UPDATE ON SOLAR PROJECTS THAT ESCOM IS UNDERTAKING WITH INDEPENDENT POWER PRODUCERS

The Electricity Supply Corporation of Malawi (ESCOM) Limited is informing the public that efforts to add solar power into the national grid are on course as per ESCOM’s road map.

To date, several Independent Power Producers (IPPs) have expressed interest to develop solar powered generation plants. Out of these IPPs, three have signed the PPAs with ESCOM while others are at various stages of negotiations.

ESCOM further wishes to advise that it follows due diligence including consulting and engaging various stakeholders such as: the Ministry of Natural Resources, Energy and Mining; the Ministry of Finance Economic Planning and Development, the Ministry of Justice and Constitutional Affairs and the Malawi Energy Regulatory Authority (MERA). MERA reviews and approves the PPAs and allows ESCOM and the IPP to sign the agreement.

In the due diligence, elements such as Feasibility Study Report and the Financial Model which covers Cost of the Plant, Cost of the Line connecting the Plant to the National Grid are reviewed. For instance, with JCM Salima PPA, the levelised tariff over the term of the PPA is at 8.483 cents per kWh.

The table below shows the progress made so far on the leading projects:

PROJECT NAME & TYPE CAPACITY (MW) CURRENT STATUS EXPECTED COMMISSIONING DATE
Salima JCM Solar PV 60 PPA Signed in September 2018 THIRD QUARTER 2019
Nkhotakota Phanes Solar PV 21 PPA Signed on 14th February 2019 THIRD QUARTER 2019
Kanengo Voltalia Solar PV 17.5 PPA negotiations underway THIRD QUARTER 2019
Golomoti JCM Solar PV 20 PPA Signed in September 2018 FOURTH QUARTER 2019
Kanengo Atlas Solar PV with storage 20 PPA negotiations concluded FOURTH QUARTER  2019
Power from Solar PV  (Total) 138.5    



It is ESCOM’s expectation that the solar powered electricity generation plants will supplement other sources such as hydro, thermal and wind in the energy mix.