Mera optimistic on power investors


The Malawi Energy Regulatory Authority (Mera) has said the unbundling of the Electricity Supply Commission of Malawi (Escom) scheduled to commence next year will attract independent power producers.

A number of independent power producers are waiting for the process to roll out their projects.

Mera Board Chairperson DingiswayoJere said the process of unbundling Escom is progressing well with a completion target end of next year.


“The independent power producers will come in once the process is done. The new structure will allow for operations of these private investors unlike the current set up,” said Jere.

He said the process, which will see Escom split into two entities that will be responsible for generation, transmission and distribution, will provide for competitive environment among power producers who will be selling electricity to one company for supply.

He said a number of players are already waiting for the process and their coming in will boost the national generation capacity which will be enough for export through the Southern Africa Power Pool (SAPP).


“The coming in of the independent power producers is expected to increase the production of electricity and the country will even have excess power for export,” said Jere.

Meanwhile, Millennium Challenge Account (MCA) jointly with Ministry of Energy, Natural Resources and Environment who are championing the process on Wednesday hosted cabinet ministers at Bingu International Conference Centre for a briefing of the Escom unbundling process and the power compact implementation.

The MCA was also scheduled to host all members of parliament to a dinner for the same on Thursday with intent to woo support of the power sector restructuring.

The Power Market Restructuring involves Escom unbundling, establishment of single buyer of power, establishment of system and market operators, establishment of independent power producers, procurement process, redesign of regulatory process and methodologies and changes in the Electricity Act (2004). The unbundling of Escom is expected to be completed by June 30, 2016 and the other four areas should be completed by December 31, 2016.

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