Power Market and Impact of Tariff in Malawi

Change in power market arrangement is growing rapidly in the electricity supply industry to allow for private developers to participate in the investment at different power system sectors. The power markets are presently operating on vertical intergrated arrangements and required to transform to competitive markets. It is therefore necessary to provide the prospective developers the load growth and available energy resources available in the country. A study was conducted with simulations using suitable planning software tools to determine the growth in electricity demand. A separate study was also carried to assess the supply from the energy resource with a potential to generate electricity. The results obtained from the simulation of the supply assessment were adopted to provide generation implementation plan required to suffice the forecasted electricity demand. The transition of single utility to open market has been designed in such manner that the forecasted demand is being constantly monitored and any deviation to the electricity demand should affect the tariff through investments.