Mining & Trade News

Construction works for the long awaited Mozambique – Malawi power interconnector are now ready to commence following the signing of the Implementation Agreement for a EUR 20-million grant that the European Union (EU) will provide for the project through German Development Bank (KfW).

Electricity Supply Corporation of Malawi (ESCOM) CEO Allexon Chiwaya penned the Agreement with officials of KfW.

“The signing of the agreement is an important milestone as it paves way for commencement of project implementation,” says Escom, EU, German Technical Cooperation (GIZ) and KFW in a joint statement.

Besides the EU support, the World Bank has earmarked US$ 15-million while the German Government through the KfW is contributing EUR 30-million to Mozambique’s power utility, EDM, for the construction works on the Mozambique side.

Through the 218 km long 400 kV transmission line, Malawi will start importing electricity from Mozambique and other Southern Africa Power Pool (SAPP) countries from 2023.

The statement reads: “The interconnector will see Malawi connecting to the SAPP for the first time since the nation became a member of SAPP in 1995 and expects the country to effectively upgrade its position from an observer to a fully operational member of SAPP.”

“The development will benefit the country as more clean energy will be supplied once the transmission line is functional.”

“The Increase and stabilization of power supply will significantly improve the access to clean energy for the private sector and consequently contribute towards sustainable economic growth.”

“Importantly, this clean energy will aid mitigation of climate change. As households will be supplied with adequate and reliable electricity each day, consumption of firewood and charcoal will be reduced.”

EU Ambassador to Malawi Sandra Paesen; German Ambassador to Malawi Juergen Borsch; and Senior Government of Malawi officials from both Ministry of Finance, Economic Planning and Development and; Ministry of Natural Resources, Energy and Mining witnessed the signing ceremony of the Agreement.

The Ambassadors bemoaned Government’s delays in the finalization of agreements with Independent Power Producers (IPPs) saying increased power availability and successful private investment in the energy sector attracts further investments in other sectors of the economy.

On the Malawi side, the interconnector will start at the 400 kV Phombeya substation in Balaka district and will traverse into Mozambique to connect to a new 400 kV Matambo substation in Tete province, in Mozambique.

The European Union (EU) Mission in Malawi has described the Mozambique-Malawi 400kV interconnector project as game-changer, saying it will link up Malawi’s energy grid to the regional electricity market of the Southern Africa Power Pool (SAPP) and facilitate trading as well as balancing of electricity among countries within the region.

EU Ambassador Sandra Paesan made the observation in a statement in which she hailed the ‘great things’ that happens when the EU and Malawi put their energy into joint projects.

Paesan said in partnership with KfW (the German Development Bank), the EU is supporting the Mozambique-Malawi 400kV interconnector project alongside other regional infrastructure initiatives aimed at boosting regional trade and economic growth.

Other initiatives that EU supports include the North-South M1 corridor in partnership with the European Investment Bank and the Nacala road corridor in partnership with African Development Bank.

She said currently lack of access to reliable power is preventing Malawi from realizing its full economic growth and development potential as businesses and people are affected by regular power cuts and high costs of power through diesel generators.

The ambassador noted that energy being one of the main drivers of inclusive and sustainable growth and jobs, Malawi needs reliable power supply if it were to achieve meaningful economic development.

In this vein, she explained that the interconnector project will provide Malawi’s business sector with more secure supply, which in turn will create an environment where business development can accelerate.
She also said having attained dependable power supply, there will be a multiply effect as growth in agricultural sector will benefit from new value chains that depend on a secure and affordable source of energy.

“A secure supply will further led to improved productivity as businesses will be in a position to operate uninterrupted while optimizing investments,” she said.

Paesan noted that Malawi’s energy infrastructure needs are quite substantial hence the need to attract private investment into the energy sector, particularly in renewable energy, to complement efforts from development partners.

She welcomed the initiative by the Malawi Government to procure 70MW of solar energy, saying it is in tandem with Africa-Europe Alliance and European External Investment Plan.

“Renewable Energy is the future and Malawi should fast-track the process of this initiative which started two years ago, so that the country realizes the benefits of such power investments,” she said.
The diplomat said European companies are ahead on the market when it comes to renewable energy investment and will be available to help Malawi in this respect.

