Phanes Group and partners were awarded the Nkhotakota project in May 2017 to use solar power to strengthen Malawi’s electricity infrastructure. The project is the first power purchase agreement (PPA) to be signed with Malawi’s national utility (ESCOM) and is targeted to be complete by March 2020. Currently, only 15% of the population has access to power, and the national capacity is estimated at 362MW. The new capacity added will make a significant contribution to the government’s target of increasing power access to 30% of the population by 2030.
Upon completion, the project will add 46MW of clean energy to the local power supply. The project was developed by UAE-based Phanes Group in collaboration with responsAbility Renewable Energy Holding and the Overseas Private Investment Corporation (OPIC). Phanes Group will work closely with its partners throughout the development process. According to Tracey Webb, OPIC Vice President for Structured Finance and Insurance, “This project will empower underserved communities in some of Africa’s poorest regions through access to affordable, reliable and diversified energy.”
The project will move Malawi away from relying on hydropower, which currently comprises over 95% of the country’s energy mix and has left the country vulnerable to droughts, particularly considering a recent drop in the water level of Lake Malawi which has threatened the region’s supply of power. The new plant will address this challenge and play a critical role in securing Malawi’s daytime electricity supply.
Joseph Nganga, MD at responsAbility Renewable Energy Holding said “Access to reliable and affordable electricity is a key prerequisite for economic development. When power is out, organizations either shoulder high opportunity costs from the last output, or resort to much costlier backup power, usually from diesel. Our aim in supporting this project is to simultaneously contribute to climate change mitigation and accelerate the development of Malawi.”
“Lack of power has been a real obstacle to Malawi’s social and economic development,” added Martin Haupts, CEO of Phanes Group’s “This project demonstrates that solar energy offers a viable path to bringing power to those communities which need it most. We are thankful for our partner’s responsibility and OPIC, who have been instrumental in realizing our aim to electrify new markets in Africa. We hope the Nkhotakota project will serve as a model for future private investment into the local solar sector”
Phanes Group will allocate some of its funds to CSR initiatives to different communities in the area. In partnership with these organizations, Phanes Group will provide structures for access to water and electrification of key community buildings. Additionally, the company will support activities to empower women in the community through increasing access to HIV testing and counseling and providing financial and business management training to women.
Amanda Mkhize
