POLICY BRIEF - THE SCINNOVENT CENTre
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POLICY BRIEF NO.15/2020 TACKLING FOREST COVER LOSS IN MALAWI BY SWITCHING TO BIOGAS Malawi University of Science and Technoloogy and Green Impact Technologies POLICY RECOMMENDATIONS refilling easier for consumers. 1. The Government of Malawi should 3. Government, private sector and EXECUTIVE SUMMARY consider reviewing tax regimes on NGOs should consider coordinated importation and sales of biogas market activation and awareness It is estimated that 96% of Malawians rely on biomass (firewood and components to stimulate its uptake campaigns aimed at dispelling charcoal) for cooking, thereby Despite the recent review of taxes negative perceptions of safety and increasingly driving depletion of forest on renewable energy products by cost of biogas cover across the country, especially in communities that are close to main government, some components There are unfounded fears that urban centers. Integrated Household used in developing biogas systems gas is unsafe and that it is fuel for Survey (IHS)4 figures show that still attract taxes. To make Biogas the wealthy. Market activation and increasing population has added competitive against charcoal, firewood awareness campaigns on the safety, approximately 4.8 million more people as users of firewood and charcoal for and electricity this can only be efficiency and affordability of gas for cooking. achieved if there is progressive laws cooking could have a positive impact and a conducive environment to on driving its uptake as an alternative Electricity access remains at 11% meaning that majority are not increase its uptake by new developers, cooking fuel. connected to the grid and rely on users and make it a first choice fuel charcoal for cooking and heating. This lucrative charcoal and fuelwood for those using it as back-up. This TESTIMONIALS market drives deforestation. In could be achieved if import duty and “When I heard that MUST and GIT are addition to erratic supply, increasing value added taxes are waived on developing a biogas plant that will make electricity tariffs have meant that more all equipment to incentivise private me save time spent collecting firewood households are turning to biomass as their fuel of choice as it is perceived sector investment in the Biogas and make savings in procuring charcoal I to be cheaper and readily available on value chain and reduce prices for was happy. Since then, I have been keenly the market. looking forward to use gas for cooking.” consumers. Despite reported high adoption of Nancy Phiri, entrepreneur - she owns a alternative cooking fuels such as 2. Private sector players in the biogas restaurant at Tsangano Market. biogas in most sub-Saharan African value chain should introduce countries, uptake in Malawi has been stagnant. A study conducted by Malawi incentives that could reduce barriers “Biogas is the only alternative cooking University of Science and Technology to entry and make biogas, reliable fuel that as a department we are keen in partnership with Green Impact and affordable for most consumers to promote to replace charcoal, which Technologies revealed Tsangano Market has high potential for biogas The study established that market is leading to rampant deforestation generation where a 150m3 digester barriers such as high initial costs for in Malawi.” Mr Joseph Kalowekamo, could be developed. new users are contributing to low Assistant Director, Department of Energy uptake of the gas as a cooking fuel. Affairs Exploring innovative credit facilities, pay as you go models and smaller “As a regulator we are aware of the gas cylinders are some initiatives challenges facing biogas uptake in that would positively drive uptake. Malawi, hence we are in the process of Furthermore, there is need for developing a regulatory framework that investment in increasing the supply will guide, and promote the development and distribution network for biogas of biogas systems in Malawi. Malawi systems being developed to make 1
Energy Regulatory Authority (MERA) Tsangano Market was found to be a partners and private sector to put has also lined up plenty of activities to busy daily market, with a number of in place necessary strategies to create awareness and address issues products on sale and too much waste promote the benefits of biogas of safety that may hinder biogas being generated with cabbage, Irish as an efficient alternative cooking adoption in Malawi.” Mrs Alinafe potatoes and green beans recording fuel and drive uptake, especially in Mkaveya, Director of Fuels, MERA massive production daily. urban and peri urban areas. 3. Biogas and associated equipment “As an entrepreneur, I see that biogas The Market for biogas in Malawi has such as gas cylinders were could be one of the solutions to energy potential to grow subjected to import and value problems in Malawi. I am more than The study established great potential added taxes which made it more willing to scale up my business to for biogas at Tsangano and potential expensive option for consumers. reach rural areas if there could be market growth in Malawi especially in Revising the tax regimes by provision of incentives as the cost of the urban and peri-urban areas, where government in the recent budget operation is high if we are to scale to electricity supply has been erratic for will positively impact willingness rural communities.” Admore Chiumia, several years. Coincidentally, urban to pay for the gas among Managing Director, Green Impact households are the main market for consumers and consequently Technologies. charcoal and firewood. The study help in weaning off charcoal and found that weaning off demand for firewood users, contributing to “Adoption of biogas technology is like charcoal and firewood in these areas conservation of forests. killing two birds with a single stone. would be an effective strategy in The technology is a solution to waste restoration of damaged forest areas. as well as energy challenges currently The main challenge is making biogas facing Malawi. All stakeholders can be readily available and cost competitive assured that for every single Kwacha to charcoal and firewood. It was invested in the biogas technology further established that affordability multiple challenges are solved.” Hope and availability could make biogas a Chamdimba, Staff Associate in Energy competitive alternative cooking fuel Resources at Malawi University of for rural households across Malawi. Science and Technology. CONCLUSION KEY FINDINGS 1. Malawi added more people to Energy Expenditures the population of those cooking Although the study found mostly using biomass fuels, further used source of heating energy is straining the already depleted charcoal, the study also discovered forest areas. IHS 2018 showed that electricity is the highest average that approximately, 4.8 more expenditure for business operations. users of firewood and charcoal Table 1 shows expenditures of were added to the population. different sources of energy at It is imperative that alternative Tsangano Turn-off Market. cooking fuels such as biogas are given more emphasis to drive Tsangano Market restaurants and the uptake and use, to wean off surrounding households report high reliance on charcoal and firewood. expenses on cooking. 2. Recent trends in electricity and fuel pricing show that biogas will The deployment of biogas systems will become a more cost competitive save women from unsafe cooking fuels cooking fuel in Malawi. Electricity that present health hazards to women tariffs were recently revised as they do most of the cooking. upwards and can only continue Women are exposed to harmful fumes to increase while prices of during cooking due to indoor air petrol and diesel have been pollution from charcoal and firewood fluctuating upwards driving up as they do most of the cooking. Table the cost of transporting charcoal 2 shows different potential types of and firewood to urban centers. wastes available for biogas production This is an opportunity for the at Tsangano Turnoff Market. Government, development SCINNOVENT CENTRE - POLICY BRIEF NO. 15 2
Figure 1: Expenditures of different sources of energy at Tsangano Turnoff Market Figure 2: Different Potential types of waste available as a feedstock for biogas generation at Tsangano Turnoff Market Figure 3: The Tsangano Biogas Project 3
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