ENERGY I

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The First Energy Project will assist the Government to formulate and implement a program to make the most economic use of Malawi's energy resources through : (i) a least cost power development plan; and (ii) a comprehensive strategy for the management of wood energy. The project's power component comprises : (i) increasing hydro generation capacity by 50 MW and the rehabilitation of existing generating units; (ii) strengthening the planning capability of the power utility; and (iii) undertaking studies on tariffs, and transmission distribution systems. The energy component comprises : (i) increasing on-going pilot charcoal production; (ii) encouraging increased tree planting by the private sector; (iii) encouraging fuelwood conservation; (iv) improvements in wood prices and in the system of protection management of indigenous forests; (v) strengthening the forest institutions; and (vi) undertaking an energy pricing study.