Kamwamba power station

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Kamwamba power station is a power station in Kamwamba, Zalewa, Neno District, Southern, Malawi with multiple units of varying statuses none of which are currently operating. It is also known as Central Malawi power station.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Kamwamba power station	Kamwamba, Zalewa, Neno District, Southern, Malawi	-14.95, 34.783333 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit 1	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 2	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 3	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 4	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 5	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 6	pre-permit	coal - unknown	50	subcritical	2025	–
Unit 7	cancelled	coal - unknown	700	subcritical	–	–

Table 3: Unit-level ownership and operator details

Unit name	Owner
Unit 1	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 2	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 3	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 4	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 5	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 6	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]
Unit 7	Government of Malawi [85.0%], China Gezhouba Group Co Ltd (CGGC) [15.0%]

Project-level coal details

• Coal source(s): Mozambique

Background

In 2012, China Gezhouba Group of China Energy Engineering Corporation said it planned to build a US$500 million, 1,000 megawatt thermal plant in Malawi.

In 2013, an MoU was signed between the Malawi Government and the China Gezhouba Group Company for a power station of up to 1,000 MW, but the first phase would be 300 MW. The plant would use about 400,000 tonnes of coal annually from Moatize in Mozambique. The coal would be transported by rail that was being constructed by Vale.

In April 2015, it was reported that construction would begin once the US$600 million from the China Exim Bank was approved. The Malawi ministry planned to have the power plant operational by 2018. In July 2015, it was reported that China Railways No. 3 Engineering Group would finance the power station and rail line, but no details were given.

In December 2015, Finance and Economic Development Minister, Goodall Gondwe, signed a Memorandum of Understanding on behalf of the Malawi Government, while CGGC president Lv Zexiang signed on behalf of his company. Zexiang said that he hoped that construction could begin as early as the first months of 2016.

In September 2017, the The Nation (Malawi) reported that the government of Malawi would own 85 percent of the power station, while China Gezhouba Group Company of China would own 15 percent of the power station. Vale of Brazil would provide the coal needed, over a 30 year contract period. The challenge at that time was that the agreements called for the government to put down US$104 million in "commitment money." However, the government had only US$12.4 million available, and had requested to pay the balance in installments.

In April 2018, it was reported that construction was planned for the end of the year, and commissioning in 2021-2022.

In September 2018, it was reported that Malawi had met all the conditions to receive a loan from the China ExIm Bank, and that CEEC would soon be on the ground to start implementing the project.

In May 2019, the Ambassador of the People’s Republic of China Liu Hongyang said construction works were underway, but went on to say the work was "some visibility studies on some infrastructure like roads, railways systems and other things to enable easy transportation of coal as well as distribution," not physical construction.

In September 2019, the Malawi Energy Regulatory Authority (MERA) advised Electricity Generation Company Malawi Limited (EGENCO) to speed up the building of the Kamwamba Coal Plant, saying the delay could affect electricity tariffs. EGENCO said it was reviewing the plant's feasibility study and updating it to ensure that it was economically viable. Later that month, EGENCO said the plant was facing financial challenges. EGENCO was lobbying the government to inject some funds from the Malawi Rural Electrification Project (MAREP) into the project.

In May 2020, EGENCO contracted German Company Fichtner GmbH to execute consultancy services to review and update the feasibility study. It confirmed this update in October 2020, noting that the new feasibility study commissioned would update the feasibility study that was done in 2014 and was expected to take six months.

As of May 2021, the project remained on EGENCO's website. The website noted that the feasibility study underway was expected to be completed by September 2021. The study was focused on updating the previous techno-economic feasibility study and ESIA (Environmental and Social Impact Assessment), as well as local coal resource exploration. Upon completion of the feasibility study, EGENCO expected to seek project financing. EGENCO wrote: "The project will take about three years to completion after reaching financial closure. Tentatively, we are looking at 2024."

In February 2022, an EGENCO Spokesperson confirmed that the site's feasibility study and ESIA had been completed. The project was still seeking financial and construction partners at this point, but it was given an updated commission date of 2025. EGENCO says that they have written the Public Procurement and Disposal of Assets Authority (PPDA), and if given the green light they will engage an interested investor before the project commences.

In May 2023, it was reported that following restoration of the Kapichira hydroelectric plant, EGENCO was planning to turn its focus on implementing other power projects, including the "Kam'mwamba coal fired power plant in Balaka..."

In July 2023, the EGENCO CEO reportedly said they had "not given up on the project" and were looking for a joint venture given the lack of readily available government funds. The CEO also said a feasibility study had been completed, but another source stated that EGENCO was "reviewing its strategic plan to enhance feasibility studies" for several projects, including the Kamwamba power station.

2023 Ownership battle

Reporting from October 2023 revealed that the Ministry of Energy and EGENCO were locked in an ownership battle over the Kamwamba power station project. The Ministry's Secretary for Energy had sent a letter to EGENCO in May 2023, instructing the company to hand over the project to the government within thirteen days. The government was reportedly concerned about the project's lack of progress for the past ten years, and wanted to give it to other independent power producers (IPPs) and "fast track" its implementation. EGENCO reportedly defied the order.

Financing

In May 2014, the Export & Import (Exim) Bank of the People’s Republic of China granted a loan for the 300 MW project. The plant was to be built over 24 months at a cost of about $667-million. The China Ex-Im Bank said it was still considering funding the additional 700 MW.

According to an October 2016 report, Exim Bank Chairman Zhu Ying told a media conference for African journalists at Exim Bank headquarters in Beijing that the final approval of financing depended on the completion of the Power Purchase Agreement between Exim Bank and Electricity Supply Corporation of Malawi (Escom).

In January 2018, the Export and Import (Exim) Bank of China agreed to fund the project to the tune of US$667 million. According to the IEA, the Government of Malawi is required to source US$104 million as a commitment fee.

In October 2019, it was reported the coal plant would be financed by the Malawi government, and not the China ExIm Bank as planned. However, in January 2020, it was reported the China ExIm Bank would provide US$667 million in funding for the plant.

As noted above, as of May 2021, EGENCO expected having to seek project financing.

In 2023 it was reported that the project has not taken off due to financing challenges.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.