Malawi Power Sector Assessment

The assessment aimed to provide an in-depth analysis of the power sector in Malawi, focusing on the current state of the sector, its structure, and the challenges it faces. The power sector in Malawi is characterized by a significant gap between supply and demand. As of 2018, the country's installed generation capacity stood at approximately 1,200 megawatts (MW), while peak demand was around 1,100 MW. The main sources of power generation in Malawi are hydropower, thermal power, and renewable energy sources such as solar and wind power. However, the country's transmission and distribution infrastructure is inadequate, leading to significant power losses and frequent outages. The Malawi Energy Regulatory Authority (MERA) is responsible for regulating the power sector, including setting tariffs and ensuring compliance with the National Energy Policy. The Malawi Bureau of Standards (MBS) is also involved in the sector, ensuring that power equipment and materials meet international standards. The government has established the Malawi Renewable Energy Strategy (MRES) to promote the development of renewable energy sources. The assessment identified several key initiatives among development partners, including the Millennium Challenge Account (MCA) Compact, which aims to improve the power sector's efficiency and reliability. The World Bank is also providing support to the sector through a series of projects aimed at improving the transmission and distribution infrastructure. A long-term demand and supply balance analysis was conducted, assuming different scenarios for demand growth and supply additions. The base case demand forecast indicates that demand will increase from approximately 1,100 MW in 2018 to around 2,300 MW by 2030. The supply pipeline includes several projects, including the expansion of the Kariba South hydropower plant and the development of new thermal power plants. However, the assessment highlights the need for significant investment in the transmission and distribution infrastructure to meet the growing demand for power. The assessment also focuses on last-mile delivery, which refers to the electrification of rural areas. The Malawi Rural Electrification Program (MAREP) aims to increase access to electricity in rural areas, with a focus on the use of renewable energy sources. The program has made significant progress, with over 100,000 households connected to the grid since its inception. However, challenges remain, including the need for increased investment in the transmission and distribution infrastructure to support the growth of rural electrification.