The Lesotho Highlands Water project offers opportunities for mid to large scale hydropower development and several studies have been conducted on possible pumped-storage plants as well. It is estimated that the large-scale hydropower generation potential for Lesotho is approximately 450 MW.

Additionally, there is significant potential for small scale hydro as well as wind and solar energy. As to small scale hydro, there are currently four mini hydro-power stations in the mountains at Semonkong, Tlokoeng, Tsoelike and Mants'onyane. It is estimated that there are roughly other 20-40 sites avaiaible for exploitation with a combined potential of more than 20 MW. The situation in Lesotho is conducive to developing small hydropower systems due to adequate existing hydropower resources and a settlement pattern in rural areas that favours decentralised energy systems. The current legislation that allows independent power producers to generate electricity for the national grid and the creation of a National Rural Electrification Fund by the government is seen by the authors as facilitating the uptake of small hydropower technology. Feasibility studies have been completed on three preferred sites: Tlokoeng, Motete and Qacha’s Nek.