A new World Bank approach paper has urged low and middle-income countries, including Malawi, to scale up energy efficiency as a fast and affordable solution to rising energy demand, economic pressures and energy insecurity.
The paper authored by Bretton Woods institution economists titled ‘Power more with less: Scaling up energy efficiency for growth and energy security’, highlights the massive global energy waste, with estimated economic loss at over $4.5 trillion annually.
Approach papers are produced by World Bank staff with external contributions. However, the findings, interpretations and conclusions expressed in the study do not necessarily reflect the views of the World Bank or its executive officers.
The paper indicates that most of the waste is due to inefficiencies in fossil fuel production, transmission and end-use.
The report warns that without intervention, energy demand in low-income countries, including Malawi, could rise by 30 percent over the next decade, mostly met by fossil fuels.
Reads the report in part: “These efforts are accompanied by policy and regulatory support, including establishing minimum energy performance standards in the residential, commercial and industrial sectors to help ensure these new connections are financially sustainable and affordable to households while ensuring more efficiency from the outset.”
The paper notes that countries such as Malawi have the most to gain from energy efficiency, given rising demand and limited fiscal space.
Energy efficiency defined as delivering the same or better service using less energy is framed as the lowest-cost way to meet growing demand, avoid new power plant construction and cut household energy costs.
Measures such as efficient lighting, cooling systems and better appliances could ease strain on national grids while creating new economic opportunities, according to the paper.
Malawi is among the countries taking action and as part of its National Energy Compact under the Mission 300 initiative, the Malawi Government is targeting both supply and demand inefficiencies.
On the supply side, Electricity Supply Corporation of Malawi is implementing a 34-point roadmap to reduce power losses, which currently account for nearly 23 percent of generated electricity.
These losses reportedly contributed to the utility’s K49.6 billion loss in the 2023/24 financial year, according to the Malawi Government Annual Economic Report 2025.
On the demand side, Malawi is preparing to introduce minimum energy performance standards to phase out inefficient appliances such as incandescent bulbs and outdated refrigerators.
In an interview yesterday, Malawi University of Business and Applied Sciences renewable energy specialist Kelvin Tembo said if well-implemented, electricity efficiency measures could help reduce blackouts, slow tariff increases and improve access without costly new infrastructure.
He said: “We really need to be pushing towards energy efficiency because the [financial] losses to using outmoded technology is huge.
“We need to accelerate this programme to set Malawi on the path to economic transformation.”
For a country where just over 15 percent of the population has electricity access, according to the National Statistical Office, the shift to “powering more with less” could prove crucial to achieving universal, affordable energy.
Ministry of Energy has projected that electricity generation capacity will reach 1 620 megawatts (MW) by 2030, way below the 5 000MW target to turn Malawi into a lower middle-income economy.
Malawi’s current total installed electricity capacity is at 554.24MW, with 101MW from solar power, according to the Ministry of Energy.
Electricity generation in Malawi is primarily from hydropower, with 90 percent generated along the Shire River.
