Electricity Generation Co Malawi (EGENCO)

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

R E VO L U T I O N I S I N G M A L AW I ’ S E N E R GY S E C TO R EGENCO is working towards a bright future in sustainable power supply. We speak to William Liabunya, CEO, who tells us more about the landscape of energy production for the nation Writer: Ed Budds | Project Manager: Joshua Mann

2 | Africa Outlook issue 96

E

lectricity Generation Company Malawi (EGENCO) is making huge strides towards a better, more sustainable future in Malawi’s energy sector. The company is currently playing a leading role in expanding the nation’s electricity generation capacity, through a range of exciting and ambitious projects.

We take a detailed look at achieving sustainability, key priorities for 2022, and overcoming the many challenges faced in the energy sector such as the destruction of power plants caused by several brutal cyclone disasters.

After graduating from the University of Malawi in 1993, William Liabunya joined the Ministry of Energy and Mining for six years, before moving to the Electricity Supply Corporation of Malawi (ESCOM), the state-owned utility that at that time oversaw generation, transmission, and distribution of electricity in Malawi. From a maintenance engineer, he then rose swiftly through the ranks to become a Power Station Manager. When The Electricity Act was amended to allow for more players in the energy industry, which Africa Outlook issue 96 | 3

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

also resulted in EGENCO being responsible for power generation, he was appointed CEO for the company in January 2017. He now draws on 29 years of varied engineering experience, 24 of which came in the electricity industry.

Liabunya tells us that, “Malawi has fallen behind in power generation with one of the lowest electrification rates in Africa for a long time,” and he therefore channels this into the source of his motivation, especially as he has been given the opportunity to be central to future electricity generation development.

He further tells us, “I am excited to help increase capacity in the country and witness the sustainability of our generation.

“There is much more that we can do as a nation to ensure that we are adequately supplied with power.

EGENCO was an opportunity to fulfil

a personal ambition and revolutionise Malawi’s energy sector for the benefit of its people and economy. “ Liabunya firmly believes the current state of the energy sector in Malawi is both exciting and challenging. On the positive front, it is compelling because the government has opened the industry so that independent power producers (IPPs) can now sell to Single Buyers and to ESCOM, which is responsible for just transmission and distribution. EGENCO, while still government-owned, is one of these new entities able to sell power to the grid. The competition in general is excellent for national development.

On the other hand, EGENCO is still unable to generate enough power to meet the growing demand. The main source of power is hydro (90 percent) and has been severely affected by climatic change, as the rainfall pattern in the country has been severely

EGENCO - UPCOMING PROJECTS There are many projects that are under implementation, as follows: KAPICHIRA DREDGING –The project has helped EGENCO reclaim lost active water reservoir capacity at Kapichira Hydro Power Station.

NKULA CAPITAL DREDGING - EGENCO also engaged Motal Engil to carry out capital dredging at Nkula power station pond. This has helped in claiming the lost active storage at the dam due to heavy siltation.

KAMMWAMBA COAL-FIRED PROJECT - In line with the strategic direction of diversifying power sources, the company embarked on the Kammwamba coal-fired power plant project, envisaged to increase the baseload.

WOVWE EXPANSION - A feasibility study to investigate the flow of Wovwe River and validate the possibility of adding more units at existing power stations.

Aquarius Systems The diversity among African countries is immense, from climate to culture to natural resources. But one element that all African countries have in common is the challenge of water management. The challenges can range anywhere from water scarcity to catastrophic flooding.

Another common element is how land use affects African lakes, rivers and reservoirs. Human activities on land directly impact the waterways by feeding sediments, nutrients and pollutants into the system. These inputs change the natural conditions of the waterway, resulting in a variety of issues.

One problem in African waterways is caused by the presence of too many nutrients. The nutrients can fuel explosive growth of invasive aquatic plants. Infestations of nonnative weeds, like the floating water hyacinth, can impact navigation, fishing, and hydropower production.

In arid regions, water hyacinth contributes to water scarcity as well.

It happens through a process called evapotranspiration, whereby the plant vaporises the surface water and transfers it into the atmosphere.

For 30 years Aquarius Systems has been expertly assisting African water managers to confront aquatic weed infestations. Customers from Cote D’Ivoire to Malawi to Kenya have successfully used our Aquatic Vegetation Shredders, Aquatic Plant Harvesters, and support equipment to manage and restore their waterways to usable condition. Aquarius Systems understands the aquatic environments across Africa and provides water managers with the solutions they require.

SALIMA SOLAR - A project for solar in Salima. On 28th October 2021 EGENCO signed a contract with a Chinese firm called Chint Electric to develop the first 10 MW of the scalable 50 MW project which will have battery storage capacity.

350MW MPATAMANGA PROJECT - EGENCO is one of the investment participants in the Mpatamanga project. This is a 350MW hydropower plant.

