Malawi’s energy sector civil groups back ESCOM’ unbundling but….

LILONGWE-(MaraviPost)-The country’s civil rights groups in the energy sector have backed unbundling of Electricity Supply Corporation of Malawi (ESCOM) into three agencies Electricity Generation Company of Malawi (EGENCO) and Power Market Limited (PML).

But the civil rights have observed with concerns on politicization of the reforms at ESCOM arguing that some individuals are sabotaging the process.

Addressing the news conference on Monday, September 26, 2022 Civil Society Network on Climate Change (CISONECC)’s National Coordinator Julius Ng’oma hinted that there is too much politics at ESCOM which is suffocating the reforms.

Ng’oma believes that parent ministry of energy has great role of making sure that the reforms at ESCOM bears fruits.

He told the news conference that there is lack of prioritization of the Energy sector in the National Budget allocations despite it being a catalyst of social economic development.

Below is the released energy sector status quo and development in Malawi that needs President Lazarus Chakwera’s Tonse administration to pay attention.

PRESS STATEMENT ON THE ENERGY SECTOR STATUS QUO AND DEVELOPMENT IN MALAWI

The Civil Society Network on Climate Change (CISONECC), a non-state actor think-tank from 23rd
– 24th August, 2022, convened a Stakeholders’ Engagement on Promotion of Sustainable and Clean
Energy in Malawi to discuss issues affecting the smooth development of the Energy sector in Malawi.
The meeting brought together stakeholders from various sectors. These included among others;
Academia, Civil Society, Media, the Private Sector, Community representatives as well as Government
Ministries of Energy, Natural Resources and Climate Change, Finance and parastatals that included
the Electricity Generation Company of Malawi (EGENCO) and Malawi Energy Regulatory Authority
(MERA).

The stakeholder engagement process occurred at a time when access to electricity
countrywide stands at only 12% out of a population of 18 million with frequent notices of power
outages being publicized in the press almost on a weekly basis.

This is happening seven months after Kapichira Hydro Power Plant was affected by storm Ana that damaged the main dam fuse plug resulting in the flow regime of the Shire River to change.

During the engagement process stakeholders acknowledged the following in the energy sector in
Malawi;
 The lack of knowledge among the citizenry of renewable energy sources which affects their
adoption
 The limited access to clean, affordable and sustainable energy sources in the country that is
exacerbating environmental degradation
 The impact that climate related disasters such as Tropical Storm Ana has had on the already
struggling Energy sector
 The lack of prioritization of the Energy sector in the National Budget allocations despite it
being a catalyst of social economic development
 The lack of transparency and accountability in the utilization of resources within the Energy
sector
 The misuse of already inadequate funds within Government of Malawi’s Energy agencies such
as ESCOM
 The exorbitant prices of alternative energy sources such as Liquified Petroleum Gas (LPG);
solar products; that restrains average Malawians from accessing and adopting them
 The lack of inspection and strict measures to curb the influx of sub-standard renewable energy
products on the market including those that pass through our borders at entry points
Having deliberated on the aforementioned issues, we hereby make the following recommendations to
Government and other stakeholders that support the development of Malawi’s Energy Sector:

1. Prioritize the Energy Sector with the allocation of adequate finances from the national
   budget: As non-state actors in the energy sector we have witnessed the prioritization of other
   sectors in the national budget with the Energy sector being allocated less than 3% of the total
   national budget. We would like to stress that Energy is a driver of social and economic
   development anywhere globally. Much as Malawi can have the best development agendas such

as the Malawi Vision 2063 and the energy advancement strategies outlined in the National
Energy Policy and Malawi Renewable Energy Strategy; they all require adequate resources to
be implemented and achieve the Sustainable Energy Access for All target come the year 2030.

2. Malawi’s Agricultural sector cannot fully mechanize without energy; Malawi’s children cannot
   attain quality education without energy access; Malawi’s Health sector cannot operate without
   energy to save lives; Malawi’s industrial sector cannot function effectively without energy to
   produce value added products for export market and in turn bring the much-needed foreign
   exchange into the country.
   Until we allocate enough resources to ensure effective generation, supply and distribution of
   energy across the country; Malawi’s development agenda will remain an inter-generational
   dream.
3. Government must put strict measures to prevent and penalize corruption in the Energy
   sector: We acknowledge the rampant corruption that has crippled Malawi’s sectors of
   development and the Energy sector is no exception. Corruption has taken a toll on the already
   inadequate resources that the Energy sector is provided. Corruption has been bred by delayed
   procurement procedures. Corruption has been bred by lack of Transparency and
   Accountability on the utilization of funds. For instance, on 29th August, 2022 the Daily Times
   reported that about US$150 million, meant to save the country from the prolonged power
   outages the country has been experiencing since February, has been lying idle at the Ministry
   of Energy.
   As stakeholders in the Energy sector, we would like to stress the need for duty bearers to
   uphold transparency and accountability to not only eliminate corrupt practices but also to
   ensure effective utilization of resources that should be put to good use for the benefit of all
   the citizens. This will lead to the fulfillment of the bill of rights in the Constitution which is
   the supreme law of the land.
4. Government must promote and provide a favorable environment for establishment of
   mini-grids: With less than 15% of the population having access to electricity despite being in
   the business for over 50 years. We believe it is time to allow Independent Power Producers
   (IPPs) to support communities with electricity to spur social economic development. We have
   seen how areas such as Bondo in Mulanje have had livelihoods improved with the
   establishment of mini-grids by Mulanje Electricity Generation Agency.
   Having ratified the United Nations Sustainable Development Goals, Malawi agreed to “ensure
   universal access to affordable, reliable and modern energy services; increase substantially the
   share of renewable energy in the global energy mix; and double the global rate of improvement
   in energy efficiency. With the lack of adequate investments in electricity generation capacity

by EGENCO and delays in extension of the national grid to remote areas, electricity has
become but a luxury for a selected few. It is therefore paramount for Government to promote
establishment of mini-grids by IPPs and to ensure favorable conditions are put in place for
mutual benefit of the power producer and supplier to support sustainability.

