ATI and KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ), launched the RLSF in 2017. The facility was created to help tackle climate change and attract investments by supporting renewable energy projects in Africa. The facility can be accessed by IPPs located in countries that sign onto RLSF’s Memorandum of Understanding (MoU). To date, seven countries have signed up – Benin, Burundi, Côte d’Ivoire, Madagascar, Malawi, Uganda and Zambia.
In addition to potential access to RLSF, IPPs operational in these countries are able to register for the Transparency Tool as the MoU entered into between ATI and the respective host governments and power utilities allows ATI to record and occasionally publish the payment information without breaching any confidentiality agreements in the PPAs and/ or government support documentation. IPPs interested in using the Transparency Tool are not charged.
QUOTE from Manuel Moses, Chief Executive Officer, ATI “We are excited to be in a position to publish the first country report from the Transparency Tool. The tremendous efforts made by the Government of Malawi along with various external stakeholders in improving the investment climate in Malawi’s power sector is bearing fruit as evidenced by ESCOM’s track record in meeting its payment obligations in a timely manner and the number of IPPs that are at an advanced stage in their development and construction. Going forward, we are confident that the publishing of similar reports in Malawi and in our other member countries will encourage greater investment in renewable energy projects by correcting a long held perception that African national power utilities do not pay operational IPPs on time.”
QUOTE from Mr Clement Kanyama, Acting Chief Executive Officer, ESCOM “The recent Power Sector reforms in Malawi have opened up participation of private investment in Power Generation, and Mulanje Hydro Limited (MHL) have been the first IPP to become operational with a long term PPA. ESCOM is delighted to be part of the success story in as far as timely payment of bills to MHL, is concerned. It is our intention to maintain the good payment record to MHL and other upcoming IPPs. As an off-taker, we appreciate the contribution that the MHL plant is making to the Malawi power Grid. The positive impact of the MHL plant to the local Grid, with extended contribution to the entire National Grid, is quite significant. MHL plant is contributing to reduced system losses, as it feeds directly into the Distribution Network, close to consumers. Its contribution to the national GDP is ten-fold comprising of taxes, salaries and spending on local goods, services and works. Malawi electricity industry is open!”
QUOTE from Ian McKersie, Managing Director, Mulanje Hydro Limited “Mulanje Hydro Limited have found ESCOM to be a very competent and reliable counterparty. The Ruo-Ndiza power station is the first IPP to come on line in Malawi and for ESCOM it is the first renewable electricity generator to have been commissioned into the national grid for many years. ESCOM have worked hard to minimise transmission outages. ESCOM have complied in full and on time with all their payment obligations as enshrined in the PPA. As an operator of other renewable generators in the region, it is gratifying to have an offtaker in ESCOM that fully understands and adheres to the terms of the agreed commercial contract.”
ATI will be hosting a virtual energy workshop which will focus on Malawi’s renewable energy sector, on Tuesday, 20th April, 2021 from 1500 – 1630hrs (CAT). A panel of private sector experts and representatives from the key government entities active in the sector has been lined up to discuss and explore the country’s renewable energy space. Please send an e-mail to firstname.lastname@example.org to receive the registration details for the virtual event .