The government of Malawi, development finance institution the International Finance Corporation (IFC), renewable energy solutions company Scatec and integrated energy company EDF have signed a binding commercial agreement to co-develop the 350 MW Mpatamanga hydropower project on the Shire river. 

The agreement was signed under Malawi’s Public-Private Partnership framework and concludes the selection process undertaken by the government of Malawi to competitively select a private sector partner to finance, build and operate the Mpatamanga hydropower plant. 

A consortium comprising Scatec and EDF has been awarded the role of project lead developer. 

The IFC worked closely with the government of Malawi to support the early-stage project development and provided funding for activities that allowed the government to launch the competitive tender process. 

The generation facility comprises two plants – a 309 MW peaking plant and a 41 MW downstream plant. The project is expected to help mitigate energy shortages and enhance energy security in the country. 

The 309 MW plant, with its reservoir storage, is designed to provide much-needed energy during peak demand hours of the day and overall grid stability with its ability to ramp up or down to meet actual demand, Scatec says. 

“The 350 MW Mpatamanga hydropower project will not only double the installed capacity of hydropower in Malawi, but also improve [security of supply], provide opportunities for increased renewable energy generation capacity in the country and contribute to the controlling of the flow of the Shire river downstream the power plant,” says Malawi Energy Minister Ibrahim Matola. 

IFC Eastern Africa regional director Jumoke Jagun-Dokunmu says the IFC supports the government’s goal to accelerate access to affordable clean energy. “The Mpatamanga hydropower plant has the potential to grow Malawi’s electricity infrastructure and connect thousands of rural and remote households while also spurring green, inclusive and resilient growth in the country.” 

“The Mpatamanga project is a great opportunity to bring our technical expertise in hydropower and our strong environmental and social commitment in favour of local communities and biodiversity.  

“This competitive project will significantly enhance the access to electricity in Malawi and is fully in line with EDF’s ambition to build a net-zero energy future with electricity and innovative solutions that drive economic development,” adds EDF Group International Division senior executive VP Béatrice Buffon. 

Scatec and its venture partners, British International Investment (BII) and Norfund, as well as EDF are majority shareholders, holding a 55% interest in the project. EDF will own 27.5%, Scatec 14%, and the venture partners the remaining 13.5%. 

The government of Malawi will own 30% and the IFC 15% of the total project shareholding. 

The partners will work extensively with all stakeholders and support project implementation, and will build on EDF’s and Scatec’s strong environmental, social and governance record in the development of hydropower projects across the world, in alignment with IFC's environmental and social standards, the companies committed. 

“The realisation of the Mpatamanga project is a significant development. We are excited to build on our hydro portfolio in Africa and proud to have finalised development plans alongside our partners.  

“Malawi will receive a significant investment into its power sector, which, in turn, will stand to benefit a major portion of the nation’s population. We look forward to reaching further development milestones for this project and contributing to Africa’s renewable energy journey,” says Scatec CEO Terje Pilskog.