Players in the renewable energy sector have called for an enabling environment to enable them reach 70 percent of the population with off-grid energy solutions.
Speaking on the sidelines of the off-grid energy market stakeholders’ workshop in Lilongwe last week, Renewable Energy Industries Association president Soustain Chigaru said with an enabling environment, they could reach the target.
He said: “For instance, we need the Malawi Energy Regulatory Authority to ensure that laws and regulations are followed and people are getting quality products and services.
“We also need accessible and affordable financing for entrepreneurs to be able to produce, procure, import, install and maintain these services at an affordable price. We need affordable capital and operating financing from lending institutions.”
Chigaru said off-grid energy is a unique solution which also creates a huge opportunity for entrepreneurs and stakeholders to provide renewable energy solutions.
Ministry of Energy chief energy officer Thokozani Malunga said in light of the problems Malawi is currently facing, some people still have low buying power and can also not be connected to national grid.
He said off-grid energy options is critical way for the country to meet its energy needs.
Said Malunga: “Your role as small and medium enterprises in the the off-grid market comes in because of sustainability.
“We have globally found out that it is important to blend efforts from the private and public sector in terms of financing these options so that on the private sector side, you bring in sustainability and on the public sector side we bring in affordability.”
He said to support the renewable energy industries, government has waived some of the taxes for solar equipment, renewable energy products and clean cooking technologies.
Said Malunga: “It is government’s hope that such efforts will trickle down to the final users in form of getting affordable off-grid energy solutions.
“Apart from that, Ministry of Energy through a World Bank-funded project, the Malawi Electricity Access Project, will soon run an off-grid market development fund, which will provide loans and result-based grants to solar off-grid companies that will be importing and retailing solar products.”
In an interview, National Bank of Malawi plc chief operations officer Esnat Kamudoni said they provide funding to both existing and start-up businesses, which would potentially help the business players in the renewable energy sector.
She said they provide both medium and long-term financing from K20 million to K375 million to various sectors of the economy, including energy.
The Malawi Government’s targets to reach 100 percent electricity coverage by 2030 and meet the United Nations Sustainable Development Goal seven to ensure affordable and clean energy for all.
The 2022 World Bank energy progress report indicates that electricity access in Malawi stands at 15 percent, comprising 11 percent grid connected and four percent off-grid access, against an estimated population of about 19 million people.
Source: The Nation_September 5, 2022_by Brenda Buliyani