National Energy Policy

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 12

3.1.3 Policy Priority Area 1.3: Electricity Distribution 14

3.1.4 Policy Priority Area 1.4: Rural Electrification 15 3.1.5 Policy Priority Area 1.5: Electricity from Renewable Energy 17 3.1.6 Policy Priority Area 1.6: Definition and Measurement of Access to Electricity 19

3.2 POLICY PRIORITY AREA 2: BIOMASS ................................................................... 20

3.3 POLICY PRIORITY AREA 3: PETROLEUM FUELS.............................................. 22 x

3.4 POLICY PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS ............ 24 3.5 POLICY PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS...................................................................................................... 27

3.6 POLICY PRIORITY AREA 6: COAL .......................................................................... 30

3.7 POLICY PRIORITY AREA 7: NUCLEAR ENERGY ............................................... 33

3.8 POLICY PRIORITY AREA 8: DEMAND SIDE MANAGEMENT .......................... 34 3.8.1 Demand Side Management in the Electricity Supply Industry 34

3.8.2 Demand Side Management in Biomass End-use 36

4.0 IMPLEMENTATION ARRANGEMENTS .................................................................. 38

4.1 Institutional Arrangements 38

4.2 Implementation Plan 39

4.3 Monitoring and Evaluation Plan 40

4.4 Policy Review 40 ANNEX 1: DEMAND AND SUPPLY-HISTORICAL AND PROJECTED (2008-2035) 41 ANNEX 2: SE4ALL FRAMEWORK FOR DEFINING AND MEASURING ACCESS TO ELECTRICITY ................................................................................................ 42 ANNEX 3: IMPLEMENTATION PLAN FOR THE NATIONAL ENERGY POLICY 2018........................................................................................................................... 43 ANNEX 4: MONITORING AND EVALUATION PLAN FOR THE NATIONAL ENERGY POLICY 2018 ........................................................................................ 88 ANNEX 5: ENERGY MEASUREMENT AND CONVERSION TABLES ................... 176 xi

1.0 INTRODUCTION This Policy seeks to guide planning and implementation of programmes, projects and activities in the energy sector with the aim of increasing access to affordable, reliable, sustainable, efficient and modern energy services for every person in the country. It 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 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 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 National Oil Company of Malawi (NOCMA) c. Increased awareness for renewable energy technologies 1 d. Capacity building in Renewable Energy Technologies through introduction of Testing Centre for Renewable Energy Technologies (TCRET) and establishment of department of energy studies at Mzuzu University; e. Increased penetration of renewable energy into the energy mix; f. Establishment of Rural Electrification Fund and 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 generation (EGENCO) and the residual ESCOM for transmission and distribution. h. Implementation of Bulk Fuel Procurement System; and i. Increased fuel storage holding capacity to 75days. Despite making progress in implementing 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. 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 evidenced by overloading of transmission lines and transformers. 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. 2 e) The Rural Electrification Fund has had 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 information to or awareness by 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; lack of awareness, cultural barriers and knowledge on the existence of the fuels; high capital costs for equipment, inadequate technical expertise in, the design and construction of the systems. j) Coal has not been used much as an energy source despite the country having 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) None 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 3 iv) Overlaps in policy and regulatory framework to govern downstream marketing, transportation and utilisation. k) Nuclear energy has not been used for electricity generation despite the country having 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 resulting 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 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) Sustainable and reliable energy provision that will catalyse industrialisation and modernisation of the economy. 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) Promotion of regional power interconnection; e) Reducing the impact of climate change on energy; f) Promotion of 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) Social and gender inclusion in energy programmes. s 4

1.2 Rationale The first integrated National Energy Policy was formulated in 2003. Since then, Energy Sector as well as the overall economy have gone through structural changes, where the role of government in some areas has changed, markets have been liberalized and private sector initiatives encouraged. Hence the National Energy Policy of 2018 has been formulated considering 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 disability in all spheres of life and ensure the full participation of women in all areas on the basis of equality with men. To effectively realise this right, the State has an obligation 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. Malawi Vision 2020 Malawian Vision is that : 5 “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 the Vision 2020. However, success of Vision 2020 has been limited, 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; minimizing disruptions to critical health/treatment services; and to generally prevent, mitigate and monitor HIV and AIDS risks in energy projects. Mines and Minerals Policy 2013 The Mines and Minerals Policy advocates the development of adequate infrastructure to support development of mining in the country. It is therefore important that, in order to 6 ensure rapid development of the mining sector, there is sufficient and reliable energy supply in the country. 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 has 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. International Obligations Programme for Infrastructure Development in Africa (PIDA) The African Union Commission (AUC), the New Partnership for Africa’s Development (NEPAD) 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 region 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) 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) SADC, through its Regional Infrastructure Development Master Plan (RIDMP), is expected to run until 2027, and is to be implemented in three phases, i.e. short term (2013-2017), medium term (2017-2022), and long term (2022-2027) and 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. 7 International Energy Agency (IEA) The key themes for 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, and is targeted by both improved energy efficiency and a higher level of renewables in national energy systems. 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 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 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 Electricity, Biomass, Petroleum Fuels, Bio-ethanol and Other Biofuels, Liquefied Petroleum Gas, Biogas and Natural Gas, Coal, Nuclear Energy and Demand Side Management, as priority areas for actions. 10

3.1 POLICY PRIORITY AREA 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 Policy Priority Area 1.1: Electricity Generation Electricity generation industry in Malawi is currently composed of one National Company, Electricity Generation Company (EGENCO). The industry is liberalised but currently there are no private generators operating on the ground. The total installed capacity for the country is 361MW, 98% of which comes from hydro power plants located on Shire River and Wovwe River and the remaining 2% 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 700MW; there are no IPPs in the generation industry that could assist in filling generation gap; overdependence on Shire River for hydropower generation; and the national electricity grid is currently not interconnected with those of neighbouring countries, hence the country is unable to trade power under SAPP or 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. 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). Strategies: 11  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 equivalent) by the electricity generation company (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) 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.

3.1.2 Policy Priority Area 1.2: Electricity Transmission Electricity Transmission in Malawi has one national utility owning, operating and maintaining the national electricity transmission grid, comprising power transmission lines and grid substations operated at two voltage levels, namely 66kV and 132kV. The transmission power lines are on either wood or steel structures. The System Operations Department, which ran the National Control Centre, is one of the departments of the national utility company’s Transmission Division. This power system is isolated from those of the neighbouring countries, except for cross- border supplies (through the distribution system) to small border towns in Mozambique and Zambia. There are some capacity constraints in the power transmission system more especially in the northern region where highest voltage in use is 66kV. Some transmission lines in the Southern and Central Regions are also heavily loaded and cannot transfer additional capacity available from expected power stations and interconnections with Mozambique and Zambia. 12 Increased transmission system capacity is crucial for evacuation of power from the generation stations, whether operated by National generation stations, IPPs or PPPs. The coming in of IPPs will also require that there should be a robust regulatory regime to ensure open access to the transmission system in a non-discriminatory manner. Hence the unbundling of the national utility company by separating the generation function from transmission and distribution was a necessary condition for ensuring this open and non-discriminatory access to the transmission system, so that all generation plants should have access thereto in a properly regulated manner under a robust Grid Code. Since transmission projects can disturb the way of life of local communities 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 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. 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: 13  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) for transmission projects.  Developing and implementing comprehensive socially responsive Environmental and Social Impact Management Plans for transmission projects.  Developing gender sensitive Resettlement Action Plans and/or fair compensation packages.

