SSEG APPROVED CAPACITY INCREASES BY 23.2%

MBABANE - The total approved capacity from small-scale embedded generation (SSEG) increased from 17.27 MW in 2021/22 to 21.28 MW in 2022/23, representing a growth rate of 23.2 per cent in one year.

According to the solar PV-embedded generation market developer guide report, this was a significant growth rate, indicating strong market demand for SSEG solutions. SSEG refers to power generation installations less than or equal to 1 MegaVolt Amp (MVA)/1000 Kilo-volt-amperes (Kva), which are typically located on residential, commercial, or industrial sites, and generated power is mainly for self-consumption.

Penetration

The SSEG framework was developed in 2021 by the Eswatini Energy Regulatory Authority (ESERA). The SSEG framework capped the penetration of SSEG into the EEC network at 37MW, which is 15 per cent of the national maximum demand. The 37MW was based on the grid network status in 2021 and is expected to be reviewed on a regular basis, as grid studies are conducted to establish the cap, and the network is also reinforced. The current SSEG penetration is at 21.28MW.

This figure only includes installations above 100kW each; the penetration of installations less than 100kW is unknown because they are not required to obtain a license from the regulator. In preparation for the national rollout of the SSEG Framework, the EEC launched a campaign to encourage solar PV-embedded generators to register their systems with them for approval on or before December 31, 2024.

However, with the 37 MW cap on SSEG and 21.28MW1 current penetration, the addressable market for SSEG is estimated at 15.72MW, representing 42.5 per cent of the capped capacity still available. If this growth rate continues, the market can reach the 37MW cap in three to four years. The regulatory cap may eventually limit market growth unless EEC conducts detailed grid network studies and invests it in strengthening the network infrastructure.

Financing solar PV-embedded generation remains a significant barrier, with most installers requiring full upfront payments that are often inaccessible to customers. While flexible options, such as installment plans and potential access to grants and commercial loans, are emerging, greater financial support mechanisms are needed to promote widespread embedded generation adoption in Eswatini. Local entrepreneurs and early-stage project developers can access 240+ financing instruments (i.e. grants, debt, and equity) for renewable energy investments via the Funding Database GET.invest (get-invest.eu). The database contains funding tickets with sizes ranging from EUR 100 000 to EUR 10 million (approximately E1.9 million to E196 million).

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