Page 6 - AfrElec Week 16 2022

AfrElec POLICY AfrElec

Malawi adds 3.4MW to grid but

faces longer periods of load

shedding after Aggreko exit

MALAWI MALAWI has added 3.4MW to its grid after its Steen said: “This project outputs about 8 600MW
power utility signed an agreement with an inde- hours per year. In addition to other advantages, it
pendent producer on Saturday (April 16), local will help to stabilise the grid on this side.”
daily The Nyasa Times reports. Malawi requires about 1,000MW but is pro-
Muloza hydro power station in southern ducing about 300MW from its installed capacity
Malawi came online just as President Lazarus of 441.95MW. The country experiences about six
Chakwera’s government decided not to renew hours of load shedding daily. Face of Malawi, a
a contract with independent power producer Lilongwe-based independent publication fore-
(IPP) Aggreko, thus taking 78MW off the casts the power cuts will increase to eight hours
network. after Aggreko’s exit.
Built by an IPP, Cedar Energy, and commis- A legislator, Werani Chilenga, told the paper
sioned in February 2021, the facility is set to cater that the government needed to devise a plan for
for over 2,800 rural households in three districts, bridging the gap in electricity generation in the
according to the newspaper. aftermath of Aggreko.
Minister of Energy Ibrahim Matola witnessed “We all wanted the Aggreko contract to end
the signing of the transmission connection as the company was overcharging the govern-
agreement between the Electricity Generation ment,” Face of Malawi quoted him as saying on
Company (EGENCO) and Cedar Energy after Tuesday (April 19).
which he switched on the feed to the national “But with the shutdown of Kapichira Power
grid. Station, the nation needs to have another candid
Speaking at the event, Matola said the govern- plan. As things stand, we are already experi-
ment recognises the work of IPPs in supporting encing six hours’ blackouts every day due to the
the national goal to generate 1,000MW by 2025. shutdown of Kapichira; now, if the nation loses
ESCOM chief executive officer Kamkwamba another 78mw, it means chaos in terms of power
Kumwenda said ESCOM is generating less supply in the country.”
power than required due to low output, was An audit carried out in 2019 showed that
worsened by the flooding of a key hydro facility Aggreko’s feed cost an average of K216/kWh
in January. ($0.265) compared to EGENCO’s hydro-gen-
“With limited generation capacity, the coun- erated power at K31.8/Kwh ($0.039). The audit
try is currently experiencing extensive load also noted that the purchasing cost of Aggreko’s
shedding due to the impact of Cyclone Anna power was more expensive than ESCOM’s elec-
which resulted in the loss of 130MW from Kapi- tricity selling price of K92.78/Kwh ($0.11) as of
chira Power Station,” he said, according to Nyasa June 30 2019.
Times. An electricity procurement parastatal, Power
“The coming of Cedar Energy will increase Market Limited however says the power outages
power supply and greatly improve quality of sup- will ease as new suppliers will be online within
ply to not only in Muloza but also to estates, busi- the next four months.
nesses, and residential premises to tea growing Villant Jana, the agency’s director of market-
and manufacturing districts of Thyolo, Mulanje ing and corporate services told the publication:
and Phalombe.” “At the end of this month, we will have 20mw
ESCOM is paying Cedar Energy $0,10/kWH from JCM Golomoti solar PV Plus Bess added to
for electricity from Muloza. In total, the com- the grid and 21 more megawatts from Selengeti
pany has invested $30mn in small hydros in the Nkhotakota project in May. On April 16, the grid
southern African country, generating 20MW, capacity increased with 3.06mw from Muloza
The Nation reported on Monday (April 18). Hydro project in Mulanje.”™
Cedar Energy technical director William

P6 www. NEWSBASE .com Week 16 21•April•2022