National Energy Policy 2018 Final

GOVERNMENT OF MALAWI
NATIONAL ENERGY POLICY
August, 2018.
National Energy Policy, 2018 Government of Malawi
Ministry of Natural Resources, Energy and Mining,

Department of Energy Affairs,
Capital House,
City Centre,
P/Bag 309,
Lilongwe 3.
MALAWI
Tel No. (265) 1 770688

Fax No. (265) 1 770094/771954
E-mail: [email protected]
Copyright © 2018 Ministry of Natural Resouces, Energy and Mining

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Printed with the support of UNDP (Malawi)
1st Edition (2003)
2nd Edition (2018)
Printed in Malawi by ……………..

FOREWORD
The Government of Malawi (GoM) realises that the industrial and socio-economic
development of the country depends on access to modern, reliable and sufficient energy. As
such, it has put the energy sector as a priority in its National Development Agenda. The
Government further realises that sustainable development and management of the energy
sector through well-defined policies, including legal and institutional frameworks,
international assistance from development partners, and partnerships with the private sector,
positively impact on other sectors.
In view of this, the National Energy Policy of 2003 has been revised to provide a new policy
direction and guidance to all stakeholders in the implementation of energy interventions. This
is necessary to spur development as aspired for in various policy documents such as the
Malawi Vision 2020, the Malawi Growth and Development Strategy (MGDS) III in the
national agenda, and the Sustainable Energy for All Initiative, as well as in the Sustainable
Development Goals (SDGs) in the international agenda.
The revision of the National Energy Policy of 2003 was necessitated by several factors
including the following: a number of shortfalls or challenges which needed to be rectified;
replacement of the Millennium Development Goals (MDGs) by SDGs; Government’s
adoption of Energy Sector Reforms (Power market restructuring and bulk fuel procurement
); Malawi’s commitment to achieve targets set under the Sustainable Energy for All
(SE4ALL) Initiative; and Government’s adoption of Public Sector Reform Programme
aimed at ensuring efficiency, transparency and accountability in the delivery of public
services, of which energy services is a part. All these factors needed to be reflected in the
policy, and therefore provided the rationale for the review of the policy.
The National Energy Policy (2018) recognizes the numerous challenges in the energy sector.
Therefore its overall goal is to provide a guiding framework for increased access to
affordable, reliable, sustainable, efficient and modern energy for all sectors and every person
in the country. It emphasises the importance of private sector participation in the sector and
provides an environment conducive to such participation, be it in the form of direct
investment, PPPs, IPPs or other participation vehicles. It also emphasises on sustainable and
clean energy which is accessible to all.The policy has further considered demand side
management issues with the aim of , enhancing the efficient and sustainable utilisation of
energy resources . Mitigating environmental, social, safety and health impacts of energy
production and utilization is a key part of the policy. All this is to be done under a robust,
investor-friendly and consumer sensitive regulatory regime.
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The Government of Malawi is committed to addressing the challenges facing the energy
sector while managing environment and climate change. As such, it has developed an
Integrated Resource Plan to guide and facilitate investments in the sector. In addition, the
Government has developed an Independent Power Producers (IPP) Framework, a Malawi
Renewable Energy Strategy and an SE4ALL Action Agenda. These are envisaged to
facilitate private sector participation in power generation and exploitation of renewable
energy resources in the country.
It is, therefore, my conviction that the policy will be critical in the attainment of socio-
economic development of our country. I call upon all the stakeholders in the energy sector to
join hands with the Government as it works tirelessly to achieve the aspirations and targets
set in this policy.
Hon Aggrey Masi, MP

Minister of Natural Resources, Energy and Mining
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PREFACE
The Government of Malawi adopted the Sustainable Development Goals (SDGs) and is part
of the Sustainable Energy for All (SE4All) Initiative whose overall goal is to achieve
universal access to affordable, reliable, sustainable, efficient and modern energy services.The
National Energy Policy 2018 demonstrates the government’s commitment to achieve these
international development agenda through programmes, projects and activities thereunder. In
the same vein, this revised energy policy has been guided by national development agenda
and aspirations as stated in the Malawi Vision 2020, Malawi Growth and Development
Strategy (MGDS) III and Malawi Public Sector Reforms Programme. Further, the Policy
demonstrates government’s effort to realise positive gains from various international as well
as regional associations and agreements such as the Southern African Power Pool (SAPP),
International Atomic Energy Agency (IAEA), among others.
The Policy strongly advocates for the private sector to take a leading role in the
implementation of energy sector interventions. There are also a number of opportunities for
Civil Society Organisations (CSOs), communities and other partners to participate in the
implementation of the Policy.
Much as there are a number of challenges, including inadequate funding and technical
support which could hamper implementation, it is hoped that with this revised Policy being
supported by an equally attractive legal and regulatory environment, various traditional and
non-traditional sources of funding can be accessed.
The Policy was reviewed through a consultative process that involved a range of stakeholders
including Government ministries, parliamentarians, development partners, the private sector,
Academia, CSOs, local leaders and communities. Desk studies of various countries’ energy
policies and systems in Africa and Asia were also conducted. Lessons learnt from these
countries further enriched the process and outcome of this Policy.
The Government of Malawi is highly indebted to all stakeholders who were involved in
reviewing the Policy. Special appreciation goes to the United Nations Development
Programme (UNDP) for providing funding for the review process and the Millennium
Challenge Corporation (MCC) for providing technical support on Social and Gender
Inclusion (SGI).
Patrick C.R. Matanda

Secretary for Natural Resources, Energy and Mining
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ACRONYMS AND ABBREVIATIONS
AfDB African Development Bank

AUC African Union Commission
CA Catchment Area
CDB China Development Bank
CDM Clean Development Mechanism
CFPP Coal-fired Power Plant
CFTC Commission for Fair Trade and Competition
CO Carbon Monoxide
CO2 Carbon Dioxide
COCO Company Owned Company Operated
CODO Company Owned Dealer Operated
COLEDO Company Leased Dealer Operated
COMESA Common Market for Eastern and Southern Africa
CSI Coal Supply Industry
CSO Civil Society Organisation
DfID Department for International Development
DoEA Department of Energy Affairs
DoI&WD Department of Irrigation and Water Development
DODO Dealer Owned Dealer Operated
DSM Demand Side Management
DSW Department of Social Welfare
EAD Environmental Affairs Department
EAPP East African Power Pool
EDVP Ethanol Driven Vehicle Project
EGENCO Electricity Generation Company
EIA Environmental Impact Assessment
ESCOM Electricity Supply Corporation of Malawi
ESI Electricity Supply Industry
ESIA Environmental and Social Impact Assessment
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ESIMP Environmental and Social Impact Management Plan

ESSP Energy Sector Support Project
ETHCO Ethanol Company of Malawi
FDI Foreign Direct Investment
FS Feasibility Study
GDP Gross Domestic Product
GHG Greenhouse Gases
GoM Government of Malawi
GTF Global Tracking Framework
ICA Investment Climate Assessment
IDA International Development Association
IAEA International Atomic Energy Agency
IEA International Energy Agency
IFC International Finance Corporation
IHPS Integrated Household Panel Survey
IPP Independent Power Producer
IRP Integrated Resource Plan
JICA Japanese International Cooperation Agency
kV Kilovolt
kWh Kilowatt-hour
LDC Least Developed Country
LED Light Emitting Diode
LF Liquid Fuel
LF&GSI Liquid Fuel and Gas Supply Industry
LPG Liquefied Petroleum Gas
MAREP Malawi Rural Electrification Programme
MBS Malawi Bureau of Standards
MCC Millennium Challenge Corporation
MCCCI Malawi Confederation of Chambers of Commerce and
Industry
MDG Millennium Development Goals
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MERA Malawi Energy Regulatory Authority

MGDS Malawi Growth and Development Strategy
MIGA Multilateral Investment Guarantee Agency
MNREM Ministry of Natural Resources, Energy and Mining
MoAI&WD Ministry of Agriculture, Irrigation and Water Development
MoEST Ministry of Education, Science and Technology
MoI&CE Ministry of Information and Civic Education
MoITT Ministry of Industry, Trade and Tourism
MoL&MD Ministry of Labour and Manpower Development
MoT&PI Ministry of Transport and Public Infrastructure
MRES Malawi Renewable Energy Strategy
MVA Megavolt-ampere
MW Megawatt
MWK Malawi Kwacha
NCHE National Council for Higher Education
NCIC National Construction Industry Council
NCST National Commission for Science and Technology
NEPAD New Partnership for Africa’s Development
NPCA NEPAD Planning and Coordinating Agency
NEP National Energy Policy
NGO Non-Governmental Organization
NOCMA National Oil Company of Malawi
NSO National Statistical Office
OMC Oil Marketing Company

PCG Partial Credit Guarantee
PCL Press Corporation Limited
PIL Petroleum Importers Limited
PIDA Programme for Infrastructure Development in Africa
PIDA-PAP PIDA Priority Action Program
PRG Partial Risk Guarantees
PPA Power Purchase Agreement
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PPP Public Private Partnership

PPPC Public Private Partnership Commission
PSP Pico Solar Products
PV Photovoltaic
PwC PricewaterhouseCoopers
REA Rural Electrification Agency
RE Renewable Energy
RER Renewable Energy Resources
RET Renewable Energy Technologies
ROW Right(s) of Way
SADC Southern Africa Development Community
SAPP Southern Africa Power Pool
SDGs Sustainable Development Goals
SE4All Sustainable Energy for All
SGIP Social and Gender Integration Plan
T&D Transmission and Distribution
UN United Nations
UNCB United Nations Convention on Biodiversity
UNCD United Nations Convention on Desertification
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural
Organization
UNFCCC United Nations Framework Convention on Climate Change
USA United States of America
USD United States Dollar
VAT Value Added Tax
WEO World Economic Outlook
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GLOSSARY
Biogas: A mixture of gases that is produced from bio-degradable materials such as

agricultural materials (crop residues, liquid manure and energy crops), animal manure and
slaughterhouse waste, vegetable waste, as well as municipal and sewage waste.
Biomass: Organic matter that can be used to provide heat, produce liquid fuel and generate
electricity.
Electricity Access: In Malawian context means connection to and usage of electricity from
national grid, mini-grids, own generators, Solar PV home systems and Pico Solar Products.
Energy Balance: A coherent picture about the flows of all types of energy from their original
forms, through transformation processes to their final uses.
Energy Efficiency: Total energy input to a machine or equipment that is consumed in useful
work and not wasted as useless heat.
Grid Code: A set of rules made by the Malawi Energy Regulatory Authority for operation,
dispatch and reporting of the Malawi Electricity Supply Industry.
Independent Power Producer (IPP): A person who privately builds, owns and operates
facilities to generate and sell electricity to the Malawi Electricity Supply Industry.
Integrated Resource Plan (IRP): A document detailing the process of planning to meet
users’ needs for electricity services in a way that satisfies multiple objectives for resource
use.
Life line tariffs: A subsidised tariff targeting low income households to enable them to
access and sustain electricity usage.
Liquefied Petroleum Gas (LPG): A flammable mixture of hydrocarbon gases used as fuel
in heating appliances, cooking equipment, and vehicles.
Non-Renewable Energy: Sources of energy available to mankind arising from natural

processes in the interaction between the sun and the earth’s surface, but not regularly
replenished. These include uranium and fossil fuels e.g. coal, peat, crude oil and natural gas.
Petroleum-based fuels: Fossil fuels, which include petrol (gasoline), diesel, paraffin
(kerosene) and heavy fuel oil (HFO).
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Power Purchase Agreement: A contract between a generator and a single buyer, or between
a single buyer and a distributor, to buy electricity for a pre-established period of time.
Renewable Energy: Sources of energy arising from natural processes in the interaction
between the sun and the earth’s surface and regularly replenished. These include the sun as
the primary renewable energy resource and the secondary renewable energy resources that
derive from the sun such as wind, hydro, ocean thermal, ocean wave, ocean tidal energy and
electricity from photo-voltaic effects, biomass and geothermal energy.
Rural Electrification: Grid or off-grid extension of distribution lines and installation of solar
photovoltaic systems, generation of electricity from mini-and micro hydro whose internal rate
of return is up to 6 per cent per annum and line capacity is less than 66 Kilovolt (KV) or
generation capacity is up to 5 Megawatt (MW).
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TABLE OF CONTENTS
FOREWORD............................................................................................................................. i
PREFACE ............................................................................................................................... iii
ACRONYMS AND ABBREVIATIONS ............................................................................... iv
GLOSSARY.......................................................................................................................... viii
TABLE OF CONTENTS ....................................................................................................... xi
1.0 INTRODUCTION.............................................................................................................. 1
1.1 Background 1
1.2 Rationale 5
1.3 Policy Guiding Principles 5
1.4 Linkages with Existing Policies, Laws and International Obligations 5
2.0 BROAD POLICY DIRECTIONS .................................................................................... 9
2.1 Policy Goal 9
2.2 Policy Outcomes 9
2.3 Broad Policy Objectives 9
3.0 POLICY PRIORITY AREAS ........................................................................................ 10
3.1 POLICY PRIORITY AREA 1: ELECTRICITY ......................................................... 11
3.1.1 Policy Priority Area 1.1: Electricity Generation 11
3.1.2 Policy Priority Area 1.2: Electricity Transmission 13
3.1.3 Policy Priority Area 1.3: Electricity Distribution 15
3.1.4 Policy Priority Area 1.4: Rural Electrification 17
3.1.5 Policy Priority Area 1.5: Electricity from Renewable Energy 19
3.1.6 Policy Priority Area 1.6: Definition and Measurement of Access to Electricity 21
3.2 POLICY PRIORITY AREA 2: BIOMASS ................................................................... 22
3.3 POLICY PRIORITY AREA 3: PETROLEUM FUELS .............................................. 25
3.4 POLICY PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS ............ 28
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3.5 POLICY PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND

NATURAL GAS...................................................................................................... 31
3.6 POLICY PRIORITY AREA 6: COAL .......................................................................... 34
3.7 POLICY PRIORITY AREA 7: NUCLEAR ENERGY ............................................... 37
3.8 POLICY PRIORITY AREA 8: DEMAND SIDE MANAGEMENT .......................... 38
3.8.1 Demand Side Management in the Electricity Supply Industry 38
3.8.2 Demand Side Management in Biomass End-use 40
4.0 IMPLEMENTATION ARRANGEMENTS .................................................................. 43
4.1 Institutional Arrangements 43
4.2 Implementation Plan 44
4.3 Monitoring and Evaluation Plan 44
4.4 Policy Review 45
ANNEX 1: DEMAND AND SUPPLY-HISTORICAL AND PROJECTED (2008-2035)

…………………………………………………………………………………….46
ANNEX 2: SE4ALL FRAMEWORK FOR DEFINING AND MEASURING ACCESS

TO ELECTRICITY ................................................................................................ 47
ANNEX 3: IMPLEMENTATION PLAN FOR THE NATIONAL ENERGY POLICY

2018. ………………………………………………………………………………..48
ANNEX 4: MONITORING AND EVALUATION PLAN FOR THE NATIONAL

ENERGY POLICY 2018 ........................................................................................ 91
ANNEX 5: ENERGY MEASUREMENT AND CONVERSION TABLES ................... 176
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1.0 INTRODUCTION
This Policy seeks to guide the planning and implementation of programmes, projects and
activities in the energy sector with the aim of increasing the access to affordable, reliable,
sustainable, efficient and modern energy services by every person in the country. The Policy
reflects the latest developments in the energy sector and new national goals. It has an
Implementation Plan and a Monitoring and Evaluation Plan with time-bound deliverables,
and sets out clear updated goals, objectives, strategies and priority actions.
Cognizant of the fact that biomass dominates the current energy mix, at 89%, this Policy aims
at reducing the contribution of biomass in the energy mix by promoting development and use
of modern energy sources as shown in Annex 1. This Policy has categorised energy sources
as follows: Electricity from Non-Renewable Sources; Electricity from Renewable Sources;
Biomass; Petroleum Fuels; Biofuels; Liquefied Petroleum Gas (LPG); Biogas and Natural
Gas (NG); Coal; and Electricity from Nuclear Energy.
1.1 Background
The Government of Malawi identified energy as a priority sector in order to spur the socio-
economic development of the country. Improvements in the energy sector are expected to
positively impact on other sectors, through well-defined policies and institutional
frameworks, international assistance from development partners, and partnerships with the
private sector.
In recognition of the above, the Government of Malawi, adopted a National Energy Policy
(NEP) in January 2003. The Policy aimed at achieving the following long-term goals;
a) Make the energy sector sufficiently robust and efficient to support GoM’s socio-
economic agenda of poverty reduction, sustainable economic development, and
enhanced labour productivity.
b) Catalyse the establishment of a more liberalized, private sector driven energy supply
industry in which pricing will reflect the competition and efficiency that will develop
in the reform process; and
c) Transform the country’s energy economy from one that is overly dependent on
biomass to one with a high modern energy component in the energy mix.
The NEP 2003 had the following successes:

a) Formulation of the Malawi Energy Regulatory Authority to regulate the energy sector
b) Formulation of the National Oil Company of Malawi (NOCMA)
c) Increased awareness of renewable energy technologies
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d) Capacity building in Renewable Energy Technologies through introduction of the

Testing Centre for Renewable Energy Technologies (TCRET) and establishment of
the Department of Energy Studies at Mzuzu University;
e) Increased penetration of renewable energy into the energy mix;
f) Establishment of the Rural Eectrification Fund and the Rural Electrification
Management Committee;
g) Implementation of Power Market Reforms;
 Amendment of the Electricity Act of 2004 to allow participation of Independent
Power Producers.
 Unbundling of ESCOM into two companies - one responsible for electricity
generation-EGENCO, and the other one responsible for electricity transmission
and distribution - residual ESCOM.
h) Implementation of a Bulk Fuel Procurement System; and
i) Increased fuel storage holding capacity to 75days.
Despite making progress in implementing the National Energy Policy (NEP) 2003, a lot
remains to be done if the energy needs of all Malawians are to be met. The unfinished agenda
is detailed below:
a) Despite the successful unbundling of ESCOM, there is still need to create two
publicly owned companies one responsible for transmission and the other for
distribution.
b) Electricity generation in the country is inadequate to meet the demand. There is little
private sector participation in generation of electricity to assist Government in filling
the supply-demand gap. The generation is predominantly hydro (98% as at April
2018) with 99% of the power plants located on Shire River. In order to be efficient
and stimulate inclusive growth, efforts to strengthen electricity generation must
deliberately co-opt strategies aimed at preventing and mitigating project risks for
different social groups, as well as creating an enabling environment for equal
opportunities in the sub-sector. With revised legislation, including the unbundling of
ESCOM, it is anticipated that more private players will be attracted to the industry.
c) Electricity Transmission Capacity constraints are prevalent in the country as
indicated by overloading of transmission lines and transformers. An increased
transmission system capacity is crucial for evacuation of power from the generation
stations.
d) Access to electricity remains a major challenge that calls for urgent attention. Some
of the barriers are high cost of connection to the grid, inadequate capacity by
ESCOM to connect customers to the grid and lack of flexible connection incentives.
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e) The Rural Electrification Fund has had an impact of extending the grid to the rural
areas, but with limited connections. The fund has not been utilised for off-grid
electrification.
f) Renewable energy contribution to the energy mix is still low. Some of the barriers to
exploitation, development and use of renewable energy sources are:
i) Prohibitive capital costs of renewable energy-based systems and renewable
energy technology (RET) products, e.g. mini grid systems, solar PV systems,
bagasse co-generation systems and Pico Solar Products (PSPs);
ii) Inadequate human capacity building at all levels in RET products, services,
installation and maintenance, and marketing;
iii) Lack of enforcement mechanisms for standards resulting in a proliferation of
poor quality products, e.g. PSPs, on the market, and
iv) Limited dissemination of awareness information to the population.
g) Biomass remains the major source of energy for cooking, heating and brick burning
which exerts pressure on the diminishing resources. There is low adoption of efficient
and alternative technologies that could reduce demand for biomass. There is no
biomass energy regulatory framework.
h) Bio-ethanol and biodiesel contribution to the energy mix is low due to limited
production capacity, lack of appropriate incentives and limited distribution
infrastructure.
i) Liquefied Petroleum Gas (LPG), Biogas and Natural Gas, as alternative sources of
energy for cooking, heating and electricity generation, have not been fully exploited.
There are, however, challenges that are hindering the uptake of these fuels. These
include: people’s lack of awareness and knowledge about the existence of the fuels,
cultural barriers, high capital costs for equipment, and inadequate technical expertise in
the design and construction of the systems.
j) Coal has not been used much as an energy source despite the fact that the country has
proven reserves. There are five main challenges facing the Coal Supply Industry (CSI)
that need to be addressed:
i) Lack of price competitiveness of local coal compared to imported coal;
ii) Non-existence of competition within the industry (23 years after the
liberalisation of the industry in 1995, there are still just a few coal mining
companies in operation);
iii) Low productivity and high production costs owing to the use of obsolete
technologies; and
iv) Overlaps in policy and regulatory framework to govern downstream
marketing, transportation and utilisation.
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k) Nuclear energy has not been used for electricity generation despite the fact that the
country has uranium deposits. Government has decided to harness the locally available
nuclear energy for electricity generation. To this end, Government intends to formulate
a capacity building programme in nuclear science in consultation with the International
Atomic Energy Agency. The intention is to build adequate capacity to have the first
nuclear power plant running by 2035.
l) Demand Side Management (DSM) and Energy Efficiency programmes have not been
comprehensively implemented and fully adopted. This has resulted in a lot of wastage
of electrical energy and biomass in end-use activities such as cooking, water and space
heating, as well as lighting. The wastage has been occasioned by use of inefficient
appliances and devices.
m) The NEP 2003 was promulgated after the Millennium Development Goals (MDGs)
were put in place. However, the MDGs did not have any specific goal on energy,
thereby omitting an important element in development. The new United Nations
Sustainable Development Goals (SDGs) that have since been put into place include
energy as Goal No. 7. The revised policy has taken this into account. In addition, the
advent of the SE4ALL Initiative of 2011 necessitated a review of the old policy to
factor in aspects thereof.
In view of the above, the revised National Energy Policy addresses the unfinished agenda and
reflects the latest developments in the energy sector both nationally and internationally. This
Policy has an Implementation Plan and a Monitoring and Evaluation Plan with time-bound
deliverables. The Policy sets out clear updated goals, objectives, strategies and priority
actions, and focuses on the following issues:
a) Providing sustainable and reliable energy that will catalyse industrialisation and
modernisation of the economy, as well as support rapid growth of the productive
sectors such as agriculture, manufacturing, mining and the service sector;
b) Achieving universal energy access in line with the SE4ALL and United Nations
Sustainable Development Goals (SDGs) i.e. Goal No. 7;
c) Ensuring cost-reflective pricing with internationally acceptable returns on investment.
This will include automatic price adjustment mechanisms for all sources of energy;
d) Promoting regional power interconnection;
e) Reducing the impact of climate change on energy;
f) Promoting efficient biomass stoves and biomass briquetting and other alternative
sources of energy;
g) Enhancing energy intervention’s planning and implementation at district level; and
h) Promoting Social and Gender Inclusion in energy programmes.
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1.2 Rationale
The first integrated National Energy Policy was formulated in 2003. Since then, the Energy
Sector as well as the overall economy have
gone through structural changes; the role of the government in some areas has changed;
markets have been liberalized and private sector initiatives have been encouraged. Therefore,
the National Energy Policy of 2018 has been formulated in consideration of these changes.
The formulation of the National Energy Policy of 2018 was also necessitated by changes in
national and international development agenda. The MGDS II has given way to the MGDS
III and the MDGs have given way to SDGs - both of which have put energy as a high priority
area. The country is also committed to achieving targets set under the Sustainable Energy for
All (SE4ALL) Initiative which had to be reflected in the Policy.
1.3 Policy Guiding Principles

