The Electricity Supply Corporation of Malawi (Escom) has started implementing the K245 billion Millennium Challenge Account (MCA) Energy Compact project in the wake of continued long-hours blackouts across the country.
Malawians are battling with electricity power shortage as the sole utility provider has re-embarked on the load-shedding drive, reducing the hours consumers supposed to have electricity for their domestic and industrial use.
Meanwhile, Escom has begun the Mozambique-Malawi Power Interconnection Project under the MCA Energy Compact which will see the country connecting to the Southern Africa Power Pool (SAPP).
Escom engineers were in Mozambique last week to kick-start the project, and they visited Matambo substation in Tete, which will be the starting point of the 400KV line from Mozambique to Malawi.
Currently Escom generates 351 Mega Watts power generation which serve about 10 percent of Malawians. Government intends to increase power generation to than 2,500 Mega Watts in the next 5-10 years, which will serve about 30 percent of the population.
The $350.7 million (K245 billion) MCC Compact is a single-sector program designed to increase incomes and reduce poverty by revitalizing Malawi’s power sector and improving the availability, reliability, and quality of the power supply.
Meanwhile, about 31 independent power service companies have shown interest to help Escom in the energy sector. And recently, Parliament endorsed a bill to split Escom into two companies to improve its efficiency and revenue generation.
The split will fall under the Power Market Restructuring (PMR) which, among others, involves the unbundling or splitting of Escom into two Parastatals; one for generation of power and the other for transmission and distribution.