50MW COMBINED CYCLE GAS TURBINE - EGENCO is conducting a feasibility study for the Development of a 50MW Combined Cycle Gas Turbine, which would diversify the energy mix.

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4 | Africa Outlook issue 96

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Macsteel Malawi Ltd Macsteel Malawi Ltd exists to supply quality steel, wire, fencing, engineering and roofing products to the construction industry.

Established in 1966, Macsteel Malawi is owned 50-50 by Press Corporation Ltd and Macsteel Group South Africa. Macsteel Malawi is the largest and leading manufacturer of wire products & roofing sheets, and the biggest distributor of reinforcing steel in Malawi.

Kapichira dam before Cyclona Ana damage

Amongst the big steel distribution projects recently supplied, is none other than 3,500 tons of steel for the magnificent EGENCO plant at Tedzani. At Macsteel, we take pride in our superior product quality, range and our efficient service delivery at all times.

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Damaged Kapichira Dam after Cyclone Ana

declining in recent years. In addition, lately Malawi has been battling cyclones that are affecting power generation because of flash floods that resulted in the destruction of key power infrastructure in both 2019 and 2022. Liabunya adds that, “this year in fact has been the worst because as we speak, we have lost Kapichira Power Station which is responsible for 30 percent of our installed capacity resulting in the country experiencing damaging load shedding.”

Starting its full-scale operations on 1st January 2017, EGENCO emerged as a result of the unbundling of ESCOM, as part of the Power Sector Reform Programme. Owned by the Government of Malawi with shareholding by the Secretary to Treasury and Secretary to President and Cabinet, the company is the leading power producer in Malawi, with an installed capacity of 442.85 megawatts (MW). The mandate is to both generate and sell power 6 | Africa Outlook issue 96

predominantly to the single buyer.

Liabunya believes strongly that the biggest difference separating EGENCO from the competition and the other IPPs joining the industry is that firstly; they are a government owned company. This means operating the power plant with the aim of serving the Malawi nation and contributing to the economy of the country. Secondly, EGENCO is different because of a vast experience in running power stations, more specifically the hydro stations. He explains how, “our approach to business also sets us apart because we are results oriented and we want to generate power for the people now, whilst also looking at the future.”

Sustainability is evidently at the core of the business. For example, while other competitors in the industry are installing power plants without battery backup, EGENCO’s solar plants have battery backup to ensure that the nation’s grid system

Amotech Africa The Amotech Africa and EGENCO partnership was forged in 2017. We have, for the last five years, seen EGENCO’s willingness to invest in quality test and measurement solutions.

Amotech Africa is proud to have enabled EGENCO to safeguard its assets and enhance safety in the workplace. Through continuous training and technical support we believe we will empower the EGENCO team to deliver on their mandate of generating power for generations.

Congratulations for the milestones achieved so far. As a partner we believe we have only scratched the surface and look forward to a continued collaborative partnership with EGENCO.

T +254 709 223 344 E info@amotechafrica.com www.amotechafrica.com

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

M AL AW I

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With our headquarters in Nairobi, Kenya we have a presence in Uganda, Rwanda, Tanzania, Burundi, Malawi, Zambia, Ethiopia, Sudan and Congo. +254 709 223 344 info@amotechafrica.com

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Africa Outlook issue 96 | 7

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

NICO General NICO General has played a pivotal role in securing risks of EGENCO through tailor made Insurance policies that have mitigated its risk and hence allowed the energy giant to focus on its long-term plan of doubling electricity generation within the next 10 years.

Over the past 50 years, the group has been a key partner of energy production and supply by providing various financial solutions to aide in the growth and development of the sector.

From the establishment of EGENCO as a stand-alone entity in 2017 NICO is proud to have been part of this landmark transition, which has seen energy generation growing from 364MW to 442MW in the last five years.

www.nicomw.com Rehabilitated Nkula A Power Plants

is stable and is operated without disturbances. “Our competitors are investing in quick fix solutions like solar and diesel plants, while our main power source is hydro which is base load.”

There are several ongoing projects as part of a strategic plan, aiming to double power generation in Malawi by 2033, providing a road map to guide all work. The strategic plan is in tandem with the National Energy Policy of 2016 and the Integrated Resource Plan of 2017.

EGENCO has also built up an impressive list of completed projects in recent times. “We completed the dredging project (removing of silt from the dam), expansion and river training (diverting a river that was bringing silt and trash at the pond) at Tedzani power station. The project started in September 2018 and was completed in 2020 taking a total of 18 months. The lost live storage capacity of the dam due to siltation was 8 | Africa Outlook issue 96

“ T H E C O M P A N Y I S C R E AT I N G A B E T T E R T O M O R R O W F O R M A L AW I T H R O U G H I M P L E M E N TAT I O N O F S U S TA I N A B L E E L E C T R I C I T Y P R O J E C T S F O R T H E N AT I O N ” – W I L L I A M L I A B U N YA , C E O , E G E N C O

reclaimed. The expansion of the dam and the reclaimed capacity means that we can keep more water at the pond. This means that we can run the machines at full capacity for longer hours during peak periods resulting in increased capacity.”