3.1.3 Policy Priority Area 1.3: Electricity Distribution 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, the country’s national utility 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; 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. 14  Developing gender sensitive Resettlement Action Plans and/or fair compensation packages  Rehabilitating existing distribution lines and substations. II. Government will incentivise distribution licensees to devise schemes that will enable consumers 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 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.

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 electrification of rural and peri-urban areas in the country. 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. Further, rural electrification has so far concentrated on electrifying selected trading or rural growth centres in the districts. Villages, especially households, grain mills, 15 and social service facilities need to be reached in order to increase access to electricity as over 80% of the population of Malawi is living 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 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. 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 low income households within 500m radii of distribution substations. 16 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 by the Rural Electrification Agency, MAREP and contractors 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.

3.1.5 Policy Priority Area 1.5: Electricity from Renewable Energy Malawi is well endowed with renewable energy resources including 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 renewable energy strategy and SE4ALL action agenda which will guide investments in renewable energy sub-sector. Social and gender issues will be taken into consideration in implementing renewable energy interventions. Despite having abundant renewable energy resources, they have not been fully exploited 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 and maintenance, and marketing; c) Lack of information to or awareness 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.  Promulgating and regularly review standards for RET products, especially Solar PV and Pico Solar Products. 17 I. 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 an RE strategy that promotes RE through incentives to new players.  Establishing fiscal incentives for renewable energy 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.  Promoting RET products for vulnerable and marginalized groups. II. 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. III. 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 and men and their subgroups. 18  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 and men and their subgroups.  Devising incentives to increase numbers of well qualified male and female RET artisans, technicians, professional engineers, and entrepreneurs. IV. 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 accreditation of RE manufacturers and suppliers and the 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 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 and 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. 19

3.2 POLICY PRIORITY AREA 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. 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 2million efficient cookstoves by 2020 to reduce biomass consumption. A national cookstoves road map has been developed in working towards achieving this target. The major challenge in biomass sub sector is unsustainable production and inefficient use. 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. There are technologies now 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 technologies for biomass technologies (e.g. improved cook stoves, charcoal kilns, etc.)  Promoting incentives to CSOs to increase the uptake of modern biomass technologies.  Promoting alternative technologies to charcoal in urban and peri-urban areas 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.  Enforcing of banning of illegal charcoal production.  Promoting growing of commercial trees e.g. bamboos, as an alternative to natural trees for charcoal production. 20 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.  Include 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 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. 21

3.3 POLICY PRIORITY AREA 3: PETROLEUM FUELS 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 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 National Oil Company of Malawi (NOCMA) which also owns, operate and maintain national strategic fuel reserves. Retailing of petroleum fuels is done by OMC’s through a franchising system in which they are allowed to own a maximum of two retails 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 is implementing 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 hold 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. Paraffin has for some time been used for cooking and lighting. Its combustion does, however, release 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 using only modern and efficient paraffin cook stoves. The challenges in the petroleum fuels industry are that some Oil Marketing Companies keep fuels in tankers as they do not have sufficient storage facilities. This is not efficient as it grounds those tankers instead of letting them go and haul more fuel. Further, some OMC’s do not comply with the franchised system. Policy Statements I. Government will ensure 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. 22  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. II. Government will promote 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 incentives to contribute to 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. 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. 23

3.4 POLICY PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS 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 it is being produced from sugarcane molasses. On the other hand, there is currently one company that is producing biodiesel, and it is being produced from jatropha. The key challenges in biofuels industry include bioethanol has a lower calorific value making it a less efficient fuel relative to petrol or diesel – a disadvantage that 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, 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 I. 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 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. 24  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 and 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 to increase women’s participation in the industry III. Government will ensure that the production of biofuels does not threaten food security. Strategies:  Promote 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 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. 25 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. 26

3.5 POLICY PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS 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 cooking and heating on the domestic front. 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 of 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 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 to lower pricing and increased uptake of LPG, Biogas and Natural Gas, and 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. The second issue is safety. It is perceived by a majority of Malawians that gas is unsafe to use i.e. 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 27 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.  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 awareness campaigns on the safe use of LPG, biogas and natural gas.  Promulgating Regulations and standards on supply and distribution of cylinders for LPG (such as safety regulations, quality of cylinders etc).  Implementing Regulations and standards on 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. Strategies:  Developing plans and strategies to facilitate the capacity building of local women, men and the youth to be entrepreneurs in the industry.  Building the knowledge and skills local women, men and the youth in LPG, biogas ad Natural Gas technologies.  Devising plans, strategies and incentives to increase the employment of local women and the youth in the industry. 28 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. 29

3.6 POLICY PRIORITY AREA 6: COAL 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. 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) None existence of competition within the industry (23 years after 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) None availability of appropriate end-use technologies enabling use of coal in new market niches e.g. household 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. 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. 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, 30  Ensuring the coal production, transportation, utilization and waste disposal processes produce minimal pollutants. III. Government will put sustainable measures and regulations in place 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 equivalent) to address environmental issues affecting the coal industry  Developing Social and Gender Integration Plans (or 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 for household, tobacco curing and other applications. Strategies:  Implementing environmentally friendly coal-fired electricity generation projects.  Conducting 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 will, through the Environmental Affairs Department and MERA, shall ensure that all coal combustion installations abide by set minimum standards. 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. 31 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 implement strategies that promote equal employment and entrepreneurship opportunities for men, women and youth in the industry. 32

3.7 POLICY PRIORITY AREA 7: NUCLEAR ENERGY Malawi had proven reserves of about 63,000 tonnes of Uranium at Kayelekera in Karonga District in the northern part of the country until 2009 when mining started, with all the uranium from the mine 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. GoM has made a decision 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 is Nuclear Science.  Establishing socially and environmentally responsive uranium processing facility in the country.  Developing and commissioning the first nuclear power plant. II. Government will promote nuclear energy programming that prioritises the aversion and mitigation of different potential health risks that the industry poses to workers and ordinary men, women, children and the environment. Strategy:  Developing and implementing Social and Gender Integration Plans by nuclear companies/projects to address inward looking and outward looking social and gender issues affecting the nuclear energy. 33

3.8 POLICY PRIORITY AREA 8: DEMAND SIDE MANAGEMENT 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, and 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 members of the Southern African Power Pool, have implemented DSM in various forms with a view to minimize 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; 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 consumer to repay the loan as part of their utility bill payment. Installation of prepaid meters which, in addition to reducing non-payment problems for utilities, also have the effect of increasing energy-efficiency behaviour by consumers; 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, 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. 34 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 to participate 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; 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 a flat monthly fee. Customer participation is in most cases involuntary; and d) Installation of roof-mounted solar water heaters which will serve as an alternative source 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, fans to meet or exceed minimum energy performance standards; e) Instituting mandatory energy audits and energy use reductions by large customers; 35 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 efficient cook stoves as well as brick and charcoal making kilns. 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). 36  Sensitising the public on safe utilisation and disposal of energy saving bulbs.  Promoting the design of buildings to take advantage of natural lighting, 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, but also to reduce stress on overburdened utility systems.  Installing prepayment meters and implementing tariffs that will reduce non-payment problems and 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.  Conducting Information dissemination and awareness raising campaigns. 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 37

4.0 IMPLEMENTATION ARRANGEMENTS Outlined below is how this Policy will be implemented, and this includes institutional arrangements, implementation plan, monitoring and evaluation .

