ENERGY SECTOR TECHNICAL ASSISTANCE PROGRAM


Overview

  • Reference: P-SZ-FF0-001
  • Approval date: 08/12/2014
  • Start date: 14/12/2015
  • Appraisal Date: 30/06/2014
  • Status: OngoingOnGo
  • Implementing Agency: GOVERNMENT OF SWAZILAND MINISTRY OF FINANCE
  • Location: Swaziland

Description

The proposed intervention will consist of the following components

(i)Develop and implement a comprehensive a wind and solar resource measurement program for the country with the main aim of producing solar and wind resource maps and atlases and capacity building in the MNRE

(ii)Review and Update of the National Energy Policy and the National Energy Policy Implementation Strategy.

(iii)Prefeasibility study of a potential cascading hydro power scheme on the Ngwempisi River.


Objectives

The objective of the project is to support the investment in the electricity supply infrastructure that will result in improved energy supply security and enhance electricity access rate, thereby assist the country achieve its Vision 2022 objectives.


Rationale

Preparation of the National Energy Policy started in 1999 and, following extensive stakeholder consultations, was approved in 2003. Although the policy covers many issues that are still relevant today e.g. energy efficiency, liberalization of the sector to facilitate private sector participation, cost reflective pricing, environmental sustainability and promotion of renewable energy technologies, it needs to be updated in light of the developments regarding these and other issues over the last ten years. The policy paved the way for a review of the 1963 Electricity Act which was reviewed and replaced by the Electricity Act of 2007 and the Energy Regulatory Act of 2007 which established the Swaziland Electricity Company (SEC) and the Swaziland Electricity Regulatory Authority (SERA) respectively. Although the policy provides for unbundling of the power sector, this is yet to be realized. There is need to develop more specific policies and regulations to promote participation of Independent Power Producers (IPP) in the sector.

The USAID Trade-Hub is assisting the DOE with development Renewable Energy and Independent Power Producer Policy (RE & IPP Policy). Once the Renewable Energy Policy is developed, it is to be followed by the preparation of regulations for the development of renewable energy including Public Private Partnerships and IPP models. To this end, the USAID Trade Hub will also be supporting the DOE in the Ministry of Natural Resources and Energy with development of a REFIT policy and regulatory framework for IPPs. However for maximum, cost-effective use of renewable energy resources, a comprehensive knowledge of the resources is required. Swaziland lacks such resource data and this makes it difficult to design cost effective renewable energy systems and to plan for the integration of renewable energy into the national energy balance. To assist in system sizing, economic viability assessment and evaluations, a solar and wind resource monitoring programme should be initiated.

SEC also wishes to diversify its hydro generation sources. In 2007, GIBB and Knight Piesold undertook the Swaziland Hydro SEC therefore wishes to diversify its generation sources. In 2007, GIBB and Knight Piesold undertook the Swaziland Hydro Power Reconnaissance Study which focused on the Ngwempisi Cascade and recommended the undertaking of a full Feasibility Study. Power Reconnaissance Study which focused on the Ngwempisi Cascade and recommended the undertaking of a full Feasibility Study.


Benefits

Expected benefits include:

(i) Increased power generation capacity from the private sector;

(ii) Reduced reliance on energy imports;

(iii) Readily available information for development of power generation in Swaziland;

(iv) Potential reduction and substitution of thermal-generated electricity with electricity from renewable energy sources


Key contacts

KANONDA Farai Epiphanius - ONEC2


Costs

Finance source Amount
MICFUAC 718,000
GovernmentUAC 44,429
TotalUAC 762,429