Ngwee Ngwee Ngwee Fund supports 5 off-grid solar companies

* The companies are Yellow Solar, Zuwa Energy Ltd, Green Impact Technologies, Vitalite Group Energy and StarTimes Media (MW) Ltd

* Offered US$6 million results-based financing (RBF) grant and a US$14 million debt facility

* To reach at least 200,000 new households with off-grid solar products in rural Malawi by June 2024

By Yamikani Yapuwa, MANA

Five off-grid solar companies have signed a US$20 million loan and grant under the Ngwee Ngwee Ngwee Fund aimed at driving the urgent provision of solar energy access to rural communities across the country.

The companies, which are Yellow Solar, Zuwa Energy Ltd, Green Impact Technologies, Vitalite Group Energy and StarTimes Media (MW) Ltd, have been offered US$6 million results-based financing (RBF) grant and a US$14 million debt facility to reach at least 200,000 new households with off-grid solar products in rural Malawi by June 2024.

Secretary for Energy, Engineer Alfonso Chikuni said at the grants signing ceremony on Thursday in Blantyre that the funding will offer working capital as well as grant window for end-user subsidies.

“There are two financing streams which are working capital loans for the companies to expand their operations and speed up the procurement, as well as RBF grant window for end-user subsidies to close the affordability gap of customers who cannot afford solar home systems at commercial prices,” Chikuni said.

He expressed confidence that the fund will be a game-changer for the off-grid solar market in Malawi, as it will help to bring affordable and reliable energy and create jobs and economic opportunities for many Malawians.

“Our National Energy Policy (2018), aligned with Sustainable Development Goal # 7, aspires to provide affordable, reliable, and modern energy to every citizen.

“Achieving this universal access to electricity by 2030 hinges on promoting off-grid solutions. However, limited access to finance and the affordability gap for rural households are significant obstacles,” he said.

Chief Executive Officer for Green Impact Technologies, Admore Chiumia said one of the challenges they have been facing is access to financing and the major barrier customers have faced is to afford the various system up-front.

Representative of Zuwa Energy Jones Mtaukira said the off-grid solar products will also help the country to do away with its reliance on kerosene as source of energy in rural areas, thereby reducing the forex burden government has been having.

Co-founder and director of Yellow Solar, Maya Khonje Stewart said the fund brings hope to rural areas, adding: “Children in these communities will experience a revolution in their education with access to clean electricity.

“They can now study in the evening, catch up on their homework and access education resources via radios,” Stewart said.

World Bank has financed the implementation of the Malawi Electricity Access Project (MEAP) whereas the Ministry of Energy is responsible for establishing and operating an off-grid market development fund or the Ngwee Ngwee Ngwee Fund.

Meanwhile, Renewable Energy Industries Association of Malawi (REIAMA) — which draws its membership from individuals and companies who are involved in the production, supply, importation, exportation, installation and servicing of renewable energy technologies in the country — is set to hold it annual conference on October 26-27.

REIAMA is thus appealing to the corporate world for partnership and sponsorship as they prepare for the all-important energy conference and taking cognizance that players in renewable energy act as enablers for businesses, Lilongwe-based creative agency, Queen Tenge Limited, has contributed K2.4 million.

Queen Tenge works with local artisans to promote sustainable locally made bags, clothing and artifacts — thus it resonates well with the promotion of renewable energy, both locally and internationally.

At the presentation of the sponsorship on Tuesday, the creative agency’s founder, Linda Zamaere said as an entrepreneur, she appreciates the benefits of the conference as one of the enablers of MW2063 national vision.

She said she, her company depends on renewable energy and as an enabler for business, saying the sponsorship will go a long way in promoting renewable energy.

She emphasised the timely interventions alternative energy solutions provide to small businesses to avoid losses due to halts in production as the national demand for energy grows by each passing year.

REIAMA was established in 1999 with the explicit aim of promoting renewable energy technologies in a sustainable manner to the satisfaction of consumers in Malawi.

United Nations take on renewable energy it that it is powering a safer future; its sources are all around us; it is cheaper; healthier; creates jobs and makes economic sense.

The UN maintains that “energy is at the heart of the climate challenge – and key to the solution. A large chunk of the greenhouse gases that blanket the Earth and trap the sun’s heat are generated through energy production, by burning fossil fuels to generate electricity and heat.

“Fossil fuels, such as coal, oil and gas, are by far the largest contributor to global climate change — accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions.

“The science is clear — to avoid the worst impacts of climate change, emissions need to be reduced by almost half by 2030 and reach net-zero by 2050. To achieve this, we need to end our reliance on fossil fuels and invest in alternative sources of energy that are clean, accessible, affordable, sustainable, and reliable.

“Renewable energy sources – which are available in abundance all around us, provided by the sun, wind, water, waste, and heat from the Earth – are replenished by nature and emit little to no greenhouse gases or pollutants into the air.

“Fossil fuels still account for more than 80% of global energy production but cleaner sources of energy are gaining ground as about 29% of electricity currently comes from renewable sources.

On renewable energy being cheaper, the UN says its products’ prices are dropping rapidly, saying the cost of electricity from solar power fell by 85% between 2010 and 2020 while costs of onshore and offshore wind energy fell by 56% and 48% respectively.

“Falling prices make renewable energy more attractive all around – including to low- and middle-income countries, where most of the additional demand for new electricity will come from.

“With falling costs, there is a real opportunity for much of the new power supply over the coming years to be provided by low-carbon sources.

“Cheap electricity from renewable sources could provide 65% of the world’s total electricity supply by 2030. It could decarbonize 90% of the power sector by 2050, massively cutting carbon emissions and helping to mitigate climate change.”

On it being healthier, the World Health Organization (WHO) reports that “about 99% of people in the world breathe air that exceeds air quality limits and threatens their health, and more than 13 million deaths around the world each year are due to avoidable environmental causes, including air pollution.

“The unhealthy levels of fine particulate matter and nitrogen dioxide originate mainly from the burning of fossil fuels. In 2018, air pollution from fossil fuels caused $2.9 trillion in health and economic costs — about $8 billion a day.

“Switching to clean sources of energy, such as wind and solar, thus helps address not only climate change but also air pollution and health.”

Thus the world, including Malawi through Renewable Energy Industries Association is accelerating the transition to clean energy as the pathway to a healthy, livable planet today and for generations to come.—Additional reporting by Duncan Mlanjira, Maravi Express