Power Africa has supported the development of 98 megawatts (MW) of electricity generation projects in Malawi. In addition, various firms have received U.S. Embassy support to move transactions forward. The page below gives an overview of the energy sector in Malawi, explains Power Africa's involvement and lists Power Africa’s financially closed transactions in the country, some of which are already online and generating critical electricity supply for the people of Malawi.

Martha Murotho works as an engineer at EGENCO's Nkula Power Station in Malawi.

MALAWI ENERGY SECTOR OVERVIEW

Population: 18.14 million | WB Ease of Doing Business Index (¹): 109 | GDP (²): $7.07 billion

With a high population density, Malawi has one of the lowest per capita GDPs in the world. The country has the capacity to generate 439 megawatts (MW), though Malawi’s heavy reliance on large hydro is often constrained by drought and low water levels.

Malawi’s energy sector has gone through important sector reform efforts recently, including the unbundling of the national utility, the Electric Supply Company of Malawi (ESCOM) and the establishment of the Electricity Generation Company of Malawi (EGENCO). The restructuring of Malawi’s power market is underway, with strong investor interest and political will for Independent Power Producers (IPPs) to enter the market. Moving forward, there is high potential for solar and new hydro technologies to enter into the power market.

Power Africa is supporting three projects totalling 470 MWs, including 120 MWs of new solar PV generation and 350 MWs of new hydro. Construction of the 60 MW Salima Solar project started in March 2020, but is now on hold due to COVID-19. Power Africa is also supporting the development of the 350 MW Mpatamanga Hydro project, which is a Public Private Partnership; a PPA and Implementation agreement is expected to be approved before December 2020. Issues with transparent utility regulation, access to finance, and sustaining off-grid projects persist.

POWER AFRICA SUCCESS STORIES IN MALAWI

Performance Management Tweaks Boost Power Generation in Malawi

A plant operator at EGENCO’s Mapanga diesel generating plant in Blantyre, Malawi

Photo Credit: Power Africa

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USAID/Power Africa awarded $2 million in grant funding to solar home system (SHS) companies under the Power Africa SHS Kick-Starter Program for Malawi in 2019. One of the winning companies was Zuwa Energy, represented in this photo by David Mkandawir, Enifa Mituka, and Jones Ntaukira.

POWER AFRICA FINANCIALLY CLOSED TRANSACTIONS IN MALAWI

October 21, 2019

Nkula A Rehabilitation (Hydro – 12 MW)

Financial Close Date: 09/29/2015
Commercial Operations Date: 09/01/2018
Estimated Project Cost: $45M
Overview: Through the Nkula A project, the Electricity Company Malawi Limited (EGENCO) rehabilitated, upgraded, and modernized the Nkula A Hydropower Plant. The plant’s original nameplate capacity of 36 MW was restored from previous operations at 24 MW prior to the rehabilitation. Power Africa partner, the Millennium Challenge Corporation (MCC), provided support through the Millennium Challenge Account-Malawi which awarded the contract for the rehabilitation, upgrade, and modernization of the power plant to Andritz Hydro (Austria) in a joint venture with Mota Engil (Portugal).

JCM Salina Solar (Solar 60 MW)

Sources

1. https://www.doingbusiness.org/en/rankings 
2. https://data.worldbank.org/country/malawi 
3. https://www.africa-energy.com/database/datatool  
4. https://www.iea.org/reports/sdg7-data-and-projections/access-to-electricity