“It is critical to continue our joint efforts to strengthen Malawi regional connectivity and infrastructure in view of supporting inclusive growth and development for all Malawians” said Paesen.
The EU recently organized a meeting with private firms in Blantyre, which discussed investment bottlenecks, including the prevailing energy woes.

attained dependable power supply, there will be a multiply effect as growth in agricultural sector will benefit from new value chains that depend on a secure and affordable source of energy.

“A secure supply will further led to improved productivity as businesses will be in a position to operate uninterrupted while optimizing investments,” she said.

Paesan noted that Malawi’s energy infrastructure needs are quite substantial hence the need to attract private investment into the energy sector, particularly in renewable energy, to complement efforts from development partners.

She welcomed the initiative by the Malawi Government to procure 70MW of solar energy, saying it is in tandem with Africa-Europe Alliance and European External Investment Plan.

“Renewable Energy is the future and Malawi should fast-track the process of this initiative which started two years ago, so that the country realizes the benefits of such power investments,” she said.
The diplomat said European companies are ahead on the market when it comes to renewable energy investment and will be available to help Malawi in this respect.

“It is critical to continue our joint efforts to strengthen Malawi regional connectivity and infrastructure in view of supporting inclusive growth and development for all Malawians” said Paesen.

The EU recently organized a meeting with private firms in Blantyre, which discussed investment bottlenecks, including the prevailing energy woes.

The Electricity Generation Company (EGENCO) will from September 8th to 10th host the 2019 African Hydro Symposium (AHS) at the newly built Sunbird Mount Soche Hotel’s SocheInternational Conference Centre in Blantyre.

The theme for this year’s symposium, which is the 29th, is “Quality Power for Sustainable Development in Africa.

Senior Public Relations Officer for EGENCO Moses Gwaza says in a Press Statement that EGENCO is currently inviting various organizations and individuals in the country to participate in the symposium which is a beneficial platform for sharing vital information with foreign hydro energy experts.

“The symposium which is held annually, is a regional forum where hydro power plant operating experts              representing various electricity utilities and Independent Power Producers (IPPs) in Africa, meet to share experiences and deliberate on developments, operations, maintenance and management of hydro power plants in the continent,” Gwaza explains.

He says the meeting will attract approximately 150 delegates from power utilities across Africa and some international stakeholders from various energy sectors, equipment manufacturers and suppliers from Europe, Asia and America.

Gwaza says the hosting of the great conference is a collaboration of both EGENCO and the Secretariat of the African Hydro Symposium based at Kafue Gorge Regional Training Centre in Zambia.

He urges organizations wishing to participate as joint sponsors and organizations in the power and related industries to register their individual employees as delegates to attend the symposium.

Meanwhile, various companies and organizations in the country have come up to provide financial assistance to the event.

The companies include the NICO Group which donated K4.5-million to the power utility for the event, which will explore strategies to develop the energy sector for economic growth.

EGENCO CEO William Liabunya thanked NICO for the support saying it manifests that the insurance company is a good corporate citizen who want to help EGENCO overcome the country’s power     generation woes.

The symposium will provide a room for sharing of viable ideas to move Africa’s electricity access from an average of 30 to 35%.

EGENCO was founded in 2017 as an electricity generation utility after the unbundling of the Electricity Supply Corporation of Malawi (Escom) into two entities with Escom responsible for power transmission and distribution.

The company, which recently launched its strategic plan, has planned a number of power generation projects including the construction of Mpatamanga hydro plant on Shire River.

EGENCO is seeking financing to execute the US$473-miillion project which will be supplying 309 MW to the national power grid.

German Consulting firm, Fichtner GmbH and CO KG, already conducted a feasibility study for the project with funding from the World Bank as part of the Energy Sector Support Project.

Besides Mpatamanga project, EGENCO is also sourcing funds for three other generation projects including the 138MW Kholombidzo Hydroelectric Power Plant which will be constructed on the Shire River upstream of Zalewa Bridge.

The US$511.5-million plant to be constructed over a period of 5.5 years will be uppermost in the cascade of the hydro-plants in the river.

Egenco is also planning to construct the 180MW Songwe Hydropower Plant on Songwe River through        cooperation between the Governments of Malawi and Tanzania.

The utility is also working on the expansion of Wvowe Mini Hydropower Scheme to add 4.5MW to the power grid.

EGENCO also plans to install a solar PV plant close to a load center at Nanjoka in Salima to maximize benefits to the national grid and satisfy the afternoon peak demand. The project scopes installation of a 20MW solar power plant to increase the generation capacity and introduce a diverse power mix in the generation system.

