Decentralised renewable energy for agriculture in Malawi

Investment Rating - The report emphasizes the need for an estimated investment of USD 183.85 million to integrate decentralized renewable energy (DRE) solutions across five priority agricultural value chains in Malawi [23]. Core Insights - The agricultural sector in Malawi faces significant energy challenges, with high demand for DRE solutions identified across various value chains, including olericulture, dairy, rice, legumes, and aquaculture [15][18]. - The study highlights that many smallholder farmers are willing to pay for DRE solutions if the economic benefits are clearly communicated, indicating a strong market potential for these technologies [20]. - DRE technologies can significantly enhance productivity, reduce post-harvest losses, and improve food security, thereby contributing to the economic growth of Malawi [22][24]. Summary by Sections Executive Summary - Access to reliable energy is a critical challenge in Malawi, particularly in rural areas, which constrains agricultural productivity [15]. - The government has prioritized renewable energy to diversify energy sources and drive rural electrification [15][16]. - The report presents findings from a feasibility study on deploying DRE technologies in selected agricultural value chains [17]. Country Context - Agriculture is vital to Malawi's economy, accounting for 23% of GDP and employing about 77% of the workforce [44]. - The reliance on rain-fed systems leads to food shortages, highlighting the potential for DRE solutions to enhance agricultural productivity [45][46]. Methodology - The assessment involved a multi-stakeholder process, including desktop reviews, stakeholder consultations, and data collection to identify opportunities for DRE integration [53][54][55]. Mapping Energy Needs - The report identifies specific energy demands at each stage of agricultural value chains, allowing for targeted DRE interventions [73]. - Key agricultural value chains analyzed include olericulture, dairy, rice, legumes, and aquaculture, each with distinct energy requirements and potential for DRE solutions [73]. Recommendations - A coordinated approach is recommended to boost DRE implementation, including tax incentives, subsidies, and the establishment of a "Green Finance Facility" [28][29]. - Development partners should support DRE demonstration projects and provide capacity-building for farmers [29][30]. - Financial institutions are encouraged to create tailored financial products for DRE solutions, facilitating access for smallholder farmers [30]. Investment and Scaling Potential - The report outlines the required investments for each value chain, with specific amounts allocated for DRE solutions targeting cold chain, processing, and irrigation [26]. - The potential market size for DRE in agriculture is projected to be around USD 185 million, indicating significant opportunities for investment [66].