4.1 Institutional Arrangements The Government recognises the importance of stakeholders and partnerships in implementation of the National Energy Policy. The stakeholders include 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 oil, gas, coal, uranium and other energy related minerals. Ministry responsible for Environmental Affairs The Ministry will be responsible for ensuring every project requiring environment and social impact assessment including energy projects have such assessment and strictly adhere to any impact mitigation measures, Ministry responsible for Finance The ministry will be responsible for mobilisation of financial resources from government, development partners and international lending institutions for energy interventions. 38 Ministry responsible for Justice The ministry will be responsible for drafting legislation that support 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 and promotion of 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 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 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 the policy goal and objectives on 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. 39

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 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 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. 40

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 2,12 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 4,514 5,637 5,637 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 1 Total 100% 100% 100% 100% 100% 100% 41

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 42

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 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 Integrated Resource Plan every 5 years thereafter five years MNREM To harness other potential MoJ sources of power generation and expedite expansion of Creating an enabling MoF generating capacity environment for private sector MCCCI By December 2019 investment in power generation MERA MoITT MITC 43 Conducting feasibility studies on sites for power generation from hydro, coal, geothermal, MNREM natural gas, solar, wind, EGENCO By December 2019 agricultural waste, forestry IPPs waste, and biogas resources. Developing the sites for power generation from Hydro, Coal, MNREM Geothermal, Natural Gas , EGENCO Solar, Wind, agricultural 2019 - 2023 waste, forestry waste, and IPPs biogas 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). Objective Strategy Responsibility Timeframe To enact and implement Implementing power sector MNREM enabling legislation for reforms in accordance with the 2018-2022 improved ESI governance and Electricity Amendment Act of for attracting private sector 2016 44 investment in electricity 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. Objective Strategy Responsibility Timeframe 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. Objective Strategy Responsibility Timeframe To create an enabling Developing Social and Gender environment for the promotion Integration Plans (or of equal opportunities in equivalent) by the electricity By December 2019 (social and MNREM generation functions and for 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 2019-2023 45 responsive Environmental and EGENCO Social Impact Assessment (ESIAs) for generation IPPs projects. Developing and implementing MNREM comprehensive socially EGENCO responsive Environmental and 2019-2023 Social Impact Management IPPs Plans for generation projects. Developing gender sensitive MNREM Resettlement Action Plans EGENCO 2019-2023 and/or fair compensation packages. IPPs POLICY PRIORITY AREA 1.2: ELECTRICITY TRANSMISSION 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 1.2.1 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. Objective Strategy Responsibility Timeframe To ensure reliable and efficient Ensuring that the new MNREM By December 2018 46 power transportation from all transmission and distribution DHRMD sources to all customers. company is fully operational. Allowing generation companies to build transmission lines and substations to interconnect the MNREM 2019-2023 power stations with the MERA transmission grid under the Transmission Operator’s coordination. Policy Statement 1.2.2: Government will put in place robust power market operation rules and enforce the Grid Code. Objective Strategy Responsibility Timeframe To ensure a level playing field in power trading and provide MNREM 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. Objective Strategy Responsibility Timeframe To facilitate cross-border Interconnecting the Malawi MNREM imports and exports of power power system with those of By December 2023 ESCOM 47 from/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. Objective Strategy Responsibility Timeframe Developing Social and Gender MNREM Integration Plans by ESCOM By December 2019 (Social and ESCOM and contractors to address Gender Integration plan by inward looking and outward Infrastructure Development ESCOM looking social and gender Contractors issues across all transmission operations. To maximize positive impacts of transmission projects and Developing robust socially promote equal opportunities responsive Environmental and MNREM between men and women in Social Impact Assessment 2019-2023 transmission operations. (ESIAs) for transmission ESCOM projects. Developing and implementing comprehensive socially MNREM responsive Environmental and 2019-2023 Social Impact Management ESCOM Plans for transmission projects. 48 Developing gender sensitive MNREM Resettlement Action Plans EGENCO 2019-2023 and/or fair compensation packages. IPPs POLICY PRIORITY AREA 1.3: ELECTRICITY DISTRIBUTION Broad Policy Objectives: 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 1.3.1: Government will intensify the expansion and rehabilitation of the distribution network in a socially inclusive manner. Objective Strategy Responsibility Timeframe Constructing new distribution MNREM lines and substations. 2019-2023 ESCOM To ensure that electricity is Developing robust socially MNREM available to all customers responsive ESIAs for new distribution lines and ESCOM 2019-2023 while preventing and mitigating negative social substations projects. impacts of distribution projects Developing and implementing comprehensive socially MNREM responsive ESIMPs for new 2019-2023 ESCOM distribution lines and 49 substations 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 connect electricity to their homes, and afford basic energy efficient electrical appliances. Objective Strategy Responsibility Timeframe Removing duty and VAT on energy efficient domestic MNREM electric cooking and water By July 2019 To promote use of electricity heating appliances. MoJ in households as a substitute for biomass and other fossil fuels in homes. MNREM Introducing lifeline tariffs to enable low income households MoF By July 2019 access electricity. MERA Policy Statement 1.3.3: Government will encourage distribution licensees to expedite connections to customers’ premises. 50 Objective Strategy Responsibility Timeframe Implement a policy whereby the distribution licensees shall allow customers to procure transformers and other MNREM materials in the event of 2019-2023 procurement bottlenecks, and ESCOM thereafter take over the assets with appropriate To ensure expedient compensation. connections to customers premises and increase in Implement a policy whereby MNREM access to electricity construction works will be 2019-2023 contracted out. ESCOM MERA Promoting initial connection ESCOM cost recovery from tariff Other Power Utility 2019-2023 payments 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. Objective Strategy Responsibility Timeframe 51 Developing Social and Gender Integration Plans by ESCOM To deliberately address MNREM and distribution licensees to By December 2019 (social and inequalities and improve address inward looking and ESCOM gender integration plan by access to services for all in outward looking social and ESCOM) distribution operations. Distribution Licensees gender issues across all distribution functions. POLICY PRIORITY AREA 1.4: RURAL ELECTRIFICATION 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 1.4.1 Government will restructure Rural Electrification and Renewable Energy management governance Objective Strategy Responsibility Timeframe Establishing a Rural OPC Electrification Agency as a MNREM To improve the management semi-autonomous legal entity governance for Rural to manage the Rural DHRMD 2018 - 2019 Electrification and Renewable Electrification Fund and Rural MoF Energy Electrification activities (in EP& D both grid extension and off- grid options). MoITT 52 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. Objective Strategy Responsibility Timeframe To ensure reduction in cost of Making a provision for connection of electricity for MNREM payment of infrastructure costs rural households, settlements, By December 2019 in the new Rural MoJ villages and peri-urban Electrification Act. settlements. 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. Objective Strategy Responsibility Timeframe To ensure electricity reaches MNREM rural settlements and villages, Committing funds from the 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. Objective Strategy Responsibility Timeframe To ensure availability of Electrifying institutional MNREM 2019-2023 electricity in all public buildings, such as schools and 53 institutions in rural areas and hospitals using the Rural MoLGRD in low income households that Electrification Fund . are close to distribution Devising schemes for the substations. Rural Electrification Fund to MNREM connect low income 2019-2023 households within 500m radii MoLGRD 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. Objective Strategy Responsibility Timeframe Developing Social and Gender Integration Plans by the Rural MNREM Electrification Agency, MAREP and contractors to MoLGRD By December 2019 To ensure that rural address inward looking and Infrastructure Development electrification programmes are outward looking social and Contractors promoting the equal gender issues across rural development of both men and electrification functions. women Devising rural electrification interventions for low income MNREM households that deliberately 2019-2023 target male, female, child and MoLGRD elderly headed households. 