Lesotho is an independent kingdom which lies landlocked within South Africa. Power is supplied and distributed by the Lesotho Electricity Corporation (LEC) which was established in 1969 under the Electricity Act No 7 (which permits it to generate, transmit, distribute and supply electricity).
The main hydroelectric scheme is the Lesotho Highlands Water Project (LHWP), a joint venture with South Africa. The scheme has a planned capacity of 200 megawatts from the underground hydroelectric plant at 'Muela in the Butha-Buthe district.
All power to Lesotho was supplied by ESKOM in South Africa in 1995. However, the Muela hydroelectric power station, built during phase 1A of the LHWP, opened in September 1998. The resulting electricity production ended Lesotho's previous dependence on imported electricity from South Africa and resulted in Lesotho's self-sufficiency in electric power. Fully operational since January 1999, the plant has a capacity of 80 MW, but this is due to increase to 110 MW if Lesotho and South Africa agree to carry on with Phase II of the LHWP. Phase 1B of the project was scheduled for completion in 2003. This phase included the construction of the Mohale Dam and transfer tunnel and the Matsoku Weir and transfer funnel. Both of these will feed into the Katse Dam. Currently there are plans to privatize the operation of the plant, although no specific time schedule has been established.
