Eswatini’s Energy Crossroads: Can Renewables Outshine Coal in the Kingdom’s Future?

Eswatini, a landlocked kingdom in Southern Africa, is at a critical juncture in its energy journey. With a population of just over 1.2 million and a heavy reliance on imported electricity, the country is striving to achieve energy independence by harnessing its domestic resources. However, progress has been slow, and the government’s consideration of a coal power plant has sparked debate.

Meanwhile, recent developments, such as a 10MW solar plant launched in 2022 and the groundbreaking of a 13.5MW private hydropower project in 2025, signal a promising yet challenging path toward sustainability.

Eswatini’s geography offers significant potential for renewable energy. The country’s mountainous terrain and river systems, such as the Luso Free River and the Lower Magadusa River, are ideal for hydropower. Additionally, its sunny climate makes solar energy a viable option, while biomass from agricultural activities provides another renewable avenue.

The Push for Renewable Energy: A 50% Target

Eswatini’s goal to generate 50% of its electricity from domestic renewable sources is an ambitious one, especially for a country that has historically relied on fossil fuel-based electricity imports from neighbors like South Africa and Mozambique.

The government, through the Eswatini Electric Company (EEC), has made strides in this direction. Hydropower currently accounts for 15% of the country’s electricity production, with four operational plants managed by the EEC. The Ezulwini Luphohlo plant, as highlighted on the map, is a key contributor, but the government has plans to expand its hydropower capacity further.

Solar energy is another focus area. The Lavumisa Solar PV Plant, completed in 2021, marked a significant milestone in Eswatini’s renewable energy journey. More recently, a 10MW solar photovoltaic power plant was launched in 2022, adding to the country’s renewable capacity.

The government has also encouraged the adoption of solar panels in residential and commercial buildings, promoting off-grid solutions that empower rural communities. These initiatives align with the Partnership for Affordable Renewable Energy in Swaziland (PARES), launched in 2018, which aims to electrify the entire population through public-private partnerships (PPPs).

Biomass is another renewable resource Eswatini is tapping into. The country’s agricultural sector, particularly its sugar industry, generates significant biomass waste that can be converted into energy. Projects like the Simunye Backswood House Pilot are exploring the potential of bioenergy to contribute to the national grid. However, despite these efforts, progress toward the 50% renewable energy target has been slow, hampered by regulatory complexities, financing challenges, and a lack of technical expertise.

One of the most significant recent developments in Eswatini’s energy sector is the commencement of construction on its first privately funded hydroelectric power plant. Located on the Luso Free River, a tributary of the Lower Magadusa River, this 13.5MW project is a landmark for the country’s renewable energy ambitions.

Announced on February 18, 2025, the plant is expected to provide electricity to approximately 11,000 homes once operational, with initial power generation projected for late 2026.

The project, developed by Middle Lusutfu Hydropower Ltd., an independent power producer (IPP), has been in the works since 2004. Its progress was delayed by regulatory hurdles and the complexities of financing a private hydropower project in Southern Africa, where such initiatives are rare.

However, financial backing from Standard Bank and the Eswatini Public Pension Fund (PSPF) enabled the project to move forward. The plant is supported by a 30-year power purchase agreement with the EEC, ensuring its long-term viability.

The Coal Controversy: A Step Backward?

While Eswatini’s renewable energy efforts are commendable, the government’s consideration of a coal power plant in the Lubhuku region has raised alarm bells among environmentalists and climate advocates.

The proposed plant, estimated to cost £609 million, would revive the dormant coal mines of Mpaka, a move that the government argues is necessary to boost energy capacity and reduce reliance on imports. However, this plan has been met with fierce opposition from groups like the Eswatini Climate Coalition (ECCo), which has launched a petition against the proposal.

Armstrong, the co-founder of ECCo, argues that the coal plant is a step in the wrong direction for Eswatini’s sustainability goals. He points to the environmental damage caused by coal mining in the Maloma Colliery region, where water contamination has forced locals to rely on outsourced water tanks.

The environmental assessment conducted by the government also highlights the financial, social, and environmental drawbacks of the coal plant, including pollution, land degradation, and health risks for nearby communities.

Moreover, the coal plant threatens to jeopardize Eswatini’s standing under the Paris Agreement, where the country is currently viewed positively for its minimal contribution to climate change. Armstrong warns that moving forward with the coal plant could result in the loss of international support and funding for renewable energy projects. At a time when the global community is pushing for a transition to clean energy, Eswatini’s flirtation with coal seems out of step with international trends.

Eswatini’s energy journey is fraught with challenges, but it also presents significant opportunities. One of the biggest hurdles is financing. The Luso Free River hydropower project, for example, faced significant delays due to the difficulty of securing funds. While Standard Bank and the PSPF stepped in to support the project, future initiatives may require more innovative financing models, such as green bonds or international climate funds.

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Regulatory complexities are another barrier. The Luso Free River project required adjustments to tax policies and legal frameworks before it could move forward, a process that took over two decades. Streamlining these regulations and creating a more investor-friendly environment could accelerate the development of renewable energy projects in Eswatini.

On the opportunity side, Eswatini’s renewable energy potential is immense. The country’s mountainous regions hold untapped potential for wind energy, which has yet to be explored on a large scale. Solar energy, meanwhile, continues to become more affordable as the cost of photovoltaic (PV) cells declines. Projects like the Eswatini Solar-Storage Project by Frazer Energy could not only increase electricity access but also create jobs and enable the export of power to neighboring countries.

The government’s focus on empowering rural communities through off-grid solar solutions is also a step in the right direction. By providing access to electricity, these initiatives can improve education, healthcare, and entrepreneurial opportunities, helping to lift marginalized populations out of poverty. The PARES initiative, with its emphasis on public-private partnerships, could serve as a model for other African countries looking to expand energy access.

Eswatini’s energy ambitions have implications beyond its borders. As a member of the Southern African Development Community (SADC), the country is part of a regional energy network that includes power-sharing agreements and cross-border electricity trade. If Eswatini succeeds in scaling up its renewable energy capacity, it could become a net exporter of clean energy, contributing to the region’s energy security and sustainability goals.

However, the proposed coal plant could undermine these efforts. Southern Africa is already grappling with the environmental and health impacts of coal-based energy, particularly in countries like South Africa, where coal accounts for the majority of electricity production.

Eswatini’s decision to pursue coal could set a precedent for other countries in the region, slowing the transition to renewables and exacerbating climate change.

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