IEEJ:August 2015

COUNTRY REPORT FOR ENERGY POLICYTRAINING[31st MAY TO 20TH JUNE 2015- TOKYO, JAPAN]
PresentedBy
Saidi Jabu Banda
Department of Energy Affairs,Malawi

1. General information about Malawi
2. Current energy policy and measures ofMalawi
3. Energy sector legal instruments
4. Key strategies
5. Past energy demand and supply (statistics)of Malawi
6. Outlook of energy demand and supply forMalawi
7. Major difficulties and bottlenecks faced informulating energy policies
8. Subjects of interest

GENERAL INFORMATION ABOUT MALAWIGeneral information Malawi is over 118,000 km2 (45,560 sq mi)with an estimated population of 17,419,395(2015 est.).
 Its capital is Lilongwe
 The official language for Malawi is English
and vernacular language is Chichewa
 Malawi became independent on 6thJuly,1964 and currently follows a multiparty
democracy system of government.
 Local currency Malawi Kwacha (MK) The economy is heavily based on
agriculture, Tobacco is the main foreignexchange earner

Malawi’s Food
•Staple is nsima•Other areas rootcrops

CURRENT ENERGY POLICY AND MEASURES OF MALAWINational Energy Policy (2003)
The Malawi energy policy (MEP) was formulated in 2003 to provide
a transparent and dynamic operational framework for Malawi
Energy Sector.
It provides for private sector involvement in electricity generation
either on Independent power producer (IPP) or build, operate andtransfer (BOT) and Public private partnership through competitivebidding.
MEP paved a way for MERA which is the country’s regulator toregulate the activities of the energy industry in accordance withenergy Laws.
NB: the Malawi National Energy Policy is currently undergoing
review of which the completion estimated to be October, 2015.

ENERGY SECTOR LEGAL INSTRUMENTS
 Rural Electrification Act (2004)
Provision for the promotion, funding, management and regulation ofrural electrification
 Liquid fuels and gases Act (2004)

Provisions for production, blending, extraction, conversion, importing,transforming, transporting, storing, distributing and selling liquid fuels andgas

 Energy Regulation Act (2004)

Establish an Energy Regulatory Authority to regulate the energy sector, todefine the functions and powers of the Energy Regulatory Authority, toprovide for licensing of energy undertakings

 Electricity Act (2004)

provisions for the regulation of the generation, transmission, wheeling
distribution, sale, importation and exportation, use and safety of electricity

KEY STRATEGIESIn order for the energy sector to achieve its aspirations, the following
strategies are targeted for implementation in the 2011/2016 MGDS II
period:Develop additional power stations (hydro, coal and other renewableenergy technologies)Improve management of energy supply
Improve monitoring in energy sub sectors
Accelerate implementation of regional electricity interconnectivity;
Expand the Rural Electrification Programme through grid and off-gridoptions;Increase fuel stock-holding capacity
Promote the use of biofuels
Promote public and private sector investment in energy generation anddistribution.
Promote the use of energy efficient technologies at community level
Review and formulate an energy regulatory framework.

PAST ENERGY DEMAND AND SUPPLY (STATISTICS)
OF MALAWIAt 9%, Malawi currently has a remarkable low
national electriﬁcation rate. While electricity
has reached almost 25% of urban households,
rural electriﬁcation lies only at 5%. Only 7% of
the population has access to modern cooking
fuel and more than 98% from rural areas(roughly 85% of country’s total population) still
use fuel wood for cooking.
The installed capacity for Malawi system iscurrently at 351 MW

ELECTRICITY GENERATION AND CONSUMPTION (2004-2014)
2012

2013

285.85285.85285.85351

273.01277.75277.88279.73323.91

1,642.02

1,809.17

1,871.88

1,911.51

1,828.2

1,906.51

175,157

189,166

194,459

205,045

218,164

238,211

269,469434.63461.56502.08571.56593.85596.10577.65614.20

183.78197.55213.73226.16253.70250.43244.47214.96183.26490.24502.76512.17527.08577.84580.76612.23604.88613.82639.27

