MEGA, commercialising micro-hydro power in Malawi
MEGA is a social enterprise based on a model of operational sustainability. The mini-grid infrastructure is funded by international donor agencies, whilst revenue from electricity sales contributes to the cost of operation and maintenance. Customers are connected to the grid via pre-payment meters. Access to electricity has a long-term transformative effect on the social and economic well-being in the communities. MEGA is the first licensed Independent Power Producer in Malawi. It has both a Generation and Distribution License issued form the Malawi Energy Regulatory Authority.
Practical Action has developed micro-hydro across the world from Peru to Nepal. Installations such as these are normally managed by local communities, but in Mulanje MMCT and MuREA believe that a business arrangement will better ensure growth of further schemes and professional management and delivery of electricity to local communities. MEGA will require significant initial donor funding but the business plan developed by BIF shows that after 5 or 6 schemes are underway, the income generated from electricity tariffs and reinvested in the company will cover operating costs.
Electricity is an enabler of social and economic development. The four main impact areas are:
- Livelihoods and Economic development
Entrepreneurs are able to offer new and improved products and services to members of the community.
32 businesses had set up in Bondo and were using electricity within four months of MEGA providing supply. - Poverty and wellbeing
Modern lighting and mobile phone charging is the primary electricity use of most households.
Battery-powered torches, kerosene lamps and candles are the main lighting technologies for people without electricity in their homes. These are expensive, provide weak light, and give off harmful fumes. - Education
Light in the home extends child study hours and provides brighter light for reading.
Schools have lights in every classroom and electric fans to improve the learning environment during the hot months.
The schools offer evening classes for students to do homework and for adult learning classes. The head teacher of the primary school reported a material improvement in grades after just one term with electricity.
Teachers’ houses have electricity, giving them more time to do out-of-classroom work. - Health
Modern lighting in the home can have direct health benefits – displacing children studying us kerosene lamps and inhaling toxic fumes and damaging their eyesight.
The village health clinic is able to offer new and improved services. The clinic is fitted with lights and has a vaccine refrigerator and sterilizer. Prior to the electricity supply, expectant mothers brought candles to the clinic in case the birth was at night.