The guiding principles of this Policy are as follows:
a) Sustainable Energy Supply and Services
b) Energy Efficiency and Conservation
c) Sustainable Energy for All (SE4ALL)
d) Equitable and Inclusive Energy Access
e) Promotion of Private Sector Participation
f) Good Governance in Energy Services
1.4 Linkages with Existing Policies, Laws and International Obligations

Constitution of the Republic of Malawi
The Constitution under Section 13 embodies principles of national policy that will ensure that
the State is actively promoting the welfare and development of Malawians. Among others, it
mandates the State to develop policies that will prevent the degradation of the environment,
enhance the quality of rural life, support the furtherance of education, support people with
disabilities in all spheres of life, and ensure the full participation of women in all areas on the
basis of equality with men. To effectively implement these policies, the State is obliged to
take all necessary measures, including facilitating equality of opportunity for all in their
access to basic resources, education, health services, food, shelter, employment and
infrastructure.
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Malawi Vision 2020
The Malawian Vision is that :

“By the Year 2020, Malawi, as a God-fearing nation, will be secure, democratically mature,
environmentally sustainable, self-reliant with equal opportunities for active participation by
all, having social services, vibrant cultural and religious values and a technologically driven
middle-income country”.
Energy was set to play a major role in attaining Vision 2020. However, the success of Vision
2020 has been minimal in part due to limited development and growth in the energy sector.
Malawi Growth and Development Strategy (MGDS) III
The Malawi Growth and Development Strategy (MGDS) III recognises that energy is the
lifeblood of the economy as it serves as a crucial input to all economic and social services. A
well-developed and comprehensive energy sector can improve service delivery and increase
outputs in industries such as manufacturing, trade, tourism and other services. Access to
clean, reliable, reasonably-priced and sustainable energy supply is central to maintaining and
improving the living standards of people.
Legislations
This Policy shall be implemented in line with the existing legislation that touches on energy
related issues such as: The Environmental Management Act 2016, Mines and Minerals Act
1981, National Forestry Act 1997, Water Resources Act 2013 and Gender Equality Act
2015, among others.
National Gender Policy 2006
The National Gender Policy, under the priority area of ‘environment, climate change and
management,’ expects the energy sector to ensure integration of gender in environmental
impact assessments (EIAs). Further, like all sectors, the energy sector is expected to
contribute to achievement of the priority area on 'gender and economic development' under
which there is a call to mainstream gender in national budgets, plans, strategies and
programmes.
National HIV and AIDS Policy 2013
The National HIV and AIDS Policy (2013) requires implementation of comprehensive
workplace HIV interventions that target highly mobile groups. Workers in energy
infrastructure development projects would fall under this category. Therefore, mainstreaming
HIV awareness in the energy sector is necessary for purposes of developing HIV prevention
measures to protect women and men according to their specific vulnerabilities; to minimize
disruptions to critical health/treatment services; and to generally prevent, mitigate and
monitor HIV and AIDS risks in energy projects.
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Mines and Minerals Policy 2013
The Mines and Minerals Policy advocates the development of adequate infrastructure to
support development of mining in the country. Therefore, in order to ensure rapid
development of the mining sector in the country, it is necessary to have a sufficient and
reliable energy supply.
National Forestry Policy 1996
Biomass is a downstream product of forests hence its use as an energy source must comply
with the Forestry Policy.
National Climate Change Management Policy (2016)
Power generation and supply have been adversely affected by the negative impact of climate
change. The National Climate Change Management Policy is promoting adaptation and
mitigation measures to climate change that will also benefit the energy sector.
Programme for Infrastructure Development in Africa (PIDA)
The African Union Commission (AUC), the New Partnership for Africa’s Development
(NEPAD), NEPAD Planning and Coordinating Agency (NPCA) and the African
Development Bank (AfDB) have developed a continental and consensual Programme for
Infrastructure Development in Africa (PIDA). The PIDA Priority Action Program (PIDA-
PAP), aims to boost energy trade within and between regional power pools which will benefit
the African economic regions through reduced cost due to economies of scale, improved
energy mix and increased access to modern energy services.
Tripartite Free Trade
The Tripartite Free Trade area comprising of SADC, COMESA and the East African
Community are focusing on harmonising the Regional Economic Communities (RECs)'
programmes in the areas of trade and infrastructure which include energy.
SADC Energy Protocol and Energy Cooperation Policy and Strategy (1996)
The SADC, through its Energy Protocol (1996) and its Energy Cooperation Policy and
Strategy (1996), identified four key areas in which energy can contribute to regional
integration: trade in energy, investment and finance, capacity building and training, the
exchange of information and the sharing of experience.
SADC Regional Infrastructure Development Master Plan (RIDMP)
The SADC Regional Infrastructure Development Master Plan (RIDMP) is expected to run
until 2027, and it is to be implemented in three phases, i.e. short term (2013-2017), medium
term (2017-2022), and long term (2022-2027). The Master Plan will benefit SADC member
states in different aspects of development including building roads, rails and ports. The
energy division is one of the prioritized sectors and falls under the RDIMP Energy Sector
Plan (ESP) 2012.
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International Energy Agency (IEA)
The key themes for the International Energy Agency (IEA) are energy security,
environmental protection and economic development. The agreed international goal of
greenhouse gas (GHG) emissions reduction is the driver for many energy policies world-
wide. This goal is achievable through improved energy efficiency and a higher level of
renewables in national energy mixes.
Power Africa Initiative
The United States Government’s Power Africa initiative is supporting economic growth and
development by increasing access to reliable, affordable, and sustainable power in Africa.
This initiative is expected to support the implementation of this Policy.
Sustainable Energy for All (SE4ALL) Initiative 2011
The SE4ALL initiative by the United Nations launched in September 2011 aims to achieve
the three main goals of ensuring universal access to modern energy services; doubling the
global rate of energy efficiency; and doubling the share of renewable energy in the global
energy mix by the year 2030. This Policy provides a platform for achieving these targets.
Sustainable Development Goals
The Sustainable Development Goal Number 7 aims at ensuring universal access to

affordable, reliable, and modern energy services by 2030; increasing substantially the share
of renewable energy in the global energy mix by 2030; and doubling the global rate of
improvement in energy efficiency by 2030.
8
2.0 BROAD POLICY DIRECTIONS
2.1 Policy Goal

The goal of the policy is:
“To increase access to affordable, reliable, sustainable, efficient and modern energy for
every person in the country.”
2.2 Policy Outcomes

The following are the expected outcomes for this Policy:
a) Diversified energy sources;
b) Developed and efficient energy sector;
c) Modernised and sustainable energy services;
d) Improved living standards for men and women due to equitable provision of energy
services, and
e) Increased access to clean, sustainable and affordable energy for all people.
2.3 Broad Policy Objectives

The broad objectives of this Policy are:
a) To strengthen the Electricity Supply Industry (ESI) and make it more efficient to
support industrialization, rural transformation, sustainable economic
development and wealth creation, as well as to facilitate regional electricity trading;
b) To ensure adequate production and supply of petroleum and biofuels at affordable
prices;
c) To ensure availability of LPG, biogas and natural gas in sufficient quantities at
affordable prices for industrial and domestic use;
d) To promote a coal supply industry that is more efficient and competitive, and
harnesses clean technologies that eliminate or greatly reduce harmful emissions;
e) To ensure that biomass is sustainably used and carbon emissions are reduced through
the use of energy efficient technologies;
f) To establish a vibrant, reliable, incentivized and sustainable private sector-driven
Renewable Energy Technology industry; and
g) To promote energy programming, budgeting and monitoring that routinely address all
aspects of social and economic development in energy programmes and services.
9
3.0 POLICY PRIORITY AREAS
This Policy has identified the following as priolity areas for action:
1. Electricity
2. Biomass
3. Petroleum Fuels
4. Bio-ethanol and Other Biofuels
5. Liquefied Petroleum Gas, Biogas and Natural Gas
6. Coal
7. Nuclear Energy
8. Demand Side Management
10
3.1 ELECTRICITY
Electricity as a priority area covers generation, transmission, distribution, rural electrification,

electricity from renewable energy, and definition and measurement of access to electricity.
3.1.1 Electricity Generation
Figure 1: Nkula Hydro Power Plant
The Electricity generation industry in Malawi is currently composed of one National

Company, the Electricity Generation Company (EGENCO). The industry is liberalised but
currently there are no private generators operating on the ground. The total installed
generation capacity for the country is 361MW, 91% of which comes from hydro power plants
located on the Shire and Wovwe Rivers, and the remaining 9% comes from stand-by
diesel/petrol generators.
The key challenges in electricity generation are the following: inadequate installed capacity
of 361MW against an estimated demand of over 529MW; lack of Independent Power
Producers (IPPs) in the generation industry that could assist in filling the generation gap;
overdependence on the Shire River for hydropower generation; lack of interconnection
between the national electricity grid and those of neighbouring countries, consequently, the
country is unable to trade power under the Southern Africa Power Pool (SAPP) or the East
African Power Pool (EAPP) trading arrangements.
Policy Statements
I. Government will create an enabling environment in order to diversify power

generation sources for security of supply and expand generation capacity to meet
the demand for electricity in the country.
11
Strategies:
 Reviewing the 2017 -2035 Integrated Resource Plan every five years.
 Creating an enabling environment for private sector investment in power generation.
 Conducting feasibility studies on sites for power generation from hydro, coal,
geothermal, natural gas, solar, wind, agricultural waste, forestry waste, and biogas
resources.
 Developing the sites for power generation from Hydro, Coal, Geothermal, Natural
Gas, Solar, Wind, agricultural waste, forestry waste, and biogas resources, up to
commissioning.
 Developing new hydro power plants up to commissioning.
II. Government will support all the necessary processes relating to the full
operationalization of Electricity Generation Company, (EGENCO) and the
company responsible for transmission and distribution, (ESCOM).
Strategy:
 Implementing power sector reforms in accordance with the Electricity Amendment
Act of 2016
III. Government will interconnect its power system with the regional grids of SAPP
and EAPP to ensure availability of additional generation capacity.
Strategy:
 Interconnecting the Malawi power system with those of Mozambique, Zambia and
Tanzania
IV. Government will promote plans, programmes and strategies that deliberately
advance the development of equal opportunities for marginalized and vulnerable
groups in the electricity generation value chain.
Strategies:
 Developing Social and Gender Integration Plans (or their equivalents) through
EGENCO and IPPs to address inward looking and outward looking social and gender
issues across all generation functions.
 Developing robust socially responsive Environmental and Social Impact Assessment
(ESIAs) instruments for generation projects.
 Developing and implementing comprehensive socially responsive Environmental and
Social Impact Management Plans for generation projects.
 Developing gender sensitive Resettlement Action Plans and/or fair compensation
packages.
12
3.1.2 Policy Priority Area 1.2: Electricity Transmission
Figure 2:400 kV transmission line
The Electricity Transmission network is owned and maintained by the national utility
company at 66kV, 132kV and 400kV. The System Operations Department operates the
transmission system and performs the functions of the Single Buyer. The power system in
Malawi is isolated from those of the neighbouring countries.
Recently, there have been develpments in the network that have increased its transmission
capacity to about 1000MW. This brings an incentive for integration of IPPs or PPPs, and
interconnection prospects with Mozambique and Zambia are now in the pipeline.
The coming in of IPPs requires a robust regulatory regime to ensure open access to the
transmission system in a non-discriminatory manner. Therefore, the unbundling of the
national utility company by separating the generation function from transmission and
distribution has been a necessary condition for ensuring this open and non-discriminatory
access to the transmission system. The separation of the functions is intended to ensure that
all generation plants have access to the transmission system in a properly regulated manner
under a robust Grid Code.
Since transmission projects have potential impact on the life of communities in whose areas
the projects are carried out, then social and gender considerations come into play when
implementing these projects.
Policy Statements
I. Government will intensify the expansion and rehabilitation of the transmission
system in line with the Integrated Resource plan (IRP) and in a socially and
environmentally responsible manner, with a view to catalysing industrialisation,
rural transformation, sustainable economic development, inclusive growth and
creation of wealth.
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Strategies:
 Operationalising in full the new transmission and distribution company.
 Including all candidate transmission expansion and strengthening projects in a 20-year
IRP and updates thereof.
 Empowering generation companies to build transmission lines and substations to
interconnect the power stations with the transmission grid under the Transmission
Operator’s coordination.
II. Government will put in place robust power market operation rules and enforce the
Grid Code.
Strategy:
 Reviewing the Grid Code.
III. Government will interconnect its power system with the regional grids of SAPP
and EAPP to facilitate Regional power trading.
Strategy:
 Interconnecting the Malawi power system with those of Mozambique, Zambia and
Tanzania.
IV. Government will ensure that transmission operations do not perpetuate
inequalities amongst marginalized groups and project affected persons.
Strategies:
 Developing Social and Gender Integration Plans by ESCOM and contractors to
address inward looking and outward looking social and gender issues across all
transmission operations.
 Developing robust socially responsive Environmental and Social Impact Assessment
(ESIAs) instruments for transmission projects.
 Developing and implementing comprehensive socially responsive Environmental and
Social Impact Management Plans for transmission projects.
packages.
14
3.1.3 Policy Priority Area 1.3: Electricity Distribution
Distribution transformer supplying customers
The country’s electricity distribution network is owned, operated and maintained by a

national utility company, ESCOM. The network is operated at 33kV and 11kV, and these
voltages are stepped down using distribution transformers to 400/230Volts for secondary
distribution. As of 2016, ESCOM supplied electricity to about 250,000 customers,
categorized as domestic, general, commercial and industrial. The current number of
customers translates to about 10.0 per cent of the national population having access to
electricity. The government had, under the National Energy Policy of 2003, planned to
increase the number of people with access to electricity from 4% to 10% of the population by
2010, 30% by 2020, and 40% by 2050.
Access to electricity in the country remains a major challenge owing to a number of factors
which include: low coverage distribution network and high cost of connection to the grid,
including the cost of transformers. Further, as of 2016, ESCOM had a considerable number
of applications for connection of power supply, but it was unable to do the connections for
various reasons, including material procurement bottlenecks and limited capacity to construct
the lines to customers.
Policy Statements
I. Government will intensify the expansion and rehabilitation of the distribution

network in a socially inclusive manner.
Strategies:
 Constructing new distribution lines and substations.
 Developing robust socially responsive ESIAs for new distribution lines and
substations projects.
 Developing and implementing comprehensive socially responsive ESIMPs for new
distribution lines and substations projects.
packages
 Rehabilitating existing distribution lines and substations.
15
II. Government will incentivise distribution licensees to devise schemes that will
enable consumers to connect electricity to their homes, and afford basic energy
efficient electrical appliances.
Strategies:
 Removing duty and VAT on energy efficient domestic electric cooking and water
heating appliances.
 Introducing lifeline tariffs to enable low income households to access electricity.
III. Government will encourage distribution licensees to expedite connections to
customers’ premises.
Strategies:
 Implementing a policy whereby the distribution licensees shall allow customers to
procure transformers and other materials, in the event of procurement bottlenecks, and
thereafter take over the assets with appropriate compensation.
 Implementing a policy whereby construction works will be contracted out.
 Promoting initial connection cost recovery from tariff payments
IV. Government will ensure that distribution licensees have plans and strategies for
fostering equal access to services and opportunities for low-income consumers
and marginalized societal groups.
Strategy:
 Developing Social and Gender Integration Plans by ESCOM and distribution
licensees to address inward looking and outward looking social and gender issues
across all distribution functions.
16
3.1.4 Policy Priority Area 1.4: Rural Electrification
Rural electrification entails increasing electricity access to rural and peri-urban areas using
grid and off-grid options. The Malawi Rural Electrification Program (MAREP), which is
being implemented by GOM and ESCOM using the Rural Electrification Fund, has had some
impact on the electrification of rural and peri-urban areas in the country.
The rural electrification programme has, up to the time of formulating this policy, targeted
mainly grid extensions. Renewable energy and mini grids have not been promoted
significantly. In addition, rural electrification has so far concentrated on electrifying selected
trading or rural growth centres in the districts. Villages, especially households, grain mills,
and social service facilities need to be reached in order to increase access to electricity as
over 80% of the population of Malawi lives in rural areas.
Rural electrification projects in the country have not fully involved subgroups of rural men
and women in planning, governance, management, recruitment, procurement and operations.
Many rural public institutions are not connected to electricity from the national grid, mini
grids, or other sources, including renewable ones such as solar installations.
Policy Statements
I. Government will restructure Rural Electrification and Renewable Energy

Management governance.
Strategy:
 Establishing a Rural Electrification Agency as a semi-autonomous legal entity to
manage the Rural Electrification Fund and Rural Electrification activities (in both grid
extension and off-grid options).
II. Government will, through the Rural Electrification Fund, pay for the cost of a
transformer and associated infrastructure where it is intended to serve a minimum
prescribed number of customers.
17
Strategy:
 Making a provision for payment of infrastructure costs in the new Rural
Electrification Act.
III. Government will intensify electrification of rural growth or trading centres as well
as rural settlements and villages, and provide funding for off-grid solutions.
Strategy:
 Committing funds from the Rural Electrification Fund to off-grid rural electrification.
IV. Government will facilitate wiring of public institutional buildings and connection
of electricity thereto, and devise schemes for the connection of electricity to low
income households within 500-metre radii of distribution substations in rural
areas.
Strategies:
 Electrifying institutional buildings, such as schools and hospitals using the Rural
Electrification Fund
 Devising schemes for the Rural Electrification Fund to connect electricity to low
income households within 500m radii of distribution substations.
V. Government will promote rural electrification programmes that create and
strengthen equal opportunities for all segments of society.
Strategies:
 Developing Social and Gender Integration Plans through the Rural Electrification
Agency, MAREP and contractors in order to address inward looking and outward
looking social and gender issues across rural electrification functions.
 Devising rural electrification interventions for low income households that
deliberately target male, female, child and elderly headed households.
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3.1.5 Policy Priority Area 1.5: Electricity from Renewable Energy
Grid connected Solar PV Farm at Kamuzu International Airport
Malawi is well endowed with renewable energy resources such as good sunshine throughout
the year for photo-voltaic and photo-thermal applications, reasonable wind speeds for water
pumping and power generation, a number of perennial rivers with hydro power potential,
reasonably large quantities of biomass materials for electricity generation and hot springs for
geothermal power generation. GoM has developed Malawi Renewable Energy Strategies and
SE4ALL Action Agenda which will guide investments in the renewable energy sub-sector.
Social and gender issues will be taken into consideration in implementing renewable energy
interventions. Despite having abundant renewable energy resources, Malawi has not fully
exploited them and their penetration into the energy mix is still low.
The barriers to exploitation of renewable energy resources include the following:
a) Prohibitive capital costs of RET systems and products,
b) Inadequate human capacity building at all levels in RET products, services,
installation, maintenance, and marketing;
c) Lack of awareness and information about RET products and services by the
population; and
d) Lack of enforcement mechanisms for standards resulting in a proliferation of poor
quality products.
Policy Statements
I. Government will strengthen the exploitation of renewable energy resources.
Strategies:
 Integrating inclusive renewable energy utilisation into the Integrated Resource Plan.
19
 Promulgating and regularly reviewing standards for RET products, especially Solar
PV and Pico Solar Products.
II. Government will promote use of renewable energy technologies and
manufacture of renewable energy products such as solar panels
Strategies:
 Expediting assessment and development of renewable energy resources such as
geothermal, solar, wind and biomass.
 Adopting a Malawi Renewable Energy Strategy (MRES) that promotes RE through
incentives to new players.
 Establishing fiscal incentives for renewable energy exploitation using existing funds
such as the Rural Electrification Fund.
 Developing a strategy for public awareness campaigns on renewable energy
technologies targeted at rural, urban and peri-urban consumers and focusing on
availability, benefits, and suppliers of RET products and services..
 Promoting RET products for vulnerable and marginalized groups.
III. Government will support small-scale renewable energy initiatives by
communities or entrepreneurs.
Strategies:
 Developing appropriate regulations for specific small-scale technologies under the
Renewable Energy Act.
 Reviewing the feed-in tariffs to ensure that all technologies including mini-grids are
sustainably accommodated.
 Involving communities in community energy planning and implementation.
 Equipping all stand-alone renewable source powered mini-grids and privately owned
installations with Net Metering to ensure their continued use upon connection to the
grid.
 Promoting competitive bidding for mini-grid concessions in order to achieve the best
value for money.
IV. Government will promote capacity building in all areas of RET programming,
supply and services, as well as in entrepreneurship and management, taking
into account gender and social issues.
Strategies:
 Developing an inclusive and comprehensive RE Capacity Building Plan that ensures
that renewable energy interventions/services are suitable to the different needs of
women, men and their subgroups.
20
 Implementing the developed inclusive and comprehensive RE Capacity Building Plan

that ensures that renewable energy interventions/services are suitable to the different
needs of women, men and their subgroups.
 Devising incentives to increase numbers of well qualified male and female RET
artisans, technicians, professional engineers, and entrepreneurs.
V. Government will build strong partnerships with the private sector and CSOs
(including PPPs) to promote the manufacture, distribution, use and financing
of improved renewable energy technologies.
Strategies:
 Introducing financing schemes and incentives for the private sector to locally
manufacture and distribute RE products.
 Expediting the accreditation of RE manufacturers and suppliers and certification of
RE products.
 Strengthening the capacity of CSOs and decentralized structures in RET programming
and interventions.
3.1.6 Policy Priority Area 1.6: Definition and Measurement of Access to Electricity
The method used for defining and measuring electricity access revolved around grid
connections – one either had a grid connection or did not. In view of the fact that off-grid
technologies such as Pico Solar Products (PSPs) and isolated mini-grids provide fundamental
electricity services to users, the Sustainable Energy for All (SE4All) Initiative developed the
Global Tracking Framework (GTF) as an improved method of defining and measuring energy
access as illustrated in Annex 2.
The Government has noted an increase in the use of PSPs and an emerging potential of
increasing electricity access through decentralised mini grid systems. These need to be taken
into account when measuring access to electricity.
Policy Statement
I. Government will adopt the Global Tracking Framework (GTF) for measuring
access to electricity.
Strategies:
 Adopting (and if necessary adapting) the Global Tracking Framework.
 Conducting annual surveys to determine percentages for all tiers.
 Presenting access levels for each year in the GTF format.
21
3.2 BIOMASS
This Policy priority area relates to biomass used for purposes other than electricity
generation. Malawi’s energy balance is dominated by biomass (firewood, charcoal,
agricultural and industrial wastes), which account for 80% of the total primary energy supply
due to, among other reasons, lack of affordable and reliable alternatives. The Government of
Malawi (GoM) has recognised that biomass remains an important source of energy for the
foreseeable future. To this end, GoM is promoting sustainable production and efficient use of
biomass. Therefore, GoM has set a target to roll out 2 million efficient cookstoves by 2020 to
reduce biomass consumption. A national cookstoves road map has been developed aimed at
achieving this target.
The major challenge in the biomass sub sector is unsustainable production and inefficient use
of resources. Beside this, there are negative health issues associated with wood fuel for
cooking. Burning of bricks for construction of houses is also another cause of high biomass
consumption. Currently, there are technologies for reduction of biomass required for brick
burning, which need to be promoted. There are also new improved technologies for charcoal
making, which use less wood than the traditional charcoal making methods.
Policy Statements
I. Government will build strong partnerships with the private sector and NGOs
(including PPPs) to promote the manufacture, supply, use and financing of
improved cook stoves, brick kilns, charcoal kilns and biomass briquettes and
pellets.
Strategies:
 Promoting the creation of feasible business models for modern biomass technologies
(e.g. improved cook stoves, charcoal kilns, etc.)
22
 Promoting incentives to CSOs to increase the uptake of modern biomass technologies.

