Unpacking EGENCO, ESCOM Roles and Future Forecast
In this insightful piece, Pilirani Phiri, Chief Public Relations and Communications Officer for ESCOM, and Moses Gwaza, Spokesperson for EGENCO, unpack the distinct but interconnected roles of Malawi’s two main electricity institutions—EGENCO and ESCOM—following the 2016 unbundling of ESCOM. The article explores EGENCO’s generation challenges, including aging infrastructure, environmental factors, and solar integration limits, while highlighting ongoing rehabilitation efforts and major projects like the 358MW Mpatamanga Hydropower Plant. It also details ESCOM’s strategies to enhance power reliability through Independent Power Producers and the Malawi-Mozambique Interconnector. The story emphasizes the critical need for collaboration to ensure a stable and efficient electricity supply for all Malawians.
In the complex web of the electricity industry, there are two key players that work together to ensure the smooth and efficient delivery of power to consumers through collaborative efforts in generating, transmitting, and distributing electricity to homes, businesses, and industries, as well as managing Single Buyer and System Market Operator licenses.
Following the reforms in the electricity sector in Malawi in 2016, two separate entities were created by unbundling the Electricity Supply Corporation of Malawi (ESCOM). One of the companies is responsible for electricity generation—Electricity Generation Company (EGENCO)—and the other is responsible for transmission, distribution, including Single Buyer and System Market Operator (SMO) functions, which constitute ESCOM.
While EGENCO and ESCOM may seem like separate entities, their roles are deeply interconnected. The performance of one directly impacts the ability of the other to fulfill its responsibilities.
For instance, companies that generate electricity are responsible for producing the electricity that powers our homes, businesses, and industries. These companies use a variety of sources such as water, solar, and other fuels to generate electricity that is then transmitted and distributed to consumers.
Without the electricity generated by these companies, there would be no power to transmit and distribute to consumers.
In the case of Malawi, electricity is predominantly generated from water (hydropower), mainly by EGENCO, which has a hydro installed capacity of 390.15 MW. Three of the power stations are located on the Shire River—namely Nkula, Tedzani, and Kapichira—and one small power station is located on the Wovwe River in the Northern Region. However, out of the installed generation capacity of 390.15 MW, on average, only 350.75 MW is available for supply to ESCOM.
EGENCO attributes this shortfall to four main factors affecting its optimal power generation:
- Aged Machinery:
Frequent breakdown of the machines used for electricity generation due to old age. Most of the hydropower plants operated by EGENCO have outlived their life spans and are due for major rehabilitation and modernization. - Siltation and Debris:
The accumulation of silt and increased debris in the Shire River reduces water flow to the machines, which makes it difficult to generate power to full capacity. - Solar Integration Challenges:
You might be wondering how and why solar power is a factor when it is supposed to complement the efforts?
Basically, solar energy is what is called grid-following and not grid-forming. The amount of solar energy that can be injected into the grid depends on the baseload that keeps the grid stable. Secondly, the generation of electricity from solar drops instantly when the solar power plant is covered by clouds, which causes instability in the electricity supply system. In this case, ESCOM utilises EGENCO machines to provide spinning reserves required for solar operation during the day, and as such, they are run on minimum loading. This affects EGENCO’s capacity to generate power at an optimum level. - Equipment Failure:
One machine at Tedzani (Unit 5) is out of service due to a burnt generator stator, and efforts are underway to repair the generator.
To supplement the shortfall of power required by customers, especially during peak hours in the evening, morning, and sometimes at noon, EGENCO operates diesel generators with an installed capacity of 51.5 MW and an average available capacity of 30 MW.
EGENCO’s Plans to Improve Hydropower Generation
Much as the narration above may sound like one of despair, EGENCO is moving earth and heaven to ensure that it stabilizes its generation capacity for the benefit of ESCOM and the country at large.
EGENCO has a comprehensive plan to rehabilitate the power plants. So far, it has already rehabilitated, modernized, and upgraded Nkula A, Tedzani III, and rehabilitated 3 machines at Tedzani I and II (3 out of 4 machines).
The remaining machine is awaiting the availability of foreign exchange to hire supervision services from the original equipment manufacturer.
EGENCO is also in the process of securing funding from the African Development Bank and the European Union Bank for the rehabilitation of Nkula B and Kapichira Phase I power plants.