54 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. Objective Strategy Responsibility Timeframe 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 use of Renewable Energy and local manufacture of appropriate RE products. Objective Strategy Responsibility Timeframe 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 55 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 Objective Strategy Responsibility Timeframe MNREM To ensure the active involvement of communities or Developing appropriate MERA 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 56 Reviewing the feed-in tariffs to MNREM ensure that all technologies MERA By December 2019 including mini-grids are 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. Objective Strategy Responsibility Timeframe To enhance RE capacity Developing and implement an MNREM By December 2019 building and the quality of inclusive and comprehensive Academic and research 57 RET products and services RE Capacity Building Plan institutions that ensures that renewable RE suppliers and service energy interventions/services providers are suitable to the different needs of women and men and CSOs/INGOs 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. Objective Strategy Responsibility Timeframe MNREM Introducing financing schemes and incentives for the private MoF To promote the manufacture, 2020 -2023 sector to locally manufacture MoITT distribution, use and financing and distribute RE products. of improved RE technologies. Expediting accreditation of RE MBS manufacturers and suppliers 2020-2023 MERA and the certification of RE 58 products. Strengthening the capacity of MNREM CSOs and decentralized DoE structures in RET 2019-2023 programming and MoLGRD interventions. CSOs/INGOs PRIORITY AREA 1.6: DEFINITION AND MEASUREMENT OF ACCESS TO ELECTRICITY 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 1.6.1: Government will adopt the Global Tracking Framework (GTF) for defining and measuring access to electricity. Objective Strategy Responsibility Timeframe MNREM Adopting (and if necessary adapting) the Global Tracking ESCOM By December 2018 To ensure that statistics on Framework. access to electricity take into NSO account all sources (including MNREM Conducting surveys to off-grid generation and PSPs). determine percentages for all ESCOM 2020 and 2022 tiers NSO 59 MNREM 2020 and 2022 Presenting access levels for ESCOM each year in the GTF format NSO PRIORITY AREA 2: BIOMASS Broad Policy Objective: To ensure 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 technologies for MNREM 2019-2023 biomass technologies (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 60 MNREM Promoting alternative CSOs technologies to charcoal in urban and peri-urban areas to MoLGRD 2019-2023 reduce the demand for MOF charcoal. DoF 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 Enforcing of Banning of illegal Forestry Department charcoal production. 2019-2023 MNREM Promoting growing of To reduce reliance on natural MNREM commercial trees e.g. trees as the main source of 2019-2023 bamboos, as an alternative to Forestry Department charcoal. natural trees for charcoal 61 production. Policy Statement 2.2: Government will intensify training and nationwide promotional activities for improved cook stoves, brick kilns, charcoal kilns, and biomass briquettes. Objective Strategy Responsibility Timeframe Building and strengthening MNREM capacity in new biomass CSOs 2019-2023 technologies. INGOs Increasing public knowledge Increase uptake of improved MNREM and utilization of improved cook stoves, brick kilns, CSOs 2019-2023 biomass technologies and their charcoal kilns and biomass INGOs economic opportunities. briquettes. 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. Objective Strategy Responsibility Timeframe To empower low income and Strengthening targeted MNREM marginalized groups to biomass interventions for low MoLGRD 2019-2023 sustainably use and benefit income and marginalized from biomass technologies in groups in urban and rural areas Town Assemblies 62 order to decrease the demand to access and control 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. Objective Strategy Responsibility Timeframe Recruiting District Energy MNREM By 2023 Officers. Strengthening district level MNREM capacity to implement To strengthen the role of MoLGRD sustainable programmes and 2019-2023 decentralized structures in projects related to biomass CSOs promoting the use of biomass technologies. 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 commercial cook stoves that are sold as commercial products on the market. Objective Strategy Responsibility Timeframe To ensure that consumers are Developing and enforcing MBS By December 2019 for 63 using energy efficient cook standards on cook stoves sold Standards; MNREM stoves of high standard. as commercial products. 2019-2023for Enforcement and monitoring Policy Statement 2.6: Government will encourage charcoal making communities to venture into alternative income generating activities. Objective Strategy Responsibility Timeframe Building linkages between the MNREM energy sector and economic MoITT To ensure such communities empowerment initiatives that are implemented by other DSW move away from charcoal 2019-2023 making in order to save trees. sectors in charcoal making CSOs areas. 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. Objective Strategy Responsibility Timeframe To ensure security of liquid Maintaining a minimum MNREM 2020-2023 fuel supply and lower landed reserve of 90 days’ supply of 64 cost of petroleum products for fuel MoF the country. NOCMA OMCs MERA Promoting cost-effective, MNREM efficient and environmentally MoT&PI and socially responsive alternative conveyance MITC 2019-2023 methods such as pipelines and Department of Mines water barges to ensure lower landed cost of petroleum products Promoting exploration for MNREM petroleum for energy security 2019-2020 Department of Mines To ensure the uptake of MNREM improved paraffin-fuelled Providing customs duty and MoITT cooking and heating appliances 2020-2023 VAT incentives. MoFEPD that are affordable to low income households. MRA Policy Statement: 3.2: Government will promote the participation of the private sector in the oil market. Objective Strategy Responsibility Timeframe 65 MNREM Reviewing and enforcing By December 2019 for legislation to adopt a system of MoF reviewing 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 Developing and implementing MERA By December 2019 for guidelines for franchising of developing guidelines MoF liquid fuel outlets to be 2020-2023 for implementing OMCs To ensure the effective adhered to by all OMCs. the 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. 66 Objective Strategy Responsibility Timeframe Introducing and/or NOCMA strengthening youth and OMCs women mentorship and 2020-2023 Promoting 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. Policy Statement 3.4: MERA shall maintain the automatic fuel price adjustment system and apply it in a transparent manner. Objective Strategy Responsibility Timeframe MERA To ensure NOCMA, OMCs Regulating fuel prices through and dealers recover their cost use of a transparent and MNREM 2019-2023 for the sustainability and verifiable fuel price adjustment MoF integrity of the industry. system. CAMA PRIORITY AREA 4: BIOETHANOL AND OTHER BIOFUELS 67 Broad Policy Objective: To ensure adequate production and supply of petroleum and biofuels at affordable prices 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. Objective Strategy Responsibility Timeframe MNREM Increasing the supply of bio- 2019-2023 MERA ethanol and bio-diesel. Biofuel producers MNREM Promoting fiscal incentives for bio-ethanol and bio-diesel MoF 2019-2023 production. MRA To ensure sustainable adequate supplies of bio-ethanol and Promoting the use of bio-fuels MNREM bio-diesel fuels in the country. through appropriate pricing MoF incentives 2019-2023 MERA Biofuel producers MNREM Implementing socially and environmentally responsive Biofuel producers 2019-2023 large scale bio-ethanol and 68 bio-diesel 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 collaboration of farmers’ Women farmers’ coalitions cooperatives, women farmers’ coalitions, and other marginalized groups. To build adequate capacity and Engaging the National MNREM skills to sustainably produce Commission for Science and bio-ethanol and other biofuels MoA Technology and academic and in a manner that promotes Biofuel producers research institutions in By December 2019 inclusive development. discussions on biofuel mixtures and their usage in vehicles. MNREM Promoting socially responsive MOA research and development in Biofuel producers 2019-2023 the biofuels areas Academic and Research Institutions 69 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. Objective Strategy Responsibility Timeframe Developing plans and MNREM To increase the pool of strategies that facilitate the Ministry of Gender Malawian men and women capacity building of both that are involved in and women and men in biofuel Biofuel producers By December 2019 knowledgeable about biofuel technologies and to increase 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. Objective Strategy Responsibility Timeframe Promoting the growing and use of non-staple food crops as bio-ethanol and bio-diesel raw MNREM materials. Food crops and To sustain the production of productive land shall only be Biofuel producers 2019-2023 biofuels without compromising used for biofuel production food security interests. where there is an assurance that food security will not be impacted negatively. Intensifying public awareness MNREM 2019-2023 70 campaigns to ensure that MoAI&WD smallholder farmers’ land for the cultivation of food crops is Farmers’ associations 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. Objective Strategy Responsibility Timeframe Implementing a phased MNREM installation of bioethanol Filling station operators 2019-2023 pumps in line with increased production of bioethanol. Promoting awareness MNREM To sustain petrol: bioethanol blending and reduce use of campaigns on the uptake of MoT&PI 2019-2021 new technologies (e.g. flex fossil fuels in motor vehicles. 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. 