Lesotho’s Energy Bill, 2024 (currently undergoing parliamentary approval) represents a comprehensive overhaul of the nation’s energy framework, marking a shift toward modern regulation and renewable energy advancement. It empowers the Minister of Energy to rethink how energy is produced, distributed, and consumed, while introducing new institutions and mechanisms to support sustainable practices.
Under the proposed law, an Energy Commission and Rural Energy Agency will be established to oversee policy implementation, rural electrification efforts, and market regulation. An Energy Fund is also created to finance energy projects and support off-grid solutions, with funding sourced from levies, grants, and public contributions.
The Energy Bill authorises the Minister to set and enforce national standards, ranging from petroleum quality controls to grid codes and appliance regulatory measures. These powers aim to guarantee energy reliability, promote renewable generation, and protect consumer interests. Specifically, the Minister can issue pricing and tariff regulations, license energy service providers, and regulate operations across the entire petroleum value chain, upstream through downstream.
One key element of the Bill is its explicit support for renewable energy expansion. It enables private and independent power producers, including off-grid developers, to participate in Lesotho’s energy landscape under clear regulatory conditions. This aligns with broader national strategy goals focused on solar, wind, and hydropower development to achieve universal electricity access by 2030.
By consolidating previously fragmented laws such as the Fuel and Services Control Act (1983), the Bill seeks to unify Lesotho’s energy governance into a single legal structure. It also authorizes the creation of new standards for petroleum products and establishes mechanisms for licenses and levies that were previously handled under older legislation.
The legislation further empowers the Minister to regulate fossil fuel quality, enforce minimum stockholding requirements, and oversee petroleum distribution networks to ensure transparency and sufficiency. It includes dispute resolution powers, provisions for public complaints, and stipulates board appointment and oversight arrangements for the Energy Fund and its managing agency.
For investors and energy service providers, these reforms signal a turning point in how business can be conducted in Lesotho’s energy sector. With the introduction of predictable licensing procedures, defined quality standards, and clearer tariff guidelines, the investment environment becomes significantly more stable and transparent. Independent power producers, fuel distributors, solar energy developers, and energy storage companies will now operate under a uniform legal regime that reduces regulatory uncertainty and enhances investor confidence. The Energy Fund also introduces a financing mechanism that can be leveraged to co-fund infrastructure and clean energy projects, presenting opportunities for public-private partnerships and blended finance models. Compliance with technical regulations will be mandatory, but those who meet the standards may benefit from preferential procurement, improved consumer trust, and eligibility for government support schemes. These structural reforms provide the private sector with both the clarity and the incentives needed to scale investment, introduce innovation, and build capacity across energy value chains.
In essence, the Energy Bill moves Lesotho beyond a patchwork of outdated regulations toward a holistic, forward-looking legal regime. With clear institutional roles, market-based rules, and renewable energy incentives, the bill aims to ensure reliable service, fair pricing, and rural electrification, all while promoting environmental sustainability and sector growth.
In addition, the Ministry of Energy and Meteorology ties these reforms into national strategies like NSDP II and the Electrification Master Plan—underlining commitments to climate resilience, off-grid innovation, and expanded access through integrated energy planning.
Put simply: once enacted, Lesotho’s Energy Bill will give the country the legal structure it needs to manage electricity, petroleum, gas, and renewable energy in a unified, modern framework—strengthening institutional capacity, improving regulation, and setting the stage for sustainable growth.