Lesotho’s energy system is defined by a striking contrast. The country has valuable rivers, reservoirs, strong solar conditions and promising wind resources, yet it still imports a large share of its electricity and all of its fossil fuels. Its mountainous landscape creates hydropower opportunities, but it also makes power lines, roads and rural connections expensive to build.
The central Lesotho energy question is therefore not whether the country has resources. It is whether Lesotho can turn those resources into reliable electricity for homes, public services, mines, farms and industry. Hydropower remains the foundation of domestic generation, solar power is becoming more important, and links with South Africa and Mozambique continue to protect the system when local supply is not enough.
Water Is the Center of Lesotho’s Energy Story
Water is Lesotho’s most important strategic energy resource. The country’s highlands contain the headwaters of major rivers, including the Senqu, which becomes the Orange River after crossing into South Africa. Dams, tunnels and mountain reservoirs allow Lesotho to combine water exports with domestic electricity generation.
The Lesotho Highlands Water Project is the clearest example of this relationship. Established through a treaty between Lesotho and South Africa, the project transfers water from Lesotho’s highlands toward South Africa’s Vaal River system. The same water-transfer infrastructure supports hydropower generation at the ‘Muela plant.
This makes water more than a natural resource. It is part of Lesotho’s trade relationship with South Africa, its public revenue system, its construction sector and its electricity network. Roads, tunnels, transmission lines and settlements in the highlands have all been shaped by the water project.
Phase II of the project is centered on the Polihali Dam and a transfer tunnel connecting Polihali to the Katse reservoir. The work also requires roads, bridges, power lines, telecommunications and worker accommodation. These investments may improve access to remote highland areas, although large infrastructure projects also affect grazing land, farming, villages and local movement. [1]
A Small Domestic Power Base Facing Much Larger Demand
Lesotho had approximately 104.7 megawatts of installed domestic generating capacity at the end of the 2023/24 financial year. The largest unit was the 72 MW ‘Muela hydropower station. The operating portfolio also included the 30 MW Ramarothole solar plant, the 2 MW Mants’onyane hydropower station, solar capacity at Moshoeshoe I International Airport and a small diesel facility at Semonkong.
That capacity is far below the country’s highest recorded electricity demand of approximately 209.6 MW. Imports are therefore a basic part of the system rather than an emergency measure. Lesotho buys electricity mainly from Eskom in South Africa and Electricidade de Moçambique through the regional power market.
In 2024, Lesotho imported about 581 gigawatt-hours of electricity. This was 22.1 percent more than in 2023 and the highest annual import figure recorded in the country’s official five-year comparison. Eskom supplied most of the imported power, while Mozambique provided a smaller but still useful share. [2]
Domestic generation and imported electricity work together. Hydropower can offer relatively low-cost local supply, while regional connections help Lesotho manage plant maintenance, seasonal changes, rising demand and unexpected shortages. The weakness of this model is that the country remains exposed to foreign electricity prices and supply conditions.
‘Muela Hydropower and the Risk of Depending on One Major Plant
The 72 MW ‘Muela hydropower station is the anchor of Lesotho’s electricity system. It receives water through the Lesotho Highlands Water Project and provides the majority of electricity generated inside the country.
Its value is easy to understand. Lesotho does not need to import fuel to operate a hydropower plant, and electricity from ‘Muela can be less expensive than imported power. The facility also uses infrastructure that already serves the water-transfer relationship with South Africa.
However, reliance on one major plant creates operational risk. ‘Muela generated about 383.3 GWh in 2024, down from approximately 470.6 GWh in 2023 and 531.4 GWh in 2021. Planned maintenance stopped generation during the final months of 2024, forcing Lesotho to increase electricity purchases from abroad. [2]
Hydropower production can also be influenced by rainfall, reservoir management and competing water requirements. Lesotho’s dams are designed within a wider system in which water transfers, electricity generation, environmental flows and reservoir levels must be managed together.
The government has identified several possible hydropower developments. These include an expansion of ‘Muela, projects along the Senqu River, smaller hydro plants and the proposed Oxbow project. The national energy compact estimates that Lesotho may have around 450 MW of hydropower potential, although much of this remains at the planning or feasibility stage. [3]
Solar Power Is Moving From Pilot Projects to Grid Supply
Solar energy has become the second major part of Lesotho’s domestic electricity strategy. The 30 MW Ramarothole solar power station in Mafeteng is the country’s most important operating solar facility. It supplies electricity to the national grid and sold approximately 54.9 GWh to the Lesotho Electricity Company during 2024.
Ramarothole is important because it reduces pressure on hydropower and electricity imports during daylight hours. It also shows that utility-scale solar generation can operate within Lesotho’s existing grid.
