MBABANE – In the next few years, the Eswatini Electricity Company (EEC) anticipates that electricity tariff escalation will ease following the granting of a licence for coal mining at Lubhuku.
His Majesty King Mswati III, through the Mining Management Board, has awarded a coal mining licence to Eswatini Electricity Feedstock Company. This is a subsidiary company of the Eswatini Electricity Company (EEC) which, for the next two decades, will be mining coal at Lubhuku for electricity generation in the country.
Through the mining of the coal, the country targets generating 1 500 megawatts of electricity for both domestic and commercial use as revealed by Minister for Natural Resources and Energy, Prince Lonkhokhela.
He said the country’s current demand for electricity for self-sustainability stands at just over 200 megawatts and they are looking to sell the surplus if they reach the target.
He revealed that the company was given 4 000 hectares of land for the project which shall guarantee employment for emaSwati, impact the economy and help develop neighbouring communities.
EEC Marketing and Corporate Communications Manager Khaya Mavuso, revealed that their major expenditure is the procurement of electricity from neighbouring countries. With these developments, Mavuso said they will be able to cover their base load, which will guarantee independence.
However, Mavuso revealed that such a project is capital intensive and while projections are still at an infant stage, there will be costs involved in the establishment and running of the power station.
“We cannot guarantee that customers will be paying less, but we can be certain that the tariff escalation will not be at the current rate. Our recent renewed contract with South Africa allows us to now export electricity and we believe that will play a huge role in cushioning the Eswatini consumer,” he said.
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