By Dean Chisambo
Aspin Energy Limited has sealed 142 megawatts Phalula gas power purchasing agreement with Electricity Supply Cooperation (ESCOM).
Speaking during the Power Purchasing Agreement ( PPA) signing ceremony in Lilongwe, Aspin group Chief Executive Officer Emmillio Paul Matumbi said the signing of the PPA its the begining of the journey so that they can connect to the grid in 18 months to come.
Matumbi said their Memorandum of Understanding( MOU) with the Ministry of Energy is to generate 300 megawatts but they will be starting in phases.
He said:” The first phase is what you have seen today which is 142 megawatts, the second phase 158 megawatts ,it will come in two years.”
Matumbi disclosed that currently at 142 megawatts will be the biggest single generation in Malawi.
He said the country is having challenges of foreign exchange but he is hoping that through ATM strategy energy industry can generate the forex required in this country.
Matumbi mentioned that they will go behind the scenes powering the prioritising sectors of ATM to compliment the government efforts.
He also described that they choose Balaka district at Phalula because they want to connect to biggest Phombeya substution.
Matumbi revealled that currently Phombeya is been connected to electricity of all southern Africa countries through Southern Africa power pool.
He also said at this point they need to export electricity using Phombeya substution inter- connector to the southern African countries.
He added that now they are at 60% to start supplying the power hence most of the hurdles are in project development.
On his part ESCOM Chief Executive Officer Kamkwamba Kumwenda said it is a need to diversify the source of power hence most of based load rely provision of Electricity Generation Company (EGENCO)into hydro power plant.
He explained that hydro power faces many risks in case of bad weather condition.
Kumwenda hailed the coming of Aspin Energy Limited will give comfort in case of bad condition in this country.
Aspin Energy Limited is expected to inject $210 million to do the project which they will get it from the investors.
The 142 megawatts Phalula gas power plant will be the biggest power plant in this country followed by Kapichira hydro with 120 megawatts.
