Page 13 - AfrElec Week 15 2021

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DIESEL Operational IPP 2020, were made on average 28 days after
ESCOM, Malawi’s national power utility, the invoicing date – within the 30 day credit
Sudan’s Ezra Power Plant made timely payments to the Ruo-Ndiza period provided in the Power Purchase
Agreement (PPA) entered into between
Hydroelectric power plant for 22,578 MWh of
announces operational electricity supplied to the utility throughout the two institutions. This is particularly
2020; The payments have been collected and
remarkable given the challenges faced by
shutdown of Juba Power recorded by the Transparency Tool, a joint power utilities in the region following the
initiative of ATI (www.ATI-aca.org) and KfW;
COVID-19 pandemic and will hopefully send
Plant This is the first report being published by the a positive message to potential investors in
Transparency Tool since its launch in 2019.
Malawi’s electricity sector.
Independent Power Producer Ezra The Transparency Tool, an online platform Launched in June 2019 at the African
Construction and Development Group that collects and provides information on Energy Forum (AEF) held in Portugal,
(ECDG) has issued a notice for the closure of the payments of national power utilities the Transparency Tool’s primary objective
its Juba Power Plant, a 33MW diesel fuel-fired to Independent Power Producers (IPPs) is to address the perceived poor payment
thermal power station that supplies electricity across sub-Saharan Africa, has recorded behaviour of African power utilities.
to South Sudan’s capital city. ECDG provided an impressive payment trend in Electricity Alongside the Regional Liquidity Support
a formal notice to H.E. Peter Marcello Nasir Supply Corporation of Malawi Limited Facility (RLSF), the Transparency Tool is
Jelenge, Minister of Energy and Dams, South (ESCOM). The utility’s payments were to the a key initiative in the ongoing partnership
Sudan, on 31 March 2021, stipulating that the Ruo-Ndiza hydroelectric power project, the between the African Trade Insurance Agency
company would be forced to halt operations country’s sole operational renewable energy (ATI) and the German Development Bank,
unless the U.S. dollar payments owed by the IPP. KfW, to encourage additional investments in
Ministry are made. The Ruo-Ndiza power project is an 8.2 renewable energy projects on the continent.
ECDG currently holds a Power Purchase MW Run-of-the-River plant in south-eastern The tool is developed and hosted by Dun &
Agreement with the government of the Malawi at the foot of Mt. Mulanje. Owned and Bradstreet (D&B).
Republic of South Sudan – signed in August managed by Mulanje Hydro Limited, it was
2017 – in which the state-owned electricity conceived and built by Nyangani Renewable
company, Juba Electric Distribution Company Energy (Pvt) Ltd, Zimbabwe’s largest IPP.
(JEDCO), is contractually obliged to pay The IPP has been supplying electricity to SOL AR
for purchased electricity in U.S. dollars. The the grid since reaching its Commercial
Ministry of Energy and Dams has failed to Operations Date (COD) in May 2019 and Saudi solar energy firm
make approximately 85% of the payments in 2020 delivered 22,578 MWh into the
owed over the last 15 months, with payments national grid. This is 1% of Malawi’s electricity Desert Technologies
failing to be made on time. generation equivalent to approximately
40,300 households. Electricity consumers (DT) has revealed plans
in the Mulanje area have commented very
favourably on the improved grid stability as a to provide large-scale
HYDRO result of the project location adding diversity
to the National power Grid. The project financing to electrify
Malawi’s ESCOM makes was developed on the site of an existing villages in the sub-Saharan
small powerhouse, first installed in 1934,
payments to Ruo-Ndiza HPP that supplied power to a tea farm and the
surrounding areas.
African Trade Insurance Agency (ATI)’s The payments by ESCOM to Mulanje region.
Transparency Tool Records ESCOM’s Hydro, for electricity generated and supplied Nour Mousa, founder and CEO of DT,
Impressive Payment Record to Malawi’s only between 1st January and 31st December discussed projects in solar PV and grid
connected electricity access across Nigeria
and other markets at a recent Nigerian online
event, among more than 200 high-level
decision-makers, market participants and
stakeholders from around the world.
During the conference, Mousa presented
the experience of DT with inspiring insights
and ideas. He said that the participation
of DT in the virtual event came from its
keenness and interest in the African and
Nigerian markets, with DT having significant
experience in providing solar PV products
and solutions to commercial and industrial
clients, as well as governmental and
nongovernmental organisations.
“DT is an independent, fully integrated
PV solar energy platform with a proven track

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