71 Objective Strategy Responsibility Timeframe Implementing a phased MNREM 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 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 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, heat) and domestic use. Objective Strategy Responsibility Timeframe To ensure availability of LPG, Undertaking legal and MNREM By December 2019 72 biogas and natural gas in regulatory reviews to facilitate MERA sufficient quantities at institutional reforms for affordable prices for industrial investments in and utilization NOCMA and domestic purposes. of LPG, biogas and natural MBS gas. Promoting tax and other fiscal MNREM incentives for large scale MoF 2020-2023 investments in LPG, biogas and natural gas. MRA Implementing a phased MNREM program to accelerate the MoF penetration of LPG and natural MRA 2020-2023 gas. Afrox Providing customs duty and MNREM VAT incentives to promote the MoF wide availability of small LPG MRA 2020-2023 cylinders and gas cookers, and make them affordable to low income households. Promoting use of LPG, Biogas MoF 2020-2023 and Natural Gas through fiscal NOCMA 73 incentives to financially viable MERA companies to construct own storage facilities 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 Objective Strategy Responsibility Timeframe MNREM Promoting socially inclusive and well trained LPG, biogas MERA 2020-2023 To build expertise and ensure and natural gas suppliers and LPG Dealers safety in the handling and users. Industry utilization of LPG, biogas and natural gas. MNREM MERA Conducting awareness on the safe use of LPG, biogas and Min of Gender 2020-2023 natural gas. MoI&CE, MoEST CSOs 74 Promulgating Regulations and MBS standards on 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 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 in the industry. Objective Strategy Responsibility Timeframe Developing plans and MNREM strategies to facilitate the DoE To build expertise and increase capacity building of local the involvement of Ministry of Gender By December 2019 women, men and the youth to marginalized groups in the gas be entrepreneurs in the LPG, Biogas and Natural Gas industry both as employees industry. companies and entrepreneurs. Building the knowledge and MNREM 2020-2023 75 skills local women, men and DoE the youth in LPG, biogas ad Natural Gas technologies. Academic and Research 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 Objective Strategy Responsibility Timeframe To build expertise in local Engaging private companies MNREM extraction, transmission, 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 use Policy Statement 6.1: Government will promote and encourage the private sector to take a leading role in the coal industry 76 subject to regulatory and licensing requirements. Objective Strategy Responsibility Timeframe 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. Objective Strategy Responsibility Timeframe MNREM December 2019 for putting in Implement a systematic place the programme programme of inspection of MERA To ensure that coal is stored, coal storage facilities, 2020-2023 for implementing MBS transported, imported, priced combustion processes, and the programme and marketed in line with set transportation systems minimum standards. Devising mechanisms to MERA monitor pricing and marketing December 2019 operations 77 MNREM Putting in place competitive To eliminate monopoly in coal coal haulage and brokerage MERA December 2019 haulage and brokerage arrangements 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 the coal supply legislation chain does not impact operations in the supply chain negatively on the environment MBS 2019-2023 and the health of people. Ensuring the coal production, transportation, utilization and MoJ waste disposal processes EAD produce minimal 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. Objective Strategy Responsibility Timeframe To create a competent MNREM 2019-2023 mechanism/machinery for Putting in place all-inclusive MoITT reducing the negative impacts capacity building programmes of coal mining, storage, MoLMD haulage and utilization on the Developing Environmental and MNREM 2019-2023 environment, and on the health Social Impact Management 78 and safety of its handlers, users Plans (or equivalent) to Coal mining companies and communities address environmental issues affecting the coal industry Coal transporters Coal users Developing Social and Gender MNREM 2019-2023 Integration Plans (or 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 Objective Strategy Responsibility Timeframe MNREM/EAD MoJ Implementing environmentally friendly coal-fired electricity MoF 2019-2023 To ensure security of generation projects. electricity supply through Lands Dept. environmentally friendly coal- ESCOM fired base-load generation. MNREM/EAD Conducting ESIAs and developing/implementing Lands Dept. 2019-2023 comprehensive impact ESCOM 79 mitigation plans. Coal companies MNREM/EAD 2019-2023 Developing and implementing Gender sensitive Resettlement Lands Dept. Action Plans and/or fair ESCOM compensation packages. Coal companies Promoting appropriate end- To reduce reliance on fuel use technologies to facilitate MNREM wood for household, tobacco use of coal in household and 2019-2023 curing and other applications tobacco curing applications MoAI&WD Policy Statement 6.5: Government will, through the Environmental Affairs Department and MERA, ensure that all coal combustion installations abide by set minimum standards. Objective Strategy Responsibility Timeframe Implementing systematic MNREM inspection programmes for To minimise the adverse EAD 2019-2023 coal combustion installations. impacts of coal combustion on MERA the environment and on the Supporting research into, and MNREM health and safety of coal the development of, more handlers and users. Academic and Research 2019-2023 efficient coal-combustion Institutions technologies. 80 Promoting the application of MNREM clean coal technologies, such EAD as washing, gasification, 2019-2023 liquefaction and fume Coal Producers capturing. Coal Users Policy Statement 6.6: Government will, through fiscal incentives, promote coal-dust briquetting programmes. Objective Strategy Responsibility Timeframe To minimise the adverse Encouraging coal producers MNREM impacts of coal dust released to and entrepreneurs to engage in MoF 2019-2023 the environment. coal briquette production. MRA 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. Objective Strategy Responsibility Timeframe MNREM Developing and implementing MoITT To increase the involvement of strategies that promote equal By December 2019 for marginalized groups in the employment and Ministry of Gender developing the strategy coal industry both as entrepreneurship opportunities Coal companies 2020-2023 for implementing employees and entrepreneurs. for men, women and youth in the strategy MoLMD the industry. Academic institutions 81 POLICY 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 regional electricity trading Policy Statement 7.1: Government will build capacity in generation of electricity from nuclear energy Objective Strategy Responsibility Timeframe MNREM Introducing Nuclear Science and Materials in programmes MoEST By December 2020 in public universities. NCHE To increase the energy source options available for Building capacity in nuclear MNREM 2019-2023 generation of electricity by energy in Government. DHRMD utilizing locally mined uranium. Promoting Research and Tertiary education institutions 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 82 commissioning the first Private sector nuclear power plant. Policy Statement 7.2 Government will promote nuclear energy programming that prioritises the aversion and mitigation of different potential health risks that the industry poses to workers and ordinary men, women, children and the environment. Objective Strategy Responsibility Timeframe To reduce the negative Developing and implementing environment, health and social Social and Gender Integration impacts of nuclear energy. Plans by nuclear companies/projects to address MNREM By 2030 inward looking and outward Nuclear companies 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 regional electricity trading Broad Policy Objectives (ii): To ensure 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 Objective Strategy Responsibility Timeframe 83 Enforcing a ban on importation, distribution and MNREM use of incandescent bulbs and MoJ 2019-2023 To save energy and reduce promoting energy saving MoITT Greenhouse Gas emissions. alternatives. Promoting energy saving electrical and biomass-fuelled MNREM 2019-2023 devices. MNREM MoJ Promulgating regulations and standards for building designs NCIC December 2019 and energy efficient devices. 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 84 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 energy NCIC efficiency in buildings (a limit can be set 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 2019-2023 NCIC natural lighting, conditioning 85 (cooling/ heating). Policy Statement 8.2: Government will encourage electricity utility companies to implement Demand Side Management programmes. Objective Strategy Responsibility Timeframe Conducting public information MNREM campaigns to raise awareness 2019-2023 among consumers. Utility Companies Installing energy efficient measures in electricity connected households to help MNREM 2019-2023 consumers reduce their bills, Utility Companies To ensure efficiency in their but also to reduce stress on service delivery to customers overburdened utility systems. Installing prepayment meters and implementing tariffs that will reduce non-payment MNREM 2019-2023 problems and encourage Utility Companies energy-efficient behaviour by consumers. Policy Statement 8.3: Government will encourage Civil Society Organisations and Private Sector players to promote Demand Side Management. Objective Strategy Responsibility Timeframe 86 Structuring and implementing MNREM 2019-2023 Energy Efficient initiatives. CSOs Developing DSM awareness MNREM To ensure users of electricity materials. CSOs 2019-2023 and biomass are aware of the benefits and disadvantages of Electricity Suppliers the various 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. Objective Strategy Responsibility Timeframe To develop information Developing and implementing MNREM December 2019 for developing packages regarding affordable, a public outreach strategy on DoE the strategy modern and sustainable energy sustainable energy products products that suit and reach targeting importers, retailers CSOs 2020-2023for implementing different audiences. and low-income consumers. the strategy Utility Companies 87

