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Overview

The Government of Malawi through the Ministry of Energy with funding from the United Nations Development programme is implementing access to clean and renewable energy (ACRE) project to increase sustainable access to clean and affordable decentralised energy services through mini grids operated through an innovative business model.

The Ministry of Energy would therefore like to request for eligible applicants to express interest in the operation and management of any one of or both mini grids of 30KWp Chisi Island and 60KWp Mwansambe Solar Mini grids in Zomba and Ntcheu Districts respectively.

1. Background

Malawi is one of the least electrified countries in the SADC region, with an average per capita consumption of 85 kWh per annum – among the lowest in the world. Provision of sufficient, reliable and clean energy in Malawi is a critical challenge, as recognized by the Government, which has put energy as a focus area in both the Malawi Growth and Development Strategy III as well as Malawi Vision 2063. The demand for electricity by far exceeds the installed capacity and new generation capacity is urgently needed, with the Government focused on promoting diversified sources and utilization of the country’s abundant renewable energy resources – particularly micro-hydro and solar. Under the Sustainable Energy for All (SE4All) initiative, the Government has committed to ambitious 2015/2030 targets for increasing energy access and renewable energy supply.

According to the SE4All 2015 global tracking framework, the growth rate of electricity access in Malawi is estimated at negative three (3) per cent against a global growth rate of 0.6 per cent. There is therefore a clear unmet need which may be translated into effective demand. Off-grid provision of electricity is one of the key strategies for increasing access to electricity, particularly in the rural areas.

To increase access, effort is needed to develop power plants and mini-grids close to the end-users in the rural areas. Since financial resources are scarce, investments for new generation can only be leveraged by involving the private sector and social enterprises. Given the more remote locations of many of the communities that need to be served, and the cost reductions in renewable energy technologies, an important vehicle for meeting these targets will be clean energy mini-grids.

The ACRE project replicates the previous initiatives by the UNDP and Ministry in the installation of mini grids in rural areas but operated and managed by the private sector players through a concessionary agreement in accordance with  the Rural Electrification Act 2004. The project will replicate Sitolo Solar Mini grid in Mchinji with 2 greenfield mini grids in Chisi Island in Zomba and Mwansambe in Ntcheu district which will be  vertically-integrated and operated as a sustainable