The Government of Malawi with support from the World Bank has conceptualized the Malawi Electricity Access Project as part of the implementation modalities for the National Energy Policy 2018. The project is fully aligned with and embedded in the National Electrification Plan sector-wide framework. It is currently in the preparatory phase and is expected to kick off the ground in February 2019 and be implemented in a four year period.
The project will upscale electrification efforts that are currently being done by the Government and Electricity Supply Corporation of Malawi (ESCOM) to ensure that more people in both urban and rural areas of the country are connected to electricity networks through either the main grid or sustainable off-grid systems that will be developed with support from the private sector through the Public Private Partnership approach. The project will also rehabilitate and uprate the power distribution infrastructure to ensure that distribution losses are minimized and improve the reliability of the power distribution networks in the country. The scope of the activities under the project will be three-fold.
Component 1: Grid densification/extension
This component will finance cost-effective, priority investments in grid electrification by providing households living in close proximity to an existing distribution infrastructure leveraging on the geospatial analysis to maximize the number of connections per provided financing. Specifically, the component will finance low voltage (LV) extensions, service drops, and prepayment meters. Some of the new connections may also require reinforcing hardware elements of the supplying MV feeder for ensuring quality and reliability of supply for new connections. The project will also support the elimination of connection barriers due to unaffordable internal wiring costs by providing ready boards to the low-income households that cannot afford internal wiring costs
Component 2: Off-grid market development
The component will bridge the financing gap faced by solar companies operating in Malawi and hence address the challenges to developing the Off-grid solutions market. Finance will be required for (i) importers to increase stock and buy down the cost of the system through larger volumes; and (ii) distributors for working capital that currently is locked to provide PAYG, the most accessible end-use financing. This component will set up a financing facility managed by a qualified fund manager that will provide access to loans and grants to eligible enterprises offering quality assured solar off-grid systems. Solar companies will use funds to finance stock, develop business models and build the distribution channels to reach consumers.
Component 3: Technical Assistance and Capacity Building
This component will finance various technical assistance (TA) and capacity building activities to ensure ESCOM, MoNREM and other sector stakeholders have adequate technical, planning, and operational capacity to implement the electrification roll-out activities.
Captions
The 400 kV transmission line has been constructed from Phombeya to Nkhoma substations. This will facilitate smooth transmission of power within Malawi, and also from the Southern African Power Pool through the Interconnections with Mozambique and Zambia. The project was funded by Millennium Challenge Corporation (MCC) and was implemented by the Millennium Challenge Account (MCA-M) Compact which concluded in September 2018,
Nkula A hydropower plant has undergone major refurbishments that have added 12 MW to Nkula’s generation capacity. This improved the availability of power in Malawi and reduced outages caused by the deteriorated condition of the plant. It also improved reliability and extended its useful life by 30 years. The project was funded by Millennium Challenge Corporation (MCC) under Millennium Challenge Account Malawi (MCA-M) Compact.
The National Energy Policy of 2003 has been reviewed and the current one is National Energy Policy 2018.
The Ministry developed a Malawi Renewable Energy Strategy which was approved in 2017. The aim of the strategy is to accelerate utilization of clean energy sources in Malawi.