The hydropower plant will be built on the Luweya River, which is located in the Nkhata Bay District in Malawi’s Northern Region.
Water Wheel International, a US hydropower developer, has been selected by MNREM to undertake the feasibility study.
The first phase of the hydropower project will include a 15MW run-of-river system with potential to expand in a second phase to 35MW using Water Wheel International’s patented system.
US Chargé d’Affaires Michael Gonzales said: "This grant represents an important step forward in expanding business linkages between Malawi and the United States and our on-going partnership in the energy sector.
"The project will also benefit from – and expand upon – the Millennium Challenge Corporation’s infrastructure development and power sector reform projects, which are improving the availability, reliability and quality of Malawi’s electric power supply."
MNREM Principal Secretary Ben Botolo said: "This development supports the major power sector investment by the U.S.
government, through the Millennium Challenge Corporation, whereby revamping of the power transmission system is underway across the country."
The new renewable energy generation facility also supports the goals of Power Africa, a US government-led initiative aimed to boost electricity access across the continent.
