Africa-Press – Eswatini. As South Africa continues to face a load shedding crisis, businesses in the country are now investing into alternative energy generation.
The Royal Eswatini Sugar Corporation is one of the companies that are looking to invest into an alternative energy project. In a consolidated statement released yesterday, the corporation disclosed that load shedding challenges in South Africa, had raised the risk profile of power supply security for the business.
The group said, therefore, it was working towards the investment of E200 million in the 2023/24 financial year, in an alternative energy project.
According to reports, sugarcane irrigation, estate villages, commercials, businesses and third parties within the RES sugar estates depend on electricity imports from the national utility, Eswatini Electricity Company (EEC), to meet their energy requirements.
This is supplied across the estates through a RES-owned and licensed 11kV distribution network connected through four 66/11kV EEC substations.
It is said these cogeneration plants produce an average of 140GWh annually, leaving a balance of 105GWh to be met through imports from EEC.
In addition, there is a projected 10 per cent growth in RES energy requirements over the next five years, influenced by the Mhlume Mill expansion project, drip irrigation expansion and new cane land developments. According to RES, although it is predominantly a sugar company, ethyl alcohol is becoming a viable alternative revenue stream.
“We ventured into ethanol when the company acquired Bayside Distillers which was later relocated to Southgate in Durban and renamed Royal Swazi Distillers (RSD).
Since then our ethanol division has grown from strength to strength to become a major player in the international ethanol market without losing its regional relevance. Our plant is engineered to produce superior quality extra neutral ethyl alcohol for high value application,” reads part of the stament from RES. RES, through an RFP issued in November 2022, started identifying a development partner to co-invest through a special purpose vehicle in a portfolio of sustainable and renewable power generation projects in the country.
RES Group Public Affairs Manager Sifiso Nyembe was reported saying the company had an ambition to provide power supply to the national grid.
The corporation’s Managing Director (MD), Nick Jackson, in the consolidated report, disclosed that the sugar markets have been favourable over the past season. He said due to the prevailing fundamentals, this state should hold in the next financial year.
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