 Promoting alternative technologies to charcoal in urban and peri-urban areas in order
to reduce the demand for charcoal.
 Introducing incentives for the growth of industries in manufacturing and distribution
of improved cook stoves, brick kilns, charcoal kilns and biomass briquettes.
 Introducing customs duty and VAT incentives to promote the wide availability of
improved locally made cook stoves.
II. Government will intensify training and nationwide promotional activities for
improved cook stoves, brick kilns, charcoal kilns, and biomass briquettes
Strategies:
 Building and strengthening capacity in new biomass technologies.
 Increasing public knowledge and utilization of improved biomass technologies and
their economic opportunities.
 Developing and implementing a Biomass Energy Technologies Training Strategy.
III. Government will ensure that low income and marginalized groups have
equitable access to, control over, and benefit from biomass technologies.
Strategy:
 Strengthening targeted biomass interventions for low income and marginalized groups
in urban and rural areas to access and control technologies
IV. Government will entrust and empower local authorities to promote the
utilisation of efficient biomass technologies.
Strategies:
 Recruiting District Energy Officers.
 Strengthening district level capacity to implement sustainable programmes and
projects related to biomass technologies.
 Including biomass programmes in District Implementation Plans (DIP).
V. Government will promote the certification and labelling of all energy efficient
commercial cook stoves that are sold as commercial products on the market
Strategy:
 Developing and enforcing standards on cook stoves sold as commercial products
23
VI. Government will encourage charcoal making communities to venture into

alternative income generating activities.
Strategy:
 Building linkages between the energy sector and economic empowerment initiatives
that are implemented by other sectors in charcoal making areas.
24
3.3 PETROLEUM FUELS
Figure 3: Strategic Fuel Reserves in Kanengo
The Petroleum fuels industry in Malawi has two principal parts namely upstream and
downstream. Upstream covers exploration, production and refining of crude oil. Supply
logistics and marketing of petroleum fuel products are downstream. The mandate of the
Ministry responsible for energy falls within the downstream activities. Petroleum fuels
distributed in the country are petrol (gasoline), diesel, paraffin (kerosene) and heavy fuel oil
(HFO). The country is obliged to import refined petroleum fuels since it lacks domestic
refining facilities. Importation of petroleum fuels is done through a consortium of oil
marketing companies known as Petroleum Importers Limited (PIL), and the National Oil
Company of Malawi (NOCMA) which also owns, operates and maintains national strategic
fuel reserves. Retailing of petroleum fuels is done by Oil Marketing Companies (OMCs)
through a franchising system in which they are allowed to own a maximum of two retail
outlets and franchise the rest. GoM uses and is committed to maintaining the Automatic Fuel
Price Adjustment Mechanism to ensure that the OMCs are able to recover their costs in a
timely manner.
The Government implements a bulk procurement system in the importation of fuel into the
country. The private sector is being encouraged to participate actively in the downstream
activities of the fuels market. Government has also established inland dry ports to hold fuels
that would last for 60 days. All licensees are required to keep at least 30 days of fuel
holdings not just in tankers but in storage facilities, giving a national total of 90 days’ supply.
If necessary, the inland ports that have been constructed can be used to host fuel for Oil
Marketing Companies (OMCs) at a fee. These should therefore be regarded as common user
facilities.
25
Paraffin has for some time been used for cooking and lighting. Its combustion, however,
releases fumes that are hazardous. In order to contribute to a shift away from biomass for
cooking, households shall be encouraged to use paraffin for cooking, but only by using
modern and efficient paraffin cook stoves.
Policy Statements
I. Government will ensure that the country has adequate petroleum fuels,
including paraffin, at all times to meet the demand of the country.
Strategies:
 Maintaining a minimum reserve of 90 days’ supply of fuel.
 Promoting cost-effective, efficient and environmentally and socially responsive
alternative conveyance methods such as pipelines and water barges to ensure lower
landed cost of petroleum products.
 Promoting exploration for petroleum for energy security.
 Providing customs duty and VAT incentives to potential investors in the oil market.
II. Government will continue promoting the participation of the private sector in
the oil market.
Strategies:
 Reviewing and enforcing legislation to adopt a system of bulk procurement of fuel.
 Utilizing the Government fuel storage facilities as inland dry ports and common-user
facilities.
 Developing and implementing guidelines for franchising of liquid fuel outlets to be
adhered to by all OMCs.
 Introducing investment incentives to contribute to the economic empowerment of
Malawians in the oil market, including ownership, operation and management of
filling stations
III. Government will promote deliberate planning that strengthens the equitable
participation of men, women and marginalized groups in the oil market.
Strategies:
 Introducing and/or strengthening youth and women mentorship and capacity building
programmes in the oil market.
 Developing social and gender inclusion strategies for increasing equal opportunities in
employment and addressing social and gender issues in the oil market.
26
IV. MERA shall maintain the automatic fuel price adjustment system and apply it in
a transparent manner.
Strategy:
 Regulating fuel prices through use of a transparent and verifiable fuel price
adjustment system.
27
3.4 BIOETHANOL AND OTHER BIOFUELS
Ethanol driven Car
Biofuels, in the form of bioethanol and biodiesel, are another important source of fuel that are
being exploited in Malawi. Currently Biofuels provide 4% of transport energy coming from
locally-produced bio-ethanol and bio-diesel that is blended with petroleum fuels at blending
ratios of 20:80 and 9:91 respectively. Currently, there are only two companies producing bio-
ethanol in the country, and they produce it from sugarcane molasses. On the other hand, there
is currently one company that is producing biodiesel, and it is being produced from jatropha.
One of the key challenges in the biofuels industry is that bioethanol and biodiesel have lower
calorific values making them less efficient fuels relative to petrol or diesel. However, this
disadvantage, for bioethanol, is compensated for by its ability to enhance the octane rating of
petrol. It also acts as an oxygenate in petrol engines, thereby contributing to abatement of
pollution by eliminating production of carbon monoxide and other harmful gases. A more
fundamental problem, however, is reliability of supply because of the current limited national
bioethanol production capacity arising from insufficient supply of molasses.
In addition, there is no nation-wide dedicated pump station infrastructure for handling
bioethanol grades other than the existing blended petrol. While Malawi does not use staple
food crops, notably maize and cassava, for production of bioethanol, it is important for the
National Energy Policy to ensure that production of bioethanol does not threaten food
security. Equally, the fact that jatropha plants, as opposed to edible oilseeds such as
sunflower or groundnuts, are currently being used to produce small quantities of biodiesel
does not remove the potential risk that could arise from use of food crops for production of
biofuels.
Policy Statements
28
I. Government will support, encourage and promote the production of bioethanol

and biodiesel for blending or stand-alone use in vehicles, as well as for cooking,
lighting, etc. provided that such production does not threaten food security.
Strategies:
 Increasing the supply of bio-ethanol and bio-diesel.
 Promoting fiscal incentives for bio-ethanol and bio-diesel production.
 Promoting the use of bio-fuels through appropriate pricing incentives.
 Implementing socially and environmentally responsive large scale bio-ethanol and
bio-diesel projects.
 Increasing local capacity to produce bioethanol and biodiesel fuels without
threatening food security, especially through the collaboration of farmers’
cooperatives, women farmers’ coalitions, and other marginalized groups.
 Engaging the National Commission for Science and Technology as well as academic
and research institutions in discussions on biofuel mixtures and their usage in
vehicles.
 Promoting socially responsive research and development in the biofuels areas.
II. Government will promote equal opportunities for the participation of the
citizenry in the biofuels industry including in building capacity in biofuel
technologies.
Strategy:
 Developing plans and strategies that facilitate the capacity building of both women
and men in biofuel technologies and increasing women’s participation in the industry
III. Government will ensure that the production of biofuels does not threaten food
security.
Strategies:
 Promoting the growing and use of non-staple food crops as bio-ethanol and bio-diesel
raw materials. Food crops and productive land shall only be used for biofuel
production where there is an assurance that food security will not be impacted
negatively.
 Intensifying public awareness campaigns to ensure that smallholder farmers’ land for
the cultivation of food crops is not used to grow biofuel feedstock.
IV. In addition to continuing with the current 80:20 petrol to bioethanol blending
ratio, Government will promote the use of flex vehicles capable of running on
100% bioethanol and any other blending ratio.
29
Strategies:
 Implementing a phased installation of bioethanol pumps in line with increased
production of bioethanol.
 Promoting awareness campaigns on the uptake of new technologies (e.g. flex
vehicles).
 Promoting importation of conversion kits for existing petrol powered vehicles.
V. In addition to continuing with the current 91:9 diesel to straight vegetable oil
blending ratio, Government will promote the use of vehicles capable of running
on 100% biodiesel and any other blending ratio.
Strategies:
 Implementing a phased installation of biodiesel pumps in line with increased
production of biodiesel.
 Promoting awareness campaigns to ensure that there is uptake of new technologies
(e.g. flex vehicles).
 Promoting importation of conversion kits for existing diesel powered vehicles.
30
3.5 LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS
Figure 4 LPG Stoves and Tanker
Liquefied Petroleum Gas (LPG), Natural Gas and Biogas are important alternative energy
sources to fuelwood for cooking and heating. Malawi imports LPG for domestic, commercial
and industrial use. Importation, distribution, wholesaling and retailing of LPG is done by the
private sector and is regulated by MERA. In the country, LPG is mostly, if not entirely, used
for domestic cooking and heating.
Natural gas is a source of energy for heating, and can also be used for electricity generation.
The gas has lesser impact on the environment than that of other fossil fuels such as oil and
paraffin. Malawi’s neighbouring countries, Mozambique and Tanzania, have large deposits of
natural gas which they are planning to extract. Malawi can take advantage of this opportunity
to tap into the source if it can build appropriate infrastructure such as transmission pipelines
and distribution and reticulation systems.
There are no large scale gas networks in Malawi but there is a large potential market for
biogas which could help replace fossil fuel based canisters that are used for cooking in
homes, as well as lead to a switch from firewood-based fuels in cooking in other areas. There
are also many opportunities to establish smaller biogas networks, utilising local waste
products in rural and urban areas. There are, however, several challenges that are hindering
the uptake of the technology in Malawi. The first challenge is lack of public awareness and
knowledge on the existence of the technology. Secondly, people are reluctant to use biogas
produced from, for example, animal dung for cooking. The third challenge is the inadequate
technical expertise in the technology. The technology requires experts for the design and
construction of the biogas systems.
However, there are several barriers to increased use of LPG and Biogas, and adoption of
Natural Gas in Malawi, one of which is cost. There is need to look at ways of doing away
with barriers; one of the ways is to lower pricing in order to increase uptake of LPG, Biogas
and Natural Gas. It is also necessary to identify potential partnerships to promote greater
market penetration. Infrastructure for Natural Gas is also relatively expensive, hence the need
for partnerships with the private sector.
31
The second issue is safety. It is perceived by a majority of Malawians that gas is unsafe to use
because it can cause fire accidents.
The third barrier is lack of a wide distribution network or system for exchanging cylinders. At
present these are concentrated in cities and towns, and they need to be rolled out to rural areas
as well.
Policy Statements
I. Government will ensure availability of LPG, Biogas and Natural Gas in

sufficient quantities at affordable prices for industrial (electricity generation,
heat) and domestic use.
Strategies:
 Undertaking legal and regulatory reviews to facilitate institutional reforms for
investments in and utilization of LPG, biogas and natural gas.
 Promoting tax and other fiscal incentives for large scale investments in LPG, biogas
and natural gas.
 Implementing a phased program to accelerate the penetration of LPG and natural gas
into the consumer market.
 Providing customs duty and VAT incentives to promote the wide availability of small
LPG cylinders and gas cookers, and make them affordable to low income households.
 Promoting use of LPG, Biogas and Natural Gas through fiscal incentives to
financially viable companies to construct own storage facilities that meet prescribed
minimum stockholding requirements.
II. Government will implement programmes aimed at building the capacity of the
LPG, Biogas and Natural Gas Industry.
Strategies:
 Promoting socially inclusive and well trained LPG, biogas and natural gas suppliers
and users.
 Conducting public awareness campaigns on the safe use of LPG, biogas and natural
gas.
 Promulgating Regulations and standards on the supply and distribution of cylinders
for LPG (such as safety regulations, quality of cylinders etc).
 Implementing Regulations and standards on the supply and distribution of cylinders
for LPG (such as safety regulations, quality of cylinders etc).
III. Government will promote an LPG, Biogas and Natural Gas industry that
actively strengthens the participation and economic empowerment of local
women, men and the youth in the industry.
32
Strategies:
 Developing plans and strategies to facilitate the capacity building of local women,
men and the youth to be entrepreneurs in the industry.
 Building knowledge and skills of local women, men and the youth in LPG, biogas and
Natural Gas technologies.
 Devising plans, strategies and incentives to increase the employment of local women
and the youth in the industry.
IV. Government will establish PPPs for the purpose of exploring and extracting
Natural Gas and construction of the associated infrastructure.
Strategy:
 Engaging private companies with expertise in the industry that are interested in
establishing partnerships.
33
3.6 COAL
Figure 5 : Coal and Coal Fired Power Plant
Malawi has 1 billion metric tonnes of probable coal reserves. These resources occur in some
parts of the Northern Region (Karonga and Rumphi) and the Southern Region (Lengwe and
Mwabvi Game Reserves in the Lower Shire Valley). Although coal deposits have been
known to exist at several locations in Malawi, coal mining only started as recently as 1985.
The main challenges facing the Coal Supply Industry (CSI) include the following:
a) Lack of price competitiveness for Northern Malawian coal compared to imported
coal;
b) Non-existence of competition within the industry (23 years after the market
liberalisation of 1995, there are still just a few mining companies);
c) Low productivity and high production costs owing to the use of obsolete
technologies;
d) Non-availability of appropriate end-use technologies to enable use of coal in new
market niches such as household cooking and tobacco curing;
e) A general lack of information on firm coal reserves as a result of limited
exploration; and
f) Absence of an appropriate regulatory framework to govern downstream
marketing, transportation and utilisation of coal.
Policy Statements
I. Government will promote and encourage the private sector to take a leading role
in the coal industry subject to regulatory and licensing requirements.
Strategies:
 Empowering the private sector to intensify exploration for and exploitation of coal
reserves.
 Ensuring that pricing for locally mined coal is competitive.
II. Government will ensure that the responsible regulatory institutions regulate the
storage, transportation, importation, marketing, usage, and pricing of coal.
34
Strategies:
 Implementing a systematic programme of inspection of coal storage facilities,
combustion processes, and transportation systems.
 Devising mechanisms to monitor pricing and marketing operations.
 Putting in place competitive coal haulage and brokerage arrangements.
 Reviewing and enforcing the relevant legislation and ensuring safe, healthy
and.environmentally friendly operations in the supply chain.
 Ensuring that the coal production, transportation, utilization and waste disposal
processes produce minimal pollutants.
III. Government will put in place sustainable measures and regulations to ensure
that the mining, transportation, storage and utilisation of coal have minimal
adverse health, social and safety impacts.
Strategies:
 Putting in place all-inclusive capacity building programmes.
 Developing Environmental and Social Impact Management Plans (or the equivalent)
to address environmental issues affecting the coal industry.
 Developing Social and Gender Integration Plans (or the equivalent) to address inward
looking and outward looking social and gender issues affecting the coal industry.
IV. Government will promote coal as a fuel for power generation and as an
alternative to wood fuel for household use, tobacco curing and other
applications.
Strategies:
 Implementing environmentally friendly coal-fired electricity generation projects.
 Conducting Enviromental and Social Impact Assessments (ESIAs) and

developing/implementing comprehensive impact mitigation plans.
 Developing and implementing Gender Sensitive Resettlement Action Plans and/or fair
compensation packages.
 Promoting appropriate end-use technologies to facilitate use of coal in household and

tobacco curing applications.
V. Government, through the Environmental Affairs Department and MERA, shall

ensure that all coal combustion installations abide by set minimum standards.
35
Strategies:
 Implementing systematic inspection programmes for coal combustion installations.
 Supporting research into, and the development of, more efficient coal-combustion
technologies.
 Promoting the application of clean coal technologies, such as washing, gasification,

liquefaction and fume capturing.
VI. Government will, through fiscal incentives, promote coal-dust briquetting

programmes.
Strategy:
 Encouraging coal producers and entrepreneurs to engage in coal briquette production.
VII. Government will encourage the private sector to deliberately develop the
capacity of women, men and the youth to meaningfully participate in the coal
industry.
Strategy:
 Developing and implementing strategies that promote equal employment and
entrepreneurship opportunities for men, women and youth in the industry.
36
3.7 NUCLEAR ENERGY
Malawi had proven reserves of about 63,000 tonnes of uranium at Kayelekera in Karonga
District until 2009 when mining started. All the uranium mined was exported out of the
country. Due to the sustained low uranium price on the world market, Kayelekera site was
placed on care and maintenance in May 2014. There is also another deposit at Ilomba in
Chitipa District. The Malawi Government has decided to harness the locally available nuclear
energy for electricity generation; and the first nuclear power plant is expected to be
commissioned by 2035.
Policy Statements
I. Government will build capacity in generation of electricity from nuclear energy.
Strategies:
 Introducing Nuclear Science and Materials programmes in public universities.
 Building capacity in nuclear energy in Government.
 Promoting Research and Development in Nuclear Science.
 Establishing socially and environmentally responsive uranium processing facilities in
the country.
 Developing and commissioning the first nuclear power plant.
II. Government will promote nuclear energy programming that prioritises the
prevention and mitigation of different potential health risks that the industry
poses to workers and ordinary men, women, children and the environment.
Strategy:
 Development and implementation of Social and Gender Integration Plans by nuclear
companies/projects to address inward looking and outward looking social and gender
issues affecting nuclear energy.
37
3.8 DEMAND SIDE MANAGEMENT
Figure 6 : Energy Efficient Technologies
Demand Side Management (DSM) is an important means of improving energy efficiency at

the end-use level of the energy supply chain. Currently, in Malawi, there is a lot of wastage of
electrical energy and biomass in end-use activities such as cooking, water and space heating,
as well as lighting occasioned by use of inefficient appliances and devices. This priority area
focuses on savings in electricity and biomass consumption.
3.8.1 Demand Side Management in the Electricity Supply Industry

Most electricity supply utilities, including companies in the Southern African Power Pool,
have implemented DSM in various forms with a view to minimizing consumption of
electrical energy. This also translates into a reduction in demand for electrical energy, which
is a very effective means of controlling peak demand, especially in capacity constrained
systems.
3.8.1.1Utility Actions in DSM
The utilities’ DSM programmes entail a combination of some or all of the following actions:
a) Public information campaigns to raise awareness among consumers;
b) Energy audits to provide energy efficiency advice to consumers;
38
c) Installation of energy efficient measures in households to help consumers reduce their

bills, and reduce stress on overburdened utility systems;
d) Provision of financing in the form of rebates below-market loans for energy efficiency
measures, sometimes with the facility of allowing the consumers to repay the loan as
part of their utility bill payment. Installation of prepaid meters which have the effect
of increasing energy-efficiency behaviour by consumers, in addition to reducing non-
payment problems for utilities;
e) Implementation of tariffs that encourage efficient use of electricity, such as
i. Inverted Block Rates, whereby a low unit price for the first block of
electricity use is followed by higher tariffs for additional blocks of usage;
ii. Time of Use (TOU) Tariffs, which typically charge more for energy
consumed during peak periods, thereby incentivizing load shifting to off-
peak periods; and
iii. Dynamic or “Real-time” Pricing- a tariff structure in which the

electricity price continuously fluctuates based on availability and demand.
3.8.1.2.Customer Actions in DSM
The consumer decides what energy-efficiency actions to take. The utility can encourage the
consumer and even provide incentives but the decision is up to the consumer. Under demand
response programmes, the consumer can still decide whether or not to participate in an
energy efficiency programme, but the utility can control the amount and timing of electricity
usage. Participating consumers typically get very short notice from the utility that it will be
exercising the use of these measures at any given moment. The energy-efficient actions
include:
a) Entering into Interruptible Contracts - which are agreements between utilities and
large energy users in which the latter agree to have their power shut-off for a short
period (e.g. 1-3 hours) in exchange for a financial incentive in order to reduce peak
demand or relieve strain on an overburdened utility grid;
b) Acceptance of installation of Load Controllers - which are devices installed by the

utility on a customer’s equipment (usually an air conditioning unit or a geyser) that
can be remotely controlled by the utility to cycle-off the equipment for 30-60 minutes
during periods of high peak demand. The customer receives an incentive such as a bill
credit for participating in the programme;
c) Acceptance of the installation of Load limiters in electric meters to prevent consumers

from using more than a predetermined amount of electricity during peak periods.
Load limiters can in some cases replace meters and the customers are simply charged
39
a flat monthly fee. Customer participation in such programmes is in most cases

involuntary; and
d) Installation of roof-mounted solar water heaters which serve as alternative sources of

energy for water heating, thereby reducing the amount of electrical energy used for
this purpose.
3.8.1.3 Government Actions
Government actions to promote DSM include the following:
a) Instituting appliance testing, labelling and standards, which will include minimum
energy performance standards (MEPS);
b) Enforcing building codes on energy-efficiency requirements in the construction of

new buildings;
c) Reducing or eliminating import duty and taxes on energy efficient products;
d) Enforcing Government procurement rules that require procured energy-consuming

products such as lighting devices, ballasts, air conditioners, and fans to meet or
exceed minimum energy performance standards;
e) Instituting mandatory energy audits and energy use reductions by large customers;
f) Training, certification and technical assistance for industries, building owners,

bankers, utilities, standards agencies, code-setting organizations, energy auditors
such as electrical contractors, performance contractors; and
g) Providing post-installation inspections and programme evaluations.
3.8.1.4 CSOs and Private Sector Actions
Civil Society Organisations and the Private Sector can play a major role in promoting DSM
through, respectively:
a) Programme design and management to assist government agencies and utilities

with the structuring and implementation of energy efficiency initiatives; and
b) Information dissemination and awareness-raising.
3.8.2 Demand Side Management in Biomass End-use

