Bondo Community-led Micro Hydro Scheme

The vast majority (93.2%) of people in Malawi and around the project impact area have a Tier 0 electricity access rating (using the SE4All Global Tracking Framework) and 6.8% use small solar systems and are categorized as Tier One. The primary source in Bondo for lighting is the battery-powered torch (49%), 24% use paraffin, 7% use solar lamps, 5.5% use candles while 3.5 still use the traditional method of lighting grass

The project implements a micro-hydro mini-grid to supply electricity to off-grid villages which will increase access to sustainable electricity to catalyze social and economic development for people living in poverty. Access to electricity will enable enterprises to offer new and improved products and services, and increase incomes.  

The solution would improve the economic status and livelihoods of the local off-grid ultra-poor community through advancement of economic benefits in utilizing and optimizing opportunities and access to locally generated hydropower electricity. 

Many Malawians (99% of rural communities are denied economic opportunities with availability of electricity, business finance and due to technical and business training. Land pressure is high in Mulanje due to an intense population density residing in an area with little formal or informal employment, over-exploitation of natural resources and poor smallholder farming, causing environmental degradation and continuing impoverishment. The result is that Malawi has one of the highest urbanization rates in the region with people migrating to towns or cities to find employment and have access to modern infrastructure.

Increased access to electricity remains a challenge as only 1400 households are currently connected to our electricity and the demand is still high as there is potential to reach out to 10,000 households. The manual payment model does not augur well with the modern days and improving it to become automated through mobile money service would serve a great deal. Productive use of electricity which refers to the productive or economic electricity usage of entrepreneurs and businesses in agriculture, commerce, communication, education, health forms an area of focus for the available electricity. The project aims at increasing access by many households to around 5000, support the establishment of a modern payment model (an improvement to the current billing system where people would use their mobile phones to purchase electricity units). Currently it takes 3 days to get units upon purchasing. Powering enterprise development through productive use of electricity shall improve the economic status and livelihoods of the area through advancement of entrepreneurial benefits by optimizing access and opportunities from locally generated hydropower. The productive use is seen as the future basis for long-term sustainable economic development in the area and the driver to increased local rural electrification. 

Within 5 years of operation, social targets (@ 25% of commerce tariff) are that 5,000 households with a total population of 28,500 will have access to clean energy, increased savings on energy expenses by over 25%, better health with no smoke, children learning at night and generally improved household lifestyles. The project will also benefit 10 schools (8 primary and 2 secondary with 12, 650 students accessing better learning conditions through lighting, better equipment resources and night classes for adult literacy and the number of quality teachers will increase. 350 businesses based on electricity will be supported through the productive use component. 

The project initiated a prepaid billing system which at the moment is manually done and it takes 3 days for a customer to access units upon pressing a payment. Customers are responsible for own wiring of their houses and the project provides the grid connection and metering system. Considering that we are working in an ultra-poor off-grid community, there is always need to support with bringing electricity closer to their villages, hence the proposal for increased access. The project established a village electricity committee to act as a bridge for communication between the community and the project implementer. 

Community-led micro hydro electricity generation and supply can be a significant driver to economic growth and social progress in developing countries. For efficiency in service delivery, we seek to connect more customers (households), introduce a mobile money payment system and support productive use to promote income generating activities and local job creation through entrepreneurship training, business promotion and complimentary financing services. One important option for boosting rural electrification programmes despite limitations in public budgets is to increase local demand by promoting productive use.