Improving End Use Energy Efficiency in the Transport Sector

This reform area intends to make the energy sector sufficiently robust and efficient to support the transport sector in achieving social-economic development of the country while using clean energy solutions. The global transportation sector accounts for a large and growing share of global greenhouse gas (GHG) emissions. Malawi energy demand in the transport sector is projected to reach 1,312 KTO by 2035 (NEP, 2018). Currently, the transport sector relies predominantly on fossil fuels whose production process is responsible for over 50% of worldwide greenhouse gas emissions, thus being extremely damaging to the environment.

Malawi being land-locked and a net importer of fuel, registers relatively high transport costs. High transport costs, particularly for road transportation of passengers and goods have been linked with high fuel prices in recent years. Ministry of Transport estimate that transport costs account for about 56% of the costs of imports and exports in Malawi. Rising fuel costs are also attributed to a number of factors from geopolitical conflicts and depreciation of the Malawi Kwacha to lack of uptake of modern transport technologies such as electric vehicles (EVs) among others.

There is an increasing demand and pressure to transition into using electric, flex, and hybrid vehicles. Apart from reducing the transportation costs, the country will significantly reduce its carbon emission footprint arising from the transport sector. As one of the global champions in promoting clean technologies, the reform will also help the government in meeting its objective stipulated in MW2063 which has been aligned to the SDGs whose overall objective is to create a better, inclusive and sustainable future for all. At the same, it will also support pillar 2 of agenda 2063 which focuses on industrialization. Against this background, the Ministry of Energy intends to pilot EVs and EV charging stations powered by solar to support the country’s drive towards industrialization.