ANNEX 4: MONITORING AND EVALUATION 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 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 1 updated IRP - potential identified and Resource Plan document sources of documented. (IRP) power Enabling environment An IPP 1 IPP framework Approved generation and for private sector framework reviewed after five 1 Reviewed IPP - expedite investment in power reviewed 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 - 88 Social Impact ESIA reports above projects by ESIA reports reports 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 Gender sensitive approved and Sediment Approved RAPs - projects by 2019 Resettlement Action RAPs Management Plans and/or fair Nov. 2014) compensation Number of 100% timely packages developed project resettlement and/or Project reports - - affected disbursement of M&E reports persons fairly compensation 89 compensated, disaggregated by sex 3 PPAs by 2019: Executed PPAs Power Purchase Number of Kam’mwamba; 0 - Agreements executed PPAs executed Northern Coal; 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 Number of  Lilongwe at & Chizumulu) reports New diesel power Diesel PPs and Kanengo - plants commissioned MW of (2x10MW) capacity added  Mzuzu (6MW)  BT 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, 90 (309MW). MW of  Kholombidzo, generation (213MW); capacity added  Songwe, (150MW);  Mbongozi, (41MW);  Tedzani (18MW)  Chizuma (50MW);  Chasombo and (50MW); 91 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 92 (20MW)  0MW  Illovo Nchalo (20MW)  Biogas(0,75 MW)  Agricultural wastes(10 MW) 93 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: 0 and benefit  ZAM-MAL from - from regional Lundazi 0 power trading (30MW)  MOZ-MAL from Matambo (50MW) Songwe Power 0 Project progress - Station operational reports 94 by 2023, with 150MW of capacity 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 1 - compensation addressing resettlement packages developed gender 95 and implemented dynamics and concerns relating to 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 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 Outcome: An Energy sector that promotes and supplies sustainable energy services for driving the country’s economic growth Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 96 1.2.1 To All candidate An updated Approved ensure reliable transmission projects Integrated updated IRP 1 1 - and efficient identified and Resource Plan document power documented (IRP) transportation 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 Cct-km of 3 transmission lines, 2395km MCC Compact lines constructed and transmission total circuit length progress reports operational line added 370km by 2018:  400kV Phombeya – - New Nkula – Nkhoma (228km)  132kV 97 Chintheche – Luwinga – Bwengu (122km)  132 double cct 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) 745.5MVA  Bunda Turn Off 132/66kV (50 MVA) 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) 98  Nkhotakota 132/33/11kV (30MVA)  Golomoti 132/33kV (30MVA)  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 Cct-km of lines 3 lines totaling 0 MCC Compact - upgraded upgraded 30.5km upgraded progress reports (Lilongwe 66kV Ring):  Kanengo – Area 48 66kV (6.7km) 99  Area 48 – Lilongwe A 66kV (13.2km)  Kanengo – Barracks 66kV (10.6km) Existing substations Number of grid 5 substations by 0 ESCOM reports - 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 Cct-km of To be indicated once 0 Project progress - and substations to 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 - 100 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 generation companies. 1.2.3 To Social and Gender No of SGIPs or I SGIP for ESCOM, 1 Approved SGIP - maximize Integration Plans (or equivalent reviewed at least or equivalent positive equivalent) to address every two years SGIP progress impacts of social and gender reports transmission issues across all 1 SGIP for each projects and 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 developed approved for substations)- i.e. for MCC- each project 1 ESIA report for funded T & D each commissioned lines, Nov. 101 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, 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 102 Number of 100% PAPs satisfied - Project/ - PAPs fairly with compensation Compensation compensated, reports disaggregated by sex PRIORITY AREA 1.3: ELECTRICITY DISTRIBUTION 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 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. Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 1.3.1 To New primary Cct-km of new Northern Region, by Project progress - ensure that distribution lines and lines and 2018: and electricity is cables constructed cables  29.2km of 33kV commissioning available to all and installed (MCC commissioned OHL reports customers funding) at 33kV and  0.12km of 33kV 12,260km while 11kV UGC preventing and  0.78km of 11kV mitigating UGC negative social Central Region, by 2018: 103 impacts of  35.45km of distribution 33kV OHL projects 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 Compact (35MVA) by 2018: reports within the  1x 33/11kV in Compact Northern Region duration. i.e. by (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 104 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 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 105 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 - PAPs fairly resettlement/disburs compensated, ement of disaggregated compensation by sex Number of 100% PAPs satisfied 0 Project/ - PAPs fairly with compensation Compensation 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 106 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 Whiteheads, Limbe A, Limbe B, Thyolo A, Thyolo B. Zomba, Maldeco) 1.3.3 To Duty and VAT on % duty and 100% of appliances 0% MRA reports - promote use of domestic electric VAT-free duty and VAT free Energy survey electricity in cooking and water domestic by June 2018 reports households as heating appliances electric a substitute for removed cooking and biomass and water heating other fossil appliances 107 fuels in homes Lifeline tariffs Percentage of 100% 0% MERA and - enabling low income utility Utility reports households 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 document Capacity ensure expedient customer policies 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 increase in under a special procuring by 2019 Stores and access to arrangement with transformers 95,000 of applicants construction electricity distribution licensees and other for new connections records; in place and materials, by 2019 Energy survey implemented disaggregated reports by head of household where 108 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 adopted and Percentage of 15% by 2021 0 Procurement and Capacity implemented construction construction Development works reports of contractors outsourced 109 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 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 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 Outcome: An Energy sector that promotes and results in a high standard of living for all men and women in Malawi. Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 1.4.1 To Rural Electrification Number of 1 Act by 2019 1 Gazette - improve the legislation reviewed Acts reviewed Rural management Electrification governance for Act Rural 110 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 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 increasing the grid electricity, reports Scaling up of population’s disaggregated Rural Access access to 111 electricity. by to Electricity in 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 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 - ensure that Integration Plans to SGIPs or Electrification or equivalent 112 rural address social and equivalent Agency and SGIP electrification gender issues across MAREP implementation programmes rural electrification respectively), monitoring are promoting functions developed reviewed at least reports the equal and implemented. every two years 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. 113 Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 1.5.1 To make Renewable Energy Number of 1 Act by end 2019 0 Gazette - the Renewable legislation enacted Acts 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 114 affordable and wind, biomass co- developed showing up of 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 115 by target audience 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 116 by location and level of participation by women and men Number of 15 mini/micro-grids 7 Project progress - community by 2021 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 117 for mini-grid concessions 2019 concessions in place. established Number of 6 by 2021 0 Procurement - mini-grid documents 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 and 118 men and their subgroups made operational. Number of 4 by 2021 0 Capacity - training Building Plan institutions implementation implementing reports RET courses in accordance with 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 119 Building Plan. Percentage of 75% by 2021 Subsector reports RE consumers Energy surveys satisfied with RE products 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 professional, and and people entrepreneurs with introduced disabilities in renewable energy, disaggregated 120 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 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 - 121 trained RET reports and entrepreneurs, energy survey disaggregated reports by sex, institution, technology type and training