Page 70 - 41st Summit Brochure

A New Era in
68 A New Era in Power Generation

The establishment of the Electricity Generation Company (Malawi) Limited (EGENCO) has seen improved power generation in
The establishment of the Electricity Generation C ompan y (Mala wi) Limit ed (E GENC O ) has seen impro v ed po wer generation in
Malawi, which experts believe, will spur economic and social development of the country.
For over a year now electricity generation and supply in Malawi has tremendously improved with Industries and households having
power 24hrs every day. This is despite the threat of Covid 19 pandemic which has disrupted business across the globe. This is also in
sharp contrast to previous years when power would go off for over 24hrs thereby suffocating industrial growth and social service
delivery.

The improvement in power generation and supply has been attributed to among other factors improved water management (since
91% of the power is from hydro); dredging and expansion of silted station ponds; machine rehabilitation, modernization and
uprating of some of the aged power plants. Commissioning of new power plants such as the Tedzani IV; installation of peaking diesel
generators; and overall improvement in machine maintenance and maximum and efficient resources utilization. For a longtime,
electricity generation and supply has been cited as one of the bottlenecks to doing business in Malawi. With the improved electricity
generation and supply, it is believed that this will ease the cost of doing business in Malawi and provides an opportunity for investors
to come in the country and invest.
EGENCO developed and launched a 15-year Strategic Plan a year after its establishment. The 15 year (2018-2033), EGENCO’s Strategic
Plan, which seeks to increase the country’s installed capacity from 367.3 megawatts in 2017 to 1,631 megawatts by 2033, is
providing strategic direction for company’s power increase drive. So far, there has been commendable progress towards realizing this
goal with installed capacity moving from 367.3MW inn 2017 to now 442MW in 2021. It is envisaged that when we complete the
350MW Mpatamanga hydropower project and the 300MW Kamwamba Coal plant will tremendously increase the country’s power
generation capacity.

In his address at the inauguration ceremony of the new Power Station of Tedzani IV, Malawi President Dr. Lazarus Chakwera
stressed that electricity is very crucial for national development and in fulfilling the country’s vision.

“If we don’t get things right in our generation and power supply service, it will have a knock-on effect on our vision to create jobs,
create wealth, and create food security. The indispensability of electricity to our vision is indisputable.” Said the President.
President Chakwera further said that 1000 Megawatts will be added to the national grid over the next four years and that the
commissioning of Tedzani IV meant 19 Megawatts down and 981 to go.
EGENCO was incorporated on 9th September 2016 as a public company under the Companies Act (Cap 46:03) and started its full
operations on 1st January 2017. This followed implementation of Power Sector Reform Programme which also allowed
Independent Power Producers (IPPs) to operate in the country.

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