The country is experiencing severe degradation of its forestry resources. Continued reliance
on firewood and charcoal in the light of forest degradation sabotages development and
therefore calls for urgent energy efficient solutions. For biomass to be truly renewable, it
must be utilised in a sustainable manner, which entails replanting of trees with focus on the
fast-growing varieties and, at the end-use level, use of more energy efficient cook stoves as
well as brick and charcoal making kilns.
40
Policy Statements
I. Government will promote the use of energy efficient technologies.
Strategies:
 Enforcing a ban on importation, distribution and use of incandescent bulbs and
promoting energy saving alternatives.
 Promoting energy saving electrical and biomass-fuelled devices.
 Promulgating regulations and standards for building designs and energy efficient
devices.
 Providing duty and VAT waivers for solar water heaters.
 Supporting utility companies in the implementation of tariffs that encourage energy
efficient use of electricity.
 Encouraging regular energy audits conducted by certified auditors in public,
industrial, and commercial buildings.
 Encouraging research and development in energy efficient equipment, buildings etc.
 Promoting use of multiple sources of energy and energy efficiency in buildings (a
limit can be set as to the size of the buildings).
 Sensitising the public on safe utilisation and disposal of energy saving bulbs.
 Promoting the design of buildings to take advantage of natural lighting, air
conditioning (cooling/ heating).
II. Government will encourage electricity utility companies to implement Demand
Side Management programmes.
Strategies:
 Conducting public information campaigns to raise awareness among consumers.
 Installing energy efficient measures in electricity connected households to help
consumers reduce their bills, and to reduce stress on overburdened utility systems.
 Installing prepayment meters to reduce non-payment problems and implementing
tariffs that encourage energy-efficient behaviour by consumers.
III. Government will encourage Civil Society Organisations and Private Sector
players to promote Demand Side Management.
Strategies:
 Structuring and implementing Energy Efficient initiatives.
 Developing DSM awareness materials.
41
 Conducting information dissemination and awareness raising campaigns among

energy consumers.
IV. Government will ensure that importers, retailers and low-income consumers
have targeted information regarding affordable, modern and sustainable energy
products.
Strategy:
 Developing and implementing a public outreach strategy on sustainable energy
products targeting importers, retailers and low-income consumers
42
4.0 IMPLEMENTATION ARRANGEMENTS
The implementation methods of this Policy are outlined below, and this includes institutional
arrangements, implementation plan, monitoring and evaluation measures. .
4.1 Institutional Arrangements

The Government recognises the importance of stakeholders and partnerships in the
implementation of the National Energy Policy. The stakeholders include government
ministries, departments, agencies, development partners, academic and research institutions,
the private sector, civil society organisations (CSOs), non-governmental organisations, faith
based organisations, and the communities which are described below:
Ministry responsible for Energy Affairs
The Ministry will be responsible for provision of oversight and strategic leadership, policy
direction and interpretation, coordination, resource mobilisation, capacity building and
monitoring and evaluation of energy programmes, projects and activities.
Ministry responsible for Forestry
The Ministry will be responsible for ensuring that there is enough biomass supply to meet the
needs of the population; strictly adhering to the criteria for granting licences for charcoal
making; and enforcing the legislation on forestry and forestry products for sustainability of
these resources.
Ministry responsible for Lands
The Ministry will be responsible for facilitating acquisition of land, leasing and assessment of
compensations for land allocated to energy projects.
Ministry responsible for Mining and Geological Surveys
The Ministry will be responsible for promoting exploitation of oil, gas, coal, uranium and
other energy related minerals.
Ministry responsible for Environmental Affairs
The Ministry will be responsible for ensuring that all energy projects requiring enviromental
and social impact assessment are subjected to such assessment and that they strictly adhere to
impact mitigation measures.
Ministry responsible for Finance

The Ministry will be responsible for mobilisation of financial resources for energy
interventions from government, development partners and international lending institutions.
Ministry responsible for Justice
43
The Ministry will be responsible for drafting legislation that supports energy interventions
and vetting agreements.
Ministry responsible for Trade
The Ministry will be responsible for attracting private sector investments in the energy sector.
Ministry responsible for Local Government and Rural Development
The Ministry will be involved in identifying sites for rural electrification, promoting
alternative energy sources in districts, and supporting district energy officers.
Ministry responsible for Water Resources
The Ministry will be responsible for regulation of the use of water resources for electricity
generation.
Academic and Research institutions
These institutions will be responsible for conducting rigorous energy research, and
disseminating findings to inform energy policy and programming.
Civil Society Organisations
CSOs will collaborate with the Government to advocate for and implement energy specific
interventions notably on alternative energy and energy efficiency technologies.
Private Sector
The Private Sector will complement Government’s effort in implementing energy
interventions that will ensure increased electricity generation and supply as well as adoption
of clean and efficient energy technologies.
Development Partners
Development partners support the government and other organisations by providing human
and financial resources for development interventions. It is expected that they will continue
financing and co-financing energy interventions.
4.2 Implementation Plan

In order to ensure effective implementation of this Policy, a detailed implementation plan has
been developed and is attached as Annex 3. The plan provides linkage between each policy
goal and its objectives on the one hand and strategies and institutions responsible for
implementing those strategies on the other hand. It also includes a time frame for the
implementation of each strategy.
4.3 Monitoring and Evaluation Plan

The implementation of this Policy requires an effective and efficient monitoring and
evaluation system to measure progress and provide feedback information on implementation
44
challenges and gaps. A detailed M&E plan of this Policy, with appropriate performance
indicators, outputs and targets is attached as Annex 4.
4.4 Policy Review

Issues of energy in terms of technology, policy, legislation, and commitments at national,
regional and global levels are going through rapid changes. It will therefore be very important
to continue reviewing the policy periodically to ensure that it remains relevant and keeps pace
with those developments at all times. This Policy shall therefore be reviewed every five (5)
years. The Department of Energy Affairs will initiate and lead the reviews.
45
ANNEX 1: DEMAND AND SUPPLY-HISTORICAL AND PROJECTED (2008-2035)
Demand Units Year

Energy Demand Mix
Sector 2008 2015 2020 2025 2030 2035
Industry KTOE 346 458 683 1,009 1467 2,120
Transportation KTOE 216 385 540 737 989 1,312
Household KTOE 3,446 3,616 3,673 3,741 3,741 3,821
Service KTOE 130 104 218 218 266 355
Total 4,138 4,563 5,114 5,705 6,463 7,608
Supply
Energy Supply Mix
Energy Source 2008 2015 2020 2025 2030 2035
Biomass % 88.2 80.5 70.3 57.6 44.8 33.5
Liquid Fuels and
Biofuels % 6.4 9.9 11.6 13.0 14.2 14.8
LPG, Biogas and Natural
Gas % 0.0 0.1 2.0 3.7 6.0 9.0
Electricity from
Renewable Sources % 2.6 6.9 10.7 16.0 23.0 28.9
Electricity from Non-
Renewable Sources % 0.0 0.3 1.8 5.7 7.5 8.0
Coal % 2.8 2.3 3.6 4.1 4.5 4.9
Electricity from Nuclear
Energy % 0.0 0.0 0.0 0.0 0.0 1.0
Total 100% 100% 100% 100% 100% 100%
46
ANNEX 2: SE4ALL FRAMEWORK FOR DEFINING AND MEASURING ACCESS

TO ELECTRICITY
Tier-0 Tier-1 Tier-2 Tier-3 Tier-4 Tier-5
V. Low Power Low Power Medium Power High Power
1. Peak Power No
Min 1 W Min 50 W Min 200 W Min 2 kW
capacity Electricity
Daily capacity Min 4 Wh Min 200 Wh Min 1.6 KWh Min 4 KWh
Hours per day < 4 hrs Min 4 hrs Min 8 hrs Min 16 hrs Min 23 hrs
2. Duration
Hours per evening < 2 hrs Min 2 hrs Min 2 hrs Min 4 hrs Min 4 hrs
Max 3 Max 7 Max 3
disruptions disruptions disruptions
per day per week per week
3. Reliability
Attributes
of total
duration
< 2 hours
Voltage problems do not prevent the use of
4. Quality
desired appliances
Cost of a standard consumption package of 365 kWh per
5. Affordability
annum is less than 10% of household income
Bill is paid to the utility / pre-paid card
6. Legality
seller / authorized representative
Absence of past accidents and perception
7. Health and Safety
of high risk in the future
47
ANNEX 3: IMPLEMENTATION PLAN FOR THE NATIONAL ENERGY POLICY 2018
POLICY PRIORITY AREA 1.1: ELECTRICITY GENERATION

Broad Policy Objective: To strengthen the Electricity Supply Industry (ESI) and make it more efficient to support
industrialization, rural transformation, sustainable economic development and wealth creation, as well as regional electricity
trading.
Policy Statement 1.1.1: Government will create an enabling environment in order to diversify power generation sources for the
security of supply and expand generation capacity to meet the demand for electricity in the country.
Objective Strategy Responsibility Timeframe
Reviewing the 2017-2035 MNREM By December 2022 and every 5
Integrated Resource Plan every years thereafter.
five years.
MNREM
MoJ
To harness other potential Creating an enabling MoF
sources of power generation environment for private sector
MCCCI By December 2019.
and expedite expansion of investment in power
generating capacity. generation. MERA
MoITT
MITC
Conducting feasibility studies MNREM
on sites for power generation By December 2019.
from hydro, coal, geothermal, EGENCO
48
natural gas, solar, wind, IPPs

agricultural waste, forestry
waste, and biogas resources.
Developing the sites for power

generation from hydro, coal, MNREM
geothermal, natural gas , solar, EGENCO
wind, agricultural waste, 2019 – 2023.
forestry waste, and biogas IPPs
resources, up to
commissioning.
Policy Statement 1.1.2: Government will support all the necessary processes relating to the full operationalization of the
Electricity Generation Company (EGENCO) and the Transmission and Distribution Company (ESCOM).
To enact and implement MNREM
enabling legislation for Implementing power sector
improved ESI governance and reforms in accordance with the
2018-2022.
for attracting private sector Electricity Amendment Act of
investment in electricity 2016
generation.
Policy Statement 1.1.3: Government will interconnect its power system with the regional grids of SAPP and EAPP to ensure
availability of additional generation capacity.
49

To ensure increased security of Interconnecting the Malawi MNREM
power supply and benefit from power system with those of ESCOM By December 2023
regional power trading. Mozambique, Zambia and
Tanzania.
Policy Statement 1.1.4: GoM shall promote plans, programmes and strategies that deliberately advance the development of
equal opportunities for marginalized and vulnerable groups in the electricity generation value chain.
To create an enabling Development of Social and
environment for the promotion Gender Integration Plans (or
of equal opportunities in their equivalent) by the By December 2019 (social and
MNREM
generation functions and for electricity generation company gender integration plan by
robustly preventing and (EGENCO) and IPPs to EGENCO EGENCO).
mitigating negative social address inward looking and IPPs
impacts of electricity outward looking social and
generation projects. gender issues across all
generation functions.
Developing robust socially MNREM
responsive Environmental and EGENCO
Social Impact Assessment 2019-2023.
Plans (ESIAs) for generation IPPs
projects.
Developing and implementing MNREM
2019-2023.
comprehensive socially
50
responsive Environmental and EGENCO

Social Impact Management
Plans for generation projects. IPPs
Developing gender sensitive MNREM

Resettlement Action Plans EGENCO 2019-2023.
and/or fair compensation
packages. IPPs
POLICY PRIORITY AREA 1.2: ELECTRICITY TRANSMISSION

industrialization, rural transformation, sustainable economic development and wealth creation, as well as to enable regional
electricity trading.
Policy Statement 1.2.1 Government will intensify the expansion and rehabilitation of the transmission system in line with IRP
and in a socially and environmentally responsible manner, with a view to catalysing industrialisation, rural transformation,
sustainable economic development, inclusive growth and creation of wealth.
Ensuring that the new MNREM
transmission and distribution By December 2018.
DHRMD
company is fully operational.
To ensure reliable and efficient Allowing generation
power transmission from all companies to build
sources to all customers. transmission lines and MNREM
2019-2023.
substations to interconnect the MERA
power stations with the
transmission grid under the
51
Transmission Operator’s
coordination.
Policy Statement 1.2.2: Government will put in place robust power market operation rules and enforce the Grid Code.
To ensure a level playing field
in power trading and to MNREM
provide third party access to Review the Grid Code By December 2019
transmission lines for all MERA
generation companies.
Policy Statement 1.2.3: Government will interconnect its power system with the Regional grids of SAPP and EAPP to facilitate
Regional power trading.
To facilitate cross-border Interconnecting the Malawi MNREM
imports and exports of power power system with those of ESCOM By December 2023.
from and to the Regional grids. Mozambique, Zambia and
Tanzania.
Policy Statement 1.2.4: GoM shall ensure that transmission operations do not perpetuate inequalities amongst marginalized
groups and project affected persons.
To maximize positive social Developing Social and Gender MNREM
and economic impacts of Integration Plans to address By December 2019
ESCOM
transmission projects and inward looking and outward
promote equal opportunities looking social and gender Infrastructure Development
52
between men and women in issues across all transmission Contractors

transmission operations. operations.
Developing robust socially

responsive Environmental and MNREM
Social Impact Assessment 2019-2023.
(ESIAs) Plans for transmission ESCOM
projects.
Developing and implementing
comprehensive socially MNREM
responsive Environmental and 2019-2023.
Social Impact Management ESCOM
Plans for transmission projects.
Developing gender sensitive MNREM
Resettlement Action Plans EGENCO 2019-2023.
and/or fair compensation
packages. IPPs
POLICY PRIORITY AREA 1.3: ELECTRICITY DISTRIBUTION

industrialization, rural transformation, sustainable economic development and wealth creation, as well as to facilitate regional
Policy Statement 1.3.1: Government will intensify the expansion and rehabilitation of the distribution network in a socially
inclusive manner.
53

Constructing new distribution MNREM
lines and substations. 2019-2023.
ESCOM
Developing robust socially MNREM
responsive ESIAs for new
distribution lines and ESCOM 2019-2023.
To ensure that electricity is
available to all customers substation projects.
while preventing and Developing and implementing
mitigating negative social comprehensive socially
MNREM
impacts of distribution responsive ESIMPs for new 2019-2023.
projects. distribution lines and ESCOM
substation projects.
Developing gender sensitive MNREM 2019-2023.
Resettlement Action Plans
and/or fair compensation ESCOM
packages.
To make the distribution Rehabilitating existing MNREM
system more reliable and distribution lines and 2019-2023.
capable of delivering quality ESCOM
substations.
electricity.
Policy Statement 1.3.2: Government will incentivise distribution licensees to devise schemes that will enable consumers to
connect electricity to their homes, and afford basic energy efficient electrical appliances.
To promote use of electricity Removing duty and VAT on MNREM By July 2019.
54
in households as a substitute energy efficient domestic MoJ

for biomass and other fossil electric cooking and water
fuels. heating appliances.
MNREM
Introducing lifeline tariffs to
enable low income households MoF By July 2019.
to access electricity. MERA
Policy Statement 1.3.3: Government will encourage distribution licensees to expedite connections to customers’ premises.
Implementing a policy
whereby the distribution
licensees shall allow customers
to procure transformers and MNREM
other materials in the event of 2019-2023.
procurement bottlenecks, and ESCOM
To ensure expedient
thereafter take over the assets
connections to customers
with appropriate
premises and increase
compensation.
consumer access to electricity.
Implementing a policy MNREM
whereby construction works 2019-2023.
are contracted out. ESCOM
Promoting initial connection MERA

2019-2023.
cost recovery from tariff ESCOM
55
payments. Other Power Utility

Companies
Policy Statement 1.3.4: Government will ensure that distribution licensees have plans and strategies for fostering equal access
to services and opportunities for low-income consumers and marginalized societal groups.
Developing Social and Gender
To deliberately address Integration Plans to address MNREM By December 2019 (social and
inequalities and improve inward looking and outward
ESCOM gender integration plan by
access to services for all in looking social and gender
ESCOM).
distribution operations. issues across all distribution Distribution Licensees
functions.
POLICY PRIORITY AREA 1.4: RURAL ELECTRIFICATION

industrialization, rural transformation, sustainable economic development and wealth creation, as well as facilitate regional
Policy Statement 1.4.1 Government will restructure Rural Electrification and Renewable Energy management governance.
OPC
To improve the management Establishing a Rural
governance for Rural Electrification Agency as a MNREM 2018 – 2020.
Electrification and Renewable semi-autonomous legal entity DHRMD
56
Energy. to manage the Rural MoF

Electrification Fund and Rural
Electrification activities (in EP& D
both grid extension and off- MoITT
grid options).
Policy Statement 1.4.2: Government will, through the Rural Electrification Fund, pay for the cost of a transformer and
associated infrastructure where it is intended to serve a minimum prescribed number of customers.
To ensure reduction in cost of Making a provision for
connection of electricity for payment of infrastructure costs MNREM
By December 2019.
rural households, settlements, in the new Rural MoJ
villages and peri-urban areas. Electrification Act.
Policy Statement 1.4.3: Government will intensify electrification of rural growth or trading centres as well as rural settlements
and villages, and provide funding for off-grid solutions.
To ensure that electricity
MNREM
reaches rural settlements and Committing funds from the
villages, thereby increasing the Rural Electrification Fund to MoF 2019-2023.
population’s access to off-grid rural electrification. MoLGRD
electricity.
Policy Statement 1.4.4: Government will facilitate wiring of public institutional buildings and connection of electricity thereto,
and devise schemes for the connection of electricity to low income households within 500-metre radii of distribution substations
in rural areas.
57
Electrifying institutional
buildings, such as schools and MNREM
2019-2023.
To ensure availability of hospitals using the Rural MoLGRD
electricity in all public Electrification Fund .
institutions in rural areas and Devising schemes for the
in low income households that Rural Electrification Fund to
are close to distribution connect electricity to low MNREM
substations. 2019-2023
income households within MoLGRD
500m radii of distribution
substations.
Policy Statement 1.4.5: Government will promote rural electrification programmes that create and strengthen equal
opportunities for all segments of society.
Devloping Social and Gender

MNREM
Integration Plans to address
inward looking and outward MoLGRD
To ensure that rural By December 2019.
looking social and gender
electrification programmes are Infrastructure Development
issues across rural
promoting the equal Contractors
electrification functions.
development of both men and
women. Devising rural electrification
interventions for low income MNREM
2019-2023.
households that deliberately MoLGRD
target male, female, child and
58
elderly headed households.
POLICY PRIORITY AREA 1.5: RENEWABLE ENERGY

Broad Policy Objective: To establish a vibrant, reliable, incentivized and sustainable private sector-driven Renewable Energy
Technology Industry.
Policy Statement 1.5.1: Government will strengthen the exploitation of Renewable Energy Resources.
MNREM
To make the Renewable Promulgating and regularly
Energy Industry properly reviewing standards for RET MoJ
By December 2019.
regulated and well- products, especially Solar PV MBS
coordinated. and Pico Solar Products.
MERA
Policy Statement 1.5.2: Government will promote the use of Renewable Energy and local manufacture of appropriate RE
products.
Expediting assessment and MNREM
development of renewable Academic and research
energy resources such as 2018-2020.
To increase access to modern, institutions
geothermal, solar, wind and
clean, affordable and reliable
biomass.
energy.
Establishing fiscal incentives MNREM
By December 2019.
for renewable energy using MoF
59
existing funds such as the MRA

Rural Electrification Fund.
Developing a strategy for MNREM
public awareness campaigns MoE
on renewable energy
technologies targeted at rural, MoLGRD
By July 2019.
urban and peri-urban CSOs
consumers and focusing on
availability, benefits, and
suppliers.
Promoting RET products for MNREM
vulnerable and marginalized 2019-2023.
groups. DoE
Policy Statement 1.5.3: Government will support small-scale renewable energy initiatives by communities or entrepreneurs.
To ensure the active MNREM

involvement of communities or MERA
Developing appropriate
entrepreneurs in small scale
regulations for specific small- ESCOM
renewable energy activities. By December 2019
scale technologies under the MBS
Renewable Energy Act.
Academic and research
institutions
Reviewing the feed-in tariffs to
MNREM By December 2019.
ensure that all technologies
60
including mini-grids are MERA

sustainably accommodated.
ESCOM
Involving communities in MNREM
community energy planning 2019-2023
and implementation. MoLGRD
Equipping all stand-alone

renewable source powered MNREM
mini-grids and privately owned
ESCOM 2019-2023.
installations with Net Metering
to ensure their continued use Private Sector
upon connection to the grid.
Promoting competitive bidding
for mini-grid concessions in
MNREM 2019-2023.
order to achieve the best value
for money.
Policy Statement 1.5.4: Government will promote capacity building in all areas of RET programming, supply and services, as
well as in entrepreneurship and management, taking into account gender and social issues.
MNREM
To enhance RE capacity an inclusive and Academic and research
building and the quality of comprehensive RE Capacity institutions By December 2019.
RET products and services. Building Plan that ensures that RE suppliers and service
renewable energy providers
61
interventions/services are CSOs/INGOs

suitable to the different needs
of women, men and their
subgroups.
MNREM
Devising incentives to increase
numbers of well qualified male Academic and research
and female RET artisans, institutions By December 2019.
technicians, professional
engineers, and entrepreneurs.
Policy Statement 1.5.5 Government will build strong partnerships with the Private Sector and CSOs (including PPPs) in the
development of improved RE technologies.
MNREM
Introducing financing schemes
and incentives for the Private MoF
2020 -2023.
Sector to locally manufacture MoITT
To promote the manufacture, and distribute RE products.
distribution, use and financing
of improved RE technologies. Expediting accreditation of RE MBS
manufacturers and suppliers MERA 2020-2023.
and the certification of RE
products.
Strengthening the capacity of MNREM
2019-2023.
CSOs and decentralized
62
structures in RET DoE

programming and
interventions. MoLGRD
CSOs/INGOs
PRIORITY AREA 1.6: DEFINITION AND MEASUREMENT OF ACCESS TO ELECTRICITY

Policy Statement 1.6.1: Government will adopt the Global Tracking Framework (GTF) for defining and measuring access to
electricity.
MNREM
Adopting (and if necessary
adapting) the Global Tracking ESCOM By December 2018.
Framework. NSO
To ensure that statistics on MNREM
Conducting surveys to
access to electricity take into
determine percentages for all ESCOM 2020 and 2022.
account all sources (including
tiers.
off-grid generation and PSPs). NSO
MNREM 2020 and 2022.
Presenting electricity access
levels for each year in the GTF ESCOM
format. NSO
63
PRIORITY AREA 2: BIOMASS

Broad Policy Objective: To ensure that biomass is sustainably used and carbon emissions are reduced through the use of energy
efficient technologies.
Policy Statement 2.1: Government will build strong partnerships with the Private Sector and CSOs (including PPPs) to
promote the manufacture, supply, use and financing of improved cook stoves, brick kilns, charcoal kilns and biomass briquettes
and pellets.
Objectives Strategy Responsibility Timeframe
To reduce consumption of Promoting the creation of

firewood and charcoal and feasible business models for
reduce carbon emissions. modern biomass technologies MNREM 2019-2023.
(e.g. improved cook stoves,
charcoal kilns, etc.)
MNREM
Promoting incentives to CSOs
to increase the uptake of MoF 2019-2023.
modern biomass technologies. EPD
MNREM
Promoting alternative energy CSOs
sources to charcoal in urban
MoLGRD 2019-2023.
and peri-urban areas to reduce
the demand for charcoal. MOF
DoF
64
Introducing incentives for the MNREM

growth of industries in MoF
manufacturing and distribution
EPD By December 2019.
of improved cook stoves, brick
kilns, charcoal kilns and MoITT
biomass briquettes.
Introducing customs duty and MNREM
VAT incentives to promote the MoF By December 2019.
wide availability of improved
locally made cook stoves. MRA
Promoting growing of
To reduce reliance on natural commercial trees e.g. MNREM
trees as the main source of bamboos, as an alternative to 2019-2023.
charcoal. natural trees for charcoal Forestry Department
production.
Policy Statement 2.2: Government will intensify training and nationwide promotional activities for improved cook stoves, brick
kilns, charcoal kilns, and biomass briquettes.
To increase the uptake of Building and strengthening MNREM
improved cook stoves, brick capacity in new biomass CSOs 2019-2023.
kilns, charcoal kilns and technologies. INGOs
65
biomass briquettes. Increasing public knowledge

