SEC operates four hydropower stations; Maguga Hydropower Station, Ezulwini Hydropower Station, Edwaleni Hydropower Station, and Maguduza Hydropower Station all serving as peaking and emergency power stations.These stations have a combined installed generation capacity of 60.4 MW, and contribute (SEC´s internal generation) 15-17% of the total energy consumed in the country, with the rest imported largely from ESKOM in South Africa, and some from EDM in Mozambique.

SEC´s installed Hydro Capacity is distributed amongst the four power stations as follows:

1. Maguga Hydropower Station - 2 x 9.9 MW Hydro Units.
2. Ezulwini Hydropower Station - 2 x 10.0 MW Hydro Units.
3. Edwaleni Hydropower Station - 4 x 2.5 MW & 1 x 5.0 MW Hydro Units.
4. Maguduza Hydropower Station - 1 x 5.6 MW Hydro Unit.

Although SEC further owns 2 x 4.5 mw diesel engines at Edwaleni Power Station, however due to their high operational costs. It is no longer financially/Economically viable to operate them, also as such they are rarely operated.

The three power stations Ezulwini, Edwaleni and Maguduza are cascaded, with the Luphohlo Dam as the key water supply. The Dam is built on and is supplied by the Lusushwana River. Water supplied by the dam to the Ezulwini Hydropower station is utilised further down by the Edwaleni Hydropower Station, and then finally by the Maguduza Hydropower Station.

The Maguga Hydropower Station is supplied by the Maguga dam, which is operated by the Komati Basin Water Authority (KOBWA). The dam is built on and supplied by the Komati River. Since the primary function of the Maguga /Driekoppies Dam System is to supply water for irrigation and other usages downstream of the Dams, the Maguga Hydropower Station operation is guided by "Hydropower Operating Guidelines" agreed upon, and signed by both SEC and KOBWA.

Hydropower is a conventional renewable energy source which is cleaner, free from pollution and generally has a good environmental effect. One key operational advantage of Hydropower stations is that they can start generating power within minutes.

A Hydropower station utilises the potential energy of water stored in a dam higher than the power station by converting it into electric energy. The water flows through a high pressure conduit referred to as a penstock, into a water turbine, through a turbine runner, and discharged back into the river. As the water flows through the turbine runner, it spins the turbine shaft which drives the generator connected to it, thereby generating electricity which is then fed to the Transmission network.