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Swaziland Renewables Readiness Assessment

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Swaziland Renewables Readiness Assessment SWAZILAND RENEWABLES READINESS ASSESSMENT December 2014 Copyright © IRENA 2014 Unless otherwise indicated, material in this publication may be used freely, shared or reprinted, so long as IRENA is acknowledged as the source. About IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity. About RRA A Renewables Readiness Assessment (RRA) is a holistic evaluation of a country’s conditions and identifies the actions needed to overcome barriers to renewable energy deployment. This is a country-led process, with IRENA primarily providing technical support and expertise to facilitate consultations among different national stakeholders. While the RRA helps to shape appropriate policy and regulatory choices, each country determines which renewable energy sources and technologies are relevant and consistent with national priorities. The RRA is a dynamic process that can be adapted to each country’s circumstances and needs. Experience in a growing range of countries and regions, meanwhile, has allowed IRENA to continue refining the basic RRA methodology. In June 2013, IRENA published a guide for countries seeking to conduct the process in order to accelerate their renewable energy deployment. For more information visit www.irena.org/rra Acknowledgement IRENA prepared this report in close collaboration with Francis Yamba (Centre for Energy, Environment and Engineering— CEEEZ— Zambia), Peter Zhou (Energy, Environment, Computer and Geophysical Applications Group— EECG— Botswana), Boaventura Cuamba (Eduardo Mondlane University of Mozambique), Mduduzi Mathunja (University of Swaziland) and Ecofys. The report benefited from review and consultations with the Southern African Development Community (SADC). IRENA wishes to thank the following experts for their insights and constructive guidance during the peer review process: Peterson Dlamini (Ministry of Natural Resources and Energy), Alexander Filippov (USAID Southern Africa Trade Hub), Veli-Pekka Heiskanen (VTT— Finland), Mzwandile Ndzinisa (Ministry of Natural Resources and Energy), Henri Shongwe (Ministry of Natural Resources and Energy), Elijah C. Sichone (Regional Electricity Regulators Association of Southern Africa— RERA), Mandla Vilakati (Ministry of Natural Resources and Energy) and Frank Wouters (IRENA). For further information or to provide feedback, please contact: [email protected] or [email protected] Disclaimer While this publication promotes the adoption and use of renewable energy, the International Renewable Energy Agency does not endorse any particular project, product or service provider. The designations employed and the presentation of materials herein do not imply the expression of any opinion whatsoever on the part of the International Renewable Energy Agency concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. SWAZILAND RENEWABLES READINESS ASSESSMENT II Swaziland FOREWORD Minister for Natural Resources and Energy Swaziland supports, and welcomes the backing of, the International Renewable Energy Agency (IRENA) in the challenge to scale up renewable energy. We have been promoting energy access throughout the country by extending the grid and utilising off-grid systems. Solar lighting was introduced in primary schools, and solar water pumping programmes were also run in rural areas in the early 1990s, as Swaziland worked tirelessly to make use of renewable energy resources. However, the lack of assessment and over-reliance on imports of renewable energy equipment were major setbacks. In 2003, Swaziland adopted a National Energy Policy (NEP), which highlighted the need to develop the renewable energy sector. In 2007, the government carried out reforms in the electricity supply industry. We now have new Electricity and Regulatory Authority legislation that covers both on-grid and off-grid power systems. Swaziland has also run biofuels initiatives and anticipates the future rollout of ethanol-blended fuel throughout the country. Reconnaissance and pre-feasibility studies on mini and micro-hydro have been completed, and potential has been found at some sites. IRENA’s report on the country’s Renewables Readiness Assessment (RRA) has come at the right time. This report will go a long way in helping Swaziland chart a more systematic approach to renewable energy deployment. Several important issues need to be resolved for the country to be ready for renewables. Clear business and financial models are requested, along with a renewable-specific energy policy, strategies and action plans. A regulatory framework specifically aimed at renewable energy and a comprehensive resource assessment for different renewable energy resources are also needed, along with appropriate technical and human resource capacity within and outside government. We must also create a resource assessment map, build information resources on renewable energy technologies, and set standards and sustainability criteria for biofuels production. The outputs of this exercise outline strategies and actions that I trust will serve to increase renewable energy deployment in Swaziland. I therefore look forward enthusiastically to continued assistance from and collaboration with IRENA, in the pursuit of investments to deploy appropriate renewable energy technologies. Honourable Jabulile Mashwama Minister for Natural Resources and Energy, Swaziland Renewables Readiness Assessment III IV Swaziland FOREWORD from the IRENA Director-General The Africa High-level Consultative Forum held by the International Renewable Energy Agency (IRENA) in July 2011 highlighted the need for technical support for African countries and regions to identify their renewable-energy readiness. The Renewables Readiness Assessment (RRA) process stemming from this involves a holistic evaluation of a country’s conditions and identifies the actions needed to overcome barriers to renewable energy deployment. This is a country-led process, with IRENA primarily providing technical support and expertise to facilitate consultations among different national stakeholders. Since 2011, more than 20 countries in Africa, the Middle East, Latin America and the Caribbean, Asia and the Pacific Islands have undertaken the RRA process, which generates knowledge of good practices and supports international cooperation to enable the accelerated deployment of renewable technologies. Swaziland, in keeping with its strong and consistent support of IRENA’s mission, is one of those pioneering countries. As RRA consultations highlighted, the involvement of private operators in the renewable energy sector remains limited due to the absence of an enabling framework for independent power producers. However, the Ministry of Energy and Natural Resources is developing a comprehensive set of system codes, including a grid code, with a view to enhancing private sector interest. The Swaziland grid code, once finalised, can serve as a model for other IRENA member states. Renewable energy resources can help reduce Swaziland’s dependence on imported electricity. Bagasse co- generation, for instance, a by-product of the sugar industry, could meet about half of electricity demand in a sustainable way, while solar power also offers enormous potential for development. At the same time, Swaziland forms a key link in the Africa Clean Energy Corridor, IRENA’s initiative to meet East and Southern Africa’s growing power needs sustainably and with a high share of renewables. IRENA wishes to thank Minister Mashwama and her team for their impressive contribution and warm welcome in hosting this study. We are grateful for their positive engagement and valuable input, which has given us additional insights for undertaking further RRAs in 2015 and beyond. Additionally, this report will feed into other IRENA regional work, increasing the share of renewables through the Africa Clean Energy Corridor. We sincerely hope that the outcomes of these RRA consultations will assist Swaziland in fulfilling its aim to scale up renewable energy. IRENA stands ready to provide continuing support to Swaziland in implementing the actions identified. Adnan Z. Amin Director General, IRENA Renewables Readiness Assessment V VI Swaziland TABLE OF CONTENTS LIST OF FIGURES VIII LIST OF TABLES VIII LIST OF ABBREVIATIONS IX EXECUTIVE SUMMARY X I. INTRODUCTION 1 1.1 Country background 1 1.2 Energy for development 2 1.3 Renewable Readiness Assessment Process 2 II. ENERGY CONTEXT 3 2.1 Regional energy 3 2.2 Energy supply and demand 5 2.3 Electricity system 6 2.4 Renewable energy potential 12 III. ENABLING ENVIRONMENT FOR RENEWABLE ENERGY 17 3.1 Key energy stakeholders 17 3.2 Policy, strategies, legal and regulatory framework 19 3.3 Financing and investment framework 20 IV. RENEWABLE ENERGY DEPLOYMENT – 23 EMERGING CONCERNS 4.1 On-grid electricity 23 4.2 Off-grid renewable energy options 27 4.3 Biofuels 28 4.4 Opportunities and constraints for scaling up
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