Energy

Malawi’s energy system is dominated by hydropower and traditional biomass. About 85–90% of energy comes from firewood and charcoal, while electricity is mostly hydro (~70%) with small contributions from solar and diesel. Total installed electricity capacity is ~584 MW, heavily renewable, but access remains low—~26% nationwide, with urban ~56% and rural ~4%. 

The national grid runs mainly north–south with limited rural reach. Upgrades in transmission lines and substations, plus the 120 MW Malawi–Mozambique interconnector, are improving reliability and enabling regional trade. Off-grid solar and mini-grids are expanding, providing electricity to remote areas.

Malawi’s energy policy focuses on universal access, clean energy, and private sector participation. Key policies include the National Energy Policy, Integrated Resource Plan (IRP), and National Electrification Strategy, all supporting renewable energy, mini-grids, and public-private partnerships. Incentives include IPP licenses, tax exemptions, and access to financing from multilateral partners.

The sector is increasingly attractive to investors. Opportunities exist in large-scale hydropower, solar PV, and battery storage, as well as mini-grid and off-grid solar projects in rural areas. 

Long-term PPAs, concessional financing, and donor-backed risk guarantees reduce investment risk. Clean cooking, biomass, and small-scale energy solutions also offer growth potential.

Malawi aims to triple electricity capacity and reach universal access by 2030, requiring ~$2.5 B in investment. Key upcoming projects include:

• Mpatamanga Hydro (358 MW, PPP)

• Salima Solar (60 MW)

• Planned coal, hydro, and battery storage projects

  Private investors can explore utility-scale renewables, off-grid electrification, regional interconnections, and clean energy solutions. With supportive policies and multilateral backing, the next 10–15 years offer strong growth potential in Malawi’s energy sector.