MNREM
and utilization of improved
CSOs 2019-2023.
biomass technologies and their
INGOs
economic opportunities.
Developing and implementing MNREM
a Biomass Energy CSOs
2019-2023.
Technologies Training INGOs
Strategy.
Policy statement 2.3: Government will ensure that low income and marginalized groups have equitable access to, control over
and benefit from biomass technologies.
To empower low income and Strengthening targeted MNREM

marginalized groups to biomass interventions for low MoLGRD
sustainably use and benefit income and marginalized
Town Assemblies 2019-2023.
from biomass technologies in groups in urban and rural areas
order to decrease the demand to access and control biomass CSOs
for charcoal. technologies. Ministry of Gender
Policy statement 2.4: Government will entrust and empower local authorities to promote the utilisation of efficient biomass
technologies.
To strengthen the role of Recruiting District Energy MNREM
By 2023.
decentralized structures in Officers.
66
promoting the use of biomass Strengthening district level MNREM

technologies. capacity to implement MoLGRD
sustainable programmes and 2019-2023.
projects related to biomass CSOs
technologies.
MNREM
Include biomass programmes MoLGRD
in District Implementation 2019-2023.
Plans (DIP). EP&D
CSOs
Policy Statement 2.5: Government will promote the certification and labelling of all energy efficient cook stoves that are sold as
commercial products on the market.
To ensure that consumers are Developing and enforcing MBS By December 2019 for Standards.
using energy efficient cook standards on cook stoves sold MNREM 2019-2023 for Enforcement and
stoves of a high standard. as commercial products. monitoring.
Policy Statement 2.6: Government will encourage charcoal making communities to venture into alternative income generating
activities.
To ensure that such Building linkages between the MNREM
communities move away from energy sector and economic 2019-2023.
MoITT
charcoal making in order to empowerment initiatives that
67
save trees. are implemented by other DSW

sectors in charcoal making
areas. CSOs
Ministry of Gender
PRIORITY AREA 3: PETROLEUM FUELS

Broad Policy Objective: To ensure adequate production and supply of petroleum and biofuels at affordable prices.
Policy Statement 3.1: Government will ensure that the country has adequate petroleum fuels, including paraffin, at all times to
meet the demand of the country.
Maintaining a minimum MNREM
reserve of 90 days’ supply of MoF
fuel.
NOCMA
2020-2023.
OMCs
To ensure security of liquid
fuel supply and lower landed MERA
cost of petroleum products for
the country.
Promoting cost-effective, MNREM
efficient, environmentally and
MoT&PI
socially responsive alternative 2019-2023.
conveyance methods such as MITC
pipelines and water barges to Department of Mines
68
ensure lower landed cost of

petroleum products.
Promoting exploration of MNREM
petroleum reserves for energy 2019-2020.
Department of Mines
security.
To ensure the uptake of MNREM
improved paraffin-fuelled Providing customs duty and MoITT
cooking and heating appliances VAT incentives to fuel 2020-2023.
that are affordable to low importers. MoFEPD
income households. MRA
Policy Statement: 3.2: Government will promote the participation of the Private Sector in the oil market.
MNREM
Reviewing and enforcing By December 2019 for reviewing
legislation to adopt a system of MoF legislation.
bulk procurement of fuel. NOCMA 2020-2023 for enforcing
To ensure efficiency in the legislation.
OMCs
downstream oil market.
MERA
Utilizing the Government fuel MERA
storage facilities as inland dry
NOCMA 2019-2023.
ports and common-user
facilities. Developers
69
Developing and implementing MERA By December 2019 for developing

guidelines for franchising of guidelines.
MoF
liquid fuel outlets to be 2020-2023 for implementing the
OMCs
To ensure the effective adhered to by all OMCs. guidelines.
participation of Malawian
Introducing incentives to MERA
nationals in the petroleum
contribute to economic
products market. MoF
empowerment of Malawians in
OMCs 2020-2023.
the oil market, including
ownership, operation and
management of filling stations.
Policy Statement: 3.3: Government will promote deliberate planning that strengthens the equitable participation of men,
women and marginalized groups in the oil market.
Introducing and/or NOCMA
strengthening youth and OMCs
women mentorship and 2020-2023.
To promote planning that capacity building programmes
strengthens the equitable in the oil market.
participation of men, women Developing social and gender NOCMA
and marginalized groups in the inclusion strategies for OMCs
oil market. increasing equal opportunities
By December 2019.
in employment and addressing
social and gender issues in the
oil market.
70
Policy Statement 3.4: MERA shall maintain the automatic fuel price adjustment system and apply it in a transparent manner.
MERA
To ensure that NOCMA, Regulating fuel prices through
OMCs and dealers recover use of a transparent and MNREM
2019-2023.
their costs for the sustainability verifiable fuel price adjustment MoF
and integrity of the industry. system.
CAMA
PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS

Policy Statement 4.1: Government will support, encourage and promote the production of bioethanol and biodiesel for
blending or stand-alone use in vehicles, as well as cooking, lighting etc provided that such production does not threaten food
security.
MNREM
Increasing the supply of bio- 2019-2023.
MERA
To ensure sustainable and ethanol and bio-diesel.
adequate supplies of bio- Biofuel producers
ethanol and bio-diesel fuels in MNREM
the country. Promoting fiscal incentives for
bio-ethanol and bio-diesel MoF 2019-2023.
production. MRA
71
Promoting the use of bio-fuels MNREM

through appropriate pricing MoF
incentives. 2019-2023.
MERA
Biofuel producers
Implementing socially and MNREM

environmentally responsive 2019-2023.
Biofuel producers
large scale bio-ethanol and
bio-diesel production projects.
Increasing local capacity to MNREM
produce bioethanol and MoA
biodiesel fuels without
threatening food security, Biofuel producers
especially through the Farmers’ cooperatives 2019-2023.
To build adequate capacity and collaboration of farmers’
Women farmers’ coalitions
skills to sustainably produce cooperatives, women farmers’
bio-ethanol and other biofuels coalitions, and other
in a manner that promotes marginalized groups.
inclusive development. Engaging the National MNREM
Commission for Science and MoA
Technology and academic and
Biofuel producers By December 2019.
research institutions in
discussions on biofuel
mixtures and their usage in
72
vehicles.
MNREM
Promoting socially responsive MOA

research and development in Biofuel producers 2019-2023.
the biofuels areas.
Academic and Research
Institutions
Policy Statement 4.2: Government will promote equal opportunities for the participation of the citizenry in the biofuels
industry including in building capacity in biofuel technologies.
Developing plans and MNREM
To increase the pool of strategies that facilitate the Ministry of Gender
Malawian women and men capacity building of both
who are involved in and women and men in biofuel Biofuel producers By December 2019.
knowledgeable about biofuel technologies and increasing Academic and Research
technologies. women’s participation in the Institutions
industry.
Policy statement 4.3: GoM shall ensure that the production of biofuels does not threaten food security.
73
Promoting the growing and use

of non-staple food crops as
bio-ethanol and bio-diesel raw
MNREM
materials. Food crops and
productive land shall only be Biofuel producers 2019-2023.
used for biofuel production
To sustain the production of where there is an assurance
biofuels without compromising that food security will not be
food security interests. impacted negatively.
Intensifying public awareness MNREM
campaigns to ensure that MoAI&WD
smallholder farmers’ land for
Farmers’ associations 2019-2023.
the cultivation of food crops is
not used to grow biofuel
feedstock.
Policy Statement 4.4: In addition to continuing with the current 80:20 petrol: bioethanol blending ratio, Government will
promote the use of flex vehicles capable of running on 100% bioethanol and any other blending ratio.
Implementing a phased MNREM
installation of bioethanol Filling station operators 2019-2023.
To sustain petrol: bioethanol pumps in line with increased
blending and reduce use of production of bioethanol.
fossil fuels in motor vehicles.
Promoting public awareness MNREM
2019-2021.
campaigns on the uptake of MoT&PI
74
new technologies (e.g. flex

vehicles).
MNREM
Promoting importation of
conversion kits for existing Vehicle Dealers 2019-2021.
petrol powered vehicles. Bio-fuel producers
Policy Statement 4.5: In addition to continuing with the current 91:9 diesel to straight vegetable oil blending ratio, Government
will promote the use of flex vehicles capable of running on 100% biodiesel and any other blending ratio.
installation of biodiesel pumps Filling station operators 2020-2023.
in line with increased
To sustain diesel vegetable oil production of biodiesel.
blending and reduce use of
fossil fuels in motor vehicles. Promoting public awareness MNREM
campaigns to ensure that there MoT&PI 2020-2023.
is uptake of new technologies
(e.g. flex vehicles)
Promoting importation of MNREM
conversion kits for existing Vehicle Dealers 2020-2023.
diesel powered vehicles.
Bio-fuel producers
PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS
75
Broad Policy Objective: To ensure availability of LPG, biogas and natural gas in sufficient quantities at affordable prices for
industrial and domestic use.
Policy Statement 5.1: Government will ensure availability of LPG, Biogas and Natural Gas in sufficient quantities at affordable
prices for industrial (electricity generation, heating) and domestic use.
Undertaking legal and MNREM

To ensure availability of LPG,
regulatory reviews to facilitate
biogas and natural gas in MERA
institutional reforms for
sufficient quantities at NOCMA By December 2019.
investments in and utilization
affordable prices for industrial
of LPG, biogas and natural MBS
and domestic purposes.
gas.
Promoting tax and other fiscal MNREM
incentives for large scale
MoF 2020-2023.
investments in LPG, biogas
and natural gas. MRA

program to accelerate the MoF
market penetration of LPG and
MRA 2020-2023.
natural gas.
Afrox and other LPG dealers
Providing customs duty and MNREM

2020-2023.
VAT incentives to promote the MoF
76
wide availability of small LPG MRA

cylinders and gas cookers, and
make them affordable to low
income households.
Promoting the use of LPG,
Biogas and Natural Gas MoF
through fiscal incentives to NOCMA
financially viable companies to 2020-2023.
construct own storage facilities MERA
that meet prescribed minimum
stockholding requirements.
Policy Statement 5.2: Government will implement programmes aimed at building the capacity of the LPG, Biogas and Natural
Gas Industry.
MNREM
Promoting socially inclusive
and well trained LPG, biogas MERA
To build expertise and ensure 2020-2023.
and natural gas suppliers and LPG Dealers
safety in the handling and
users.
utilization of LPG, biogas and Industry
natural gas.
MNREM
Conducting public awareness MERA
campaigns on the safe use of 2020-2023.
LPG, biogas and natural gas. Min of Gender
MoI&CE, MoEST
77
CSOs
Promulgating Regulations and MBS

standards on the supply and MoJ
distribution of cylinders for
MERA 2020-2023.
LPG (such as safety
regulations, quality of LPG Dealers
cylinders etc.).
Implementing Regulations and
standards on the supply and
distribution of cylinders for
LPG (such as safety
regulations, quality of
cylinders etc.).
Policy statement 5.3: Government will promote an LPG, Biogas and Natural Gas industry that actively strengthens the
participation and economic empowerment of local women, men and the youth.
Developing plans and MNREM
To build expertise and increase strategies to facilitate the DoE
the involvement of capacity building of local
marginalized groups in the gas Ministry of Gender By December 2019.
women, men and the youth to
industry both as employees be entrepreneurs in the LPG, Biogas and Natural Gas
and entrepreneurs. industry. companies
78
MNREM
Building the knowledge and
skills of local women, men and DoE
2020-2023.
the youth in LPG, biogas and Academic and Research
Natural Gas technologies. Institutions
MNREM
Devising plans, strategies and MoITT
incentives to increase the
Ministry of Gender By December 2019.
employment of local women
and the youth in the industry. LPG, Biogas and Natural Gas
companies
Policy statement 5.4: Government will establish PPPs for the purpose of exploring and extracting Natural Gas and construction
of the associated infrastructure.
To build expertise in local Engaging private companies MNREM
extraction, transportation, with expertise in the industry Dept. of Mines 2020-2023.
storage and distribution of that are interested in
Natural Gas. establishing partnerships. PPPC
PRIORITY AREA 6: COAL

Broad Policy Objective: To ensure availability of LPG, biogas and natural gas in sufficient quantities at affordable prices for
industrial and domestic uses.
Policy Statement 6.1: Government will promote and encourage the Private Sector to take a leading role in the coal industry
subject to regulatory and licensing requirements.
79

MNREM
Empowering the Private Sector 2019-2023.
To ensure the availability of to intensify exploration for and DoE
coal in sufficient quantities and exploitation of coal reserves.
Dept. of Mines
at affordable prices for both
industrial and domestic uses. MNREM
Ensuring that pricing for 2019-2023.
locally mined coal is Dept. of Mines
competitive. Coal producers
Policy Statement 6.2: Government will ensure that the responsible regulatory institutions regulate the storage, transportation,
importation, marketing, usage, and pricing of coal.
MNREM December 2019 for putting in
Implementing a systematic
place the programme.
programme of inspection of MERA
To ensure that coal is stored, coal storage facilities, 2020-2023 for implementing the
MBS
transported, imported, priced combustion processes, and programme.
and marketed in line with set transportation systems.
minimum standards.
Devising mechanisms to MERA
monitor pricing and marketing December 2019.
operations.
Putting in place competitive MNREM
To eliminate monopoly in coal
coal haulage and brokerage December 2019.
haulage and brokerage. MERA
arrangements.
80
CFTC
Reviewing and enforcing the MNREM/EAD December 2019 for reviewing

relevant legislation and legislation.
MoJ
ensuring safe, healthy and 2019-2023 for enforcing the
environmentally friendly DoI&WD
To ensure that the coal supply legislation.
chain does not impact operations in the supply chain.
negatively on the environment Ensuring that the coal MBS 2019-2023.
and the health of people. production, transportation, MoJ
utilization and waste disposal
processes produce minimal EAD
pollutants. CFTC
Policy Statement 6.3: Government will put sustainable measures and regulations in place to ensure that the mining,
transportation, storage and utilisation of coal have minimal adverse environmental, health, social and safety impacts.
MNREM 2019-2023.
To create a competent Putting in place all-inclusive
mechanism/machinery for MoITT
capacity building programmes.
reducing the negative impacts MoLMD
of coal mining, storage,
Developing Environmental and MNREM 2019-2023.
haulage and utilization on the
Social Impact Management Coal mining companies
environment, health and safety
Plans (or their equivalent) to
of its handlers, users and Coal transporters
address environmental issues
communities.
affecting the coal industry. Coal users
81
Developing Social and Gender MNREM 2019-2023.

Integration Plans (or their Coal companies
equivalent) to address inward
looking and outward looking
social and gender issues
affecting the coal industry.
Policy Statement 6.4: Government will promote coal as a fuel for power generation and as an alternative for household, tobacco
curing and other applications.
MNREM/EAD
MoJ
Implementing environmentally
friendly coal-fired electricity MoF 2019-2023.
generation projects.
Lands Dept.
ESCOM
To ensure the security of
electricity supply through MNREM/EAD
Conducting ESIAs and
environmentally friendly coal- Lands Dept.
developing/implementing
fired base-load generation. 2019-2023.
comprehensive impact ESCOM
mitigation plans.
Coal companies
MNREM/EAD 2019-2023.
Gender sensitive Resettlement Lands Dept.
Action Plans and/or fair ESCOM
82
compensation packages. Coal companies

Promoting appropriate end-
use technologies to facilitate
To reduce reliance on fuel the use of coal in household MNREM
wood for household, tobacco and tobacco curing 2019-2023.
curing and other applications. MoAI&WD
applications.
Policy Statement 6.5: Government will, through the Environmental Affairs Department and MERA, ensure that all coal
combustion installations abide by set minimum standards.
Implementing systematic MNREM
inspection programmes for EAD 2019-2023.
coal combustion installations.
MERA
To minimise the adverse Supporting research into, and MNREM

impacts of coal combustion on the development of, more Academic and Research 2019-2023.
the environment and on the efficient coal-combustion Institutions
health and safety of coal technologies.
handlers and users. Promoting the application of MNREM
clean coal technologies, such EAD
as washing, gasification, 2019-2023.
liquefaction and fume Coal Producers
capturing. Coal Users
83
Policy Statement 6.6: Government will, through fiscal incentives, promote coal-dust briquetting programmes.
To minimise the adverse Encouraging coal producers MNREM
impacts of coal dust on the and ent MoF 2019-2023.
environment. repreneurs to engage in coal MRA
briquette production.
Policy statement 6.7: Government will encourage the Private Sector to deliberately develop the capacity of the youth and
women to meaningfully participate in the coal industry.
MNREM
MoITT
To increase the involvement of strategies that promote equal By December 2019 for developing
marginalized groups in the employment and Ministry of Gender the strategy.
coal industry both as entrepreneurship opportunities Coal companies 2020-2023 for implementing the
employees and entrepreneurs. for men, women and youth in strategy.
MoLMD
the industry.
Academic institutions
POLICY PRIORITY AREA 7: NUCLEAR ENERGY
Policy Statement 7.1: Government will build capacity in generation of electricity from nuclear energy.
84

MNREM
Introducing Nuclear Science
and Materials in programmes MoEST By December 2020.
in public universities. NCHE
To increase the energy source Building capacity in nuclear MNREM

2019-2023.
options available for energy in Government. DHRMD
generation of electricity by
utilizing locally mined Promoting Research and Tertiary education institutions
uranium. Development in Nuclear 2019-2023.
NCST
Science.
Establishing a socially and MNREM
environmentally responsive NCST By 2030.
uranium processing facility in
the country.
Developing and MNREM By 2035.
commissioning the first Private Sector
nuclear power plant.
Policy Statement 7.2 Government will promote nuclear energy programming that prioritises the prevention and mitigation of
different potential health risks that the industry poses to workers and ordinary men, women, children and the environment.
To reduce the negative Developing and implementing MNREM
environmental, health and Social and Gender Integration By 2030.
social impacts of nuclear Plans to address inward Nuclear companies
85
energy. looking and outward looking

social and gender issues
affecting the nuclear energy.
POLICY PRIORITY AREA 8: DEMAND SIDE MANAGEMENT
Broad Policy Objectives :
(i) To strengthen the Electricity Supply Industry (ESI) and make it more efficient to support industrialization, rural
transformation, sustainable economic development and wealth creation, as well as to facilitate regional electricity trading.
(ii) To ensure that biomass is sustainably used and carbon emissions are reduced through the use of energy efficient
technologies.
Policy Statement 8.1: Government will promote the use of energy efficient technologies.
To save energy and reduce Enforcing a ban on

importation, distribution and MNREM
Greenhouse Gas emissions.
use of incandescent bulbs and MoJ 2019-2023.
promoting energy saving MoITT
alternatives.
Promoting energy saving
electrical and biomass-fuelled MNREM 2019-2023.
devices.
Promulgating regulations and MNREM

standards for building designs MoJ December 2019.
and energy efficient devices. NCIC
86
Dept. of Buildings
Local Councils
MNREM
Providing duty and VAT
MoF By December 2019.
waivers for solar water heaters.
MRA
Supporting utility companies MNREM
in the implementation of tariffs MERA 2019-2023
that encourage energy efficient
use of electricity.
Encouraging regular energy MNREM 2019-2023.
audits conducted by certified MERA
auditors in public, industrial,
and commercial buildings.
MNREM 2019-2023.
Encouraging research and MoT&PI
development in energy
efficient equipment, buildings NCIC
etc. Academic and Research
institutions
Promoting use of multiple MoT&PI 2019-2023.
sources of energy, and NCIC
encouraging energy efficiency
in buildings (a limit can be set
87
as to the size of the buildings).

CAMA
MERA
Sensitising the public on safe
utilisation and disposal of MoI&CE 2019-2023.
energy saving bulbs. EAD
ESCOM
Promoting the design of MoT&PI
buildings to take advantage of NCIC
natural lighting, air 2019-2023.
conditioning (cooling and
heating).
Policy Statement 8.2: Government will encourage electricity utility companies to implement Demand Side Management
programmes.
Conducting public information MNREM
campaigns to raise awareness 2019-2023.
among consumers. Utility Companies
To ensure efficiency in their Installing energy efficient

service delivery to customers. measures in electricity
connected households to help MNREM
2019-2023.
consumers reduce their bills, Utility Companies
and stress on overburdened
utility systems.
88
Installing prepayment meters

and implementing tariffs that MNREM
reduce non-payment problems 2019-2023.
and encourage energy-efficient Utility Companies
behaviour by consumers.
Policy Statement 8.3: Government will encourage Civil Society Organisations and Private Sector players to promote. Demand
Side Management.
Structuring and implementing MNREM

2019-2023.
Energy Efficient initiatives. CSOs
To ensure that users of Developing DSM awareness MNREM
electricity and biomass are materials for consumers. CSOs 2019-2023.
aware of the benefits and
disadvantages of the various Electricity Suppliers
sources of energy. MNREM
Conducting information
dissemination and awareness CSOs 2019-2023.
raising campaigns. Electricity Suppliers
Policy Statement 8.4: Government will ensure that importers, retailers and low-income consumers have targeted information
regarding affordable, modern and sustainable energy products.
To develop information Developing and implementing MNREM December 2019 for developing the
packages regarding affordable, a public outreach strategy on strategy.
DoE
89
modern and sustainable energy sustainable energy products CSOs 2020-2023 for implementing the
products that suit and reach targeting importers, retailers strategy.
different audiences. and low-income consumers. Utility Companies
90
ANNEX 4: MONITORING AND EVALUATION PLAN FOR THE NATIONAL ENERGY POLICY 2018
POLICY PRIORITY AREA 1.1: ELECTRICITY GENERATION

Outcome 1: A well developed and efficiently managed energy sector.
Outcome 2: An energy sector that is based on diversified energy sources.
Objective Output Performance Target Baseline Source of Assumptions/
Indicator Verification Risks
1.1.1 To All candidate An Updated
Approved
harness other generation projects Integrated 1 IRP reviewed after
1 updated IRP -
potential identified and Resource Plan every five years
document.
sources of documented. (IRP)
power Enabling environment An IPP
1 IPP framework Approved
generation and for private sector framework
reviewed after every 1 Reviewed IPP -
expedite investment in power reviewed.
five years. framework.
expansion of generation in place.
generating 2 additional
Number of
capacity. Feasibility study feasibility study Approved
feasibility Funds are
reports for IRP reports by 2018: 4 feasibility study
study reports available.
candidate projects. Kammwamba; reports.
produced.
Mpatamanga.
Environmental and Number of 4 ESIA reports for 2 (ICF-CORE Approved ESIA
-
Social Impact ESIA reports above projects by ESIA reports reports.
91
Assessment approved. 2018. for Weed and

conducted. Sediment
Management,
and MCC-
funded
Generation
projects,
November
2010).
1 (MCA-M
Comprehensive
Number of ESIMP for
Environmental and Approved
approved and 4 ESIMPs for above Weed and
Social Impact ESIMPs -
implemented projects by 2019. Sediment
Management Plans M&E reports.
ESMIPs. Management
implemented.
Nov. 2014).
1 ((MCA-M
Number of RAP for Weed
4 RAPs for above
approved and Sediment Approved RAPs. -
projects by 2019.
Gender sensitive RAPs. Management
Resettlement Action Nov. 2014).
Plans and/or fair Number of
compensation project 100% timely
packages developed. affected resettlement and/or Project reports
- -
persons fairly disbursement of M&E reports.
compensated, compensation.
disaggregated
92
by sex.
3 PPAs by 2019: Executed PPAs.
Number of
Power Purchase Kam’mwamba;
PPAs 0 -
Agreements executed. Northern Coal;
executed.
Project Pamodzi.
Implementation Number of 3 IAs for above Executed IAs.
Agreements executed. Implementatio projects by 2019.
0 -
n Agreements
executed.
4 DPPs (46MW) by 1.050 Project
2018: MW (Likoma commissioning
 Lilongwe at & Chizumulu). reports.
Number of Kanengo
New diesel power Diesel PPs and (2x10MW)
-
plants commissioned. MW of  Mzuzu at
capacity added. Luwinga (6MW)
 Blantyre at
Mapanga
(20MW).
New hydropower Number of 8 new hydropower EGENCO’s 8 Project progress
stations developed. new stations totaling HEPPs with reports.
hydropower 1092MW by 2023: total installed
stations  Lower Fufu, capacity of
developed and (261MW); 350MW.
commissioned;  Mpatamanga,
(309MW):
MW of  Kholombidzo,
93
generation (213MW);
capacity added.  Songwe,
(150MW);
 Mbongozi,
(41MW);
 Tedzani
,(18MW):
 Chizuma,
(50MW);
 Chasombo,
(50MW).
94
Potential Coal, Number of 3 CFPPs by 2023, 0 Project progress Project

