Malawi’s first $20mn battery energy storage system

Malawi has taken a significant step towards transforming its energy access and reducing carbon emissions with the launch of a $20 million Battery Energy Storage System (BESS) project in Lilongwe. The initiative, spearheaded by the Global Energy Alliance for People and Planet (GEAPP) in collaboration with Malawi's government and ESCOM, aims to cut carbon emissions by 10,000 tons annually while also bolstering economic growth in the country. Speaking with CNBC Africa, Collen Zalengera, GEAPP's Country Delivery Lead for Malawi, highlighted the transformative role of BESS in Africa, particularly in Malawi. The 20-megawatt BESS project is designed to enhance the uptake of renewable energy sources, such as solar and wind, which are the most cost-effective electricity generation methods. By enabling Malawi to embrace renewables, the country can achieve affordable and sustainable power solutions. Zalengera emphasized that the Malawi project sets a scalable model for renewable energy integration across Africa. The collaboration and lessons learned from this initiative can pave the way for similar ventures in countries like Burkina Faso, Egypt, Ghana, and Kenya, where BESS consortia are already in place. With Africa requiring approximately 90 gigawatts of battery energy storage to unlock 400 gigawatts of renewables, the Malawi BESS project marks the beginning of a critical phase in the continent's energy transition. While discussing the challenges and opportunities associated with scaling the BESS project, Zalengera underscored the importance of building capacity within African institutions and utilities. The project is expected to nurture BESS experts and address capacity constraints, enabling a smoother integration of renewable energy technologies. With solar and wind being the most cost-effective energy sources in Africa, BESS offers a solution for managing the intermittency of these renewables, ensuring a reliable power supply. In terms of financial allocation, the $20 million investment covers various aspects of the BESS project, including design, procurement, installation, commissioning, operation, and maintenance in the initial years. The returns from the project are projected to include the uptake of 100 megawatts of renewable energy capacity, particularly solar power. Additionally, the BESS project is set to enhance electricity access for approximately 3 million people connected to the grid in Malawi, benefiting sectors such as industries, hospitals, water supply systems, ICT, data centers, and education. The implementation of the BESS project is expected to reduce system interruptions and reliance on high-cost alternative energy sources like diesel generators, thus fostering a more sustainable and cost-effective energy ecosystem in Malawi. With the positive impacts of the initiative set to ripple across various sectors, the country is poised to achieve significant strides in its energy transition and economic development.