Malawi is expected to have sustainable power following the signing up of AMEA 50 Megawatts Power project, Minister of Energy Ibrahim Matola has said.
Chakwera says this is one of the many deals initiated by Malawi President Lazarus Chakwera while in Egypt for the Cop27.
He said the signing of a Memorandum of Understanding (MoU) for a solar power project with AMEA Power has given Malawi’s energy sector a further boost.
“Once completed, the project will add 50 megawatts to our national electricity grid. President Dr Lazarus Chakwera honoured me with an opportunity to sign the MoU on behalf of Malawi Government.
“The Ministry of Energy will take every step possible to expedite the project’s realisation in accordance with the president’s directive, taking into account the serious difficulties our nation is currently facing in the wake of the loss of the Kapichira Hydropower Station,” said Matola.
Minister of Energy Ibrahim Matola signing Energy deals in Egypt Cop27
Energy is a key source of economic growth because many production and consumption activities involve energy as a basic input.
It is one of the most important inputs for economic development. From a physical viewpoint, the use of energy drives economic productivity and industrial growth and is central to the operation of any modern economy.
Barney & Franzi (2002) argue that energy is responsible for at least half the industrial
growth in a modern economy while representing less than one tenth of the cost of production.
Some analysts argue that growth in energy use directly causes growth in GDP.
For example the energy crises in the 1970’s and high-level energy prices slowed down the economic growth. Since the end of 1970s the relationship between energy consumption and economic growth has been studied extensively using modern advances in the time series econometric and many studies suggest that energy consumption has a high positive correlation with economic growth.
Whether economic growth takes precedence over energy consumption or energy consumption boosts the economic growth have been examined in a number of studies yet empirical evidence is mixed and conflicting.
The Malawi Leader President Chakwera also while in Egypt presided over the signing of a Memorandum of Understanding (MoU) between the Malawi Government and the Global Alliance For People and Planet (GEAPP), cementing the US$27 million investment from the Alliance, towards energy generation.
This followed discussions that the President had with GEAPP, where he (President Chakwera) appealed for implementation of the projects following the multi million dollar investment.
The MoU was also signed by Matola and GEAPP Chief Executive Officer, Simon Harford on the sidelines of the COP27 World Leaders’ Summit.
The signing serves as a catalyst to the implementation of the solar battery – power project already underway in Malawi.
For example the energy crises in the 1970’s and high-level energy prices slowed down the economic growth. Since the end of 1970s the relationship between energy consumption and economic growth has been studied extensively using modern advances in the time series econometric and many studies suggest that energy consumption has a high positive correlation with economic growth.
This followed discussions that the President had with GEAPP, where he (President Chakwera) appealed for implementation of the projects following the multi million dollar investment.