Information on the target
OnePower (1PWR) is a pioneering social enterprise with a strong foundation in Lesotho, dedicated to enhancing energy access in rural areas. The organization has over 17 years of experience in the region, establishing robust relationships with various governmental entities to ensure that its mini-grid deployments align with national policies and regulations. The recent investment will facilitate the construction of a portfolio of 11 mini-grids, providing first-time electricity access to approximately 20,000 individuals and supporting seven health clinics with renewable energy solutions.
The project, known as the Sotho Minigrid Portfolio SPV, is a significant step in addressing Lesotho's low electrification rates, where around 62% of the population lacks access to electricity, and rural electrification is estimated to be below 20%. With a total capacity of 1.8MW, the mini-grids will utilize innovative technologies, including solar-battery energy systems and smart meters, to deliver reliable and affordable electricity to underserved communities.
Industry overview in the target’s specific country
Lesotho, a landlocked nation surrounded by South Africa, faces significant challenges in energy access, with one of the lowest electrification rates in Africa. The country’s energy landscape is characterized by a heavy reliance on hydropower, which is susceptible to climate variability, leading to inconsistent energy supply. The government has recognized the urgent need for diversified energy solutions to improve electrification rates, particularly in rural areas where traditional grid connections are often unfeasible.
The renewable energy sector in Lesotho is gradually evolving, with increasing interest from both local and international investors. The government has implemented policies aimed at promoting renewable energy projects, particularly solar and wind, to enhance energy security and sustainability. The introduction of mini-grids presents a viable solution to bridge the energy gap, offering decentralized energy access that can be tailored to local needs.
Moreover, international funding initiatives, such as the Electrification Financing Initiative (EDFI ElectriFI) and the Renewable Energy Performance Platform (REPP), are playing a crucial role in catalyzing investment in renewable energy projects. These initiatives support innovative enterprises like OnePower, enabling them to deploy cutting-edge technologies that enhance energy access and contribute to the country’s development goals.
As the demand for reliable electricity continues to grow, the mini-grid sector in Lesotho is poised for expansion. The successful implementation of projects like the Sot…