Trash interruption is the one of the contributing factors hindering power generation in the country so EGENCO is also conducting trash river diversion projects in many power stations on the Shire River.

In September 2017, the company commenced an 18 months project of dredging and diverting a tributary that was depositing a lot of slit at the Tedzani intake pond, a project that consumed about MK5-billion.

With funding from the US government energy compact through the Millennium Challenge Corporation, in January 2019 EGENCO acquired a brand new dredger for Kapichira power station to remove silt which covered over 70% of the generating dam.

Siltation lowers the water levels in the dams making it difficult to generate electricity matching the demand.

Currently the country has 406.6MW installed generation capacity but only 335.15MW is available to cater for 18.63 million people.

The utility’s hydro-power plants include Nkula A and B, Kapichira I and II, Tedzani I, II and III and Wovwe. 

EGENCO is also planning to construct a coal fired power plant as one way of diversifying the power sources.

The Malawi Energy Regulatory Authority (MERA) has established a new Installer’s Permit Committee (IPCO) and mini-grid egulatory framework which it has described as a vital tool in preventing accidents that occur due to poor electrical installation.

Board Chairperson for MERA KhwauliMsiska said at a sensitization workshop for the new framework in             Lilongwe that the revised electrical installation assessment framework recognises that installers are usually good at specific installations that need to be certified for the safety of the installed buildings.

He said in the old framework experience was missing as criteria for certifying installers but the new framework will be considering both experience and qualification as chances for upgrading and certification of the installers.

“In order to reduce incidences in form of fire, electrocution and equipment damage, those doing                installations need to be only those that have the right qualifications and experience,” Msiska said.

He urged all the electrical installers to acquire permits from MERA observing that many electrical installers in the country are operating without possession of valid permits which is putting people’s properties at high risk of catching electric fire.

Msiska also expressed concern over the existence of a number of mini-grids developed by both Government and non-governmental organizations which have been handed over to communities, without relevant training, on management, operation and maintenance.

 “You can agree with me that mostly ownership and organizational structures of the mini-grids are not clear and accountability and transparency procedures are not clearly defined, which presents challenges for authority institutions to manage supporting and regulatory structures,” he said.

Msiska said the new framework for mini-grids intends to achieve sustainable development and operation of the mini-grids in Malawi in strides towards providing modern energy to remote areas where grid extension does not offer an economically feasible extension solution.

He said MERA recognizes the significance of engaging Government and stakeholders in ensuring effective regulation of the energy sector and understanding on matters relating to the regulation of the mini-grids.

Msiska thanked United Nations Development Programme (UNDP) country office for financial support towards the development of the mini-grid framework.

“The preparation of the regulatory framework for mini-grids in Malawi was a commitment and devotion   from many stakeholders of whom we are highly grateful for their valuable contributions,” Msiska said.

Commenting on the development, an electrical contractor PempheroNazombe lauded the new framework saying it will assist experienced electrical engineers in upgrading their licenses.

“This workshop is important as the new permit has included experience as one of the aspects for one to upgrade while the past permit only centered on qualifications like university degrees leaving out the experience that one has,” Nazombe said.

He said the development will also assist in marketing brands of certified installers since organizations will be considering legal permits before deploying the contractor.

Nazombe pleaded with fellow electrical contractors to comply with the framework in so doing assist in preventing people’s properties from electrical accidents.

MERA is mandated to regulate the energy sector in Malawi in a fair, transparent, efficient and cost effective manner for the benefit of the consumers and operators.

The Electricity Generation Company (EGENCO) says it is exploring alternative power sources to supplement power that it currently generates from hydro-plants.

EGENCO CEO William Liabunya said in an interview at the launching ceremony of the Company’s 15 years strategic plan in Blantyre that EGENCO wants to have diverse sources of power in order to do away with load-shedding due to unsteady supply of power as the hydro sources are prone to climate change related problems including diminishing water levels in the Shire River.

Liabunya said: “There are a lot of avenues which EGENCO is exploring to boost electricity generation and one of them is diversification.”

 “We strongly believe it is time to diversify to other sources of power because as you are aware 90 % of the electricity being generated is hydro-electric power.”

“The biggest challenge we have is that each time the water level goes down, electricity generation is affected and in-turn power supply is affected. We, therefore, need to find alternative sources that are sufficient and reliable.”

