Ministry of Energy Calls for Efficient Power Market in Malawi
The Ministry of Energy challenges ESCOM to establish an efficient and open power market to attract private sector participation.
Lilongwe, Malawi: The Ministry of Energy in Malawi has urged the Electricity Supply Corporation of Malawi (ESCOM) to create an efficient and open power market in the country, writes Chifundo Kudzula Gondwe.
Energy Minister Ibrahim Matola emphasised the need for ESCOM to buy electricity from independent power producers through a bidding process, following the handover of the single buyer licence from the Malawi Energy Regulatory Authority (MERA) in Lilongwe.
The dissolution of Power Market Limited (PML), which previously held the single buyer licence, prompted the return of the licence to ESCOM.
Minister Matola described the previous electricity buying process as redundant, with both PML and ESCOM fulfilling the same obligations.
He cautioned ESCOM officials against involving middlemen in the electricity procurement process and emphasised the importance of meeting the goal of supplying electricity nationwide.
Zacharia Ng’oma, the interim CEO of MERA, handed over the licence to ESCOM and highlighted the authority's expectation for ESCOM to adhere to the conditions associated with the single buyer licence.
He expressed confidence that ESCOM, as an experienced entity, would successfully fulfil its role.
ESCOM's Chief Operations Officer, Maxwel Mulimakwenda, responded to the concerns by assuring stakeholders of the entity's commitment to working diligently to achieve positive outcomes.
The implementation of the single buyer licence opens up opportunities for private sector participation, promotes competition, and drives investment in electricity generation in Malawi.
The establishment of an efficient and open power market will contribute to the realisation of Malawi's vision of attaining a capacity of 1,000 megawatts by 2030 in the national power grid.