Geothermal, Natural projects total capacity reports. planning and
Gas, Solar, Wind, developed, 520MW: agreements
biogas and disaggregated  Kam’mwamba Project reached,
agricultural waste by resource. (300MW) commissioning pending
(Co-generation)  Northern Coal 0 reports. launch;
projects developed. (200MW) Financial
 Pamodzi Power 0 support
Station secured.
(120MW)
At least 1 0.85MW Availability of
Geothermal PP Financial
1 Natural Gas FPP support.
At least 6 Solar PV
PPs by
2023(160MW):
 GoM (3x5MW)
 Atlas (40MW)
 Global Power
(45MW)
 Eagle Strategies
(60MW)
 7MW
3 Wind PPs
 11MW
2 Bagasse Cogen
 0.125MW
PPs:
 Illovo Dwangwa
(20MW)  0MW
95
 Illovo Nchalo
(20MW)
 Biogas(0.75
MW)
 Agricultural
wastes(10 MW)
96
1.1.2 To enact New Electricity Act

and implement fully enforced. Unbundling of 2 operational entities 0 ESCOM and
enabling ESCOM fully (EGENCO & EGENCO
legislation for operationalized ESCOM) 2018. reports.
improved ESI
governance
-
and for
attracting
private sector
investment in
electricity
generation.
1.1.3 To Malawi MW added to Two Project progress
ensure interconnected with generation interconnections by reports.
increased Zambia, Mozambique capacity. 2023 with initial
security of and Tanzania. imports totaling
power supply 80MW:
and benefit  ZAM-MAL from 0 -
from regional Lundazi
power trading. (30MW) 0
 MOZ-MAL from
Matambo
(50MW)
Songwe Power 0 Project progress
Station operational reports.
-
by 2023, with
150MW of capacity
97
for Malawi
1.1.4 To create Social and Gender Number of I SGIP for 1 (EGENCO) Approved SGIPs Assuming the
an enabling Integration Plans generation EGENCO, reviewed or equivalent SGIP is
environment (SGIPs) or equivalent projects/operati at least every two SGIP reports. approved by
for the adopted by EGENCO ons with SGIPs years. EGENCO
promotion of and IPPs. or equivalent. Board.
equal 1 SGIP for each IPP,
opportunities reviewed at least
in generation every two years.
functions and
for robustly ESIAs for all Number of 1 ESIA report for Approved ESIA Funding and
preventing and emerging projects ESIA reports each commissioned reports. the ESIAs on
1
mitigating developed. for each project. the ground.
negative social resource.
impacts of Comprehensive Number of 1 ESIMP report for Approved
electricity socially responsive ESIMPs for each commissioned ESIMPs
1 -
generation ESIMPs developed & each resource. project. Project reports.
projects. implemented.
Gender sensitive Number of 1 RAP for each Approved RAPs
Resettlement Action approved commissioned Project reports.
Plans and/or fair RAPs project involving
compensation addressing resettlement.
1 -
packages developed. gender
and implemented. dynamics and
concerns
relating to
98
project
affected
persons
(PAPs).
Number of 100% timely Project/
PAPs timely resettlement/disburs Compensation
resettled/ ement of reports.
0 -
compensated, compensation. Project reports.
disaggregated
by sex.
Number of 100% PAPs satisfied Project/
PAPs fairly with compensation. Compensation
compensated, 0 reports. -
disaggregated
by sex.
POLICY PRIORITY AREA 1.2: ELECTRICITY TRANSMISSION

Outcome: An Energy sector that promotes and supplies sustainable energy services for driving the country’s economic growth
indicator verification Risks
1.2.1 To All candidate An updated Approved
ensure reliable transmission projects Integrated 1 1 updated IRP -
and efficient identified and Resource Plan document.
99
power documented. (IRP).

transmission One company
from all (ESCOM) to own all
sources to all existing transmission
customers. assets and assume the
roles of Single Buyer,
System Operator, and ESCOM fully Incorporation
1 0 -
Market Operator operational. documents.
functional. In future, a
consideration will be
made to have multiple
buyers.
New transmission Circuit Length 3 transmission lines, 2395km MCC Compact

lines constructed and of transmission total circuit length progress reports.
operational. lines added. 370km by 2018:
 400kV
Phombeya –
New Nkula –
Nkhoma -
(228km)
 132kV
Chintheche –
Luwinga –
Bwengu
(122km)
 132 double cct
100
Nkhoma –
Bunda Turn Off
(2x15km).
New grid substations MVA of 3 grid substations MCC Compact
constructed and transformer totaling 450MVA by progress reports.
operational (MCC capacity added. 2018:
funding - Compact).  Phombeya
400/132 kV (200
MVA)
 Nkhoma
400/132 kV (200
MVA)
 Bunda Turn Off
132/66kV (50
MVA).
745.5MVA
New grid substations MVA of 7 grid substations
constructed and transformer totaling 195MVA by
operational (WB capacity added. 2018:
funding - ESSP).  Dwangwa
132/33/11kV
(30MVA)
 Nkhotakota
132/33/11kV
(30MVA)
 Golomoti
132/33kV
(30MVA)
101
 Nkula 66/33kV
(30MVA)
 Fundi’s Cross
66/33kV
(20MVA)
 Chingeni
66/33kV
(20MVA)
 Kauma 66/11kV
(20MVA)
 Kang’oma
66/11kV
(15MVA)
Existing lines circuit Length 3 lines totaling 0 MCC Compact -

upgraded of lines 30.5km upgraded progress reports.
upgraded (Lilongwe 66kV
Ring):
 Kanengo – Area
48 66kV (6.7km)
 Area 48 –
Lilongwe A
66kV (13.2km)
 Kanengo –
Barracks 66kV
(10.6km)
Existing substations Number of grid 5 substations by 0 ESCOM reports. -
102
rehabilitated. substations 2018:

rehabilitated.  Bwengu
66/33kV
 Chintheche
66/33/11kV
 Karonga
66/33/11kV
 Bunda Turn Off
66/11kV
 Liwonde
66/33kV
Transmission lines Circut Length To be indicated once 0 Project progress -
and substations to of transmission the distances from reports.
interconnect new IPP lines added. the IPP power plants
power stations with are known.
the transmission grid
constructed in line
with the IRP.
1.2.2 To Grid Code, Number of 1 Grid Code, 1 set of 0 Approved Grid -
ensure a level Market Rules, documents in Market Rules and a Code, Market
playing field and Tariff force. Tariff Methodology Rules and Tariff
in power Methodology in force by June Methodology
trading and promulgated. 2018. documents.
provide third
party access to
transmission
lines for all
103
generation
companies.
1.2.3 To Social and Gender No of SGIPs or I SGIP for ESCOM, 1 Approved SGIP -
maximize Integration Plans (or their reviewed at least or equivalent.
positive their equivalent) to equivalent. every two years. SGIP progress
impacts of address social and reports.
transmission gender issues across 1 SGIP for each
projects and all transmission Infrastructure
promote equal functions developed Development
opportunities and implemented by Contractor, reviewed
between men ESCOM and at least every two
and women in contractors. years.
transmission ESIAs for all new No of ESIA 13 (3 transmission 1 (ICF-CORE Approved ESIA -
operations. transmission lines and reports lines and 10 grid ESIA Report reports.
substations approved for substations)- i.e. for MCC-
developed. each project. 1 ESIA report for funded T & D
each commissioned lines, Nov.
project. 2010)
Comprehensive No of ESIMPs 13 (3 transmission 1 (MCA-M Approved -
Environmental and approved for lines and 10 grid ESIMP for ESIMPs
Social Impact each project. substations)- i.e. transmission Project M&E
Management Plans 1 ESIMP for each and reports.
developed & commissioned distribution
implemented. project. lines and
associated
substations,
104
Nov. 2014).
Gender sensitive Number of 1 RAP for each 1 (MCA-M Approved RAPs -
Resettlement Action approved commissioned RAP for Project M&E
Plans and/or fair RAPs project involving transmission reports.
compensation addressing resettlement. and
packages developed gender distribution
and implemented. dynamics and lines and
concerns associated
relating to substations,
PAPs. Nov. 2014).
Number of 100% timely - -
Project/
PAPs fairly resettlement/disburs Compensation
compensated, ement of reports
disaggregated compensation. Resettlement/co
by sex. mpensation work
plans.
Number of 100% PAPs satisfied - Project/ -
compensated, reports.
disaggregated
by sex.
PRIORITY AREA 1.3: ELECTRICITY DISTRIBUTION

105
Outcome 1: An Energy sector that promotes and supplies sustainable energy services for driving the country’s economic
growth.
Outcome 2: An Energy sector that promotes and results in a high standard of living for all people in Malawi.
1.3.1 To New primary Circut Length Northern Region, by Project progress -
ensure that distribution lines and of new lines 2018: and
electricity is cables constructed and cables  29.2km of 33kV commissioning
available to all and installed (MCC commissioned OHL reports.
customers funding). at 33kV and  0.12km of 33kV
while 11kV. UGC
preventing and  0.78km of 11kV
mitigating UGC
12,260km.
negative social Central Region, by
impacts of 2018:
distribution  35.45km of
projects. 33kV OHL
Southern Region, by
2018:
 2.50km of 11kV
UGC
New primary No. of new 4 primary - Project progress All contractors
distribution substations distribution and shall complete
substations erected erected under transformers commissioning their projects
(Compact). MCC (35MVA) by 2018: reports. within the
Compact.  1x 33/11kV in Compact
Northern Region duration. i.e. by
106
(Chintheche, September,
5MVA) 2018.
 2x33/11kV in
Central Region)
(Area 25,
10MVA and
City Centre,
10MVA)
 1x33/11kV in
Southern Region
(Ntonda, BT,
10MVA)
New primary Number of 1 primary 0 Project Project and
distribution new distribution commissioning Funds on the
substations erected substations substation in reports. ground.
(ESSP). erected under Northern Region by
ESSP. 2018: Katoto
33/11kV (15MVA)
2 primary 0 Project Project and
distribution commissioning Funds on the
substations reports. ground.
(30MVA) in
Southern Region by
2018:
 Balaka 33/11kV
(15MVA)
 Bangwe
107
33/11kV
(15MVA)
Robust socially Number of 1 ESIA report for 1 (ICF-CORE Approved ESIA Project and
responsive ESIAs for ESIA reports each commissioned ESIA report reports. Funds on the
new distribution lines approved for project. for MCC- ground.
and substations each project. funded T & D
projects developed. lines, Nov.
2010).
Comprehensive Number of 1 ESIMP for each 1 (MCA-M Approved Project and
Environmental and ESIMPs commissioned ESIMP for T ESIMPs; Funds on the
Social Impact approved for project and D lines Project reports. ground.
Management Plans each project. and associated
for new distribution substations,
lines and substations Nov. 2014).
projects developed &
implemented.
Gender sensitive Number of 1 RAP for each 1 (MCA-M Approved RAPs; Project and
Resettlement Action approved project involving RAP for T and Project reports. Funds on the
Plans and/or fair RAPs resettlement. D lines and ground.
compensation addressing associated
packages developed gender substations,
and implemented. dynamics and Nov. 2014).
concerns
relating to
PAPs.
Number of 100% timely 0 Project reports. -
108
PAPs fairly resettlement/disburs

compensated, ement of
disaggregated compensation.
by sex.
Number of 100% PAPs satisfied 0 Project/ -
compensated, reports.
disaggregated
by sex.
1.3.2 To make Distribution Number of 9 x 33/11kV 0 Project progress -
the substations substations substations reports.
distribution rehabilitated. rehabilitated rehabilitated by
system more under MCC 2018:
reliable and Compact.  1x33/11kV in
capable of the Northern
delivering Region
quality (Chintheche)
electricity.  1x33/11kV in
the Central
Region (Area
33)
 7x33/11kV in
the Southern
Region (David
Whitehead,
Limbe A, Limbe
B, Thyolo A,
109
Thyolo B.
Zomba,
Maldeco).
1.3.3 To Duty and VAT on Percentage of 100% of appliances 0% MRA reports. -
promote the domestic electric duty and VAT- duty and VAT free Energy survey
use of cooking and water free domestic by June 2018. reports.
electricity in heating appliances electric
households as removed. cooking and
a substitute for water heating
biomass and appliances.
other fossil Lifeline tariffs Percentage of 100% 0% MERA and -
fuels. enabling low income utility Utility reports.
households to access companies
electricity introduced. implementing
lifeline tariffs.
Percentage of 50% of households 0% MERA and -
connected low by 2023. Utility reports;
income Energy survey
households reports.
enjoying
lifeline tariffs.
1.3.4 To Policies facilitating Number of 2 policies by 2019. 1 Policy Capacity
ensure expedient customer policies document. Development
expedient connections while adopted and of contractors.
connections to allowing customers to implemented.
customers procure transformers Number of 95,000 of applicants 73,500 Procurement Low network
premises and and other materials customers for new connections reports; penetration.
110
to increase under a special procuring by 2019. Stores and

people’s arrangement with transformers 95,000 of applicants construction
access to distribution licensees and other for new connections records;
electricity. in place and materials, by 2019. Energy survey
implemented. disaggregated reports.
by head of
household
where
applicable.
Percentage of Availability of
75% of applicants by 75% Monthly reports.
customers transport and
30days by 2019
getting labour.
100% of applicants
connected Energy survey
by >30days by 2021.
within 30 days reports.
100%
from the
purchase of
materials,
disaggregated
by head of
household
where
applicable.
Policies facilitating Number of 2 policies by 2019. 1 Policy Capacity
the outsourcing of policies documents. Development
construction works by adopted and of contractors.
distribution licensees implemented
111
adopted and Percentage of 15% by 2021. 0 Procurement and Capacity

implemented. construction construction Development
works reports. of contractors.
outsourced.
Percentage of 10% by 2021. 0 Procurement and Capacity
Maintenance construction Development
works reports. of contractors.
outsourced.
1.3.5 To Social and Gender Number of 1 SGIP for ESCOM 1 Approved SGIP -
deliberately Integration Plans to SGIPs or their reviewed at least or equivalent;
address address social and equivalent. every two years. SGIP
inequalities gender issues across implementation
and improve all distribution I SGIP for each monitoring
access to functions developed distribution licensee, reports.
services for all and implemented by reviewed at least
in distribution ESCOM and every two years.
operations. distribution licensees.
PRIORITY AREA 1.4: RURAL ELECTRIFICATION

Outcome: An Energy sector that promotes and results in a high standard of living for all men and women in Malawi.
1.4.1 To Rural Electrification Number of 1 Act by 2019 1 Gazette; -
112
improve the legislation reviewed. Acts reviewed. Rural

management Electrification
governance for Act.
Rural
Electrification.
1.4.2 To Provision of funding Percentage of MAREP reports. Availability of
50% of households 26,200
ensure for infrastructure connected rural by 2023 funds.
reduction in extensions targeting and peri-urban
cost of settlements with households
connection of prescribed minimum that were
electricity for populations made in previously
rural and peri- the Rural unable to meet
urban Electrification the connection
settlements legislation. cost in targeted
unable to meet settlements,
the connection disaggregated
cost. by household
head.
1.4.3 To Off-grid rural Funds 30% of Rural 0 MAREP reports. Availability of

ensure that electrification committed to Electrification Fund funds.
electricity financed from the off-grid rural by 2023.
reaches all Rural Electrification electrification
rural Fund. No. of rural MAREP
336,800 by 2019 68,000 MAREP reports.
settlements settlements and funding on the
673,600 by 2023
and villages, villages with ground; and
thereby access to off Energy survey assuming that
113
increasing the grid electricity, reports. Scaling up of

population’s disaggregated Rural Access
access to by to Electricity in
electricity. implementing Malawi
partner of off (SuRAEM)
grid projects. project rolls
out.
1.4.4. To Rural public Percentage of 100% of existing To be MAREP reports. -
ensure the institutional buildings rural public buildings by 2023. determined
availability of wired and connected institutional through
electricity in with electricity using buildings surveys.
all public the Rural wired and
institutions in Electrification Fund. supplied with
rural areas and electricity,
in low income disaggregated
households by type of
that are close service.
to distribution Rural Electrification Percentage of 40% of eligible 2% MAREP reports; Availability of
substations. Fund Schemes to eligible households by 2023. Energy survey Funds.
connect low-income households reports.
households within connected,
500m radii of disaggregated
distribution by household
substations developed head.
and implemented.
1.4.5 To Social and Gender Number of 2 SGIPs (for Rural 0 Approved SGIP -
114
ensure that Integration Plans to SGIPs or their Electrification or the

rural address social and equivalent. Agency and equivalent;
electrification gender issues across MAREP SGIP
programmes rural electrification respectively), implementation
are promoting functions developed reviewed at least monitoring
the equal and implemented. every two years. reports.
development
of both men 1 SGIP per
and women. Infrastructure
Development
Contractor, reviewed
at least every two
years.
Rural electrification Percentage of 50% of qualified 2% MAREP reports; Availability of
interventions low income households by 2023. funds.
deliberately targeting households Energy survey
low income connected, reports.
households developed disaggregated
and implemented. by type of
household
head.
PRIORITY AREA 1.5: RENEWABLE ENERGY

Broad Policy Objective: To establish a vibrant, reliable, incentivized and sustainable private sector-driven Renewable Energy
Technology industry.
Outcome: Access to clean and sustainable energy for all people.
115

1.5.1 To make Renewable Energy Number of 1 Act by end of 0 Gazette. -
the Renewable legislation enacted. Acts 2019.
Energy promulgated
Industry,
properly
regulated and Inclusive renewable Number of 2017-2035 0 Approved -
well- energy utilization IRPs with Integrated Resource reviewed
coordinated. incorporated into the inclusive Plan 2018 reviewed Integrated
Integrated Resource renewable every five years. Resource Plan.
Plan (IRP). energy
utilization
component.
Standards for RET No. of 1 set of standards by 0 Gazette. Availability of
products, especially standards December 2019, funds.
Solar PV and Pico promulgated. reviewed every 5
Solar Products in years.
force and regularly Number of 1 review every 5 0 Revised Availability of
reviewed. reviews of years from 2019. standards. funds.
standards.
1.5.2 To Assessment and Number of 5 by 2020 1 Research reports. Availability of
increase development of RE renewable Funds on
access to resources such as energy RE reports. government
modern, clean, geothermal, solar, resources side; and
affordable and wind, biomass co- developed showing up of
116
reliable generation, and through IPPs.

energy. hybrid systems research,
expedited. disaggregated
by resource.
Fiscal incentives for Number of 3 0 List of approved -
renewable energy renewable incentives.
using existing funds energy players MRA reports.
such as the Malawi benefiting RE reports.
Rural Electrification from approved
Programme Fund in fiscal
force. incentives
disaggregated
by location,
type, size and
ownership.
Strategy for public Number of 1 document by July 0 Approved -
awareness campaigns Strategy 2019. Strategy
on renewable energy documents document.
technologies targeted produced
at both rural, urban Number of 28 campaigns per 1 Public outreach Availability of
and peri urban outreach target audience per reports. Funding.
consumers developed campaigns year.
and implemented. implemented,
disaggregated
by target
audience.
117
Percentage of 50% by 2021. 5% Energy survey Availability of

energy 100% by 2023. reports. Funds.
consumers
aware of
different RE
technologies,
disaggregated
by locality and
sex where
applicable.
1.5.3 To Appropriate Number of 1 set of regulations 0 Gazette. -
ensure the regulations for Regulations by 2019
active specific small-scale promulgated.
involvement technologies
of developed under the
communities Renewable Energy
or Act.
entrepreneurs Communities Number of 56 campaigns per 14 Project progress -
in small scale involved in community year from 2019 to reports and
renewable community energy awareness 2023. Evaluation
energy planning and campaigns/trai reports.
activities. implementation. nings,
disaggregated
by location and
level of
participation
118
by women and
men.
Number of 50 mini/micro-grids 7 Project progress -
community by 2025. reports.
operated
mini/micro
grids
operational,
disaggregated
by location and
level of
participation
by women and
men.
All stand-alone Percentage of 40% by 2021. 0% Survey reports. -
renewable source stand-alone
powered mini-grids mini-grids
and installations equipped with
equipped with Net Net Metering.
Metering.
A system of Criteria for 1 guideline 0 Guideline -
competitive bidding awarding document by July document.
for mini-grid concessions 2019.
concessions in place. established.
Number of 20 by 2021. 0 Procurement -
mini-grid documents.
119
concessions
awarded
through
competitive
bidding,
disaggregated
by location,
type, size and
ownership.
1.5.4 To Renewable Energy Renewable 1 plan by 2019, to be 0 Renewable -
enhance RE Capacity Building Energy reviewed every 4 Energy Capacity
capacity Plan developed and Capacity years. Building Plan.
building and implemented. Building Plan
the quality of that ensures
RET products that renewable
and services. energy
interventions/s
ervices are
suitable to the
different needs
of women,
men and their
subgroups
made
operational.
Number of 4 by 2021. 0 Capacity -
120
training Building Plan

institutions implementation
implementing reports.
RET courses in
accordance
with the
Capacity
Building Plan,
disaggregated
by type of
technology and
qualification
level.
Number of At least 4 by 2021. 1 Capacity -
renewable Building Plan
energy implementation
stakeholders reports.
implementing
Renewable
Energy
Capacity
Building Plan.
Percentage of 75% by 2021. Subsector
RE consumers reports.
satisfied with Energy surveys.
RE products
121
and services
disaggregated
by location,
sex and
technology.
Incentives for Number of TBD. 0 Sub-sector -
increasing numbers RET reports and
of well qualified male scholarships training
and female (including and bursaries institution
those with to promote the records.
disabilities) RET participation of
artisans, technicians, skilled women
professionals, and and people
entrepreneurs with
introduced. disabilities in
renewable
energy,
disaggregated
by training
institution.
Number of 120 graduates per 30 Sub-sector -
RET graduates, year. reports and
disaggregated training
by sex, training institution
institution and records.
technology
122
type.
Number of 100 per year, 20 Sub-sector -
RET assessed annually reports,
technicians from 2019. training
disaggregated institution data
by sex, and and energy
technology survey reports.
type.
Number of 150 per year, 20 Sub-sector -
RET artisans, assessed annually reports and
disaggregated from 2019. energy survey
by sex, reports.
institution/indu
stry and
technology
type.
Number of 100 per year. 0 Sub-sector -
trained RET reports and
entrepreneurs, energy survey
disaggregated reports.
by sex,
institution,
technology
type and
training type.
Number of 4 per year from 1 Training data. -
123
male and 2019.

