K5.5bn Bwengu solar project launches

The Bwengu Solar Photovoltaic (PV) Project to be implemented by Quantel Renewable Energy has been launched in Mzimba District.

The project, which is in permitting stage, will be developed in single phase and full construction will begin later in the year.

It is also expected to enter into commercial operation in 2024.

Speaking during the launch of the project at Bwengu on Monday, Quantel chief executive officer Patridge Shycal hailed the project, saying it will help to ensure access to affordable, reliable and sustainable modern energy.

He said: “The project will have capacity to generate 50MW of photovoltaic energy, which may go up to 65MW per year translating into significant supply of clean and sustainable energy to homes and businesses in Malawi.

“We will commence pre-construction works, which is expected to be completed within nine to 12 months all things being equal. The power generated from the solar plant will be fed directly into the national grid via a direct connection point at Bwengu Sub-Station.”

However, Shycal said the project faces hiccups due to government’s delays to issue it with electricity transmission and connection permits.

The $65 million (about K5.5 billion) project, which sits on 105 hectares is also yet to resolve disagreements on land lease processes with government.

The company, which has partnered Vidullanka plc of Sri Lanka and Frontier Energy of Denmark, signed a Power Purchase Agreement with government in May 2019, which was renewed in May 2021.

Shycal said partners in the project are now finding it difficult to pump in resources because of the bottlenecks in clearing the permits with Capital Hill.

He said a quick resolution of the permits will give confidence to the investing partners.

“I appeal to the government and all relevant stakeholders to ensure that all outstanding permits and agreements are expedited to give comfort and confidence to the investing partners,” Shycal said.

On the land lease, he expressed concern that government has offered the firm to lease it for 20 years which he said was not adequate. Shycal said projects of such magnitude require up to about 50 years to ably recoup investment put into the project.

In his remarks, Ministry of Energy director of energy Joseph Kalowekamo said they will work with Treasury to ensure that all agreements are finalised soon.

He said: “It is my hope that Escom Limited will also assist the consortium in concluding the transmission, connection agreement. The Ministry of Lands will hopefully assist them by reconsidering the land lease agreement that was granted.

“These are issues that are critical in the execution of this project. We expect the consortium to do its best and stick to the time line.”

Power Market Limited chief executive officer Rosemary Mkandawire said the recent countrywide blackouts caused by Tropical Storm Ana are a manifestation of the effects of over dependency on hydropower.

The project becomes the second largest solar plant after the 60MW Salima JCM Solar PV plant.

Currently, hydropower is the main source of electricity in Malawi, generating nearly 90 percent of the power.