Independent Power Producers (IPP) have responded to the ultimatum by Energy Minister Newton Kambala to either start working on their projects or risk termination of Power Purchase Agreements (PPA).
The minister issued the warning four months ago after noting that some IPPs were yet to commence projects years after signing agreements to start generating power and selling to consumers.
Speaking in an interview on Wednesday, the ministry’s spokesperson Saidi Banda said all IPPs, who were yet to commence their projects, had indicated that they would start their projects before the end of this year.
“All of them have responded to the call by the minister and, apart from JCM which already started in Salima, we have seen [that] Faness of Nkhotakota has secured funding for the power plants, H.E Power has also started their projects. So, those are just few but all of them have responded and have indicated deadlines as to when they will be finishing their projects,” Banda said.
The government signed PPAs with more than eight IPPs to add power to the country’s grid in a bid to meet the ever-growing demand for electricity.
Out of the eight, only Mulanje Hydro Power, Cedar Energy and JCM Power had initiated their projects.
Banda added that many IPPs attributed the delay to financing woes.
“Most of them have indicated that the hindrance was access to finances which has been ironed out because many of them have sourced funding,” he added.
Malawi has prolonged power woes emanating from over reliance on water as a power source which is facing problems due to climate change and siltation.
The IPPs, most of which are planting solar plants, are expected to add about 500 Megawatts to the country’s power grid.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.