The MOU sets the stage for two key future agreements: a Project Implementation Agreement for constructing a new 132kV overhead transmission line and a Power Supply Agreement for bulk electricity provision from Malawi’s national grid. Kasiya will require 30MW in its first phase, rising to 60MW by Year 6 of production. This agreement is a vital step toward completing the project’s Definitive Feasibility Study, due in Q4 2025.
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Malawi’s power supply outlook is improving, bolstered by the World Bank’s recent approval of a US$350 million grant for the Mpatamanga Hydropower Storage Project (MHSP). MHSP, a US$1.5 billion initiative, will add 358MW of renewable capacity to Malawi’s national grid by 2030. It is co-developed by the Government of Malawi and the International Finance Corporation (IFC), alongside strategic partners including EDF, British International Investment, Norfund, and TotalEnergies.
Managing Director and CEO of Sovereign Metals, Frank Eagar, said: “The signing of the MOU ensures we have a workplan to secure access to a renewable, hydro-based power supply for Kasiya. The future development of the Mpatamanga Hydro Project – expected to commence operations in 2030 – will further enhance the stability and capacity of Malawi’s electricity network. This also reflects ongoing foreign direct investment in Malawi’s infrastructure by the World Bank, International Finance Corporation, and leading global energy companies such as EDF and TotalEnergies.”
The 132kV transmission line will span 97km from the Nkhoma Substation to the Kasiya site, with Nkhoma chosen for its reliability and environmental suitability. The power will be received at Kasiya’s planned 132/33kV bulk intake substation.
MHSP will include main and regulating dams along the Shire River, supporting peak electricity demand while ensuring grid stability. It also aims to support energy needs for mining and other productive sectors in Malawi. The World Bank has framed MHSP as a “game-changer” for Malawi’s economy, with broader benefits expected for employment, agriculture, and tourism.
Other major World Bank-backed energy initiatives in Malawi include the Emergency Power Restoration Project, the Mozambique-Malawi Regional Interconnector Project, and the ASCENT programme, which aims to expand access to electricity across the country.
The ESCOM MOU, while non-exclusive and non-binding, is based on mutual intent to negotiate in good faith and is set to expire upon the signing of definitive agreements or by 30 June 2026, with a possible 12-month extension.
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