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[BUSINESS] · Malawi · 2 sources

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Malawi targets end to power blackouts by December

Malawi is working to resolve its persistent power crisis, with Energy Minister Jean Mathanga stating that the country expects to stabilize the grid and reduce blackouts by December. The plan involves the arrival of critical spare parts this week to repair aging infrastructure and the commencement of imported electricity from Mozambique.

Currently, Malawi’s electricity generation is struggling; while the country has a production capability of 564MW, major producer Egenco has recently been producing approximately 370MW. The energy mix is heavily reliant on biomass and petroleum, with hydro-power accounting for roughly 70 percent of capacity.

Parallel to the technical crisis, Malawi’s energy sector faces governance challenges. The Secretary to the President and Cabinet currently chairs the boards of three state-owned entities that must negotiate with one another: Egenco, Escom, and Power Market Limited. Parliament’s Public Accounts Committee has flagged this arrangement as a conflict of interest, noting that it complicates negotiations regarding power purchase agreements, tariffs, and debt settlements between the utilities.

Entities

Electricity Generation Company (Egenco) Limited · Electricity Supply Corporation of Malawi (ESCOM) · Jean Mathanga · Malawi · Power Market Limited (PML)