type Number of 4 per year from 2019 1 Training data - male and 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 122 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 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 123 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 priorities, disaggregated by geographical location PRIORITY AREA 1.6: DEFINITION AND MEASUREMENT OF ACCESS TO ELECTRICITY 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 Outcome: Access to clean, sustainable and affordable energy for all people Objectives Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 1.6.1 To Guidelines for Number of 1 guideline 0 Gazette - ensure that measuring access to guideline document by June 124 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 % of 80.0% by 9% Annual NSO Special grid electricity monitored population in 2035, disaggregated reports strategies in generation and using the GTF format each tier of the by GTF tiers order to meet PSPs). GTF  35% Tiers 4 & 5 the targets as  45% %Tiers 1,2 outlined in this &3 policy are implemented. PRIORITY AREA 2: BIOMASS Broad Policy Objective: To ensure 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/ indicator verification Risks 2.1 To reduce Development of Number of 3 by 2019, 2 Subsector reports Continued consumption feasible business effective 10% by 2021 government of firewood models for modern business 15% by 2023 and donor and charcoal technologies for models being support on the and reduce biomass (e.g. implemented, promotion of carbon improved cook disaggregated improved/effici 125 emissions stoves, charcoal by type of ent biomass 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 promoted. incentives and assisting 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 126 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 markets through trade fairs and other marketing opportunities, disaggregated by sex/sex composition, location and type of technology. Customs duty and % of 100% by 2021 0 List of approved Assuming the 127 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 commercial trees for legal charcoal 75% by 2023 Energy survey legislation and 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 2019 0 Approved - increase biomass technologies Energy 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 128 biomass using Biomass up to 2023 briquettes. Energy Technologies Training Strategy, 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 make improved cook stoves using locally available materials, disaggregated by location and project 129 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 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 130 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 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) 131 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 are using sold as commercial cook stove energy products on the manufacturers efficient cook market promulgated. complying stoves of high with Standards standard Percentage of By 2020, not less 0 Recruitment data - male and than 40% and not female cook more than 60% of 132 stove either sex enforcement officers recruited 2.7 To ensure Increased linkages Number of 15 by 2019 0 Sector reports - communities between the energy CSOs/sectors 50 by 2023 Energy survey move away sector and economic promoting reports from empowerment alternative unsustainable initiatives businesses for charcoal implemented by other male and production in sectors in charcoal female order to save making areas charcoal trees merchants, disaggregated by business type and sex of beneficiaries Number of 200 by 2023 1,000 Energy survey - male and reports female charcoal merchants who have abandoned 133 charcoal for other businesses PRIORITY AREA 3: PETROLEUM FUELS (PETROL, DIESEL, PARAFFIN) Broad Policy Objective: To ensure adequate production and supply of petroleum and biofuels at affordable prices 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 of days Number of NOCMA: 60 days’ 30 days Monthly stock - security of fuel supply held at all days of fuel supply from 2019 to reports liquid fuel 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 conveyance methods, disaggregated such as pipelines and by technology water barges Number of 1 ESIA for each 0 Approved ESIA - 134 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 affected compensation persons fairly 100% PAPs satisfied 0 Project/ - 135 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 In land dry ports Number of 3 by 2019 0 Project progress - established and functional in- reports operational. land dry ports established and operational 136 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 137 sex of business operator where applicable). Percentage of At least 40% No data 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, data not Sub-sector - promote mentorship and youth and beginning 2019 available 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 data not Sub-sector - groups in the inclusion strategies OMCs with end 2019 available reports 138 oil market for increasing equal operational opportunities in social and 75% by 2021 Company 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 - 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 % duty and 100% of appliances 0 - Duty and VAT on MRA reports increase the VAT-free duty and VAT free improved and safe Energy survey uptake of improved and by 2021 paraffin stoves reports improved safe paraffin removed 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 139 cooking and heating consumers technologies aware of conducted improved paraffin cooking and heating technologies, disaggregated by locality and sex. PRIORITY AREA 4: BIO-ETHANOL AND OTHER BIOFUELS Broad Policy Objective: To ensure adequate production and supply of petroleum and biofuels at affordable prices Outcome: An Energy sector that promotes and supplies modern and sustainable energy services for driving the country’s economic growth Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 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 140 ethanol and bio-diesel benefiting assessed yearly reports raw materials from the established incentives Favourable pricing Average price 1 0 MERA Reports, - mechanism for the of feedstock Subsector bio-fuels raw for biofuels Reports materials that protects production farmers and 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 141 and implemented Number of 1 RAP for each 2 Approved RAPs - Gender project involving Project M&E sensitive resettlement reports Resettlement Action Plans and/or fair compensation packages implemented Percentage of 100% timely 0 Project reports - 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 142 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 - 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 reports for Science and forums with Technology and NCST and academic and research research institutions institutions per on bio-fuel mixtures year and their usage in 143 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 perspectives Number of 2 2 R&D reports; - R&D Subsector reports initiatives undertaken per year 4.3 To Biofuels training Number of 1 by December 2019 0 Approved - increase the plan/strategy to plans/strategies training plan pool of enhance the skills of Number of 4 by 2019; 2 Tertiary / - Malawian men both women and men vocational and 10 by 2023 vocational and women in biofuels tertiary institution data that are technologies and to institutions Energy survey involved in increase the offering reports and participation of biofuel knowledgeabl skilled women, industry e about people with disability related biofuels and youth in the trainings from 144 technologies biofuels industry both economic and the developed and social biofuels development industry perspectives Number of 40 by 2019; 0 Academic - women 100 by 2023 institution data enrolled and Energy survey graduating in reports biofuels courses Number of 20 by 2019; 10 Recruitment data - women 100 by 2023 Energy survey employed in reports the biofuels 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 145 participation of women people with disabilities and youth, disaggregated by type of institution or project and 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 146 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 use of vehicles 10,000 by 2023 fossil fuels in running on motor vehicles 100% ethanol Awareness Number of 30 per year, starting 7 per year Subsector reports - campaigns to campaigns in 2019 Transport reports promote uptake of promoting new technologies uptake of new 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 use of diesel implemented. diesel fossil fuels in Number of 10 per year, starting 2 per year Subsector reports - motor vehicles campaigns in 2019 Transport reports promoting uptake of new technologies PRIORITY AREA 5: LIQUEFIED PETROLEUM GAS, BIOGAS AND NATURAL GAS 147 Broad Policy Objective: To ensure availability of LPG, biogas and natural gas in sufficient quantities at affordable prices for industrial and domestic use Outcome: An Energy sector that promotes and result in a high standard of living for all men and women in Malawi Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 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 quantities at implemented. and natural gas affordable prices for Tax and fiscal Percentage of 100% compliance by 0 List of incentives - industrial and incentives for large companies MRA by June 2019 Energy survey domestic scale LPG, biogas benefiting reports purposes and natural gas from tax and Subsector reports investments other fiscal introduced and incentives for implemented supporting the initial stages of introducing and