State-run Eswatini Electricity Company (EEC) has signed a power purchase agreement to procure 40 MW of biomass-based electricity from Ubombo Sugar Limited (USL). The agreement falls under the biomass power procurement programme overseen by the Eswatini Energy Regulatory Authority (ESERA), reports Renewables Now.
The power will come from a new biomass co-generation plant that will generate about 141 GWh of electricity each year, equivalent to 14% of Eswatini’s current national demand.
USL Managing Director Muzi Siyaya said the project is among the quickest in the country to move from tendering to achieving financial closure.
The project cost is estimated at SZL 1.5 billion (USD 88.2 million/EUR 75.8 million), with local banks expected to provide SZL 900 million of the financing.
EEC Managing Director Ernest Sipho Mkhonta said the new agreement will add 5% more energy to the national grid, raising USL’s total contribution to 10% of Eswatini’s electricity requirements.
The project is also expected to reduce electricity imports, protect the country from external price fluctuations and support local job creation and business growth.
(SZL 10 = USD 0.588 / EUR 0.505)
