Effectively, this means ESCOM will now be buying power directly from Independent Power Producers (IPPs) into their main grid. 

Speaking when he presided over official handover ceremony of single buyer license at an event held at Bingu International Convention Centre (BICC) in Lilongwe, Minister of Energy Hon. Ibrahim Matola says the reset was necessary as ESCOM is better placed to execute the task of a single buyer given the corporation’s technical capacity.

The minister also says that the move will reduce the overall operation expenditure of the single buyer functions in line with the Government’s commitment towards providing affordable electricity.

“The corporation will now have the full mandate to perform the functions and duties of the Single Buyer Licensee and as government we now believe that ESCOM will be responsive to investors in the power industry,” Matola says.

For instance, the minister says that ESCOM should have a timeframe for responding to an investor when one submits an expression of interest; there should be a speedy but thorough timeframe for negotiating and concluding a Power Purchase Agreement.

The Electricity Amendment Act of 2016 and the IPP Framework provide for procuring both solicited and unsolicited Independent Power Producers, however, the minister says it is the Government’s desire that priority be given to procuring solicited Independent Power Producers.

Matola believes that solicitation of Independent Power Producers through tendering and auctioning of generation projects will ensure the implementation of least-cost projects in line with the country’s Integrated Resource Plan and the associated demand forecast.

The minister says the Government’s plea is that ESCOM should comply with the Integrated Resource Plan and the Independent Power Producer Framework in procuring Independent Power Producers.

ESCOM, as a Single Buyer Licensee, is expected to work very closely with the Ministry of Energy to procure energy from Independent Power Producers (IPPs).

In 2018, the Government established Power Market Limited (PML), to carry out the single buyer functions, a role which ESCOM was previously executing.

However, years since its establishment PML failed to fully operationalise for unexplained reasons, ultimately failing to fulfil its mandate.

In December 2022 government decided to review PML functions and decided to dissolve the entity and transfer back the single buyer function to ESCOM guided by the Electricity Amendment Act 2016.