Mera warns rise in electricity tariffs over delays in coal plant construction

Malawi Energy Regulatory Authority (Mera) has hinted of further rise in electricity tariffs should delays to construct Kammwamba coal plant continue.

Mera chairperson Bishop Bvumbwe and CEO Magalasi: Expect tarriff hike

Mera exeutive director Collins Magalasi said this on Thursday after the minister of Natural Resources and Energy Binton Kutsaira toured the place where the coal plant is to be constructed

“The electricity tariffs can go up within two years. This is because if the coal plant is up and running, the tariffs would go down because it is cheaper to produce electricity with a coal plant than hydro-power,” said Magalasi.

He said 300 megawatts which the coal plant can offer to the Egenco power grid can have a positive impact on the electricity pricing.

Kammwamba coal plant is expected to produce 1000 megawatts when in full operation and will be financed with a grant from the People’s Republic of China.

Egenco chief executive offcer William Liabunya attributed the delays to the process of consultancy on the running and operations of the coal plant.

“We would like to know what exactly we will be doing when the coal plant is operational,” said Liabunya.

Kutsaira said the project is one of the signature development projects of president Peter Mutharika.

He said the president advised the engineers to take time before the plant is fully operational so that it is constructed to detail.

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Concerned
Concerned
1 year ago

Really! With imported coal? It could indeed be cheaper to construct if well-designed, competitively bid and with good contractors. However, the technology is more complex than hydro, resulting in more expensive O&M. How about, climate change implications of carbon emissions; health impacts of other emissions? The cost of imported coal, involving forex?

Wanyang'ama
Wanyang'ama
1 year ago
Reply to  Concerned

u think ma impacts onsewa are not considered? u must be dumb

Samurai1
Samurai1
1 year ago
Reply to  Wanyang'ama

Iwe this is Malawi. Our government is corrupt and incompetent. Remember the diesel generators? Remember the loan from India for tractors? Wait and see. This will be another disaster.

Natty Prince
Natty Prince
1 year ago

Inu ndi ndalama zingati mwaononga pa khani yokonza magetsi vuto lomawatenga anthu ngati ndi mbali ina ya munda wanu inu munalephera kumavomeleza lekeleni anzanu izi munaba kunakwana anthu anadzuka ndiye muona mmene ziziyendera samalani.

joseph Banda
joseph Banda
1 year ago

Ulemu wanu a Bwana, Coal Powered Plant is very Cheap to construct but expensive to run. While Hydro Plant is Expensive to Construct but Cheap to run. A PS anali pompo akadakuthandizani.

ANY THING REVERSING ABOVE ndiye KUBA.

National CEO
National CEO
1 year ago

To my side coal electricity generation is expensive than hydro due to the fact that coal extraction and transportation will increase the production cost while water is free of charge.

C Banda
C Banda
1 year ago
Reply to  National CEO

Indeed, Magalasi is talking utter nonsense when he says that coal is cheaper than hydro.

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