Electricity Supply Corporation of Malawi (ESCOM) Limited Board Chairperson, Honourable Gospel Kazako, has called for increased investments in energy, describing the sector as critical to the implementation of the Government’s Agriculture Tourism and Ministry (ATM) strategy.
Kazako said this during the signing ceremony for a Power Purchase Agreement (PPA) between ESCOM and Aspin Energy Limited, with the independent power producer (IPP) set to build, own and operate a 142 Megawatts LNG Gas Powered Generation Plant at Phalula in Balaka.
“Energy is very key. As you know the government has the ATM strategy. There is no way we are going to make headway if we are not going to sort out issues of energy…Energy is the lifeline of any economy,” the guest of honour said.
In his remarks, ESCOM Chief Executive Officer, Mr Kamkwamba Kumwenda, highlighted the challenges the power utility company faces managing electricity demand amid limited supply often resulting in load shedding of customer groups to protect the national grid.
“Thus the addition to the grid of 142 Megawatts from the proposed Phalula ssLNG Gas Powered Generation Plant will significantly increase the base load power supply. This means the grid power can supply and support additional and significantly large loads (customers) such as mining and manufacturing industries,” he said.
Speaking earlier, Aspin Energy Limited Board Chairperson, Reinford Mwangonde and the company’s CEO Emillio Matumbi, promised to deliver on their promise to contribute to the energy sector’s development.
“This Power Purchase Agreement is a milestone; a bridge between project development and implementation. By signing this PPA, Aspin is raising expectations of delivery and we hereby commit that we will deliver,” Matumbi said.
Gas-powered energy is more reliable as it is immune from adverse weather conditions such as heavy rains and flooding that affect hyrdopower and cloud cover that reduces solar power output.
Other ESCOM Board Members and players in the energy sector witnessed the ceremony.