LocationsMinigrid Tariff Tool Training Strengthens Malawi's Capacity for Evidence-Based Energy Regulation
May 30, 2026
Mini-grids deliver more than electricity, they create opportunities for learning, productivity, and improved livelihoods in rural villages.
From 4 to 7 May 2026, a four-day training workshop was held in Lilongwe, Malawi, to help strengthen skills in mini-grid tariff planning and regulation. The workshop focused on the practical use of the AFUR Mini-Grid Tariff Tool and was delivered by the African Forum for Utility Regulators (AFUR) in partnership with the Malawi Energy Regulatory Authority (MERA) and other national energy stakeholders. The training was organised under the Africa Minigrids Program (AMP), with support from UNDP and funding from the governments of Denmark and Luxembourg. It forms part of a wider regional effort to expand the use of renewable energy solutions and improve electricity access across Africa.
Malawi has made important progress in expanding access to electricity, but many rural and remote communities still face challenges in connecting to the national grid. Extending the grid to these areas can be difficult and expensive because of long distances, low population density, and high infrastructure costs.
Mini-grids offer an effective alternative by providing reliable electricity to communities that are not yet connected to the main grid. They can help bring power to homes, businesses, schools, and health facilities more quickly and at a lower cost than traditional grid expansion in some locations.
However, the success of mini-grids depends on having fair and transparent pricing systems, clear regulations, and strong institutional capacity. Regulators, utilities, developers, and other stakeholders need the skills and tools to assess project costs, evaluate financial viability, and set tariffs that are affordable for customers while ensuring projects remain sustainable. This workshop was designed to strengthen those capabilities and support Malawi's efforts to expand access to clean, reliable, and affordable energy for all.
Participants representing Malawi Energy Regulatory Authority, the Ministry of Energy, ESCOM, UNDP, and private-sector developers at the workshop in Lilongwe.
The workshop brought together 36 participants from different parts of Malawi's energy sector, including MERA, the Ministry of Energy, ESCOM, the National AMP Project Unit, renewable energy companies, rural electrification organisations, and development partners. Bringing these groups together created an opportunity for shared learning, collaboration, and a common understanding of the challenges and opportunities involved in mini-grid development.
Over four days, participants took part in presentations, live demonstrations, practical exercises, group discussions, and real-world case studies. The training focused on helping participants understand how to design mini-grid tariffs that are fair for customers, financially sustainable for developers, and supportive of Malawi's goals for expanding electricity access and clean energy.
On the final day, participants worked in teams to develop mini-grid business cases. They created financial plans, tested different scenarios, assessed potential risks, and presented their recommendations on tariff structures. These activities allowed participants to apply what they had learned in a practical and interactive way.
Knowledge assessments completed before and after the workshop showed clear improvements in all key learning areas. These included:
- Understanding mini-grid systems and technical concepts
- Customer demand and energy use patterns
- Operations and maintenance costs
- Financial modelling and tariff design
- Use of the AFUR Mini-Grid Tariff Tool
Overall, participants' average knowledge score increased from 2.71 (showing a basic to moderate level of understanding) to 4.3 (showing a strong level of understanding). This represents an improvement of approximately 60%, demonstrating that the workshop successfully strengthened participants' knowledge, skills, and confidence in mini-grid planning and tariff development.
Access to electricity can transform lives, not just by lighting homes but by opening pathways to income generation, empowerment, and gender equity.
The training produced the biggest improvements in areas where participants initially had the least knowledge. These included financial modelling, understanding how tariffs are calculated, applying the Weighted Average Cost of Capital (WACC) in tariff design, conducting sensitivity and scenario analyses, calculating tariffs in a structured way, and assessing whether investments are financially viable. Skills related to using specialised tools showed the greatest improvement, increasing by 2.1 points. This progress was largely driven by practical modelling sessions and business case exercises. Overall, the training helped participants move beyond understanding individual technical concepts and develop the ability to combine technical, financial, and regulatory considerations when analysing mini-grid projects.
Participants gave very positive feedback about the workshop, describing it as relevant, practical, and well organised. Many highlighted the value of the hands-on, scenario-based exercises, noting that these activities helped them apply theoretical concepts to real-world mini-grid planning and tariff-setting challenges. Participants also expressed interest in more advanced training focused on Malawi's context, including local cost structures, Malawi-specific electricity demand patterns, comparisons between grid extension and mini-grid solutions, and approaches for setting tariffs across multiple projects.
The workshop also introduced participants to the AFUR Regulatory Tool using Malawi-based case studies. As a result, participants developed a draft mini-grid regulatory framework for Malawi. This is an important outcome because it demonstrates that the training contributed not only to individual learning, but also to improvements in institutional capacity and policy development.
The workshop supports the wider AMP Malawi programme, which focuses on mini-grid development, productive uses of energy, strengthening regulatory systems, and national electrification planning. Recommended next steps include formally integrating the AFUR Mini-Grid Tariff Tool into MERA's tariff review and project assessment processes, developing standard national guidelines for mini-grid tariffs and electrification planning that align with AMP and UNDP best practices, and providing continued technical support in areas such as WACC and regulatory finance, mini-grid valuation, and portfolio modelling.
If the progress made through this training continues, Malawi will be well positioned to improve the transparency, consistency, and credibility of mini-grid tariff regulation and rural electrification planning. This can help increase investor confidence, improve the financial viability of projects, and encourage greater private sector participation in decentralised energy development across the country. In turn, Malawi's efforts can also contribute to wider regional goals of harmonising mini-grid regulation and supporting decentralised energy planning across the SADC region.
Ongoing collaboration between MERA, the Ministry of Energy, ESCOM, AMP, UNDP, and other development partners will be essential to embedding these achievements within national systems and accelerating access to clean and reliable energy for underserved communities across Malawi.
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