The Electricity Supply Corporation of Malawi (Escom) has entered into talks with various prospective Independent Power Producers (IPPs) which are expected to lead to the signing of Power Purchasing Agreements (PPAs) between the stateown company and the investors.<\/p>\n
Escom public relations officer, George Mituka, confirmed on Tuesda that there are several private companies that have approached Escom to invest in power production and sell directly to Escom as an off-taker.<\/p>\n
He said negotiations with a number of IPPs are at an advanced stage and that Escom expects to sign agreements units a number of the companies \u201cwithin the very near future\u201d.<\/p>\n
\u201cThe process involved is not simple. There is the reviewing of the IPP\u2019s proposal, then drafting of a PPA and then negotiating the terms and conditions of the PPA before signing,\u201d said Mituka.<\/p>\n
\u201cBefore this process, the government signs a Memorandum of Understanding with the prospective investor. Within the process, our regulator, Malawi Energy Regulatory Authority (MERA) conducts a due diligence on the PPA before approving agreement in general and the IPP\u2019s proposed tariff in particular,\u201d he said.<\/p>\n
He said the process is long and cannot be done overnight.<\/p>\n
\u201cThings like IPP\u2019s capacity, Escom\u2019s capacity to handle additions, tariff proposals and others all have to be seriously looked into,\u201d said Mituka.<\/p>\n
On whether Escom is afraid of competition hence the delays in signing of the PPAs, Mituka said there is no question of competition.<\/p>\n
\u201cThe IPPs will be selling their power to Escom and if anything, they will be competing amongst themselves. As such Escom will buy from the most competitive of the lot,\u201d he said.<\/p>\n
He said Escom welcomes the IPPs as they will provide to the corporation and the country an increased supply of power, which is lacking now.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Electricity Supply Corporation of Malawi (Escom) has entered into talks with various prospective Independent Power Producers (IPPs) which are expected to lead to the signing of Power Purchasing Agreements (PPAs) between the stateown company and the investors. Escom public relations officer, George Mituka, confirmed on Tuesda that there are several private companies that have […]<\/p>\n","protected":false},"author":3,"featured_media":12561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/13093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=13093"}],"version-history":[{"count":0,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/13093\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/12561"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=13093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=13093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=13093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}