Phanes Group and its partner responsAbility Renewable Energy Holding (rAREH) have announced that it has begun construction of the 21 MWp Nkhotakota solar power park in Malawi. The companies will sell the electricity to the state-owned Electricity Supply Corporation of Malawi under a 20-year power purchase agreement. The second phase of the project will increase the capacity of the solar PV plant to 37 MWp.
The current project is important for Malawi, as the country has an installed capacity of 400 MW, according to the government. Most of the electricity available in the national grid is generated by hydroelectric plants. With the drought experienced in many East African countries, Malawi has been facing enormous disruptions.
The development of the two phases of the project requires an investment of $40 million. The developers of the project are supported by the United States Development Finance Corporation. Phanes Group and rAREH have also received a $60 million guarantee from the Africa Trade Insurance Agency.
Hence the authorities’ policy to diversify the country’s electricity mix by heavily focus on solar energy. With an annual electricity production of 7 million kWh, it is estimated that the Nkhotakota solar power plant will be able to supply 200,000 local households, Minister of Energy in Malawi Newton Kambala said “Given the levels of electricity shortage we are experiencing in Malawi, from a generation perspective, 21 MWp (for the first phase) is significant as it will increase access to energy and improve the growth of the economy”.