, more reliable and potentially more affordable energy.

ESERA has ongoing programmes aimed at reducing reliance on imports and ensure security of supply in Eswatini. From the installation of local solar farms to the rollout of safer fuel systems, ESERA’s work is quietly shaping the energy future of every home, farm and factory in the country.

According to the latest updates provided by the regulator in its website, one of the clearest ways to reduce electricity prices is to produce more power locally. ESERA has made major strides here, awarding 75 megawatts (MW) of solar photovoltaic (PV) generation capacity to developers, alongside 110MW of biomass power projects tapping into waste from the sugar and forestry industries.

The 110MW of biomass generation capacity is coming from the forestry & sugar industry (RESCORP & Ubombo Sugar).

Solar power, in particular, offers price stability because once the panels are installed, the ‘fuel’ — sunlight — is free. Biomass, on the other hand, converts local agricultural and forestry waste into electricity, keeping money circulating in the local economy while reducing pollution.

Three key regulatory frameworks have been rolled out in the electricity sector, all designed to improve reliability and give consumers more control over their energy use.

Small-Scale Embedded Generation Framework (2021) – This allows households and businesses to instal their own safe, high-quality solar systems and sell excess electricity back to the grid through a net-billing approach. For a small business, this could mean offsetting its entire monthly electricity bill during sunny months.

Wheeling Framework (2022) – Opens the transmission and distribution network to third parties for a fee, allowing large power users to buy electricity directly from independent producers. This could help drive competitive pricing in the long term.

Energy Storage Systems Regulatory Framework (2024) – Paves the way for large-scale batteries that store solar and wind energy for use during peak demand or cloudy periods. For consumers, this means fewer blackouts and a more stable power supply, even during load-shedding events.

While most consumers only notice ESERA’s work when tariffs go up, the regulator’s pricing methodology is designed to balance affordability with the need for a sustainable electricity supply industry. ESERA reviews tariffs every three months through a consultative process involving the public, technical experts and economic analysis. Recently, the tariff methodology was revised to reflect the evolving energy market, ensuring more transparency and accountability. Key changes include ringfencing of licensed activities — meaning generation, transmission, distribution and supply will each have their own separate cost structures. This separation makes it easier to see where money is going, prevent cross-subsidisation and promote private sector investment — all factors that can help stabilise or lower prices over time.

The regulator is also working on building skills for a renewable energy future. In August 2024, ESERA launched the Solar PV Installer Accreditation Programme in partnership with the Directorate of Industrial & Vocational Training and Green Solar Academy. This programme ensures that as solar adoption grows, installations are carried out by skilled professionals using safe, high-quality methods. For consumers, this means peace of mind: Fewer faulty systems, longer equipment lifespans and better return on investment for anyone installing solar at home or at work.

Full article available in our paper.

ESERA CEO Sikhumbuzo Tsabedze. (File pic)