Lesotho recognizes that its low electrification rate, reliance on imported fuels, and dwindling forest reserves are fundamental challenges in the energy sector and barriers to economic development. It is keen to develop on- and off-grid renewable energy solutions.
Source: World Bank
Lesotho has developed a SREP investment plan to enable increased adoption of the priority technologies—wind, solar, small hydro power—through the development of commercial on-grid and off-grid renewable energy markets. This focus aligns with the government’s Vision 2020 goals to increase private sector investment in infrastructure and promote increased use of renewable energy.
SREP funds will be used to facilitate private investment with support to the first privately funded renewable energy projects and provision of technical assistance to develop missing pieces of the enabling environment. With SREP support, Lesotho hopes to have a self-sustaining market for on-grid and off-grid investment by the early 2020s.
By 2020, Lesotho aims to expand electricity access from 38% to 75% of the population and increase renewable energy sources by 200 MW
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Lesotho Renewable Energy and Energy Access Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 12.90||FUNDING (USD MILLION) 20.00||MDBIBRD|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.