28 March 2013 – Australian coal resources development company Intra Energy Corporation (IEC) has signed a memorandum of understanding (MoU) with Malawi’s government for the construction and operation of a 120 MW coal fired power station. The company is in the pre-feasibility stage of developing a minimum 120 MW power station at Chipoka, Malawi by no later than the end of 2016. The project would include the design, engineering, construction, operation and maintenance of the power plant and its ancillary infrastructure and IEC is considering potential expansion to 200 MW (net) or doubling capacity with a second plant of 120 MW.
 
The project, named Pamodzi, will be developed as an independent power project (IPP), with IEC acting as the project sponsor. Following the MoU the electricity generated from the project is to be sold to the Electricity Supply Corporation of Malawi (Escom) and other third parties under separate power purchase agreements and transmitted and distributed by Escom under a wheeling agreement.
 
Chairman of IEC, Graeme Robertson says, ‘This project is very significant as the MoU was signed directly with the government of Malawi rather than by the power utility, Escom. Malawi currently produces approximately 287 MW from mainly hydro resources which are subject to climate change and unlike coal-fired plants, are not base load generation. The coal supply for this generating facility will be supplied from IEC’s Malcoal mine in Malawi and be backed by available coal from IEC’s mining operations in Tanzania.