CurrentStatusof

Energysectorin
SwazilandandFuture
Plans
Presenter
MrDoctorSKSimelane

Tableofcontents
GeneralInformationofSwaziland
Energysources
Reliance
Extendnetwork
Capacityconcerns
Renewableenergy
Energyefficiency
Ownership
Competition

Tableofcontentscont.
EnergySector Future
Roleofgovernment
Energyregulator
Regulatoryframework
Regulatoryroles
Regulatorybarriers

GeneralInformation
Capital Mbabane
Languages Englishlanguage,Swazilanguage
ISOCode SZ,SWZ
Area:17.364km
Population:1.185.000(2009)

GeneralInformation Swaziland

GeneralInformation

GeneralInformation Swaziland
Swaziland,officiallytheKingdomofSwazilandisalandlocked
countryinSouthernAfrica,borderedtothenorth,southand
westbySouthAfrica,andtotheeastbyMozambique.
Swazilandisasmallcountry,nomorethan200kilometres
(120mi)northtosouthand130kilometres(81mi)eastto
west.

Energysources
Totalinstalledelectricitycapacity(2012) 69.4
MW
Hydropower:60.4MW
Diesel:9MW
Totalprimaryenergysupply:1,703ktoe
CombustibleRenewablesandWaste:48%
PetroleumProducts:23%
Coal:16%
ElectricityImports:13%

Energysources
Biomass,especiallywoodfuel,constitutes
about90%ofthetotalfinalenergy
consumption,andisstilldominantincooking
andheatinginruralareas.Biomassisnotonly
themajorfuelinhouseholds,butalsothe
majorsourceofelectricityselfgenerationin
thesugar,pulpandsawmillindustries

Energysources
SECoperatesfourhydropowerstations;
Maguga,Ezulwini,Edwaleni,andMaguduza,
allservingaspeakingandemergencypower
stations.These stationscontribute1424%of
thetotalenergyconsumedinthecountry.A
further2x4.5mwdieselenginesareinstalled
atEdwaleni,howeverduetotheirhigh
operationalcosts,theyarenolongerused.

Energysources

THEOFFICIALLAUNCHOFTHEMAGUGAHYDROELECTRICPOWERSTATION
HisMajestyKingMswatiIIIlaunchingtheoperationoftheMagugaHydroElectricPowerStation,onthe

13thMay2011at13h10

Reliance
Swazilandimportedanestimated4,464
barrelsofoilperdayin2009.
Thecountryimported80.7%ofitselectricity
needsin2011,largelyfromESKOMinSouth
Africa,butalsofromEDMinMozambique,
throughitsmembershipoftheSouthern
AfricanPowerPool(SAPP).Totalimportsfrom
ESKOMwere841.5GWh in2007,withEDM
supplyingafurther93.7GWh.

TECHNICALPERFORMANCE
Year
SystemRequirements
(GWh)SentOut
ImportedPower
(GWh)
LocalGeneration
(GWh)
LocalGeneration(%)
SystemLosses(%)
NumberofDomestic
Customers(000)
NumberofNon
DomesticCustomers
SystemMaximum
Demand(MW)

2012

2011

2010

2009

2008

1129.8

1138.1

1186.3

1162.8

1143.6

813.44

805.5

909.4

923.3

983

272.3
25

333.4
29

288.1
24

245.5
21

160
14

15.5

14.2

14.9

15.5

14.6

99.4

88.5

77.6

68.3

59.6

10.2

11.1

10.7

10.7

10.9

203.73

200.77

204.48

200.65

200.3

Extendednetwork
Thereisaninadequateelectricitysupply.The
overallelectrificationrateisapproximately
27%.Itisestimatedthat40%ofurbanareas
and4%ofruralareasareelectrified.
One400kVtransmissionlinecrossesthrough
Swaziland,andconnectstothenetworkatthe
EdwaleniIIsubstation.Countryscale
transmissionoccursviaa132kVgrid,with66
kVlines