Board Chairperson for Egenco Lloyd Muhara told Mining & Trade Review at the same function that as stated in its strategic plan, EGENCO will explore and promote the use of clean energy in order to deal with the problem of deforestation due to excessive use of biomass as a source of energy.

“We want to start generating reliable and diversified power by investing in new power plants in a sustainable manner,” he said.

In the plan, EGENCO has set an ambitious target of increasing its installed electricity generation capacity from 367.37 to 1,687.5 MW by 2033 and overcome the country’s electricity woes in 14 years. The strategic plan is for 2018 to 2033.

Meanwhile, the Economic Association of Malawi (ECAMA) has asked the Malawi Government to increase funding to the energy sector starting from the next budget in order for EGENCO and Electricity Supply Corporation of Malawi (Escom) to achieve their plans of ensuring stable and adequate supply of electricity.

ECAMA president, Chikumbutso Kalilombe made the statement during a pre-budget consultation meeting which was organized by the Ministry of Finance, Economic Planning and Development in Lilongwe and was presided over by Minister of Finance Joseph Mwanamveka.

Kalilombe said EGENCO’s ambitious plan to increase power generation will only be fully implemented with adequate funding.

“It is high time government invested directly into power production. Even if we do not sort out all woes now, we will have started,” he said.

He also said the government needs to be aggressive in its campaign to attract investors in power generation by speeding up the ongoing policy changes to accommodate independent power producers.

Malawi’s electricity demand is expected to grow to 600 MW in 2018, 950 MW in 2020, and 1,200 MW in 2025.

The energy sector spending as a percentage of GDP remained below one percent between years of 2016/17 and 2018/19, and is projected to average around one percent by 2030.

Though only less than 12% of the Malawi population is connected to the electricity grid, blackouts are the order of the day as Escom conducts a load shedding programme to ration power supply especially in dry season when water levels are low in Lake Malawi and the Shire River.

Various studies have identified lack of reliable power as the main factor hindering investment in major economic sectors including mining and manufacturing.

Egenco, which was born from the unbundling of Escom into two entities in order to enhance efficiency in the power sector, started its operations in 2017.

Since its formation, the Company has been active in carrying out maintenance and expansion of power plants including the Nkula A which has been modernized with funding from US’s Millennium Challenge Corporation.

EGENCO is also constructing Tedzani IV with funding from the Japanese Government and has planned a number of generation projects including the setting up of a coal fired power plant to generate 300MW.

Introduction

Currently several small wind power generators are installed and supplying power to Villages in Thyolo, Chiradzulu, Ntcheu, Nkhotakota, Nkhata Bay and Mzimba. Under this Village Electrification Project the total installed capacity is 132 kW of which 90 kW is from wind. The wind/solar hybrid installations are supplying up to 150 homes within a 2km radius in each village. However this shows that there is potential for large wind turbines which can generate electricity up to 5MW each.

Project Sites for Wind Power Generation

 – Lilongwe

Four sites were visited around Lilongwe old airport and Kamuzu international airport (KIA) where the Department of Climate Change and Meteorological Services has measured wind speed at 10 meter height for more than 10 years. Out of the four sites assessed, a place near Luke Daeyang Hospital was identified as potential site. The site is 12 km from Lilongwe; 2 km from the existing grid at Kanengo and the area is bounded by M1 road and the road going to Malawi Institute of Management. The average wind speed was 5M/s at the time of the visit to the site.

Ownership of the land is not yet known but it is suspected that it belongs to Kanengo Northgate Project. Efforts are underway to check with the Commissioner for Lands to determine ownership of that piece of land.  The site is near a hospital, but it is on the wind-ward side so the noise is unlikely to have much effect on the hospital. Adjacent to the hospital is a proposed site for a nursing school, but it is still recommended that the site should be assessed further because it is near to power grid, can easily be accessed by road and both the hospital and the nursing school are on the wind ward side.

Looking at the size of land available, it is recommended that four turbines of 2 MW each can be erected on this site making a total of 8 MW installed capacity. This is based on the fact that the spacing between adjacent wind turbine towers is 7-15 times the rotor diameter. This recommendation is based on the assumption that this piece of land stretches to the east where wind speed is anticipated to be the same.

 – Mzimba

A site in Mzimba was identified at Kanombo Hills, 8 km North West of MzimbaBoma. The site has an average wind speed of 8m/s at a height of 2 metres. The site is 8 km from the existing power grid at Mzimbaboma. The hills are under customary land therefore ownership of the land may not be an issue. Houses are far from the site and therefore there will be no effect of noise pollution on the population.

