NewsNOWLILONGWE (Malawi NewNow) — Government through the Electricity Corporation of Malawi (ESCOM) said it will issue and sign the first Power Purchase Agreement (PPA) in the first quarter of 2016.

A statement from ESCOM indicate that with government they have entered into Memorandums of Understanding (MOU) with several Independent Power Producers (IPP’s) to invest in additional power in the country.

“The company is encouraging other players to come in and add on the national grid’s capacity. Currently, the ESCOM can now take more than 500 megawatts,” it said.

The solo utility supplier has also encouraged IPP’s to invest in off-grid power generation to reach potential customers throughout the country.

Through the Millennium Challenge Corporation (MCC) and the World Bank, government and ESCOM are investing to keep the existing grid strong enough to take in additional power capacity from IPPs, ESCOM own generation expansion and interconnection with neighboring countries, it reads in part.

However, most IPP’s will generate their power from coal, wind and solar.