There is also Tedzani III. “This project was about rehabilitation, modernisation and uprating Tedzani III. The project has made the machines more efficient and more reliable and has added 10MW to the national grid.”

And a final example is Kanengo Diesel Phase II. “This scheme was part of the peaking plant project and was completed having added new diesel

generators. It was commissioned in December 2019 and has so far added 10 MW to the grid.”

Projects aside, Liabunya believes the most important development is the entrance of EGENCO on the power market in Malawi, which has significantly contributed to the end of power load shedding in the country.

A further accomplishment worth noting is that the company has for the first time managed to bring total electricity to the islands of Likoma and Chizumulu after 19 years of unreliable power generation and supply on these two major tourist attractions.

A vital component of running a

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

The natural way to transport goods to and from Malawi

combine@combinecargo.mw

www.combinecargo.mw Combine Cargo Malawi Ltd Nkula A Power Station - One of EGENCO’s hydro power stations

@combinecargomw_ltd

Africa Outlook issue 96 | 9

Likoma solar power plant

“ O U R M O T T O ‘ G E N E R AT I N G P O W E R F O R G E N E R AT I O N S ’ I S A K E Y D R I V E R T O OUR DECISION MAKING IN BUSINESS M A N A G E M E N T T H AT O U R I N V E S T M E N T M U S T B E S U S TA I N A B L E F O R G E N E R AT I O N S T O COME” – W I L L I A M L I A B U N YA , C E O , E G E N C O Done Deal - Liabunya and Dennis Chu Liang of CHINT Group sign a contract for a 10MW Solar Power Plant in Salima

successful company is the way in which EGENCO is premised on the principle of equal opportunity, whilst also leveraging diversity and innovative spirit. Regardless of gender, colour, race, religion, or cultural beliefs, everyone has a chance to contribute to the growth of the company and help it achieve its mandate. Secondly, the company believes that innovation is the key 10 | Africa Outlook issue 96

to growing its business. It therefore explores and nurtures ideas capable of improving the ability to generate safe, reliable, affordable, and sustainable energy.

At its core EGENCO believes in efficient and sustainable utilisation of natural resources. Liabunya details how, “while we focus on giving power to the current populations, we also prioritise ensuring that we

utilise the resources so that the future population of Malawi can also use this to power their homes and industries.” The setting up of a gender and social inclusion department two years after initial establishment is a clear testimony to the commitment to diversity shown by EGENCO, as a tool to incorporate success in modern governance systems.

The company is constantly striving

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) ENERGY & UTILITIES

EGENCO’s diesel power plant in Kanengo, Lilongwe

At work - A dredger dredging at the Kapichira Power Station dam before Cyclone Ana

to create a better tomorrow for Malawi through implementation of sustainable electricity projects for the nation. Liabunya states how, “our motto ‘Generating Power for Generations’ is a key driver to our decision making in business management, and that our investment must be sustainable for coming generations.” With this in mind, the company is implementing projects to ensure that it meets the current demand for electricity in the country, whilst also growing the national capacity so that more households can have access to electricity. The company believes that if it can generate power for over 50 percent of the Malawi population within the next 15 -20 years, the lives of many people

especially in rural areas will improve tremendously. When communities have electricity, it enables numerous opportunities and livelihoods subsequently improve. It will mean people have access to information through internet, radio, TV, and social media, as well as enabling students to study anytime of the day and night without disturbances.

Looking ahead in terms of hitting specific targets for 2022, the company’s top priority is to have Kapichira Power Station, which was brutally ravaged by Cyclone Ana, back online as soon as possible.

Additionally, another major priority is to redesign and reconstruct the existing structure so that it can withstand future cyclones. Most

importantly, they would like to see great progress on two game changing projects, Mpatamanga Hydropower and Kamwamba phased coal fired plants. The phased solar plant at Salima is another milestone the company wants to reach and achieve in the year coming, suggesting an extremely productive and groundbreaking time for EGENCO, as well as a bright future for the power generation sector across Malawi.

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) Tel: (+265) 01 836 000 egenco@egenco.mw www.egenco.mw Africa Outlook issue 96 | 11

ELECTRICITY GENERATION COMPANY MALAWI (EGENCO) No. 7 Victoria Avenue, Chayamba Building, P.O. Box 1567, Blantyre, Malawi Tel: (+265) 01 836 000 egenco@egenco.mw www.egenco.mw PRODUCED BY AFRICA OUTLOOK MAGAZINE