POLICY BRIEF - THE SCINNOVENT CENTre

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POLICY BRIEF - THE SCINNOVENT CENTre
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
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POLICY BRIEF - THE SCINNOVENT CENTre
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

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POLICY BRIEF - THE SCINNOVENT CENTre
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

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