6.5

8.6

10.2

11.85

17.17

15.94

20.66

19.08

21.1

23.82

23.62

946.9

1071.291115.34

1156.21219.541322.021426.68

1475.59

1,466.52

1,429.68

1460.35

2009

2010

285.85285.85285.85251.03241.88259.671,390.81

1,453.06

1,543.00

155,589

163,147

164,795308

389.91

418.60General (GWh)149

182.54

Power Demand(GWh)483.4

Export (GWh)
TotalConsumptionGWh)

YEAR

2004

2005

2006

2007

2008

Installed Hydro
Capacity (MW)245.85245.85245.85265.85

Maximum (Peak)
Demand (MW)

212.5

231.69241.7

Energygeneration(GWh)

1,179.30

1,368.83

Number ofConsumers

128,396

Consumption
Domestic (GWh)

2011

2014

OUTLOOK OF ENERGY DEMAND AND SUPPLYFOR MALAWIENERGY DEMAND SITUATION Malawi’s current suppressed demand is around 400 MW with current total
generation capacity at 351 MW. The deficit in power supply is around 49 MW.

MWYEARS

Demand projections MAED analysis 2010 (DOE)Petroleum Situation in Malawi
According to Malawi Energy Regulatory
Authority, Malawi consumes about 1,000,000
million litres of petroleum products per day.
 The fuels are mainly used in transport sectorand also for power generation.

ENERGY SUPPLY SITUATION Malawi’s energy supply isdominatedbybiomass(ﬁrewood,charcoal,agricultural and industrialwastes) accounting for 84%
of the total primary energy
supply.
 Reliance on Wood andcharcoal
hashighlycontributed to destructionof natural forests; and alsosiltation on the shire riverthereby affecting power
generation.

Totalinstalled
electricity
capacity
iscurrently at 351
MW with around
98% Hydro on theshire river.
Plans to diversify
its energy source
to other sourcesof energy.

Nkula Hydro Power Station

Renewables (RETs)
Solar PV, Wind, Geothermal,, mini and micro-hydroMalawi has great solar potential with an average of 3,000 hours of sunshine peryear.
There are six Solar/Wind hybrid systems
with a capacity of 21kW each benefiting acombined total of 900 households

831kW Grid-connected Solar Power Plant at KIA–Commissioned in August, 2013.

 Importation of petroleum products through Mozambique and Tanzania.

 There are also efforts topromote utilization of biofuelsin order to reduce importationof petroleum products.

MAJOR DIFFICULTIES AND BOTTLENECKS
FACED IN FORMULATING ENERGY POLICIES
Non-availability of relevant data to suit energy model
Data quality is affected due to inadequate methods of data collection,
analysis and interpretation. Most of the data sets are quite old as datacollection is mostly at the discretion of the institution collecting the data on
their routine schedules.
Inadequacies in the National Statistic System
The national statistic system which is based on the provisions of the National
Statistical Act, 1967, does not adequately cover energy data.
Inadequate Financial and Human resources
The annual budgets of the government to the Ministry and Department are
not enough to enable them carry out data collection exercises and policy
review. Also, the Ministry has been understaffed and most officers are nottrained in policy formulation.

SUBJECTS OF INTEREST
Planning, Policy formulation and Implementation
Currently Malawi is undertaking review of the National Energy Policy (2003)
Demand and Supply Analysis
In order to come up with relevant policies that would improve energy supply
there by meet the energy demand.
Data Collection and Management
Crucial for Malawi to be able to monitor the energy markets; analyse energy
security; analyse economic opportunities from new technologies i.e.: energy
efficiency and Energy planning and policy formulation.
Production of Energy Balance Table
Provide a simple way of publishing energy data; reveals the degree of
dependency of a country to each kind of energy and the relative
importance of different fuel supplies in their contribution to the economy.

THANK YOU!
Zikomo Kwambiri

saibanda@hotmail.com
00265 888 359 191

Contact : report@tky.ieej.or.jp