Think about power exports

Electricity Supply Corporation of Malawi (Escom) is the backbone of the country’s power sector. Established in 1958 as the Nyasaland Electricity Supply Commission, the power supplier was later renamed Escom when Malawi attained independence in 1964. For decades, Escom operated as a monopoly, controlling electricity generation, transmission and distribution nationwide.

Malawi’s modern power journey began with the commissioning of the 24-megawatt Nkula A hydropower station in 1966 and its installed capacity had risen to 362 megawatts by 2016. During periods of low water levels in the Shire River where dynamos generate over 95 percent of the country’s hydropower, diesel generators supplement power supply. In the 1960s and 70s, electricity demand was largely concentrated in industrial hubs and urban centres in towns and cities.

The addition of Tedzani 1 and 2 hydropower stations between 1972 and 1976 helped Escom meet the national demand at the time. However, from the 1980s onward, investment in new generation capacity was dwarfed by rapid population growth and power consumption. The country’s heavy reliance on limited hydropower resources, coupled with significant system losses, made it increasingly difficult to satisfy peak demand.

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These were driven not only by inadequate capacity, but also by low tariffs, weak financial performance and insufficient reinvestment in infrastructure. In response, the government amended the Electricity Act in 2016 to unbundle Escom’s operations, improve efficiency and attract private sector participation through independent power producers (IPPs). The amendment transferred power production to the newly established Electricity Generation Company (Egenco), while Escom retained responsibility for transmission and distribution. The law created Power Market Limited (PML) as an independent single buyer to acquire electricity from Egenco and IPPs for sale to Escom for distribution.

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