The next step is likely to include both larger projects and smaller local systems. Proposed investments include an additional phase at Ramarothole with battery storage, other grid-connected solar and storage projects, and possible floating solar installations on the Polihali, Katse and Mohale reservoirs. Floating solar could use existing water surfaces while reducing some of the land pressure connected with large ground-mounted solar parks. [3]
Solar mini-grids are equally important. Many highland settlements are too remote or too widely separated for conventional grid expansion to be affordable. Solar panels combined with batteries and small distribution networks can supply homes, clinics, schools and businesses without waiting for a long transmission line.
Solar power is not a complete replacement for hydropower or imported electricity. Output falls in the evening and changes with weather conditions. Batteries, flexible hydropower and regional electricity connections are therefore necessary if solar is to become a much larger part of the Lesotho energy mix.
Wind Power Could Turn the Highlands Into an Export Resource
Lesotho’s high-altitude landscape also gives the country significant wind energy potential. Mountain ridges and open highland areas can experience strong and relatively consistent wind conditions.
Wind currently plays little or no role in operating grid generation, but it appears regularly in national energy plans. The government has identified possible private wind projects, including approximately 60 MW of planned independent power production.
Wind could complement solar and hydropower. Solar output is strongest during daylight hours, while wind generation may continue at different times. Hydropower can help balance changes in both resources. A mixed renewable portfolio would reduce the danger of depending too heavily on a single plant or weather pattern.
The main barriers are infrastructure and finance. Many of the best wind sites are far from major demand centers. They would require access roads, transmission lines, substations and long-term agreements with electricity buyers. Large wind projects may therefore depend on Lesotho securing an export market in South Africa as well as meeting local demand.
Mountain Geography Makes Electricity Access Expensive
Electricity infrastructure in Lesotho must cross steep mountains, deep valleys and sparsely populated rural areas. This geography increases the cost of every kilometer of transmission or distribution line.
The national network uses 132 kV, 88 kV, 66 kV and 33 kV transmission infrastructure, supported by lower-voltage distribution lines. Electricity enters Lesotho from South Africa at several points, while supply from South Africa and Mozambique also reaches the main load centers around Maseru.
The country’s national energy compact identifies Qacha’s Nek and Mokhotlong as the districts that are not connected to the main national grid. Some communities receive power through separate cross-border lines, mini-grids or local generation instead. Plans include stronger domestic transmission and a possible 275 kV interconnector with South Africa that could carry electricity in either direction. [4]
Electricity access remains one of the largest weaknesses in the Lesotho energy sector. The national access rate is estimated at about 53 percent, but the national figure hides a major geographic divide. Urban electricity access is estimated at more than 71 percent, while rural access is only about 11 percent.
The difference is not simply a matter of generation. A village may be relatively close to a hydropower resource while still being many kilometers from an affordable distribution line. The cost of poles, cables, transformers and household connections can be difficult to recover in communities with low incomes and limited commercial demand.
Current electrification programs combine grid expansion, solar mini-grids and stand-alone systems. The World Bank-supported Lesotho Renewable Energy and Energy Access Project includes extensions to peri-urban and industrial areas as well as rural mini-grid development. The revised program targets hundreds of kilometers of distribution lines, thousands of household connections and dozens of mini-grids. [5]
Oil Keeps Transport and Backup Systems Running
Lesotho does not produce crude oil and does not operate a major domestic refining industry. Petroleum products are imported, mainly through South Africa, and distributed from bulk storage facilities to fuel stations and commercial users.
Diesel is especially important. It powers trucks, buses, construction equipment, farm machinery and backup generators. Lesotho’s mountain roads and limited rail infrastructure make road transport essential for moving people, food, building materials and imported goods.
Petrol supports private vehicles and smaller commercial transport. Paraffin remains important for some households, particularly for cooking, lighting or heating where electricity access is limited. Aviation fuel is also imported, although the country’s aviation market is small.
Oil also provides emergency or isolated electricity generation. The Semonkong system combines small-scale hydropower with diesel generation. In 2024, the station used about 219,365 liters of diesel, an increase of more than 25 percent from 2023. Diesel allows the system to keep operating when water supply or equipment conditions limit hydropower output, but it raises costs and emissions. [6]
Because all petroleum products are imported, Lesotho is exposed to international oil prices, the South African fuel market, exchange-rate movements and transport disruption. The Petroleum Fund helps manage pricing and supports fuel-related activities, but it cannot remove the country’s underlying import dependence.
Coal and Natural Gas Remain Outside the Main Power Mix
Coal does not form the foundation of Lesotho’s electricity system. The country has no coal-fired power station in its official generation portfolio, and national expansion plans focus on hydropower, solar, wind and electricity imports rather than new coal plants.
This separates Lesotho from South Africa, where coal has historically dominated electricity generation. However, some of the power imported from the South African grid may be generated from coal. Lesotho can therefore have indirect exposure to coal-based electricity even though it does not operate its own large coal plants.