female staff
funded for
training in
various RET
courses,
disaggregated
by sex.
1.5.5 To Introducing financing Number of RE 4 0 -
List of approved
promote the schemes and manufacturers schemes and
manufacture, incentives for the supported by incentives
distribution, private sector to financial Sub-sector
use and locally manufacture schemes & reports.
financing of and distribute RE incentives,
improved RE products. disaggregated
technologies. by technology
type.
Percentage of 100% by 2021. 80% -
MERA reports.
accredited
manufacturers Energy survey
& suppliers reports.
satisfied with
accreditation
process.
Number of 100% 0 MBS reports Enforcement of
certified RE Sub-sector the available
124
products per reports. RE standards.

year.
Percentage of 100% by 2023 5% Effective
Energy survey
consumers enforcement of
reports.
satisfied with Renewable
CAMA reports.
quality of Energy
certified RE Technology
products, standards.
disaggregated
by sex where
applicable.
Strengthening the Percentage of 50% by 2023 32% Sub-sector With technical
capacity of CSOs and district reports; support from
decentralized councils DIPs. DoE under
structures in RET implementing UNDP.
programming and RET supported
interventions. programmes as .projects.
part of their
District
Implementatio
n Plans.
Number of 500 by 2023. 140 Sub-sector With technical
CSOs reports. support from
supporting the DoE and
implementatio MERA.
n of policy RE
125
priorities,
disaggregated
by
geographical
location.
PRIORITY AREA 1.6: DEFINITION AND MEASUREMENT OF ACCESS TO ELECTRICITY

Outcome: Access to clean, sustainable and affordable energy for all people.
1.6.1 To Guidelines for Number of 1 guideline 0 Gazette. -
ensure that measuring access to guideline document by June.
statistics on electricity using the documents. 2019
access to GTF promulgated.
electricity take Surveys to establish Number of 1 survey by 0 Annual survey -
into account tier percentages for surveys December 2019 and reports.
all sources each year conducted. conducted. ongoing.
(including off- Statistics on access to Percentage of 80.0% by 9% Annual NSO Special
grid electricity monitored population in 2035, disaggregated reports. strategies in
generation and using the GTF each tier of the by GTF tiers order to meet
PSPs). format. GTF.  35% Tiers 4 & 5 the targets as
 45% Tiers 1, 2 & outlined in this
3 policy are
126
implemented.
PRIORITY AREA 2: BIOMASS

Broad Policy Objective: To ensure that biomass is sustainably used and carbon emissions are reduced through the use of energy
efficient technologies.
Outcome: An energy sector that promotes and results in a high standard of living for all men and women in Malawi.
Objectives Output Performance Target Baseline Source of Assumptions/
2.1 To reduce Development of Number of 3 by 2019. 2 Subsector Continued
consumption feasible business effective 10% by 2021. reports. government
of firewood models for modern business 15% by 2023. and donor
and charcoal technologies for models being support on the
and to biomass (e.g. implemented, promotion of
minimize improved cook disaggregated improved/effici
carbon stoves, charcoal by type of ent biomass
emissions kilns) promoted. technology, utilisation.
financing
institution,
location and
implementer.
Incentives for CSOs Number of 30 by 2021. 20 List of approved -
to increase the uptake CSOs/INGOs incentives.
of modern biomass benefiting Sub-sector
technologies from reports.
introduced. incentives and
assisting
127
communities in
modern
biomass
technologies.
Incentives for the Number of 100 by 2019. 70 List of approved -
growth of industries entrepreneurs 300 by 2023. incentives.
in manufacturing and benefiting Sub-sector
distribution of from reports.
improved cook incentives and
stoves, brick kilns, involved in the
charcoal kilns and manufacturing
biomass briquettes and
introduced. distribution of
modern
biomass
technologies
disaggregated
by type of
technology,
location and
sex.
Number of 100 by 2019. 70 Sub-sector -
community 300 by 2023. reports
groups and Energy survey
entrepreneurs reports.
linked to viable
128
markets
through trade
fairs and other
marketing
opportunities,
disaggregated
by sex/sex
composition,
location and
type of
technology.
Customs duty and Percentage of 100% by 2021. 0 List of approved Assuming the
VAT incentives to enterprises incentives. incentives are
promote the wide accessing VAT Sub-sector approved by
availability of incentives for reports. the
improved locally improved Government.
made cook stoves locally made
introduced & cook stoves.
implemented.
Illegal charcoal Number of 2 by end 2019. 1 Sub-sector and -
production banned. legislations Energy survey
banning illegal reports.
charcoal
production.
2.2 To reduce Growing of Number of 50% by 2020. 1% Sub-sector and Related
reliance on commercial trees for legal charcoal 75% by 2023. Energy survey legislation and
129
natural trees as charcoal making makers that are reports strategies

the main strengthened. using implemented.
source of alternatives to
charcoal. natural trees.
2.3 To Capacity in new Biomass 1 by December 0 Approved -
increase the biomass technologies Energy 2019. Strategy
uptake of developed and Technologies document.
improved cook strengthened. Training
stoves, brick Strategy.
kilns, charcoal Number of 5000 by end 2019. 0 Training reports. -
kilns and people trained and 55,000 per year
biomass and using up to 2023.
briquettes. Biomass
Energy
Technologies
disaggregated
by sex and
type of
technology.
Number of 5,000 by 2019. 20 Sector reports -
CSO 55,000 per year up Energy survey
community to 2023. reports.
initiatives
training rural
men and
women to
130
make
improved cook
stoves using
locally
available
materials,
disaggregated
by location and
project
beneficiaries.
Utilization of Number of a. Distribute 300,000 Sector reports -
improved biomass people/househ 2,000,000 Energy survey
technologies olds using improved cook reports.
increased. improved cook stoves by 2020
stoves, brick and 2 million by
kilns, charcoal 2023.
kilns and b. brick kiln
projects
biomass
implemented by
briquettes per
2023.
year,
c. 100 charcoal kiln
disaggregated projects
by household implemented by
head, and 2023.
location. d. 50 biomass
briquette projects
implemented by
2023.
131
2.4 To Targeted biomass Percentage of At least 80% of 10% Sub-sector and -

empower low interventions for low low income beneficiaries of Energy survey
income and income and and biomass projects by reports.
marginalized marginalized groups marginalized 2019.
groups to in urban and rural groups that
sustainably areas to access and have access to
use and control biomass information on
benefit from technologies biomass
biomass implemented. technologies,
technologies disaggregated
in order to by location,
decrease the sex, household
demand for head and type
charcoal. of technology.
Percentage of At least 70% of 10% Sub-sector and -
marginalized beneficiaries of Energy survey
groups that are biomass projects by reports.
able to make 2019.
decisions on
the type of
technology to
use,
disaggregated
by location,
sex and
household
132
head.
2.5 To District level Number of 28 Energy Officers 0 District reports. -
strengthen the coordination and District Energy between 2019 to Sub-sector
role of implementation of Officers, 2023 (At least 40% reports.
decentralized energy activities, disaggregated and 60% women &
structures in including sustainable by sex. men respectively)
promoting the programmes and Number of 50% of interventions 32% District reports -
use of biomass projects related to biomass by 2019, Sub-sector
technologies. biomass technologies, interventions 75% by 2021, reports.
strengthened. that are 100% by 2023.
systematically
coordinated
and/or
implemented at
District
Council level.
Percentage of 100% by 2023. 32% Sub-sector Scaling up of
District reports mainstreaming
Councils with DIPs. projects.
biomass
interventions
in their DIPs.
2.6 To ensure MBS standards on Percentage of 100% compliance 0 Compliance -
that consumers cook stoves that are commercial assessed yearly. reports.
use energy sold as commercial cook stove
efficient cook products on the manufacturers
133
stoves of high market promulgated. complying

standard. with Standards.
Percentage of By 2020, not less 0 Recruitment -
male and than 40% and not data.
female cook more than 60% of
stove either sex.
enforcement
officers
recruited.
2.7 To ensure Increased linkages Number of 15 by 2019. 0 Sector reports -

that between the energy CSOs/sectors 50 by 2023. Energy survey
communities sector and economic promoting reports.
move away empowerment alternative
from initiatives businesses for
unsustainable implemented by other male and
charcoal sectors in charcoal female
production in making areas. charcoal
order to save merchants,
trees. disaggregated
by business
type and sex of
beneficiaries.
Number of 200 by 2023. 1,000 Energy survey -
male and reports.
female
134
charcoal
merchants who
have
abandoned
charcoal for
other
businesses.
PRIORITY AREA 3: PETROLEUM FUELS (PETROL, DIESEL, PARAFFIN)

Outcome: A well developed and efficiently managed energy sector.
Objective Output Performance Target Baseline Source of Assumption/
indicator verification Risk
3.1 To ensure Minimum number of Number of NOCMA: 60 days’ 30 days. Monthly stock -
the security of days fuel cover held days of fuel supply from 2019 to reports.
liquid fuel at all times. cover for the 2023.
supply and country.
lower landed Oil Marketing 15 Monthly stock -
cost of Companies: 30 days’ reports.
petroleum supply from 2019 to
products for 2023.
the country. Cost-effective, Number of 1 pipeline by 2035 0 Feasibility study -
efficient and new fuel and
environmentally and conveyance Barging system by 0 Project
socially responsive methods 2035. commissioning
alternative introduced, reports.
135
conveyance methods, disaggregated

such as pipelines and by technology.
water barges Number of 1 ESIA for each 0 Approved ESIA -
implemented. ESIAs project. report.
conducted for
fuel
transportation
technology.
Number of 1 ESIMPs for each 0 Approved -
comprehensive project. ESIMP.
ESIMPs
developed and
implemented
to mitigate and
prevent
negative
environmental
and social
impacts.
Number of 1 RAP per project 0 Project reports -
Gender involving M&E reports.
sensitive resettlement.
Resettlement
Action Plans.
Percentage of 100% timely 0 Project reports. -
project disbursement of M&E reports.
136
affected compensation.
persons fairly 100% PAPs satisfied 0 Project/ -
compensated, with compensation. Compensation
disaggregated reports.
by sex.
3.2 To ensure Legislation to adopt a Number of 1 by June 2019. 0 Gazette. -
efficiency in system of bulk Acts
the procurement of fuel promulgated.
downstream reviewed and Number of fuel 90 days fuel cover. 45 days fuel Procurement  Review of
oil market. enforced. cover days. cover. reports. Energy
Laws
Fuel Stock regarding
reports. importation
of fuel,
 Assuming
current
demand of
1 million
litres per
day.
Inland dry ports Number of 3 by 2019. 0 Project progress -
established and functional in- reports.
operational. land dry ports
established and
operational.
137
3.3 To ensure Guidelines for Number of 1 by end 2019. 0 Approved -

the effective franchising of liquid Guidelines Guidelines.
participation fuel outlets developed developed.
of Malawian for adherence by all
Percentage of 100% compliance by 0 Compliance -
nationals in OMCs developed and
OMCs end 2019. reports.
the petroleum implemented.
adhering to
products
guidelines.
market.
Incentives to Percentage of 10% participation of 0 List of approved Incentives
contribute to Malawians, Malawians by 2023. incentives developed and
economic including the Sub-sector approved by
At least 40%
empowerment of youth, reports. MoF.
participation of
Malawians in the oil accessing Energy survey
women and youth by
market, including the fiscal and other reports.
2023.
ownership, operation incentives to
and management of participate in
filling stations the oil market
introduced. as filling
station
operators,
transporters,
contractors
etc.,
disaggregated
by type of
enterprise (and
sex of business
138
operator where
applicable).
Percentage of At least 40% Sub-sector -

Malawians, participation of reports
including the women and youth in Energy survey
youth, management reports.
employed in positions by 2023.
the oil market,
disaggregated
by sex and
position.
3.4 To Youth and women Number of 20 annually, Sub-sector -
promote mentorship and youth and beginning 2019. reports
planning that capacity building women Energy survey
strengthens the programmes in the oil participating in reports.
equitable market strengthened. mentorship
participation capacity
of men, building
women and programmes.
marginalized Social and gender Percentage of 50% of OMCs by Sub-sector -
groups in the inclusion strategies OMCs with end 2019. reports.
oil market. for increasing equal operational
opportunities in social and 75% by 2021. Company
139
employment and gender documents.

addressing social and inclusion 100% by 2023.
gender issues in the strategies.
oil market developed
and implemented.
3.5 To ensure Fuel prices regulated Legislation in 1 Act by end 2019. 0 Gazette. -
that NOCMA, through use of the place.
OMCs and fuel price adjustment A transparent 1 0 MERA reports. -
dealers system. and verifiable
recover their mechanism for
cost for the calculating the
sustainability price using the
and integrity prescribed
of the formula
industry. established.
3.6 To Percentage of 100% of appliances 0 -
Duty and VAT on MRA reports
increase the improved and safe duty and VAT- duty and VAT free Energy survey
uptake of free improved by 2021.
paraffin stoves reports.
improved and safe
removed.
paraffin paraffin stoves.
cooking and
Awareness Percentage of 50% by 2019 0 Energy survey Availability of
heating
campaigns on household 100% by 2021. reports. Funds.
technologies.
improved paraffin energy
cooking and heating consumers
technologies aware of
conducted. improved
140
paraffin
cooking and
heating
technologies,
disaggregated
by locality and
sex.
PRIORITY AREA 4: BIO-ETHANOL AND OTHER BIOFUELS

Outcome: An Energy sector that promotes and supplies modern and sustainable energy services for driving the country’s
economic growth.
4.1 To ensure Increased supply of Number of 20 million litres by 18.5 million Production -
sustainable bio-ethanol and bio- litres of 2019; litres. reports from
adequate diesel. biodiesel and 460 million litres by MERA.
supplies of bio-ethanol 2035.
bio-ethanol produced
and bio-diesel annually.
fuels in the Fiscal incentives for Percentage of 100% compliance by 0 List of incentives -
country. production of bio- companies MRA by 2019, Energy survey
ethanol and bio-diesel benefiting assessed yearly. reports.
raw materials from the
established. incentives.
A favourable pricing Average price 1 0 MERA Reports, -
141
mechanism for the of feedstock Subsector

bio-fuels raw for biofuels Reports.
materials that protects production.
farmers and does not
disadvantage the bio-
fuel producing
companies
established.
Socially and Number of 1 ESIA per large 2 Approved ESIA -
environmentally ESIA reports scale project. reports.
responsive large scale approved and
bio-ethanol and bio- implemented.
diesel projects Number of 1 ESIMP per large 2 Approved -
implemented. Comprehensiv scale project. ESIMPs.
e socially Project M&E
responsive reports.
Environmental
and Social
Impact
Management
Plans approved
and
implemented
Number of 1 RAP for each 2 Approved RAPs -
Gender project involving Project M&E
sensitive resettlement. reports.
142
Resettlement
Action Plans
and/or fair
compensation
packages
implemented.
eligible project resettlement/
affected disbursement of
persons compensation.
(PAPs) fairly 100% PAPs satisfied 0 Project/ -
compensated, with compensation Compensation
disaggregated reports..
by sex.
4.2 To build Local capacity to Number of 1500 by 2023 300 Sub-sector -
adequate sustainably produce companies, reports.
capacity and bio-ethanol and bio- farmers’
skills to diesel fuels cooperatives,
sustainably (especially through women
produce the collaboration of farmers’
ethanol and farmers cooperatives, coalitions and
biofuels in a women farmers individuals
manner that coalitions and other producing bio-
promotes marginalized groups) fuel raw
inclusive increased. materials.
development. Number of 200 by 2019. 100 Energy survey -
143
women, people 500 by 2023. reports.

with
disabilities and
youth directly
economically
benefiting
from biofuels
projects as
farmers or
entrepreneurs.
Engagement with Number of 3 1 Meeting reports; -
National Commission engagement Subsector
for Science and forums with reports.
Technology and NCST and
academic and research
research institutions institutions per
on bio-fuel mixtures year.
and their usage in
vehicles.
Socially responsive Percentage of 75% by 2019. 1 Research reports. -
research and R&D 100% by 2021.
development in the initiatives that
biofuels and apply both
bioethanol areas economic and
promoted. social
development
144
perspectives.
Number of 2 2 R&D report, -
R&D Subsector
initiatives reports.
undertaken per
year.
4.3 To Biofuels training Number of 1 by December 0 Approved -
increase the plan/strategy to plans/strategies 2019. training plan.
pool of enhance the skills of .
Malawian men both women and men Number of 4 by 2019. 2 Tertiary / -
and women in biofuels vocational and 10 by 2023. vocational
who are technologies and to tertiary institution data
involved in increase the institutions Energy survey
and participation of offering reports.
knowledgeabl skilled women, biofuel
e people with disability industry
about biofuels and youth in the related
technologies biofuels industry trainings from
and the developed. both economic
biofuels and social
industry. development
perspectives.
Number of 40 by 2019. 0 Academic -
women 100 by 2023. institution data.
enrolled and Energy survey
graduating in reports.
145
biofuels
courses.
Number of 20 by 2019. 10 Recruitment -
women 100 by 2023. data.
employed in Energy survey
the biofuels reports.
industry,
disaggregated
by
position/grade.
Number of 4 by 2018. 0 Tertiary/ -
training 10 by 2023. vocational
institutions and institutions data.
projects with Project reports.
deliberate Energy survey
incentives for reports.
the
participation of
women people
with
disabilities and
youth,
disaggregated
by type of
institution or
project and
146
type of
incentive.
Percentage of SGIPs formulated by 0 SGIP monitoring -
bio-fuel 50% of biofuel reports.
companies companies by 2020, Annual budgets.
implementing 75% by 2023.
Social and
Gender
Integration
Plans to
address social
and gender
issues in the
industry.
4.4 To sustain A phased installation Number of 200 by 2020. 0 MERA reports. -
the current of ethanol pumps in filling stations
petrol: line with increased with ethanol
bioethanol production of ethanol fuel tanks.
blending and implemented. Number of 7,000 by 2019. 5 MERA reports. -
reduce the use vehicles 10,000 by 2023.
of fossil fuels running on
in motor 100% ethanol.
vehicles. Awareness Number of 30 per year, starting 7 per year Subsector -
campaigns to campaigns in 2019. reports.
promote uptake of promoting Transport
new technologies uptake of new reports.
147
intensified. technologies
(e.g. flex
vehicles).
4.5 To sustain A phased installation Number of 100 by 2019. 0 MERA reports. -
diesel of bio-diesel pumps vehicles 200 by 2023.
vegetable oil in line with increased running on
blending and production of bio- 100% bio-
reduce the use diesel implemented. diesel.
of fossil fuels Number of 10 per year, starting 2 per year Subsector -
in motor campaigns in 2019 reports.
vehicles. promoting Transport
uptake of new reports.
technologies.
PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS

Broad Policy Objective: To ensure availability of LPG, biogas and natural gas in sufficient quantities at affordable prices for industrial
and domestic uses.
Outcome: An Energy sector that promotes and results in a high standard of living for all men and women in Malawi.
5.1 To ensure Legal and regulatory Legislation in 1 Act by June 2019 0 Gazette -
availability of reviews to facilitate place.
LPG, biogas institutional reforms Number of 10 by 2019 3 Gazette -
and natural for investments in and companies
20 by 2023
gas in utilization of LPG, registered in
sufficient biogas and natural gas LPG, biogas
148
quantities at implemented. and natural

affordable gas.
prices for
industrial and Tax and fiscal Percentage of 100% compliance by 0 List of incentives -
domestic incentives for large companies MRA by June 2019 Energy survey
purposes. scale LPG, biogas benefiting reports.
and natural gas from tax and Subsector
investments other fiscal reports.
introduced and incentives for
implemented. supporting the
initial stages of
introducing
and promoting
LPG, biogas
and natural
gas.
Socially and Number of 1 ESIA per large 3 Approved ESIA -
environmentally ESIA reports scale project reports.
responsive large scale approved and
LPG, biogas and implemented.
natural gas projects Number of 1 ESIMP per large 3 Approved -
implemented. comprehensive scale project ESIMPs;
Environmental Project M&E
and Social reports.
Impact
Management
149
Plans approved
and
implemented.
Number of 1 RAP for each 3 Approved RAPs; -
gender project involving Project M&E
sensitive resettlement reports.
Resettlement
Action Plans
and/or fair
compensation
packages
implemented.
PAPs timely disbursement of
resettled/ compensation
compensated,
100% PAPs satisfied 0 Project/ -
disaggregated
with compensation Compensation
by sex for
reports.
infrastructure
projects.
Number of 1 per large scale 0 SGIP -
Social and project, reviewed at implementation
gender least every 2 years reports.
integration
plans (or their
equivalent) to
150
address inward
and outward
looking social
and gender
issues related
to imports,
storage and
distribution
developed.
Phased program to Number of 10 by 2021 3 Project progress -
accelerate the market infrastructure reports.
penetration of LPG, facilities for
biogas and gas LPG and
implemented. Natural Gas
imports,
storage and
distribution.
Number of 4 districts piloted for 1 1 evaluation -
pilot projects 3 years, and scaling report for pilot
being up with 2 peri-urban phase.
implemented (town assemblies) 1 evaluation
in areas where districts per year. report for every
biomass has other phase.
diminished
and/or where
the cost of
151
biomass for
cooking is
high.
Number of 1,500,000 by 2023 100 Energy survey -
users of LPG, reports
biogas and
natural gas,
disaggregated
by location,
type of
household
head, type of
industry/busine
ss.
Customs duty and Number of 200,000 by 2023. 1,000 Energy survey -
VAT incentives to households reports
promote the wide buying and
availability of small using small
LPG canisters and gas LPG cylinders
cookers that are of up to 5 kgs,
affordable to low and small gas
income households cookers
adopted. disaggregated
by location and
household
head.
152
Percentage of 100% compliance by 0 Subsector -

companies MRA by end 2019. reports.
benefiting Energy survey
from tax/fiscal reports.
incentives for
distributing
small LPG
canisters and
gas cookers.
Shortages of LPG and Number of 3 by end 2019; 1 Subsector reports -
natural gas minimized companies that 10 by 2023 Energy survey
through fiscal have own reports.
incentives to storage
financially viable facilities that
companies. satisfy
prescribed
minimum
stockholding
requirements.
5.2 To ensure Socially inclusive and Number of 30 by 2019; 100 by 3 Safety training -
safety in the well-trained LPG, industry 2023 reports.
handling and biogas and natural gas players trained
utilization of industry established. in safety,
LPG, biogas disaggregated
and natural by sex and
gas. type of
153
institution/busi
ness.
Number of 0 per year 10 Occupational -

