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Another, unrelated fuel scandal has continued to unfold in the Malawian energy industry, following up the Anti-Corruption Bureau (ACB) investigation, opened in March 2020, into what has come to be known as ‘Dieselgate’, the theft of fuel from National Oil Company of Malawi (Nocma) meant for the ‘emergency’ diesel plants that have been operational in Malawi since 2018.

Progress on solar PV projects could reduce Electricity Supply Corporation of Malawi (Escom)’s reliance on emergency diesel generator sets, which remain the subject of controversy. African Energy understands that demand pressures mean Escom’s rental power deal with Aggreko Power Solutions was renewed for another year in mid-2021, but new solar PV capacity should come online in late 2021 and in 2022.

The 40MWac Nkhotakota solar PV plant in Malawi is on track to reach financial close later this year or early next year, in time to start operating in Q4 2022.

Cedar Energy is hoping to reach a power purchase agreement (PPA) with offtaker Power Market Ltd (PML) in the near future for its 3MW run-of-river project on the Muloza River in Mulanje District. Although construction of the plant in southern Malawi, near the border with Mozambique, was completed in February, it has yet to be formally commissioned as a result of complications stemming from recent market reforms.

Electricity Generation Company of Malawi (Egenco) has confirmed that Tedzani IV, the third expansion of the Tedzani hydropower plant, has been commissioned, four months ahead of schedule. Work on the 18MW project began in 2017, when Egenco contracted Japan’s Mitsubishi Corporation to build the plant, including a new powerhouse and individual water intake

IPP developers at the African Trade Insurance Agency’s 20 April forum on Malawi’s renewable energy sector generally expressed satisfaction with the business and regulatory environment, but some criticisms were aired – in particular, the implications of exchange controls loomed large. Ian McKersie of Mulanje Hydro – developer of Malawi’s first IPP, the 8.25MW Ruo-Ndiza hydropower scheme commissioned in 2019 – said that while it was “very keen to do more projects in Malawi”, exchange controls “posed a real problem” for IPPs. They “seriously need to be looked at”, because they will “continue to haunt these capital-intensive projects”, said McKersie.

After years of delay, things are moving forward in Malawi, with three solar IPPs set to commission this year – despite Covid-related problems – and new battery storage and wind projects expected by a reforming administration, writes Marc Howard In an unusual development for a country where economic and governance issues have for years served to delay investments, offtaker Power Market Ltd (PML)’s chief executive Rosemary Mkandawire has said Malawi had recently received “too many” applications from developers of solar power projects. The surge in interest comes as three independent power projects (IPPs) procured during a 2017 tender are due to be commissioned this year.

The 46MW Nkhotakota solar PV project has begun construction, following a ground-breaking ceremony in early April for the 26MW first phase in Malawi’s central region. Financing for the second 20MW phase is already lined up. The project was awarded to Phanes Group, ResponsAbility Renewable Energy and Natsons in a competitive bidding process.

National power utility Electricity Supply Corporation of Malawi (Escom) has come out well from the first report published by the African Trade Insurance Agency (ATI) and German development bank KfW’s Transparency Tool since its launch in 2019. The platform recorded Escom’s “impressive payment record” to Malawi’s only operational independent power producer (IPP), Mulanje Hydro’s 8.2MW run-of-river Ruo-Ndiza plant, for the 22,578 MWh of electricity supplied in 2020, ATI reported on 12 April.

InfraCo Africa and Canada’s JCM Power have launched construction of the 20MWp Golomoti solar PV project in Dedza district with a ground-breaking ceremony on 2 March. The on-grid plant will incorporate a 5MW/10MWh battery system, funded with a £2.1m ($2.9m) grant from the UK government. InfraCo will take a 25% stake in the project through equity financing.

InfraCo Africa, part of the Private Infrastructure Development Group, and Canada’s JCM Power announced on 2 March that construction would begin soon on the 20MWac Golomoti solar PV project in Malawi.

Power Africa is seeking projects offering off-grid energy access to improve the capabilities of healthcare facilities providing maternal and child health services in Kenya, Malawi, Nigeria, Senegal and Uganda. Grant funding will support the scale-up of existing business models or technologies for the electrification of healthcare facilities.

The African Trade Insurance Agency (ATI) has announced it is providing liquidity cover for the 37MW Nkhotakota solar PV plant. The cover is being provided through ATI and KfW’s Regional Liquidity Support Facility (RLSF). The $67m plant is one of Malawi’s first commercial-scale independent solar power projects. The payment risk guarantee is being issued for an initial tenor of ten years, after which ATI will have the option to review and renew the agreement.

Investors, contractors and financiers have been reassessing southern Africa’s potential to emerge as a natural gas producer, supply hub and importer of molecules and electrons for gas-to-power (GTP) schemes. Mozambique’s emergence as an LNG exporter gives it potential to develop new gas-based industry and infrastructure. Developments in southern Mozambique further suggest it could drive a wider regional industry, with more gas exported by pipeline.

The International Finance Corporation (IFC) has launched a request for proposals for a strategic investor in the 350MW Mpatamanga hydropower project on the Shire River. The IFC has been developing the project with the government from an early stage but intends to move forward on a public-private partnership with a strategic investor. A site visit will take place in April and documents and access to a data room can be requested through the project website www.mpathydro.com. KM Advisors LLC is the tender agent and can be contacted at [email protected].