Eswatini Strengthens Energy Security with 40 MW Biomass Power PPA Between Ubombo Sugar Limited and EEC

Eswatini has advanced its national energy security agenda with the signing of a 40 MW (maximum export capacity) Power Purchase Agreement (PPA) between Ubombo Sugar Limited (USL) and the Eswatini Electricity Company (EEC), marking a key milestone under the country’s biomass power procurement programme facilitated by the Eswatini Energy Regulatory Authority (ESERA).

The PPA signing ceremony was attended by senior government officials and industry stakeholders, including HRH Princess Sibahle, Principal Secretary at the Ministry of Natural Resources and Energy; ESERA Board Chair Mbuso Simelane; EEC board members; executives from ESERA and EEC; leadership from Ubombo Sugar Limited; and strategic partners.

Under the agreement, USL will supply up to 40 MW of electricity generated from biomass co-generation, strengthening local power supply and reducing Eswatini’s reliance on electricity imports. Once operational, the project is expected to deliver approximately 141 GWh of electricity annually, equivalent to about 14% of the country’s current electricity demand.

Ubombo Sugar Limited Managing Director Muzi Siyaya described the agreement as a demonstration of effective public-private collaboration, noting that the project is among the fastest in Eswatini to progress from tendering to financial close. He said the project has attracted an estimated E1.5 billion in investment, including around E900 million in financing from local banks. The development is expected to create up to 500 jobs during construction and 10 permanent jobs during operations, while also supporting skills development for local workers.

EEC Managing Director Ernest Mkhonta said the new PPA would inject an additional 5% of energy into the national grid, increasing USL’s total contribution to around 10% of Eswatini’s electricity demand. He reaffirmed the utility’s commitment to providing fair and transparent access to the grid for qualifying independent power producers as the country works toward greater energy independence.

Africa Legal Support Facility (ALSF) Senior Legal Counsel Leira Arinaitwe said the organisation had supported the transaction to ensure balanced and fair agreements that protect public interest. ALSF is providing legal, commercial, and financial advisory support to Eswatini as part of the broader biomass power procurement programme, which includes multiple procurement tranches.

The Minister of Natural Resources and Energy highlighted the role of biomass co-generation in linking agriculture, manufacturing, and electricity generation, describing the project as an important contributor to economic growth and energy security. The minister also acknowledged the role of local financial institutions and said the project aligns with the government’s objective of delivering affordable, secure, and sustainable electricity.

ESERA, which facilitated the procurement process, said the agreement reflects the benefits of structured procurement, regulatory certainty, and institutional coordination. The regulator added that the project supports Eswatini’s strategy to diversify its energy mix through local resources and strengthen long-term supply resilience.

The USL biomass co-generation project is expected to reduce exposure to external electricity price volatility, stimulate local enterprise development, and reinforce Eswatini’s transition toward a more secure and sustainable energy future powered by domestic resources and strategic public-private partnerships.