LPG, biogas Health and
and natural gas Safety reports.
related
accidents,
disaggregated
by type of
industry/busine
ss, location and
sex of
casualties.
Raising awareness on Percentage of 50% by 2020, 0 Subsector -
the safe use of LPG, households 100% by 2023 reports.
biogas and natural sensitized,
gas. disaggregated
by household
head and
location.
Number of 0 per year 0 Subsector -
LPG/gas reports.
related Energy survey
accidents, reports.
disaggregated
154
by household
head and
location and
sex of
casualties.
Regulations and Number of 1 set of regulations 0 Gazette -
standards on supply regulations and and standards
and distribution of standards.
cylinders for LPG Percentage of 100% by 2023 0 Subsector reports -
(such as safety suppliers and Energy survey
regulations, quality of distributors reports
cylinders etc.) knowledgeable
promulgated and about
implemented. regulations and
standards.
5.3 To build Capacity building Number of 1 by end 2019 0 Capacity -

expertise and plan for LPG, biogas capacity Building Plan.
increase the and natural gas building plans.
involvement developed.
of Knowledge and skills Number of 4 per year, 0 Capacity Capacity
marginalized of local women, men initiatives to commencing 2019 Building Plan building plan
groups in the and the youth in LPG, build implementation and Manual put
gas industry biogas ad Natural Gas entrepreneurial reports. in place;
both as technologies capacity of Availability of
employees and local women, Funds.
155
entrepreneurs. developed. men and the

youth in the
industry,
disaggregated
by technology
type.
Number of 10,000 by 2023 200 Subsector reports -
local women, Energy status
men and the reports
youth
entrepreneurs
in the industry,
disaggregated
by technology
type.
Number of 2000 by 2023 20 Subsector -
skilled local reports.
women, men Energy status
and the youth reports.
in LPG, biogas
ad Natural Gas
technologies
employed in
the industry,
disaggregated
by technology
156
type.
Incentives to increase Number of 10 per year, 0 Subsector -
the employment of scholarships/ commencing 2020 reports.
local women and the bursaries for
youth in the industry promoting
developed. women’s and
youth’s
participation in
the industry,
disaggregated
by beneficiary
and technology
type.
5.4 To build Public-Private Number of 1 partnership by 0 PPP reports -
expertise in Partnerships for the partnerships June 2019; 2 by
local exploration, established. December 2020 Partnership
extraction, extraction and agreements.
transportation, transportation of
storage and natural gas
distribution of established.
Natural Gas
PRIORITY AREA 6: COAL

Broad Policy Objective: To promote a coal supply industry that is more efficient and competitive, as well as harnesses clean
technologies that eliminate or greatly reduce harmful emissions.
Outcome: An energy sector that is based on diversified energy sources.
157

6.1 To ensure Exploration and Number of 5 by 2020 2 Licenses -
the availability exploitation of coal coal
of coal in reserves intensified. prospecting
sufficient and mining
quantities and licenses.
at affordable Tonnes of coal 120, 000 by 2023 70,552.07 Production -
prices for both mined per reports
industrial and year.
domestic uses. Local coal for Price of local Cheaper local coal - -
industrial and coal compared from 2019, assessed
household uses to imported yearly
readily available and coal.
affordable. Number of 5 by 2020 2 Sector reports -
robust local Energy survey
coal suppliers. reports.
6.2 To ensure Regulations setting Number of 1 set of regulations 0 Gazette -
that coal is minimum standards regulations by end 2019
combusted, for coal storage, implemented/e
stored, transportation, nforced.
transported, importation, usage,
imported, marketing and pricing
priced and promulgated.
marketed in A systematic program Number of 2 per year from 2019 0 Sector reports -
line with set of inspection of coal periodic Occupational
158
minimum storage facilities, inspections and Health and

standards. combustion audits Safety
processes, and conducted, Monitoring
transportation disaggregated reports
systems rolled out. by type. Energy survey
reports
Number of 3 by 2020 0 OHS Monitoring -
industry reports
players
complying
with set
minimum
standards
disaggregated
by type.
Mechanisms for Percentage of 0 Sector reports -
monitoring coal coal importers, 100% compliance, Compliance
pricing and marketing wholesalers assessed yearly reports
established. and retailers
compliant with
the established
pricing and
marketing
system.
6.3 To Competitive coal Number of 3 by 2020; 1 Sector reports -
eliminate haulage and players 5 by 2023
159
monopoly in brokerage contract involved in

coal haulage arrangements coal haulage
and brokerage established. and brokerage
contract contract
arrangements. arrangements.
6.4 To ensure Environment Number of 2 Acts reviewed by 0 Gazette -
that the coal Management Act and industry December 2019:
supply chain Mines & Minerals players a. EMA
does not Act reviewed, compliant with b. MMA
impact promulgated and minimum 100% compliance by 0 Sector reports
negatively on enforced. environmental 2019 Energy survey
the and health reports.
environment standards
and the health under the
of people. Environmental
Management
Act and Mines
& Minerals
Act.
Carbon dioxide Number of 1 per year, from 0 Audit reports -
emitted through coal periodic, safety 2019. Energy survey
production and health and reports.
combustion environmental
minimised. audits on all
coal processes.
Number of 5 by 2035 0 Carbon report by -
160
power plants EAD.

equipped with
carbon capture
technologies.
Percentage of 60% by 2020; 0 Periodic -
industry 100% by 2035 Technical
players using reports.
modern coal Energy survey
technologies reports.
that have
minimum
carbon
emissions
disaggregated
by combustion,
storage and
transportation.
6.5 To create a Comprehensive Percentage of 60% by 2020; 0 Capacity -
competent capacity building coal industry 100% by 2035 building
mechanism/m program for the coal players programme
achinery for industry introduced. implementing monitoring –
reducing the capacity reports.
negative building plans,
impacts of disaggregated
coal mining, by type of sub-
storage, industry and
161
haulage and sex of trainees.

utilization on Human resources Percentage of By 2020, not less 10 Recruitment -
the recruited. male and than 40% and not data.
environment, female officers more than 60% of
as well as on recruited to either sex.
the health and manage all
safety of its aspects of the
handlers and coal industry,
users. disaggregated
by position and
institution.
Environmental and Number of One ESIMP for each 0 ESIMP -
Social Impact ESIMPs production, storage, documents
Management Plans developed. haulage and
(ESIMPs), or their utilization project or
equivalent developed. operation.
Social and gender Percentage of SGIP formulated by 0 SGIP -
inclusion plans coal companies 50% of coal implementation/
(SGIPs) promoted in developing and companies by 2019; monitoring
order to consistently implementing 75% by 2020 and reports.
promote the socio- Social and 100% by 2023,
economic Gender reviewed at least
development of Inclusion every two years.
marginalized groups Plans.
within the coal
industry.
162
6.6 To ensure Bankable documents Number of 3 by 2020; 0 Feasibility study -

the security of and investors bankable 5 by 2023 reports.
electricity available following a documents for
supply through streamlined and coal power
environmental transparent process.. generation
ly friendly investments.
coal-fired Number of 3 by 2023; 0 PPAs -
base-load executed
generation. Power
Purchase
Agreements.
ESIAs conducted and Number of 3 by 2023; - Official ESIA -
comprehensive approved ESIA reports.
impact mitigation reports.
plans in place and Number of 3 by 2023 1 Official ESIMPs. -
implemented. comprehensive
ESIMPs
implemented.
Gender sensitive Number of 1 comprehensive 0 RAPs -
Resettlement Action Resettlement RAP for each new Financial
Plans and/or fair Action Plans project. payment
compensation and/or records..
packages approved compensation
and implemented. mechanisms
implemented.
Percentage of 100% timely 0 Compensation -
163
project resettlement and/or data.

affected people compensated.
timely resettled
and/or
compensated,
disaggregated
by sex.
6.7 To reduce Appropriate end-use Number of 3 0 Documentation -
reliance on technologies technologies on adopted
fuel wood for facilitating use of adopted for technologies.
household, coal in household and household and
tobacco curing tobacco curing tobacco curing
and other applications adopted. applications.
applications.
6.8 To Systematic inspection Number of 1 for each coal- 0 Inspection -
minimise the programmes for coal inspection burning installation programmes and
adverse combustion programmes or operation. reports.
impacts of installations implemented.
coal developed and
combustion on implemented.
the Research into, and Number of R 3 0 R & D reports. -
environment, the development of, &D
and on the more efficient coal- programmes
health as well combustion formulated and
as safety of technologies implemented.
coal handlers supported.
164
and users. Application of clean Number of 3 by 2023 0 Documentation -

coal technologies, clean coal on applied
such as washing, technologies technologies.
gasification, adopted.
liquefaction and fume
capturing, promoted.
6.9 To Coal briquetting Number of 10 by 2023 1 Availability of -
minimise the operations initiated companies and coal briquettes
adverse on a commercial entrepreneurs on the market.
impacts of scale. engaging in
coal dust commercial
released to the coal briquette
environment production.
6.10 To Strategies for Percentage of At least 40% 0 Subsector data -
increase the promoting equal employees in participation of
involvement employment the coal women and youth by
of opportunities for industry, 2023.
marginalized men, women and disaggregated
groups in the youth in the industry by sex, age and
coal industry implemented. position.
both as Strategies for Percentage of At least 40% Subsector data. -
employees and promoting equal local participation of
entrepreneurs. entrepreneurship entrepreneurs women and youth by
opportunities for in the coal 2023
men, women and industry,
youth implemented. disaggregated
165
by sex, age,
and type of
enterprise.
PRIORITY AREA 7: NUCLEAR ENERGY
Broad Policy Objective: To strengthen the Electricity Supply Industry (ESI) and make it more efficient to support industrialization,
rural transformation, sustainable economic development and wealth creation, as well as to facilitate regional electricity trading.
Outcome: An energy sector that is based on diversified energy sources.
7.1 To Nuclear Science and Number of 1 programme by 0 Programmes in IAEA will
increase the Materials programmes 2019, and 3 place in public technically and
energy source Undergraduate introduced. programmes by universities. financially
options Programs introduced 2035 support the
available for and enhanced in capacity
generation of some public building
electricity by universities. programmes.
utilizing
locally mined Capacity in nuclear Capacity 1 plan by end 2019 0 Approved -
Uranium. energy built in building plan capacity building
Government. in place. plan.
Number of 5 by 2019 0 Capacity -
officers trained 20 by 2025 building plan
in nuclear 30 by 2030 implementation
energy, 50 by 2035 reports.
disaggregated
by sex.
166
A socially and Bankable Number of bankable 1 by 2020 0 Feasibility

environmentally documents and documents for study reports.
responsive Uranium investors nuclear power
processing facility available. generation
established in the investments.
country. Number of executed 2 by 2027; 0 PPAs.
Power Purchase 3 by 2035
Agreements.
ESIAs Number of approved 1 for each 1 (Kayelekera) Official ESIA
conducted and ESIA reports project reports.
comprehensive No. of 1 for each 1 Official
impact comprehensive project. ESIMPs.
mitigation ESIMPs
plans in place implemented
and
implemented.
Gender Number of RAPs 1 0 RAPs
sensitive and/or compensation comprehensive Financial
Resettlement mechanisms RAP for each payment
Action Plans implemented. new project. records.
and/or fair Percentage of 100% timely 0 Compensation
compensation project affected resettlement data.
packages people timely and/or
approved and resettled and/or compensation.
implemented. compensated, 100% PAPs 0 Project/
disaggregated by satisfied with Compensation
167
sex. compensation. reports.

Number of 1 by 2027 0 Project progress A Uranium
Uranium reports. processing
processing facility
plants. established in
the country.
The first nuclear MW of 100 by 2035 0 Project progress IAEA

power plant generation reports. authorization
commissioned and capacity from granted.
running. nuclear plant.
7.2 To reduce Integration Plans by Number of SGIP formulated for 0 SGIP -
the negative nuclear nuclear energy each implementation/
environmental companies/projects to companies company/project, monitoring
health and address inward and developing and reviewed at least reports.
social impacts outward looking implementing every two years.
of nuclear social and gender Social and
energy. issues affecting the Gender
nuclear energy Inclusion
developed and Plans.
implemented.
PRIORITY AREA 8: DEMAND SIDE MANAGEMENT

Broad Policy Objective (i): To strengthen the Electricity Supply Industry (ESI) and make it more efficient to support
Broad Policy Objective (ii): To ensure that biomass is sustainably used and carbon emissions are reduced through the use of
168
energy efficient technologies.

Outcome: A well developed and efficiently managed energy sector.
8.1 To save Legislation amended Number of 1 Act by December 0 Gazette. -
energy and to include banning Acts amended. 2019
reduce importation,
Greenhouse distribution and use
Gas emissions. of incandescent bulbs Disappearance 0% by 2019, 100% Energy survey -
in place and enforced. of assessed yearly. existence (no reports.
incandescent ban)
bulbs from the
market.
Number of 3 campaigns per 0 Sub-sector -
targeted target group per year reports.
campaigns to (up to 2020).
reach retailers,
importers and
low income
electricity
consumers.
Energy saving Number of 3 campaigns per 0 Sub-sector -
devices promoted. targeted target group per year reports.
campaigns to (up to 2020).
reach users of
energy
consuming
169
electrical and
biomass
fuelled
devices.
Regulations and Number of 1 set of Regulations 0 Gazette. -
standards for building Regulations by end 2019.
designs and energy promulgated.
efficient devices Number of 1 set of Standards by 0 Gazette. -
promulgated. standards end 2019
promulgated.
Energy efficiency Percentage of 100% of all 0 MBS assessment -
assessment facilities imported imported devices by reports.
established and devices 2019 and ongoing.
operational. assessed for
energy
efficiency.
Duty and VAT Percentage of 100% of all 0 MRA reports. -
waived on electrical devices imported devices by
and solar water imported duty end 2019 and
heaters. and VAT-free. ongoing.
Utility companies Number of All of Distribution 1 MERA and -
supported in the utility companies, from Utility reports.
implementation of companies 2019 and ongoing.
tariffs that encourage implementing
energy efficient use energy
of electricity. efficient tariffs.
170
Regular energy audits Number of Once a year for each 1 Certified -

conducted by energy audits public, industrial, Auditors’
certified auditors in conducted per and commercial reports.
public, industrial, and year. building,
commercial buildings commencing in
promoted. 2019.
Research and Number of 3 institutions by 2 Institutional -
development in institutions 2019; 5 by 2021 reports.
energy efficient conducting
equipment, buildings, energy
etc promoted. efficiency
research
programmes.
8.2 To ensure Public information Number of 56 in 2018, reviewed 0 Sector reports. -
efficiency in campaigns to raise public every year
the service awareness among awareness thereafter.
delivery of the consumers campaigns
industry to conducted. conducted,
customers. disaggregated
by target
group.
Energy efficient Percentage of 50% by 2020 298,109 Utility reports. Customers will
measures installed in electricity 75% by 2023 sustain or
households to help connected manage to
consumers reduce households replace the
their bills, as well as with energy efficient bulbs.
171
reduce stress on efficient

overburdened utility measures Govt will ban
systems. installed. IBs.
The local
market will
stock
affordable,
durable and
high quality
efficient bulbs.
Installing prepayment Number of All by 2023 313,279 Utility reports. Meters will be
meters and prepayment readily
implementing tariffs meters available in
that reduce non- installed at stock.
payment problems customers’
and encourage premises. Customers will
energy-efficient not tamper
behaviour by with the
consumers. meters.
Customers will
adjust
consumption
behavior
accordingly.
172
Number of All by 2023 11 Utility reports. Time of use

industrial users tariffs will
on Time of remain
Use tariffs. attractive to
Industrial
customers.
ESCOM will
sustain Time of
use tariffs.
8.3 To ensure Energy Efficiency Number of 2 initiatives by 2019, 1 NGO reports; -
that users of initiatives structured Energy reviewed every year Sector reports.
electricity and and implemented. Efficiency thereafter.
biomass are initiatives.
aware of and Information Number of 2 campaigns per 0 NGO reports; -
benefit from dissemination and Information region by 2019, Sector reports.
DSM. awareness raising dissemination reviewed annually
campaigns and awareness thereafter.
conducted. raising
campaigns
conducted,
disaggregated
by target
group.
8.4 To A public outreach Public 1 strategy 0 Approved -
develop strategy on outreach Strategy
173
information affordable, modern strategy on document.

packages and sustainable affordable,
regarding energy products modern and
affordable, targeting importers, sustainable
modern and retailers and low- energy
sustainable income consumers products
energy developed and developed.
products that implemented. Percentage of 70% by 2020 20% Energy status Public outreach
suit and reach importers 100% by 2023 reports strategy on the
different knowledgeable affordable,
audiences. about and modern and
importing sustainable
affordable, energy
modern and products are
sustainable rolled out.
energy
products.
Percentage of 70% by 2020 20% Energy status Public outreach
retailers 100% by 2023 reports. strategy on the
knowledgeable affordable,
about and modern and
selling sustainable
affordable, energy
modern and products are
sustainable rolled out.
energy
174
products.
Percentage of 70% by 2020 Energy status -
low income 100% by 2023 reports.
consumers
knowledgeable
about and
purchasing
affordable,
modern and
sustainable
energy
products,
disaggregated
by household
head or sex
and age where
applicable.
175
ANNEX 5: ENERGY MEASUREMENT AND CONVERSION TABLES

1. Prefixes for SI Units
PREFIX SYMBOL POWER PREFIX SYMBOL POWER

(10n) (10n)
Yetta Y 24 deci D -1
Zeta Z 21 centi C -2
Exa E 18 milli M -3
Peta P 15 micro µ -6
Tera T 12 nano N -9
P
Giga G 9 pico -12
Mega M 6 femto F -15
Kilo K 3 atto A -18
Hecto H 2 zepto Z -21
Deca D 1 yepto Y -24
176
2. Conversion Factors for Different Energy Sources
FUEL TYPE NATURAL UNIT DENSITY CONVERSION

(TONNES/M3) FACTORS
(HEATING VALUES)
Malawi Coal Tonne n/a 24.9 GJ/T
LPG Tonne 0.54 45.5 GJ/T
Gasoline Tonne 0.74 44.0 GJ/T
Jet Fuel Tonne 0.83 43.2 GJ/T
Paraffin Tonne 0.83 43.2 GJ/T/
35 MJ/Litre
Diesel Tonne 0.87 42.5 GJ/T
Ethanol Tonne 0.78 16.54 GJ/T
Electricity GWh n/a 3600 GJ/GWh
Wood m3 0.71 11.4 GJ/ m3
Charcoal Tonne n/a 33.1 GJ/T
Biomass Tonne n/a 13.3 GJ/T
Bagasse Tonne N/A 7.8 MJ/kg
177
3. Derived SI Units of Measurement
DIMENSION UNIT SYMBOL

Area Square metre m2
Volume Cubic metre m3
Speed Metre per second m/s
Acceleration Metre per second squared m/s2
Frequency Hertz (Cycle per second) Hz
Pressure Pascal Pa (= N/m2)
Volume Flow Cubic metre per second m3/s
Mass Flow Kilogram per second kg/s
Density Kilogram per cubic metre kg/m3
Force Newton* N (= kg.m/s2)
Energy Joule** J (=N.m)
Power Watt W (= J/s)
Energy Flux Watt per square metre W/m2
Calorific Value Joule per kilogram J/kg
Specific Heat Joule per kilogram J/kg.K
Kelvin
Voltage Volt V (=W/A)
Notes:
* The force exerted by a mass of 1 kg free-falling under gravity
(accelerating at 9.8 m/s2) equals 9.8 N (approximately 10 N)
** 1 J = 1 Ws
178
4. Conversion of Non-SI Units for Energy
NON-SI UNITS FOR SYMBOL EQUIVALENT IN SI

ENERGY UNITS
Erg Erg 10-7 J
Foot pound force Ft.lbf 1.356 J
Calorie Cal 4.187 J
Kilogram-force metre Kgf.m 9.8 J
British Thermal Unit Btu 1.055 x 103 J
Horse power hour (metric) hp.hr 2.646 106 J
Horsepower hour (British) Hp.hr 2.686 x 106 J
Kilowatt hour KWh 3.60 x 106 J
Barrel of oil equivalent B.O.E. 6.119 x 109 J
Tonne of wood equivalent T.W.E 9.83 x 109 J
Tonne of coal equivalent T.C.E. 29.31 x 109 J
Tonne of oil equivalent T.O.E. 41.87 x 109 J
Quad (Pbtu) - 1.055 x 1018 J
Terawatt-year TWy 31.5 x 1018 J
179

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GOVERNMENT OF MALAWI

NATIONAL ENERGY POLICY

Ministry of Natural Resources, Energy and Mining,

Tel No. (265) 1 770688

Copyright © 2018 Ministry of Natural Resouces, Energy and Mining

Printed in Malawi by ……………..

Hon Aggrey Masi, MP

Patrick C.R. Matanda

ACRONYMS AND ABBREVIATIONS

AfDB African Development Bank

ESIMP Environmental and Social Impact Management Plan

MERA Malawi Energy Regulatory Authority

OMC Oil Marketing Company

PPP Public Private Partnership

Biogas: A mixture of gases that is produced from bio-degradable materials such as

Non-Renewable Energy: Sources of energy available to mankind arising from natural

PREFACE ............................................................................................................................... iii

ACRONYMS AND ABBREVIATIONS ............................................................................... iv

TABLE OF CONTENTS ....................................................................................................... xi

1.3 Policy Guiding Principles 5

1.4 Linkages with Existing Policies, Laws and International Obligations 5

2.0 BROAD POLICY DIRECTIONS .................................................................................... 9

2.1 Policy Goal 9

2.2 Policy Outcomes 9

2.3 Broad Policy Objectives 9

3.0 POLICY PRIORITY AREAS ........................................................................................ 10

3.1 POLICY PRIORITY AREA 1: ELECTRICITY ......................................................... 11

3.1.1 Policy Priority Area 1.1: Electricity Generation 11

3.1.2 Policy Priority Area 1.2: Electricity Transmission 13

3.1.3 Policy Priority Area 1.3: Electricity Distribution 15

3.1.4 Policy Priority Area 1.4: Rural Electrification 17

3.1.5 Policy Priority Area 1.5: Electricity from Renewable Energy 19

3.2 POLICY PRIORITY AREA 2: BIOMASS ................................................................... 22

3.3 POLICY PRIORITY AREA 3: PETROLEUM FUELS .............................................. 25

3.4 POLICY PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS ............ 28

3.5 POLICY PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND

3.6 POLICY PRIORITY AREA 6: COAL .......................................................................... 34

3.7 POLICY PRIORITY AREA 7: NUCLEAR ENERGY ............................................... 37

3.8 POLICY PRIORITY AREA 8: DEMAND SIDE MANAGEMENT .......................... 38

3.8.1 Demand Side Management in the Electricity Supply Industry 38

3.8.2 Demand Side Management in Biomass End-use 40

4.0 IMPLEMENTATION ARRANGEMENTS .................................................................. 43

4.1 Institutional Arrangements 43

4.2 Implementation Plan 44

4.3 Monitoring and Evaluation Plan 44

4.4 Policy Review 45

ANNEX 1: DEMAND AND SUPPLY-HISTORICAL AND PROJECTED (2008-2035)

ANNEX 2: SE4ALL FRAMEWORK FOR DEFINING AND MEASURING ACCESS

ANNEX 3: IMPLEMENTATION PLAN FOR THE NATIONAL ENERGY POLICY

ANNEX 4: MONITORING AND EVALUATION PLAN FOR THE NATIONAL

ANNEX 5: ENERGY MEASUREMENT AND CONVERSION TABLES ................... 176

The NEP 2003 had the following successes:

d) Capacity building in Renewable Energy Technologies through introduction of the

1.3 Policy Guiding Principles

a) Sustainable Energy Supply and Services

b) Energy Efficiency and Conservation

c) Sustainable Energy for All (SE4ALL)

d) Equitable and Inclusive Energy Access

e) Promotion of Private Sector Participation

f) Good Governance in Energy Services