Japan has made a commitment to help support the expansion of the Tedzani hydropower station on the Shire river in southern Malawi.

Malawi Finance Minister Maxwell Mkwezalamba says the project will increase the power generation capacity for Tedzani by 21.8 MW.

Under the agreement between the two governments, Japan will provide $1-million grant for the design component of the project.

Malawi, which generates over 98% of its power at sites on the Shire river, has an installed generation capacity of 351 MW, compared with total demand of 350 MW.

Mkwezalamba says it is important for Malawi, which recently launched the Kapichira 2 hydro- power station on the Shire river to add 64 MW to its power grid, to continue rolling out generation projects because the demand for power is growing rapidly.

“Demand for electricity in Malawi is projected to increase to 598 MW in 2015, 874 MW in 2020, 1 193 MW in 2025 and 1 597 MW in 2030,” says Mkwezala-mba.

The electricity supply situation in Malawi has been flagged as a factor deterring investment in the country. “Poor electricity supply has been recognised as one of the factors deterring investors and weakening the competitiveness of our local industries. The Tedzani expansion project is, therefore, an important step towards improving the country’s economic situation,” says Mkwezalamba.

Japanese ambassador to Malawi Shuichiro Nishioka says the Asian country is committed to assisting Malawi improve its power supply. “The current supply is on a par with demand. With the current and future investments in various sectors, including the mining industry, Malawi needs to invest in new projects that will increase its energy supply,” he says.

The Tedzani power station has a total generation capacity of 92.7MW, with Tedzani 1 and 2 producing 20 MW each and Tedzani 3 an additional 52.7MW.

Besides expanding the Tedzani power station, Malawi is pursuing other projects to increase electricity supply, which include construction of a thermal power station at Kammwamba, in the southern Neno district.