THE REPUBLIC OF MALAWI MALAWI PRESENTATION AT THE COMESA RENEWABLE ENERGY GUIDELINES STAKEHOLDERS SENSITIZATION WORKSHOP LUSAKA - ZAMBIA 7 - 11 August 2017

Presentation Outline Country Basic Facts Key Energy Indicators Installed Power Generation Planned initiatives Power Plants Under Construction Planned power Generation Plants Planned Interconnectors Key Policy and Regulatory Issues in the Energy Sector

MALAWI BASIC FACTS A land locked country with an area of 119 140 km2 and a population of 17 million 80% of the population live in rural areas Located in the Southern Eastern Africa

Installed Power Generation and Usage Variable Indicator 1 Indicator 2 Indicator 3 Installed Generation 365MW  350MW Hydro  15MW Diesel % of population with electricity Access 10% connected to grid Less than 1% inclusive of off-grid renewable   Electricity Tariff Residential MK55 (USc 7.5) Commercial MK72 (USc 9.8) Industrial MK78 (USc 10.7) Electricity Losses Transmission 5% Distribution 13% 6% Electricity Trade -  -

Planned initiatives Name of Power Plant (including off-grid renewable energy) Technology Type Capacity Cost Expected Year of Completion 4 Sites Solar Power PV 70MW - 2018/ 2019 Lilongwe Diesel Diesel 10MW  -  2018 Blantyre Diesel 20MW

Power Plants Under Construction Name of Power Plant (including off-grid renewable energy) Technology Type Capacity Cost Expected Year of Completion  Mzuzu Diesel  Diesel  6MW  2.7MUSD  2017

Planned power Generation Plants Name of Power Plant (including off-grid renewable energy) Technology Type Capacity Estimated Cost MUSD Status of Feasibility Study Tedzani IV Hydro  18MW  - Contractor Mobilization Kammwamba Coal Fired 300MW 600 Done Mpatamanga 350MW 522 Kholombidzo 250MW 511 FUFU 240MW 700

Planned power Generation Plants Name of Power Plant (including off-grid renewable energy) Technology Type Capacity Estimated Cost MUSD Status of Feasibility Study Kapichira III Hydro 100MW 139 Underway Halmiton Falls 123 Lower Songwe 180MW To be shared between MW and TZ  261 Done

Interconnectors Under Construction NONE

Planned Interconnectors Name of Interconnector Rated Capacity Cost Expected Year of Completion Status of Feasibility Mozambique - Malawi  400kV 1000MVA  -  2021  Under Feasibility Zambia - Malawi  2022 Tanzania - Malawi  2032

Key Policy and Regulatory Issues in the Energy Sector The Energy sector in Malawi is directed by the National Energy Policy of 2003. National Energy Policy (2003) Outlines plans on how the Energy Sector is to contribute to the national goals of poverty reduction industrialization and economic growth The Policy has outlived its life span and is currently under review.

Key Policy and Regulatory Issues in the Energy Sector The National Energy Policy, being an overarching policy in the Malawi Energy sector, has some instruments that create an enabling legal environment for its implementation. These instruments include the following: Rural Electrification Act (2004) Liquid fuels and gases Act (2004) Energy Regulation Act (2004) Electricity Act (2004)

Key Policy and Regulatory Issues in the Energy Sector Malawi Energy Regulatory Authority (MERA) is the Energy Sector Wide Regulator. MERA has developed a number of regulatory instruments including Standard PPA Feed In Tariff and Grid Code Market rules for the Malawi electricity market IPP Framework

Key Policy and Regulatory Issues in the Energy Sector The Malawi power sector market has been liberalized to allow private participation The Power Utility (ESCOM) has been unbundled by carving out the Generation function into a separate Company The new ESCOM is adopting the Single Buyer Model New IPPs to enter the power generation business First PPA yet to be signed

Thank You for your attention End of Presentation Thank You for your attention