Based on the same principle that the spacing of wind turbines is done in relation to the rotor diameter, four turbines of 2 MW each can be erected on this site making a total of 8 MW installed capacity.

 – Mzuzu

Kaning’ina Hills were identified as a potential site for installation of wind turbines for power generation. The site has an average wind speed of 9m/s at 2 metres height. It is about 10 km from Mzuzu city and the existing grid.  Kaning’ina Hills are gazzetted under natural forest reserve hence the land is controlled by the Forestry Department. It is situated far from residential areas.

In view of these facts therefore, there will be no noise pollution effect on the population of Mzuzu City. The only problem would be the high cost of constructing access road to the top of the hills to deliver and maintain the wind turbines.

On this site, 5 turbines of 2 MW each can be erected giving a total of 10 MW installed capacity.

 – Chileka in Blantyre

Four sites around Chileka in Blantyre were visited and assessed. Out of the four sites, a place on top of the hills near Andiseni Primary School,  west of Chileka Airport, was identified as a potential site. The site is 20 km from Blantyre and 2 km from the existing power grid. The average wind speed is 3.5m/s.

The Andiseni Hill is under customary land which means ownership of the land for installation of wind turbines may not be a problem at this site. Houses are far from the site and therefore there will be no noise pollution effect on the population around Andiseni Primary School.

Two turbines of 2MW each can be erected on this site making a total of 4 MW installed capacity.

Malawi’s leading mineral sector consultants Akatswiri Mineral Resources in collaboration with Zomba-based Enviroconsult have successfully completed an environmental and social impact assessment (ESIA) study for oil exploration in Blocks 4 and 5, which are held by prospecting firm Rak Gas MB45.

The study, whose report has been submitted to the Department of Environmental Affairs for approval, involved community consultations in districts covered by the two blocks which include Machinga,        Mangochi, Dedza and Salima, and national consultations in the Capital City, Lilongwe.

Rak Gas contracted Akatswiri and Enviro-Consult to conduct the ESIA in preparation for seismic operations which will be conducted in the blocks to identify oil and gas traps.

Project Coordinator Hilton Banda says: “The seismic studies entail using a vibrator truck that sends a signal from the ground and recording truck to detect sediments and their depth. The technology uses geo phones mounted on the cable that transmits a signal to a computer.”

“There was, therefore, a need to undertake the ESIA to assess the environmental impact of the seismic exploration work and develop an environmental management plan that contains mitigation measures.”

Banda, who is CEO for Akatswiri, explains that the ESIA involved studies on Geology and Soils, Air Quality, Water and Hydrology, Waste Management, Noise and Vibrations, Transport and Energy needs, Flora, Fauna, Fish, Habitats and Land use, Archaeology and Cultural Heritage and Social Issues as key parameters that require baseline assessment in order to determine potential impacts and their mitigation approaches.

Geology and Soils

The Akatswiri CEO, who is a seasoned geologist, explains that the team conducted geological field mapping in which major lithological and soil units were mapped and sampled for subsequent mineralogical analysis.

He says the team recorded systematic measurements of structural features, field relations and cross-cutting relationships and in addition to field mapping they used existing geophysical data to interpret structural features which could not be seen on the ground as the ground is mostly covered by sediments.

The area is overlain by recent sediments of lacustrine in nature and has been affected by rift faulting which defines the Malawi Rift Valley. NE and NS trending faults, and shear zones present in the area may render critical insights into the structures which might trigger potential landslides or earthquakes.

The project site is dominated by the presence of marsh and agricultural soils. The soil fertility status is augmented through fertilisation to sustain crop production, and soils are moderately acidic.

“The impact assessment shows that the proposed project will have a low to moderate impact on the geology and soils in the study area,” Banda says.

Air quality

He says the air quality assessment was intended to characterize the existing environment and identify the environmental and social hazards associated with the seismic activities on air quality, assess the magnitude and significance of the risks (the likelihood of the hazard and the severity of the impact) and provide a description of the proposed control techniques to eliminate or mitigate the likelihood of the hazard or severity of the impact and development of plans / procedures to manage consequences of exceptional events.

“The results from the baseline survey show that levels of the major air quality parameters (total suspended particulate matter, SO2, NO2, CO and H2S) were below the guideline values according to Malawi Standards (MS737:2011) and World Health Organisation (WHO) guidelines. However, in most of the cases, levels of methane were noted to be significant, mainly arising from decomposition of livestock excreta,” he says. 