SECTransmissionNetwork

SystemSupplyOutlookcont.
SECinstalledcapacityisat69.4MWwhich
makes14 24%oftheenergyneedsandthe
other80%issourcedfromESKOMandEDM
TheEnergyissuppliedby:
5localpowerstations(excludingUbombo
SugarLimitedanIPPproviding3%annually
electricityneedsand1%fromSAPP DAM)
CamdenMaputo400kVLine
Eskom(Normandie)132kVLine

SystemSupplyOutlook
SECtransmitat66132kVanddistributeat
11kV.Thenetworkismadeupof:
four132/66kVsubstations
Two132/11kVsubstations
Fortytwo66/11kVsubstations

SystemSupplyOutlookcont.
Thesystemisoperatedastwoislands.
400kVlineandlocalgenerationsupplyWest,
centralandNorthpartsthecountry
SouthandEastpartsarefedfromEskom
Normandie132kVfeeder.
Asystempeakof203.73recordedfor2012.

Renewableenergy
SolarEnergy
Swaziland'ssolarregimeisnotwelldocumentedand
itisnecessarytocollectsufficientandreliabledatain
ordertomapouttheresource.However,indications
fromSADCmaps,satelliteimages,andhourly
sunshinedataindicatethattheannualaverages
couldliebetween4to6kWh/m2/day.Aprogramto
installsolarwaterheatersinpublicinstitutionsasan
energyefficiencymeasureisalsounderway
Pilotprojectof10MWbySECplannedforyear
2014/15 tenderingongoing.

Renewableenergy
Hydropower.
ItisestimatedthatSwazilandhasagross
theoreticalhydropowerpotentialof
approximately3800GWh/year,witha
potentialinstalledcapacityof200MW.
SECincollaborationwiththeMinistryof
NaturalResourcesandEnergyestablisheda
databaseonthepotentialofdevelopingmini
microhydropowerelectricityschemes.
Feasibilitystudiescompleted 140MW
potential capacity.

Renewableenergy
WindEnergy
Windspeedmeasurementsarecontinuingin
thecountry,withpreliminaryresultsindicating
ameanaveragewindspeedof4m/sacross
thecountry,suggestingamoderatepotential
forwindenergyuse.

Energyefficiency
Energyefficiencypotentialexistsinanumber
ofsectorsinthecountry,inboththesupply
anddemandsides.Importedelectricityin
SwazilandpredominantlycomesfromSouth
AfricasESKOM,andemissionsassociatedwith
theseimportsareextremelycarbonintensive.
Distributionlossesequatedto33GWhin
2008.

Energyefficiencycont.
TheSwazilandElectricityCompanyisrunning
anextensivedemandsidemanagement
program,initiatedin2008.Compact
fluorescentlightingispromotedunderthis
program,andapproximately90%ofelectrified
householdsarenowusingsmartmeter
technology.Inaddition,topromoteefficiency
intheindustrialsector,atimeofusetariffhas
beenintroducedforindustrialcustomers.

Ownership
ElectricityMarket
Swazilandspowerissuppliedanddistributed
bytheSwazilandElectricityCompany(SEC)
whichwasestablishedbytheSwaziland
ElectricityCompanyAct(2007).

Ownershipcont.
OilandGasMarket
Swazilandhasnoknownoilornaturalgas
reserves,andnoupstreamoilindustry.The
countrysdownstreamindustryisheavily
dependentonfuelimportsfromSouthAfrica.
Anumberofprivatecompanies,includingBP,
Caltex,Galp Energia,andEngen areactivein
theoilproductdistributionsectorinthe
country.

