The I-TRACK Foundation Board has approved Lesotho for I-REC for Electricity issuance. The Minister for Energy of the Kingdom of Lesotho supports the implementation of I-REC(E) in the country. Approval came after the submission of a country report (use the button on the left to download the country report) detailing various aspects of the electricity generation market, including a review of supporting policies, and confirmation of interest in introducing I-REC(E) to support further renewable energy development in the country.
I-REC(E) Issuer in Lesotho
The Green Certificate Company (GCC) has been approved as the I-REC(E) Issuer in Lesotho until a suitable local organization has been identified. GCC is already responsible for the issuance of I-REC(E) in many countries around the world as a default Issuer. The Minister for Energy of the Kingdom of Lesotho has provided no objection to the Green Certificate Company (GCC) becoming the Issuer.
The Kingdom of Lesotho
Lesotho is a landlocked country surrounded by South Africa with a geographical makeup of 74% mountains and foothills. Lesotho’s economic landscape is influenced by its proximity to South Africa and its connection to the South African market, which is facilitated by its membership in the Southern African Customs Union (SACU). As a SACU member, alongside Botswana, Namibia, South Africa, and Eswatini, Lesotho benefits from exemption from tariff payments for exporting goods to other SACU nations.
Lesotho has a total installed capacity of 72 megawatts (MW), exclusively harnessed from renewable sources. The Lesotho Highlands Water Project’s Muela Hydropower station fulfils more than half of the country’s electricity demands, supplied through the Lesotho Electricity Company (LEC). Guiding the execution, operation, and upkeep of Lesotho’s segment within the Lesotho Highlands Water Project is the Lesotho Highlands Development Authority (LHDA). Consequently, to address peak demand, LEC secures over 50% of the nation’s electricity requirements through imports originating from South Africa’s Eskom and Mozambique’s Electricidade de Moçambique (EDM) accessed through the interconnected grid of the South African Power Pool.
The Government of Lesotho is currently in the process of formulating a project known as the Lesotho Renewable Energy and Energy Access Project (LREEAP). This initiative aims to amplify the integration of renewable energy-based off-grid electrification, with a particular focus on augmenting electricity access within rural and peri-urban regions of the country. By doing so, this would expand Lesotho’s energy reach, catering to both residential and industrial sectors, while also bolstering economic zones in identified rural and peri-urban locales.
There are no existing energy certificate schemes in Lesotho, and the Lesotho government, through the office of the Minister of Energy, welcomes the introduction of I-REC(E) into the country. The I-TRACK Foundation recognizes the efforts made by Lesotho’s continued commitment to developing and implementing plans for renewable energy sources and access and is pleased to welcome Lesotho as an I-REC(E) issuing country.