Hydrology and water quality

Banda says in order to assess hydrology and water   quality, water samples were collected from block 4 and 5 from boreholes, shallow wells, rivers and analyzed for physical-chemical parameters: temperature, pH, Total Dissolved Solutes (TDS), Electrical Conductivity (EC), Turbidity, F-, Cl-, NO3-, SO42-, carbonates, Na, Ca, Mg, Cu, Mn, Zn, K, and total hardness.

“The results were compared to the World Health Organization (WHO) and Malawi Bureau of Standards (MBS) standards to ascertain the water quality. Analysis of the data indicates that the major water quality parameters are deemed within guideline limits indicating that the water is generally unpolluted. The impact assessment shows that the proposed project will have a low to moderate impact on water resources in the study area,” Banda says. 

Waste Management

The ESIA Project Coordinator also assures that the   seismic surveys are not expected to generate waste streams with high environmental and social impact.

The common sources of waste streams pointed out in the study include presence of workforce, seismic survey activities and vehicle maintenance wastes.

Banda says the expected non-hazardous wastes include domestic wastes (garbage and sewage) and effluents, paper, line cables while hazardous wastes include pharmaceuticals, waste oils, spilled fuel and lubricants and used batteries. The potential impact of wastes is deterioration of water and soil quality affecting terrestrial and aquatic ecosystem (fauna and flora).

In mitigation, he says Rak Gas will implement a Waste Management Plan (WMP) in line with Open Government Partnership (OGP) guidelines for waste management (OGP, 1993; 2008).

Banda says: “As far as practicable, Rak Gas will use existing sanitary facilities in the target areas (otherwise mobile toilets should be used). Solid wastes will be segregated at source in terms of recyclable, reusable, biodegradable and non- biodegradable, hazardous and   non-hazardous, or disposal as appropriate. The Seismic Team will make sure that it does not leave behind any solid waste during the seismic activities.”

“Buffer zone distances between water and seismic lines, sanitary and biodegradable garbage pits will be observed as per International Association of Geophysical Contractors (IAGC) guidelines in order to protect the surface water bodies. Non-biodegradable, flammable wastes may be burned and the ashes buried with the non-flammable wastes. This burial should be at least one meter deep, with due consideration to the area’s water table.”

“All hazardous wastes will be isolated and collected for disposal in regulated municipal facilities. Although, the likelihood of major impacts from accidental spills is low, it is recommended to ensure that requirements of oil spill and emergency plans must be met before operations commence.”

Power utility Electricity Supply Corporation of Malawi (Escom) says it is making great strides in its preparations to start importing power from the Southern Africa region through the Mozambique – Malawi Power Interconnector.

CEO Alexon Chiwaya lauded the progress made on   the project after Escom signed five agreements with Mozambique power utility Electridade De Mozambique (EdM) to operationalize the interconnector.

The agreements include; Project Implementation, System Operating, System Maintenance, Wheeling and Power Purchasing.

The project will in its initial phase see Malawi importing 50 Megawatts (MW) from Mozambique.

Chiwaya said: “The signing of these agreements manifests that we are making satisfactory progress in the project.

“The Power Purchase Agreement (PPA) is for a period of five years while the Wheeling Agreement will take 20 years to cover the estimated period for the cost recovery of the investment for the line by EDM and renegotiation will take its course after the agreement period.”

Under the Wheeling Agreement, Escom will be paying EdM for the full cost of investment for the Mozambique portion of the interconnector, and the latter will in turn give Escom rights over the line.

He stressed that, if any other party wants to wheel power through the line, including EdM, appropriate      compensation will have to be worked out to Escom to offset the full cost that Escom will have been paying for the line.

Chiwaya also said though the project is intended to import 50 MW, the power demand-supply balance for Malawi shows that, due to delays in the implementation of major power supply projects in the country in the medium to long-term, Malawi will need to import about 200MW of power from Southern African Power Pool (SAPP) for two to three years after the interconnector is commissioned to cover the projected power supply deficit.

“Kindly be informed that ESCOM has already engaged ESKOM of South Africa on the proposed power imports for a short period of three years and required agreements are being drafted,” he said.

Chiwaya said availability of adequate power through the interconnector will make significant contribution to the growth of economic sectors in Malawi including manufacturing, agro-processing, the service sector and tourism.

