By By Siphesihle Dlamini
Huge relief for the Kingdom of Eswatini!
The Eswatini Electricity Company (EEC) is poised to sign a new 10-year contract with Eskom, marking a significant milestone in the ongoing partnership between the two entities.
Managing Director Ernest Mkhonta shared insights about this upcoming agreement, emphasising its importance for the future of electricity supply in Eswatini.
As the current contract has hit its 25th anniversary, Mkhonta remarked, “I refer to it as an anniversary because it is renewable, and we have renewed the contract with Eskom.”
This renewal comes at a critical time as the EEC seeks to ensure a sustainable power supply for the nation. Mkhonta highlighted the extensive efforts made by the EEC team to negotiate favourable terms, stating, “Our team has worked very hard to negotiate a favourable rate. We are currently conducting an analysis, which we will present to the board.”
The necessity of this renewal is underscored by the complexities involved in electricity supply, particularly the ongoing tensions surrounding price, reliability, and availability.
Mkhonta explained, “We face a tension between price, reliability, and sustainability, and we must balance these three factors to ensure that service is delivered.”
This balancing act, often referred to as the tri-network, is crucial for maintaining a stable electricity supply while addressing the needs of consumers.
The renewed agreement with Eskom will provide the EEC with additional time to enhance its domestic generation capacity and reduce reliance on imported power.
Mkhonta noted, “This extension buys us time to put our house in order as a country and to ensure that we build sufficient generation capacity over the next decade.” This proactive approach is essential for the EEC as it navigates the challenges of energy supply in a rapidly changing landscape.
In addition to the contract with Eskom, the EEC is actively exploring other avenues to meet the growing power demand. Mkhonta revealed, “Last week, we were in Mozambique and successfully secured an additional 25 megawatts of power from there to augment our purchases from South Africa.
” This diversification of power sources is crucial for enhancing energy security. The EEC has also established agreements with the Utility Services Limited (USL) and the Botswana Power Corporation.
The vision for the future includes not only meeting domestic demand but also the potential for power exports. Mkhonta expressed optimism, stating, “We foresee a scenario where we can meet our demand and even export power at times.”
This ambition is supported by the identification of approximately 30 megawatts through a registration process initiated last year, which allows embedded power generators to contribute to the national grid.
Currently, the EEC generates 30 per cent of its electricity from renewable sources, including hydro and solar power. The energy mix for the last financial year revealed that 54 per cent of electricity was sourced from Eskom in South Africa, while 24 per cent was generated domestically.
Additional contributions came from the Southern African Power Pool (6 per cent), Electricidade de Moçambique (10 per cent), and Ubombo Sugar Limited (6 per cent).
