Lesotho banks on its green energy potential to woo Davos

King Letsie III of Lesotho presents his energy transition fund at Davos, aiming to attract private investments to develop solar and hydropower projects in his landlocked country.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Lesotho, a small landlocked country in Southern Africa, is exploring opportunities to integrate the renewable energy market through an ambitious initiative. At Davos, during the World Economic Forum, King Letsie III actively promoted the “His Majesty King Letsie III Just Energy Transition Fund,” launched in February 2024.

This fund aims to attract private capital to harness Lesotho’s abundant natural resources, including sun, wind, and water, to develop sustainable energy infrastructure. The dual objective is to meet domestic energy demands and export to neighboring countries, particularly South Africa, Lesotho’s primary economic partner.

A green energy-driven economic model

Lesotho remains economically dependent on South Africa, where a significant portion of its population works, mainly in the mining industry. However, the sector is in decline, pushing authorities to seek alternatives. For King Letsie III, renewable energy could play a transformative role in the country’s economy.

“Our renewable energy production potential can change the economic trajectory of our nation,” the king stated during an interview in Davos. This vision relies on joint projects with international companies, including Chinese firms, to develop solar power facilities.

A challenging climate context

Exposed to the effects of climate change, Lesotho experienced a severe drought in 2024, leading to agricultural losses and a livestock crisis. This situation forced the government to declare a national state of emergency. These challenges highlight the urgent need for sustainable solutions.

The initiative is supported by strategic backing from two major banks: the UK-based Standard Chartered and South Africa’s Standard Bank. Together, they provide financial advice to structure the necessary investments.

International partnerships under discussion

During his time in Davos, King Letsie III held multiple meetings with key industry players, such as mining group Anglo American and a Danish wind energy company. He also engaged in discussions with the presidents of South Africa and Botswana to strengthen regional cooperation.

“We have traveled the world to convince investors to join our energy vision,” he said, recalling trips to Scandinavia, the UK, and the United States.

The king remains optimistic about the growing global interest in renewable energy as major powers shift away from fossil fuels. For Lesotho, these efforts could usher in a new economic era.

US-based AGCO has signed a ten-year virtual power purchase agreement with BRUC, covering a 100 MW solar project in Spain, to secure part of its European energy consumption.
Canadian developer Innergex has won all six projects of the Grenier des Essences portfolio for a total of 85 MW, strengthening its position in France’s ground-mounted solar sector.
Canadian Solar unveils its new low-carbon solar modules integrating heterojunction cells and thinner wafers, achieving up to 24.4% efficiency and a peak power output of 660 Wp.
Elmya Energy and Atlantica Sustainable Infrastructure have created a joint venture targeting 4 GW of renewable energy projects in the United States, focused on the ERCOT and WECC markets.
Louth Callan has completed the Mousam River solar project in Sanford, marking a key milestone in the deployment of utility-scale energy infrastructure across the United States.
The state regulator has approved five new solar power purchase agreements to support growing demand under the CARES programme, targeting industrial and commercial clients.
With the commissioning of the El Carrizo plant, Ecoener surpasses 500 MW in installed capacity and becomes the most active Spanish investor in Guatemala’s energy sector.
Aspen Power has finalised the acquisition of two community solar projects totalling over 1 MWdc in New Jersey, developed by Ecogy Energy, with construction expected to begin shortly.
French developer Tenergie has started work on a ground-mounted solar plant at a former quarry, with expected annual output of 7.6 GWh from 2026.
Octopus Energy strengthens its presence in Spain with three new energy projects totalling 600 MW, powering 2.3 million households and accelerating the expansion of its European renewables portfolio.
VSB Italy has obtained authorisation to build a 6.2 MW agrivoltaic plant in Città della Pieve, combining solar power generation and agricultural cultivation on 10.6 hectares.
Ameren Missouri announces a 250 MW solar project to power 44,000 homes, reducing delays and costs through strategic development on company-owned land.
Verso Energy has inaugurated an experimental solar power plant in Outarville, testing the integration of photovoltaic panels across three hectares of large-scale crops with a 90% self-consumption rate.
Independent power producer R.Power is selling a 440MW ready-to-build photovoltaic portfolio in Poland, as political uncertainties drive a wave of divestments in the national renewable energy market.
Grenergy has finalised the sale of the fourth phase of its hybrid solar-storage project in Chile to CVC DIF, valued at up to $475mn, while retaining operation and maintenance for five years.
Q ENERGY secures financing for 252 MW of solar projects in Spain, marking its first independent power producer operation on the Iberian Peninsula.
Norwegian group Scatec has signed a power sales agreement with BTG Pactual for its first solar project in Colombia, representing an estimated $110mn investment.
New solar installations rose 64% year-on-year, driven by China, which accounted for more than two-thirds of global deployed capacity.
Virya Energy invests EUR2mn in a photovoltaic plant at the Oncopole park-and-ride in Toulouse, marking a 30-year partnership with Tisséo to strengthen the city’s energy self-consumption.
ACWA Power has signed an agreement with the Syrian Ministry of Energy to assess up to 2,500 MW of solar, wind and storage projects, along with a technical audit of the national grid and existing infrastructure.

Log in to read this article

You'll also have access to a selection of our best content.