Micro-grids in Malawi

Rural villages powered by solar

The Rural Energy Access through Social Enterprise and Decentralisation (EASE) project (funded by the Scottish Government) has enabled the installation of two solar micro-grids in the rural villages of Mthembanji and Kudembe in Dedza district, generating and distributing power for domestic and productive customers.

The systems are owned and managed by United Purpose (UP) through a social enterprise framework, with technical support and research activities provided by the University of Strathclyde (UoS). Detailed monitoring, evaluation and analysis of micro-grid performance is being carried out by UoS to inform the Malawian renewable energy and off-grid sector. The motivation for the project is to pilot and demonstrate a social enterprise ownership model for solar micro-grids in Malawi, with aims to use this project as a platform to set up further micro-grids at other identified sites across Malawi.

The micro-grids installed in Dedza offer reliable, renewable electricity to over 500 people through solar PV generation, low voltage distribution networks and smart meters. Performance monitoring through robust data collection is highly beneficial to multiple stakeholders in the micro-grid sector including system operators, donors, investors and policymakers seeking to increase the scale and impact of the sector. A key aim of EASE has been to capture operational data through remotely monitored smart meters, and social impact through surveys to inform positive interventions in the micro-grid ecosystem.

Shipping container inspection being carried out by a man in a dark boiler suit on a ladder

Recommendations

For policy makers and the regulator ecosystem

 

Telegraph pole standing in the middle of an African village

Recommendations

For micro-grid developers

Solar panels on a roof in an African village

Recommendations

For research themes

Benefits and challenges

Deployment and installation

As the first project of this type implemented in Malawi, the deployment of the microgrids faced significant challenges including supply chain and regulatory uncertainty, inflation, foreign capital constraints and Covid-19. The need to build local capacity for microgrid project development and implementation (e.g. site prospecting, stakeholder engagement, coordination of local and international organisations and new administrative processes) also contributed to long deployment timelines. Skilled local technicians and field staff with international remote support allowed for rapid commissioning during the installation phase. Learning from the first microgrid helped streamline the deployment of the second; however, the external constraints still caused significant delays.

A white container with solar panels on the roof

Technical experiences

Solar PV with Lithium-ion batteries offer low maintenance generation and storage, with effective remote monitoring assisting in troubleshooting. The systems have generally performed efficiently and effectively, providing reliable energy to communities and demonstrating resilient energy delivery in areas vulnerable to climate shocks. SteamaCo smart meters offer innovation in remote switching, digital payment platforms, and real-time data on consumption, revenue and system downtime; however, challenges arose with technical faults and unreliable mobile signal causing blackouts, necessitating frequent call outs for maintenance engineers. Overall, the micro-grids’ performance demonstrates that decentralised renewable energy infrastructure can offer increased resilience and security of supply over centralised generation, attributes expected to become increasingly desirable as Malawi faces more extreme weather events as a result of climate change.

A man in a blue hard hat points at solar panels on a roof

Economics

Capital and operational costs have been found to be high compared to Sub-Saharan African benchmarks, reflecting the nascent market of microgrids in Malawi. Revenue from electricity sales covers site based operational costs for maintenance contracts, data costs and site agents, but doesn’t cover wider organizational costs such as transport, replacement of main system components and management staff salaries. This is being addressed through stimulating demand with more connections and fostering daytime productive uses of energy, while looking to reduce OPEX costs through more efficient operation and maintenance strategies.

A person wearing a red jacket stands behind a Heras fence with grocery supplies

Social impact

Social impact data collected through surveys shows that energy access directly correlates with participants' expectations for happiness, opportunities, and economic development. Improvements are noted in availability and convenience of electricity supply, with environmental and health impacts experienced. Households are much more satisfied with their home lighting and can entertain, work, and study in their homes at night. Customers are generally satisfied with the quality of the service and the project; they consider it a good development, transforming community life and bringing an urban feel. However, some customers found the service was not conducive to pursuing their business venture ideas due to cost and reliability issues.

A mother and six children stand next to their new street light, smiling