Business and Finance

Malawi’s power export potential at $150m—European Union

Malawi’s power export potential at $150m—European Union

By Kingsley Jassi:

Malawi is sitting on huge energy generation potential with prospects of exporting $150 million worth of electricity through the Southern Africa Power Pool market, the European Union (EU) has said.

Deputy Director General for International Partnerships at the EU Commission Myriam Ferran disclosed this during a media briefing on the sidelines of the Malawi-EU Investment forum in Lilongwe.

She said a study by the EU found that this could be achieved if projects on generation and transmission lines could be finalised.

She was discussing Malawi’s on-going struggles with exports, saying besides focusing on the agriculture sector, the power sector also possesses huge potential beyond domestic supply, sufficient to generate forex by supplying power to the neighbouring countries.

Ferran said the EU is supporting the country through various existing and other prospective projects in the pipeline, citing involvement in the Mpatamanga Hydro Power Project with potential to produce 350 megawatts.

“The ultimate goal is to connect Malawi to Mozambique, Zambia and the region to be in a position to export excess electricity to neighbouring countries.

However, Ferran said the EU is assisting Malawi to develop a robust clean energy ecosystem that is sustainable looking at generation, transmission and interconnection.

The EU is supporting public and private sector-led projects in those areas and in power generation. The projects are in solar and hydro power, including the Mpatamanga Hydro Power Project along the Shire River which is also being supported, largely by the World Bank.

Meanwhile, at the investment forum, the Ministry of Energy pitched several power projects to the investors and financiers and among them include the $500 million Kholombidzo hydro power project.

“The kholombidzo hydro power plant is a promise, a promise to deliver 140 megawatts of clean, reliable and affordable electricity, transforming the lives of millions. It is a beacon of our commitment to sustainable development, aligning with global and the EU’s ambition for a greener future,” the presentation reads.

With energy demand rising and future demand threatening the supply adequacy in the near future Malawi needs to increase generation capacity and the government is racing against the next year target of increasing the power supply to 1000 megawatts by 2025.