Ownershipcont.
Competition
TheSwazilandElectricityCompanycurrently
ownsamonopolyontheimport,distribution
andsupplyofelectricityviathenational
powergrid,aswellasthemajorityofthe
countryspowerstations.
Therearealsofiveprivatepowerstations.
Almost25%ofenergyusedintheKingdom
hasbeensuppliedbyselfgeneratorsinrecent
years

Ownershipcont.
CompetitionCont.
Areformoftheenergysectorwasundertaken
toreducethemonopolyoftheutility,
includingthestructuralchangefromaboard
toacompanyin2007.Thisestablisheda
regulatorybodyandpreservedthestate
companyasamoredisciplinedcorporate
entity.However,theintroductionofnew
marketorientedstructuresintoasystemthat
hasnotpreviouslysupportedthemhasbeen
difficult

Energyframework
Thelegalenergypolicyandplanning
frameworkinSwazilandiscontrolledsolelyby
thegovernmentviatheMinistryofNatural
ResourcesandEnergy.
Theysupportthepositionthatinvestmentin
energyandindustrialdevelopmentina
sustainablemannercaneradicatepovertyin
thecountry.
TheMinistryalsotakestheleadroleinoil
sectormanagement

Energyframework
TheGovernmenthasstatedclearlythatrural
electrificationwillcontinuetobeapriority
andeffortsinthatregardshallbeledbythe
State

Energyframeworkcont.
TheElectricityActof1963wasreplacedin
2007byboththenewElectricityActandthe
SwazilandElectricityCompanyAct.
Thiscreatedaregulatoryauthorityforthe
electricitysectorandthestructural
reformationofthenationalutility.

Energyframeworkcont.
TheElectricityActcreatedtheframeworkfor
independentpowerproviderstoenterthe
electricitysector,withlicensingprovidedby
thenewregulatoryauthority;howeveruptake
hasbeenlimited

EnergySector FuturePlans
.
The2007energyreformhasraisedsome
concerns,andthepotentialprivatisationof
theenergymarketinSwazilandhasraised
someopposition,especiallyregardingthe
positionofforeigninvestors.
Feasibilitystudieshavebeencompletedand
SECstillawaitingmininglicence(in
partnershipwithstakeholders)tothe
possibilityofconstructinga1,000MWcoal
firedpowerplant.Swazilandhasconsiderable
proven coal reserves of 207.6 million tonnes.

Regulatoryframework.
Onthe1stofMarch2007,theElectricityAct
of1963wasrepealed,asaresultofthe
promulgationoftheElectricityActof2007and
theSwazilandElectricityCompanyActof2007.
TheElectricityActof2007providesforthe
regulationoftheElectricitySupplyIndustryin
Swaziland.Itgivesprovisionsfortheregulation
ofgeneration,transmission,distributionand
supplyofelectricityinSwaziland.

Energyregulator.
TheSwazilandEnergyRegulatoryAuthority
(SERA)asestablishedbytheEnergyRegulatory
AuthorityActof2007.
TheActestablishestheAuthorityasan
independentcorporatebody,withthepower
tosueandbesuedinitsownname.

Regulatoryroles
Powersandfunctionshavebeengiventothe
SwazilandEnergyRegulatoryAuthority(SERA):
Receiveandprocessapplicationsforlicenses,
andmodify/varylicenses.
Approvetariffs,prices,chargesandtermsand
conditionsofoperatingalicense.
Monitortheperformanceandtheefficiencyof
licensedoperators.

Regulatoryrolescont.
SERAisalsochargedwithsettingstandardsfor
thequalityofsupplyandservice,aswellas
encouragingthedevelopmentofanindustry
widesetofstandardsandoperatingcodesof
conduct.

Regulatorybarriers.
Themainidentifiedbarriers(regulatoryand
others)include:
Difficultyofmobilisingfundingforinvestment,
whichcanleadtoseveredelaysinproject
implementation.
Thesmallsizeofthelocalenergymarket.
Limitednaturalresources.
DiminishingpowercapacityintheSouthern
Africanregion

Regulatorybarrierscont.
Swazilandimportsthebulkofitscommercial
energyfromneighbouringcountries.
Thehighcostsofrenewableenergy
technologies,andthefactthatinvestment
flowsarestillinsufficient,aremajorbarriers
toprojectimplementation

IT.
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