The Electricity Generation Company (Egenco) has indicated that it is facing a formidable hurdle in its quest to advance electricity generation and meet energy demand in the country.
In an interview, Egenco acting Chief Executive Officer Maxon Chitawo said the primary obstacle is funding.
He disclosed that Egenco is actively seeking partnerships and financing, both from international sources and domestic financiers, to fast-track their ambitious projects aimed at boosting energy production and creating employment opportunities for the people of Malawi.
“While our current generation capacity is sufficient to cater to present energy demands, the need to expand this capacity is paramount, especially with the influx of larger mining companies and other manufacturing businesses,” Chitawo said.
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Egenco’s expansion plans include a K15 billion project to enhance Wovwe hydro-power plant situated in the Northern Region.
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The plant, which currently generates 4.5 megawatts, will see its capacity doubled to 9 megawatts. This involves increasing the water intake and installing new turbines to augment power generation.
Additionally, Egenco is venturing into renewable energy with a K15 billion solar power plant project in Salima’s Nanjoka area.
Chitawo indicated that feasibility studies have been completed, a contractor secured, and an announcement regarding the project’s launch is expected next month.
“…Egenco is also exploring battery-based energy systems to make the most of surplus energy during off-peak hours, such as the night, and subsequently release it during peak demand hours in the morning. The proposed battery facilities will be located close to the turbines along the Shire River.
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“We are also conducting preliminary investigations at three sites along the Dwambazi River for potential hydro-power turbine installations,” Chitawo added.
President of the Renewable Energy Industries Association of Malawi (Reiama) Sosten Chigalu expressed concern about the paradox facing Malawi’s energy sector.
He highlighted that potential investors claim it is Malawi that hinders their entry into the market, despite possessing billions of dollars in investments earmarked for the energy sector.
“There is a need for a comprehensive examination of the challenges and opportunities for investors, financiers, and project developers. One wonders whether the issues stem from the quality of business plans and proposals, or if it’s a matter of the perception of Malawi as a risky market. All in all, we need a unified effort to find a solution to the issue,” Chigalu said.
Malawi presents a significant investment opportunity in the energy sector, with only 20 percent of the population having access to electricity, with only 12 percent connected to the national grid, leaving the remaining 80 percent as a potential market.
Meanwhile, Egenco donated K3 million to go towards Reiama annual energy conference which starts this Thursday.
Chitawo said the conference is essential to dissect emerging trends in the energy industry in Malawi which the company is a stakeholder in.
