Electricity Generation Company (Egenco) says it is looking at geothermal exploration to diversify the country’s power sources and boost generation capacity.

This follows the signing of the collaboration framework agreement on execution of geothermal projects in Malawi with Geothermal Development Company (GDC), a fully government-owned firm in Kenya.

Geothermal power is generated through the heat produced deep in the earth’s core.

In a written response on Monday after signing the agreement, Egenco spokesperson Moses Gwaza said the Kenyan firm is looking at developing geothermal sites in Chiweta in Rumphi, Nkhotakota, Nkhata Bay, Liwonde in Machinga and Chikwawa

He said while geothermal exploration is an expensive venture requiring adequate financing, Egenco is currently working on internal processes before commencing exploration with technical support from GDC and others.

Said Gwaza: “When these are put in place, it is when we expect to have the budget done and presented and approved by the board. We are at the preparatory stage and we are engaging in those preparatory processes.

“After this process, we will start the drilling processes, which is part of the exploration process and, thereafter, we will be able to determine how much power we can get from such drilled fields. A feasibility study will follow.”

He indicated that once the geothermal is realised, it will bring in diversity of the country’s power sources instead of just depending on hydro.

“This will in the long-run ensure security of generation and supply of electricity in the country,” he said.

Malawi is said to have potential in geothermal energy restimated at 200 megawatts (MW) due to its location within the East African Rift System, one of the high-temperature zones in the world.

However, the country lacks capacity to exploit geothermal energy due to lack of technical know-how, personnel and resources.

GDC managing director Paul Ngugi said collaboration with his firm will enable Malawi to tap into the company’s expertise for geothermal development.

He is quoted in a statement as having said the signing of the collaboration agreement is an important milestone for the two entities as they seek energy solutions for Africa.

In 2022, the now-dissolved Power Market Limited announced that it would embark on the exploration of potential geothermal resources in Malawi.

Hydropower is the main source of electricity in Malawi, generating nearly 90 percent of the power.

Currently, Egenco has a total installed generation capacity of 441.95MW, with 390.55MW from hydro power plants.

In January 2022, Malawi lost about 129MW of power from Kapichira Hydro Power Station due to the damage caused by Tropical Storm Ana, leading to extended load shedding for more than one year.

Meanwhile, Malawi Government is in a race against time to increase electricity generation to about 1 000 MW by 2025.

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