The feasibility study has been completed, and the project is expected to commence in early 2026.
Besides these efforts, EGENCO has lined up a number of projects to boost power generation.
EGENCO’s strategic goal is to increase power generation and diversify power sources (diversification in terms of generation technologies and geographical location).
It is currently implementing a 50 MW Salima solar plant, with 10 MW earmarked for commissioning in December 2025.
Plans are also underway to expand the Wovwe Hydropower Station to double its generation capacity.
But the biggest and flagship of all these projects is the 358 MW Mpatamanga Hydropower Plant, with construction commencing in 2026.
This clearly demonstrates that EGENCO is a critical and strategic company that holds Malawi’s power infrastructure together. The company is committed to ensuring that the country produces enough power for its people and businesses—and it takes no excuses for that.
ESCOM’s Roles and Future Plans to Improve Electricity Supply Reliability
On the other hand, transmission and distribution companies like ESCOM are responsible for the crucial task of delivering electricity from the generating plants to homes and businesses.
These companies operate a vast network of power lines and substations that crisscross the country, ensuring that electricity reaches its intended destination safely and reliably.
Obviously, this means that if electricity-generating companies like EGENCO fail to produce enough power to meet demand, the transmitting and distributing companies like ESCOM are left unable to fulfill their role of delivering electricity to consumers.
This interdependence highlights the importance of effective communication and collaboration between electricity-generating companies and transmission and distribution companies.
One way to harness this relationship is through regular communication and coordination between EGENCO and ESCOM.
By sharing information about power generation forecasts, demand projections, and maintenance schedules, EGENCO and ESCOM can better align their operations to ensure improved service delivery to Malawians.
For instance, load shedding and power forecasts for the week or month must be communicated for homes and companies to plan accordingly.
It is also essential for the public to know that the current total demand for power is between 400 and 500 MW, of which EGENCO supplies 350.75 MW of hydropower on average.
Through diesel, EGENCO provides 19.2 MW; Mulanje Hydro provides 1.6 MW; 3 MW is imported; and solar provides 101 MW.
While EGENCO is doing its part to reach its full generation capacity, ESCOM has also gone flat-out courting and signing various business deals with Independent Power Producers (IPPs).
Apart from the various IPPs ESCOM has recently signed and are about to be implemented to boost its capacity to distribute power to customers all day, every day—the Corporation is also heavily relying on power imports.
Currently, the Malawi-Mozambique Interconnector is arguably ESCOM’s flagship project as it is crucial to reducing the constant power blackouts that customers have been subjected to.
Through the project, Mozambique will be feeding 50 MW into Malawi’s national grid.
ESCOM Director of Projects and Development, Sinosi Maliano, in a recent interview with The Nation, noted that the completion of tower installation is a step toward realizing Malawi’s energy infrastructure goals.
“We are proud to announce the completion of erecting towers. This achievement marks real progress toward interconnection, which will unlock 120 MW of import capacity for Malawi. It’s a powerful demonstration of regional cooperation,” he said.
The project was launched in 2021 and seeks to connect Malawi to Mozambique’s electricity grid, enhancing power reliability and advancing regional energy integration.
These are some of the efforts that the public should be aware of for Malawians to be hopeful for a better tomorrow as far as electricity is concerned.
Consumers Association of Malawi Executive Director, John Kapito, believes that the additional 50 MW into the national grid will help reduce power outages.
Valued at $154 million (about K270 billion), the project is part of the broader Southern African Power Pool framework. The full interconnector spans 218 km and includes a 400-kilovolt high-voltage power transmission line linking Matambo Substation in Tete, Mozambique, and Phombeya Substation in Balaka, Malawi.
Malawi initially planned to tap 120 MW at about $10 million (K17.4 billion) per month, but it was reduced to 50 MW at about $4.5 million (about K7.8 billion) per month in the first five years.
Once these efforts are rolled out and power supply becomes stable, the public and corporate customers will enjoy steady electricity.
Ultimately, this shows that the relationship between EGENCO and ESCOM is a critical one that requires close collaboration and communication.
By working together effectively, EGENCO and ESCOM will ensure reliable and efficient delivery of electricity to consumers—ultimately benefiting the entire electricity industry and the communities it serves.
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