Natural gas also has a limited role. Lesotho has no major domestic natural gas production, gas-fired power fleet or national pipeline network. Liquefied petroleum gas is imported for cooking, heating and some backup systems, but LPG is an oil-derived fuel and should not be confused with pipeline natural gas.
The small size of the electricity market, lack of domestic gas infrastructure and strong renewable resources make a major gas-power program less attractive than it may be in larger countries. Diesel and LPG may continue to serve targeted backup and household uses, while grid-scale investment remains concentrated on renewable generation and regional power trade. [6]
Nuclear Power Is Not Part of Lesotho’s Energy Strategy
Lesotho does not generate electricity from nuclear power, and nuclear construction is not included in the country’s current national generation pipeline. The main projects under discussion involve hydroelectricity, solar PV, battery storage, wind power, mini-grids and stronger connections with South Africa.
The scale of the national grid is an important reason. Lesotho’s peak electricity demand is around 210 MW, which is small compared with the output of a conventional large nuclear reactor. Operating such a reactor would require a much larger regional export arrangement, extensive transmission investment, specialized regulation and long-term waste and safety systems.
Small modular reactors could theoretically reduce the size problem in the future, but Lesotho currently has more immediate and less complex options. Hydropower expansion, solar installations, wind projects, batteries and imported power can be developed in smaller stages.
For the foreseeable future, nuclear power is unlikely to be a central part of the Lesotho energy mix. The more realistic policy question is how the country can use its renewable resources while keeping electricity reliable during maintenance periods, low-water conditions and evening demand.
Biomass and the Energy Gap Inside the Home
Electricity statistics do not show the full Lesotho energy system. A large share of household energy is still supplied by wood and other forms of biomass rather than the electricity grid.
The national energy compact estimates that approximately 62 percent of rural households rely heavily on biomass for cooking, space heating and water heating. This is especially important in a high-altitude country where winters can be cold and household heating demand is significant.
Biomass is often available without a monthly utility bill, but its use has wider costs. Collecting wood requires time, while indoor smoke can damage health. Heavy fuelwood demand can also increase pressure on limited tree and shrub resources.
Cleaner cooking is therefore closely linked to electrification, LPG supply, efficient stoves and household income. Lesotho’s National Energy Compact uses a 2024 clean cooking and heating access level of 45.2 percent and sets a target of 75 percent by 2030. [7]
Electricity alone will not solve the problem. Many households with a connection may still use wood or paraffin because electric cooking equipment and electricity consumption are expensive. Policy must address appliances, tariffs, LPG distribution and efficient biomass systems as well as physical connections.
South Africa Shapes Lesotho’s Energy Security
Lesotho is completely surrounded by South Africa, making its energy security inseparable from its larger neighbor. Nearly all petroleum products arrive through South Africa, most electricity imports come from Eskom, and the Lesotho Highlands Water Project was built through cooperation between the two countries.
This relationship provides important benefits. South Africa gives Lesotho access to a much larger power network, fuel supply system and electricity market. Interconnection allows Lesotho to import power when ‘Muela is under maintenance or local generation is too low.
Dependence also creates risk. Problems in South Africa’s electricity system, fuel supply chain or transport network can quickly affect Lesotho. High electricity import costs also place financial pressure on the Lesotho Electricity Company.
Mozambican electricity provides some diversification, but it still reaches Lesotho through the Southern African regional grid. True energy security will therefore require a balance: stronger domestic generation, more storage, improved transmission and continued regional cooperation.
Can Lesotho Become a Clean Power Exporter?
Lesotho’s long-term ambition is larger than closing its domestic electricity gap. The country wants to become a regional exporter of clean electricity.
The resource base supports that goal. National plans identify hundreds of megawatts of possible hydropower, large floating solar opportunities, new ground-mounted solar projects, battery storage and highland wind generation. A stronger interconnector with South Africa could provide access to a much larger customer base.
Yet the gap between potential and construction remains significant. Many projects are still at the feasibility, financing or negotiation stage. Lesotho must improve project preparation, utility finances, regulation, transmission planning and investor confidence before its renewable potential becomes dependable export capacity.
Domestic access must also remain central. Exporting clean electricity would bring revenue and support investment, but almost half of the country still lacks an electricity connection. A successful Lesotho energy strategy must therefore do two things at once: build projects large enough to serve regional markets and develop smaller systems that reach remote Basotho communities.
Lesotho’s strongest energy advantage is not coal, oil, natural gas or nuclear power. It is the combination of water, elevation, sunlight, wind and proximity to South Africa’s electricity market. Whether that advantage produces broad economic gains will depend on the infrastructure connecting national resources to homes, businesses and regional buyers.