5. Government must promote investment in power generation: Projects such as the
   Electricity Access Project and Malawi Rural Electrification Programme (MAREP) are there to
   promote grid extension. However, the extension comes at a time when little investments have
   been made to support power generation capacity. Malawi’s base load remains the same; with
   solar power addition to the main grid of hydro power reportedly causing faults in the
   distribution system.
   As stakeholders in the Energy sector, we applaud Malawi Government efforts to scale up
   power to 1,000 megawatts come 2025. We further commend Development Partners that have
   partnered Government in energy projects to support grid extension. The recent development,
   where Government of Malawi (GOM), IFC, Scatec and EDF signed a binding commercial
   agreement to undertake the co-development of the Mpatamanga Hydropower Project to
   produce 350 megawatts under Malawi’s Public-Private Partnership framework on 6th
   September, 2022 is therefore a very welcomed development worth commending in as far as
   revitalising the energy sector in Malawi is concern.
6. Effective regulation of renewable energy products: The intermittent electricity that
   Malawians are being subjected to has led to people purchasing renewable energy products such
   as solar panels, bulbs and batteries. However, as demand for the products skyrockets, so too
   has the influx of sub-standard products on the market. We commend Government having set
   up Malawi Bureau of Standards (MBS) to regulate products on the market. However, such has
   not been the case.
   We therefore appeal to Government to promote importation of high-quality products by
   service providers. We also call upon MERA, as an energy regulator, to partner MBS to procure
   necessary equipment to support regulation of the renewable energy products on the market.
   With the current status-quo of power outages in the energy sector, the population is ready to
   adopt renewable energy products; standards must therefore not derail the progress made thus
   far!
7. There is an urgent need to scale-up awareness on existing renewable energy sources:
   Lack of knowledge on existing renewable energy technologies and how they function has led
   people to exert enormous pressure on the environment due to the huge appetite for charcoal
   and firewood in high density peri urban areas especially for those not connected to the grid.

Stakeholders must work together to enhance people’s knowledge on these renewable energy
alternatives and technologies; eliminate the myths that affect adoption so that we save our
environment from further degradation.

8. There is a need to mainstream climate change in the Energy sector: The rainfall season
   (2021-2022) has taught us how fragile infrastructures such as Kapichira Hydro Power Plant
   can be vulnerable to climate events. September, 2022 marks seven months since the hydro
   power plant was damaged by Storm Ana and rehabilitation works are yet to be finalized. As
   we approach the next rain season, our worry is of the climate disasters and storms of Ana
   magnitude that may occur and affect Malawi’s fragile Energy sector.
   As such, the National Climate Change Management Policy is evidence enough that Malawi
   acknowledges climate in eventualities as an existential threat to development. Therefore,
   Government must integrate climate change in the Energy sector by building climate proofed
   infrastructures that will withstand current and future climate shocks.
9. There is need to subsidize renewable energy sources: Malawi has at its disposal various
   renewable energy sources such as LPG for cooking and solar products for lighting. However,
   exorbitant prices on products such as LPG have made it difficult to access, adopt and use such
   products. Leaving Malawians without clean, affordable and accessible energy for cooking.
   Government MDAs must coordinate and collaborate in order to work effectively. If we are to
   save our environment; Malawians need to have alternatives sources of energy that are clean,
   affordable and easily accessible.
10. There is need to effectively implement the energy sector reforms: Twelve years ago,
    Malawi only had the Electricity Supply Corporation of Malawi (ESCOM) responsible for
    power generation, distribution and supply. The energy sector reforms, unbundled ESCOM
    and established EGENCO and Power Marketing Limited (PML) with the goal of having an
    effective Energy run sector in the country. However, contrary to the expectation of most
    Malawians whose taxes finance these institutions, Malawians have been subjected to
    mediocrity and below par performance from these three state owned companies.
    What we envisioned as a better service delivery with the unbundling of ESCOM, Malawians
    have largely experienced the opposite. However, we believe in the legal frameworks that set
    up these institutions and thus implore Government to ensure effective implementation of
    these reforms to the fullest as we inch slowly towards the Malawi Vision 2063 dream.
    Malawians deserve better!

As stakeholders in the Energy sector, we will continue to support Government in the development of
the sector until all Malawians have access to clean, sustainable and affordable energy.

Signed on behalf of the members of the Civil Society Network on Climate Change (CISONECC) by:

CISONECC’ Board Chairperson Sophie Kaonongera

CISONECC’s National Coordinator Julius Ng’oma
Co-Chairperson Co-Chairperson

TaskForce – Access to Renewable Energy Task Force on Access to Renewable Energy’s co-chairpersons Charles Mkoka Ron Kabvina