promoting LPG, biogas and natural gas 148 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 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 Percentage of 100% timely 0% Project reports - PAPs timely disbursement of resettled/ compensation 149 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 equivalent) to 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 infrastructure reports penetration of LPG, facilities for biogas and gas LPG and implemented. Natural Gas 150 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 biomass for cooking is high Number of 1,500,000 by 2021 100 Energy survey - users of LPG, reports biogas and natural gas, disaggregated by location, type of household head, type of industry/busine ss 151 Customs duty and Number of 200,000 by 2021, 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 Percentage of 100% compliance by 0 Subsector reports - companies MRA by end 2019 Energy survey benefiting reports from tax/fiscal 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 152 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 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 153 casualties. Raising awareness on Percentage of 50% by 2020, 0 Subsector - the safe use of LPG, households 100% by 2023 reports biogas and natural gas sensitized, disaggregated by household head and location. Number of 0 per year 0 Subsector reports - LPG/gas Energy survey related reports accidents, disaggregated 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 154 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 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 developed local women, Funds entrepreneurs 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 155 in the industry, disaggregated by technology type Number of 2000 by 2023 20 Subsector reports - skilled local Energy status women, men reports and the youth in LPG, biogas ad Natural Gas technologies employed in the industry, disaggregated by technology type Incentives to increase Number of 10 per year, 0 Subsector reports - the employment of scholarships/ commencing 2020 local women and the bursaries for youth in the industry promoting developed women’s and youth’s participation in the industry, disaggregated 156 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 transmission, 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, and harnesses clean technologies that eliminate or greatly reduce harmful emissions Outcome: An energy sector that is based on diversified energy sources Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 6.1 To ensure Exploration of 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 - 157 prices for both mined per year reports industrial and Local coal for Price of local Cheaper local coal data not - - domestic uses. industrial and coal compared from 2019, assessed available household use readily to imported yearly 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 Systematic program Number of 2 per year from 2019 0 Sector reports - line with set of inspection of coal periodic Occupational 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 158 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 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 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 - the coal Management Act and industry December 2019: 159 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 Minimum carbon Number of 1 per year, from 0 Audit reports - dioxide emitted periodic, safety 2019 Energy survey through coal health and reports production and environmental combustion audits on all coal processes. Number of 5 by 2035 0 Carbon report by - power plants EAD equipped with carbon capture technologies Percentage of 60% by 2020; 0 Periodic - industry 100% by 2035 Technical reports 160 players using Energy survey modern coal reports technologies 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 implementing monitoring – reducing the capacity reports negative building plan, impacts of disaggregated coal mining, by type of sub- storage, industry and haulage and sex of trainees utilization on Human resources Percentage of By 2020, not less 10 Recruitment data - the recruited male and than 40% and not environment, female officers more than 60% of and on the recruited to either sex 161 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 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 Plans every two years marginalized groups within the coal industry 6.6 To ensure Bankable documents Number of 3 by 2020; 0 Feasibility study - security of and investors bankable 5 by 2023 reports electricity available following a documents for supply through streamlined and coal power 162 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 No. of 3 by 2023 1 Official ESIMPs - implemented comprehensive ESIMPs implemented Gender sensitive No. of 1 comprehensive 0 RAPs - Resettlement Action Resettlement RAP for each new Financial Plans and/or fair Action Plans project payment records compensation and/or packages approved compensation and implemented mechanisms implemented. Percentage of 100% timely 0 Compensation - project resettlement and/or data affected people compensated timely resettled 163 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 coal adopted for technologies household, 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 and combustion formulated and safety of coal technologies implemented handlers and supported. users Application of clean Number of 3 by 2023 0 Documentation - coal technologies, clean coal on applied 164 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% No data 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 by sex, age, 165 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 regional electricity trading Outcome: An energy sector that is based on diversified energy sources Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 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 Program 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/ 167 disaggregated by sex satisfied with Compensation 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 coal companies each implementation/ environment, companies/projects s developing and company/project, monitoring health and to addressing inward implementing reviewed at least reports social impacts and outward looking Social and every two years of nuclear social and gender Gender energy issues affecting the Inclusion Plans nuclear energy developed and 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 industrialization, 168 rural transformation, sustainable economic development and wealth creation, as well as regional electricity trading Broad Policy Objective (ii): To ensure biomass is sustainably used and carbon emissions are reduced through the use of energy efficient technologies Outcome: A well developed and efficiently managed energy sector Objective Output Performance Target Baseline Source of Assumptions/ indicator verification Risks 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 169 campaigns to (up to 2020) reach users of energy consuming 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 % of imported 100% of all 0% MBS assessment - assessment facilities devices imported devices by reports established and assessed for 2019 and ongoing operational energy efficiency Duty and VAT % of devices 100% of all 0% MRA reports - waived on electrical imported duty imported devices by and solar water and VAT-free end 2019 and heaters 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 170 tariffs that encourage implementing energy efficient use energy of electricity efficient tariffs Regular energy audits Number of Once a year for each 1 Certified - conducted by energy audits public, industrial, Auditors’ reports certified auditors in conducted per and commercial public, industrial, and year building, commercial buildings commencing in 2019 promoted 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 thereafter their service awareness among awareness delivery to consumers conducted campaigns customers conducted, disaggregated by target group Energy efficient % of electricity 50% by 2020 298,109 Utility reports Customers will measures installed in connected 75% by 2023 sustain or 171 households to help households manage to consumers reduce with energy replace the their bills, as well as efficient efficient bulbs reduce stress on measures overburdened utility installed Govt will ban systems 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 will reduce non- installed at stock payment problems customers’ and encourage premises Customers will energy-efficient not tamper behaviour by with the meters consumers. Custom will adjust 172 consumption behavior accordingly No. 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; - 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 conducted and awareness thereafter raising campaigns conducted, disaggregated 173 by target group 8.4 To A public outreach Public 1 strategy 0 Approved - develop strategy on outreach Strategy 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 developed. products that implemented % of importers 70% by 2020 20% Energy status Public outreach suit and reach knowledgeable 100% by 2023 reports strategy on the different about and affordable, audiences. importing modern and affordable, sustainable modern and energy sustainable products are energy rolled out. products % of retailers 70% by 2020 20% Energy status Public outreach knowledgeable 100% by 2023 reports strategy on the about and affordable, selling modern and affordable, sustainable modern and energy 174 sustainable products are energy rolled out. products % of low 70% by 2020 No data Energy status - 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