Power project to create over 400 jobs

The American Water and Energy (AWE) has announced plans to develop a 500-megawatt, 24/7 base load power generation facility in Lesotho.

The development builds on AWE’s existing 5-megawatt power purchase agreement with the Water and Sewage Company (WASCO) at Metolong, scheduled to be commissioned this year. The project is expected to provide a strong commercial foundation for larger regional projects.

AWE is a Lesotho firm and subsidiary of United States of America based Atlas Water and Electric. The company utilises atmospheric wind extractor technology to provide baseload renewable energy to local Lesotho communities no matter how remote, and provide additional power in times of need.

AWE says it has secured USD 1 billion (about M16,013 billion) through New Asia Advisory, a Hong Kong-based capital raising firm, to support renewable energy and infrastructure projects in the country.

The envisaged project marks a significant step towards establishing Lesotho as a future net exporter of electricity.

According to a media statement from AWE, the project is expected to create more than 400 immediate jobs for Basotho professionals and informal sector workers, with additional employment opportunities during construction and operations.

Power generated in Lesotho will be exported exclusively by AWE to the Southern African Development Community (SADC) region, strengthening regional energy security and positioning Lesotho as a reliable power exporter.

The project is also expected to prioritise local engineers, technicians, artisans and community-based services, the company said.

AWE further indicated that it is in ongoing discussions to secure further funding for future projects across Africa and global markets, supporting its long-term expansion strategy.

This development will significantly boost local energy generation capacity, building on existing projects. Lesotho’s energy generation is anchored by the ‘Muela Hydropower Plant, a 72-megawatt facility that has been a cornerstone of the country’s energy supply for years, providing reliable power to the national grid.

The Ramarothole Solar Power Plant in Mafeteng district adds another 50 megawatts, showcasing the country’s push for renewable energy sources and reducing reliance on imports.

Other smaller power sources contribute to Lesotho’s energy generation, laying groundwork for growth. With these existing projects, the country is poised to meet more of its own energy needs.

With increased generation capacity, Lesotho may reduce its reliance on imported 60MW power from South Africa’s Eskom and Mozambique’s Electricity de Mocambique, enhancing energy security and potentially opening export opportunities to the SADC region.