He commended both EdM and Escom personnel for tirelessly working on the project preparations and responsible ministers from the two countries for the policy direction.

The CEO also thanked World Bank, German’s KfW, European Union and Norwegian Trust Fund for financial support towards the project.

“Let me assure the financiers and all stakeholders that we will sustain the investment and ensure that Malawi works towards attracting Southern Africa Development Committee (SADC) Member States to trade in power with the country,” he said.

Mozambique’s Minister for Mineral Resources and   Energy, Ernesto Tonela, said he was happy that the project that involved prolonged negotiations between the two countries has culminated into the signing of the necessary agreements.

“We will make sure that Mozambique exports power to Malawi and in future Malawi will also be able to export power to other countries as it connects to the power pool,” he said.

He assured Malawians that though the project will initially be selling 50 MW to Malawi his government is willing to increase supply according to Malawi’s demand.

The scope of the project is to interconnect Malawi-Mozambique power systems at 400kV through              transmission line from Matambo substation in Tete province in Mozambique to Phombeya substation in      Balaka District in Malawi.

The project will by default connect the nation to the SAPP thereby enabling the country to not only buy power from Mozambique but also from the Region.

The total distance from Matambo to Phombeya is 210km with 140km in Mozambique and 70km in Malawi.

The cost of the project is pegged at US$127-million, out of this US$$92-million will cater for the Mozambique side and US$35-million for Malawi.

Malawi, which depends on power generated from its hydro stations on the Shire River, is banking on the           interconnector to solve its power supply challenges emanating from low water levels.

Abstract

Malawi is a land of sunshine and areas of potential for solar energy installation span from north to south along valleys and lake shore region. Chitipa, Kasungu – Lilongwe Plain and the rift valley regions offer a lot of opportunities in investing in solar energy.

Solar energy installation is one way of improving Malawi’s energy mix to foster security of supply. Administrative procedures for obtaining licences and land need to be improved to ease the way of doing energy business. The paper provides initial data for investment decision making.

INTRODUCTION

Malawi continues to struggle to offer reliable and quality power supply. The Electricity Generation Company (Malawi) Limited (EGENCO) has an installed generation capacity of 406.6 MW out of which 335.15 MW is available. There has been a loss of about 165MW due to environmental degradation in the Shire River catchment area leading to low water levels and trash accumulation at hydro power plants.

In order to improve security of supply several solar power purchasing agreements (PPAs) with independent power producers have been signed to improve energy supply mix.

SOLAR ENERGY GENERATION

Solar Energy Generation was initially popularized by Mission Stations in rural areas. Government has installed solar systems in rural trading centres creating solar villages such as Chikweu in Machinga, Kansonga in Ntchisi, and Eswazini in Mzimba.

These targeted mostly key rural facilities such as Health Centers, Community Day Secondary Schools, and Community Halls. Solar Villages involving hybrid systems (Solar and Wind) were installed providing up to 21kW to provide power for a maximum of 150 homes. Even piped water supply systems were served by this hybrid system.

Recently the Japanese Government provided .83 MW of solar installation for electricity generation at Kamuzu International Airport in Lilongwe. Domestic installations are now common as a solution to prolonging load shedding of up to 10 hours experienced in most towns and cities.

Commercial supply of solar power systems are now encouraged.

Success of this initiative requires solar resource mapping so that large installations can be properly located. Detailed information on direct and diffuse radiation, sunshine days and periods of cloud cover help to appropriately size the large power generation solar systems. This solar resource assessment data is essential to understand the magnitude, geographic distribution, characteristics, and variability of the solar resources.

ESCOM is able to generate about 362 MW and has the capacity to accommodate 70MW of renewable energy in its grid. Off grid supplies are also viable.

AVAILABLE SOLAR DATA

The Department of Climate Change and Meteorological Services has recorded solar data for over 30 years using solar recording equipment.

Malawi has the most sunshine hours from April to November. The average annual sunshine hours of 7.5.

The World Bank did some solar resource mapping for Malawi between 2015 and 2018. The assessment was based on satellite-data analysis, global datasets and solar measurement at Chileka, Kasungu and Mzuzu.

There seems to be high levels of photovoltaic power potential in Chitipa, Karonga, Mzimba, Kasungu, Lilongwe, Salima, Ntcheu, Lake Chilwa area, Chikwawa and Nsanje.