Description

Malawi finished 34th and scored 0.92 on Climatescope 2014. Its highest ranking was 24th on Enabling Framework Parameter I, where its best scores were for its distributed energy regulatory framework and energy access policies.

Malawi has aging power infrastructure that suffers from reliability issues and requires new investment to meet demand. The country depends heavily on large hydro power, which accounts for 70% of generation; small hydro comprises most of the rest. Due to the unreliability of the grid, many businesses and industrial companies operating locally have opted to invest in diesel generators. Nonetheless, there has been activity in the off-grid sector due to Malawi’s favorable regulations and the government’s rural electrification fund, which amounted to $17m in 2013.

In September 2012, the government released its feed-in tariff (FiT) policy alongside a standardized power purchase agreement.

The FiT offered attractive tariffs for developers, but since its publication there has been little action on implementation.

The precarious financial situation confronting the national utility has contributed to this status.