The Royal Eswatini Sugar Corporation Limited (RES) has announced that it will officially commence its long-awaited alternative energy project in July 2025, marking a key step toward sustainable energy production and diversification of its operations.
The project was initially scheduled for implementation in the 2023/24 financial year and was deferred twice due to resource constraints in the renewable energy market.
RES had committed to investing over E200 million into the renewable energy initiative, as outlined in its 2022/23 Integrated Annual Report. The investment aims to enhance energy security and ensure long-term sustainability.
The initiative aligns with RES’s strategic vision to become energy self-sufficient, reduce its carbon footprint, and expand generation capacity to supply the national grid.
The project approved by the RES Board in March 2023 will be developed through an Engineering Procurement and Construction (EPC) contract and will be grid-connected, utilizing ground-mounted single-axis tracking structures. It will have a capacity of 12.94 MWdc, with a guaranteed point of connection (POC) capacity of 10 MWac, and an annual energy output of over 22 GWh.
According to the Group’s latest financial results for the year ended 31 March 2025, the delay was mainly due to high market demand and limited supply following a surge in large-scale solar installations in neighboring South Africa during 2024/25
RES has now confirmed that all preliminary processes and approvals necessary to launch the renewable energy initiative have been finalized, with the official start expected in the first quarter of the 2025/26 financial year.
As part of its renewed commitment to sustainability and long-term energy independence, the Group has allocated E32 million in its 2025/26 budget for research and development.
This investment will focus on two main areas: large-scale renewable energy production and diversification of the alcohol product line, including expanding ethanol-based offerings.
This move comes at a time when sugar producers across the region are facing a combination of below-inflation price increases, tightening market conditions, and exchange rate volatility. In this environment, energy diversification is both a sustainability imperative and a competitive advantage.
While no new growth or efficiency projects have been approved for the upcoming year, RES has emphasized that this is a deliberate pause.
The Group is currently “scrubbing” or re-evaluating its energy configurations to determine the best alignment between its sugar mills and future power stations. According to the company, any future capital expenditures will be carefully weighed against operational efficiency and long-term value creation.