IPPs set to add 343MW to power grid by 2024

Electricity Supply Corporation of Malawi (Escom) says 11 independent power producers (IPPs) are expected to add 343.26 megawatts (MW) to the national grid by 2024

The IPPs have since been approved and signed power purchase agreements with the sole power supplier.

In an interview on Monday, Escom spokesperson Kitty Chingota confirmed that four IPPs are now operational and have added an additional 92MW to the national grid.

The IPPs are JCM’s Salima Solar Power Project  which has added 60MW and Golomoti Solar Project with 20MW, Mulanje Hydro Limited Ruo/Ndiza Hydro Project  with 8.2MW and Cedar Energy Limited’s hydro with 3.06MW.

She, however, said solar output depends on sunshine.

Said Chingota: “This time of the year, the output becomes erratic due to cloud cover. The rest are not connected yet.”

The other IPPs, with a planned operational date of 2023/24,  include HEP’s Mbongozi Hydro Power to add 41MW, Phanes Group’s Nkhotakota Solar Project with 21MW, Droege Energy Limited’s Mzimba Wind Farm with 50MW, Quantel’s Bwengu Solar Project, Atlas Energy’s Kanengo Solar with 20MW as well as Malawi Mozambique Interconnector which is expected to add 50MW.

In an interview, Malawi Energy Regulatory Authority consumer and public relations manager Fitina Khonje said in partnership with industry players and government, they facilitate an environment and processes that enable operators to establish themselves and contribute towards the country’s energy security.

“Indeed, given the electricity challenges, stakeholders and consumers desire expedition of efforts to increase supply,” she said.

However, energy expert and former Escom chief executive officer Kandi Padambo observed that some IPPs are not forthcoming to invest because many prospective investors have complained that electricity tariffs in Malawi are not cost-reflective and too low to recover long-run marginal costs of an investment cycle.

He said: “Our tariffs, which others from outside Malawi view as very low, are seen as very high by the average Malawian.

“This is the paradox we face in attracting investors to invest in our generation sector.”

In February this year, Ministry of Energy disclosed that following the review of the IPP framework,  those that were not making progress risked being automatically dumped.

Electricity Generation Company (Egenco) dislosed recently that it was having difficulties maintaining power supply on the national grid following the breakdown of Kapichira Hydro Power Station, which resulted in the loss of 130 MW.

Egenco said it needs about K18 billion to restore Kapichira Hydro Power Station, which was destroyed by Tropical Storm Ana.