Malawi plans to increase the country’s power generation capacity from the current 351 MW to 800 MW in the next three years.
The additional capacity will be installed by the Electricity Supply Corporation of Malawi (Escom) and independent power producers (IPPs), according to Natural Resources, Energy and Mining Minister Atupele Muluzi.
He explains that the government of Japan has given Malawi a grant to finance the construction of a 21 MW hydropower plant at Tedzani, on the Shire river, which is scheduled to start this month.
The Japanese will also finance the construction of a 120 MW solar power plant.
“The solar project will be completed in 2016 and is crucial in Malawi’s quest to diversify its sources of power,” says Muluzi.
He also reports that IPPs have committed to start producing a total of 500 MW to help Malawi increase its current generation capacity by 500 MW by 2018.
The IPPs include Australia’s Intra Energy, which is constructing a 120 MW coal-fired power plant at Chipoka, in the lakeshore district of Salima. China Gezhouba is also building a coal-fired power plant at Kammwamba, in the southern Neno district.
The Malawi government has also registered an IPP called HE Power, which plans to produce 41 MW of hydroelectricity from the Bua river.
Says Muluzi: “The timescales are pressing and investments need to be brought forward. We are experiencing an overwhelming and unprecedented interest from potential investors in power generation.
“In response to these developments, my Ministry is establishing a public–private partnership process rapidly so that we can secure inward investment and support in the next 12 months.”
Malawi’s current power demand is pegged at 350 MW, compared with an installed generation capacity of 351 MW, but demand is growing rapidly, owing to the development of mining projects in what was traditionally an agricultural country.
Malawi is also pursuing projects to interconnect its power grid with those of neighbouring countries, notably Mozambique and Zambia, to become an operating member of the Southern Africa Power Pool.
The country has also launched a project to rehabilitate its ageing power stations, including Nkula A and B, and improve its power distribution network with funding from a $350-million grant from the US’s Millennium Challenge Corporation.