Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
A distributed energy system that generates electricity at a centralised location from one or a combination of energy sources and distributes to end-customers typically through a low-voltage grid. mini-grids can be isolated or interconnected with the main grid.
Throughout the Country Briefs, a small IPP is defined as any grid-tied system below 10 MW that operates on a power purchase agreement (PPA), with the exclusive goal of feeding energy into the grid (no self-consumption).
SHS are off-grid solar products with peak capacities generally between 11 Wp and 350 Wp, powering lights and other small DC appliances such as fans and televisions. They include battery storage for electricity supply outside periods of generation. Pico solar systems are typically below 11 Wp, offering basic energy services such as lighting and cellphone charging.
Captive power systems are defined as being ‘behind the meter’ systems whose primary purpose is self consumption. These systems can be off-grid or grid-connected.
For the purposes of the Country Briefs, this includes clean cookstoves, improved cookstoves, biogas and liquefied petroleum gas (LPG) cooking systems.
Market Segments
Madagascar
Madagascar has a number of operational small IPP projects, but the industry is fragmented. The country has no set procurement programme and unsolicited bids are not uncommon. The industry is not governed by a specific IPP regulatory framework and as a result power purchase agreement tariffs are negotiated on a case by case basis. The government has however considered a formal feed-in-tariff programme.
All IPPs sell to the vertically integrated state-owned utility, JIRAMA. The utility has faced financial and operational challenges for some time, creating relatively high off-take risk for IPPs as a result. In 2019, the government took steps to address this issue, by joining the Regional Liquidity Support Facility. This means that IPPs in Madagascar can claim insurance that protects them against the possible risk of late payment by JIRAMA. The initiative targets small scale projects below 50 MW.
Operational small IPP projects include Amboasary/Anjozorobe 800 kW hydro (operated by AIDER), Andriba 80 kW hydro (operated by SARMAD), Ihosy 700 kW hydro (operated by ERMA), Maroantsetra 1.2 MW hydro (operated by HYDELEC) and Tsiazompaniry 5.4 MW hydro (operated by Henri Fraise et Fils).
Symbion Power is planning a 10 MW solar project in Mahajanga and four biomass plants producing up to 5 MW each at Nosy Boraha, Nosy Be, Antsiranana and Toamasina. Tryba Energy is planning two solar projects of 5 MW each in the Analamanga region and a 5 MW solar project in the Vakinankaratra region. Canopy Energy is developing a 5 MW plant on Nosy Be island.
All IPPs sell to the vertically integrated state-owned utility, JIRAMA. The utility has faced financial and operational challenges for some time, creating relatively high off-take risk for IPPs as a result. In 2019, the government took steps to address this issue, by joining the Regional Liquidity Support Facility. This means that IPPs in Madagascar can claim insurance that protects them against the possible risk of late payment by JIRAMA. The initiative targets small scale projects below 50 MW.
Operational small IPP projects include Amboasary/Anjozorobe 800 kW hydro (operated by AIDER), Andriba 80 kW hydro (operated by SARMAD), Ihosy 700 kW hydro (operated by ERMA), Maroantsetra 1.2 MW hydro (operated by HYDELEC) and Tsiazompaniry 5.4 MW hydro (operated by Henri Fraise et Fils).
Symbion Power is planning a 10 MW solar project in Mahajanga and four biomass plants producing up to 5 MW each at Nosy Boraha, Nosy Be, Antsiranana and Toamasina. Tryba Energy is planning two solar projects of 5 MW each in the Analamanga region and a 5 MW solar project in the Vakinankaratra region. Canopy Energy is developing a 5 MW plant on Nosy Be island.
Regulations
The Electricity Code of 2017 (Law 2017-020) liberalises the generation, transmission and distribution of electricity (albeit with varying degrees). It requires any operator of energy infrastructure to carry a licence. If a project's installed capacity falls below a certain threshold the project need only be declared, with no authorisation required (Hydro <500 kW, wind <250 kW, solar <150 kW). A declaration must be submitted to the Ministry of Energy.
Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5 MW
Authorisation contracts can be obtained from the ministry or ADER. Concession agreements are required for generation facilities of more than 5MW. Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE. The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law.
Law no. 2015-039 (2015) on Public-Private Partnerships specifies the legal and institutional framework for awarding and implementing Public Private Partnerships. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5 MW
Authorisation contracts can be obtained from the ministry or ADER. Concession agreements are required for generation facilities of more than 5MW. Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE. The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law.
Law no. 2015-039 (2015) on Public-Private Partnerships specifies the legal and institutional framework for awarding and implementing Public Private Partnerships. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
Madagascar has the largest installed capacity of mini-grids in Africa, a total of 175 MW. The country aims to achieve an electrification rate of 70% by 2030. La Nouvelle Politique de l'Énergie 2015-2030 (New Energy Policy) describes how mini-grids will make up 20% of all new connections. Of these, 50% will be hydro, 25% diesel, 20% from rice husk gasification and 5% solar PV.
The rural electrification agency, L’Agence de Développement de l'Électrification Rural (ADER) is developing regional electrification master plans to achieve this goal. As of May 2020, they have identified, categorised and put out to tender discrete lots of several villages each. Private sector bids are evaluated by the number of connections proposed, the type of generation and distribution infrastructure, the tariffs proposed, the subsidies requested and the financial standing of the developer.
The private mini-grid sector is already well established. ANKA Madagascar for example already has 12 operational mini-grids and at the time of writing are developing mini-grids in a further 50 villages in the south of the country. When complete these will provide electricity to 11,000 households. Notably, the company is female led and focuses on powering productive uses in a village. Other organisations active in the market include AIDER (Association des Ingénieurs pour le Développement des Énergies Renouvelables), Anakao, Autarsys, BETC Nanala, CASIELEC, ECOGEMA, Énergie Technologie, HIER (Hydro Ingénierie Etudes et Réalisations), JIRAFI, Nant Energy, SERMAD (Société d'électrification rurale de Madagascar), SM3E (Société pour la Maîtrise de l'eau, de l'énergie et de l'environnement) and TOKY Construction.
The rural electrification agency, L’Agence de Développement de l'Électrification Rural (ADER) is developing regional electrification master plans to achieve this goal. As of May 2020, they have identified, categorised and put out to tender discrete lots of several villages each. Private sector bids are evaluated by the number of connections proposed, the type of generation and distribution infrastructure, the tariffs proposed, the subsidies requested and the financial standing of the developer.
The private mini-grid sector is already well established. ANKA Madagascar for example already has 12 operational mini-grids and at the time of writing are developing mini-grids in a further 50 villages in the south of the country. When complete these will provide electricity to 11,000 households. Notably, the company is female led and focuses on powering productive uses in a village. Other organisations active in the market include AIDER (Association des Ingénieurs pour le Développement des Énergies Renouvelables), Anakao, Autarsys, BETC Nanala, CASIELEC, ECOGEMA, Énergie Technologie, HIER (Hydro Ingénierie Etudes et Réalisations), JIRAFI, Nant Energy, SERMAD (Société d'électrification rurale de Madagascar), SM3E (Société pour la Maîtrise de l'eau, de l'énergie et de l'environnement) and TOKY Construction.
Regulations
The Electricity Code of 2017 (Law 2017-020) liberalises the generation, transmission and distribution of electricity (albeit with varying degrees). It establishes the new National Sustainable Energy Fund, which finances mini-grids, amongst other rural electrification technologies. The terms and conditions of the fund are said to be announced in a decree, but this has not been published yet. It requires any operator of energy infrastructure to carry a licence. mini-grid operators need not only a generation licence, but also a distribution licence.
If a project's installed capacity falls below a certain threshold the project need only be declared, with no authorisation required (Hydro <500 kW, wind <250 kW, solar <150 kW). A declaration must be submitted to the Ministry of Energy. However, all distribution facilities require authorisation. Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5 MW
Authorisation contracts can be obtained from the ministry or ADER.
Concession agreements are required for all transmission facilities, distribution facilities of more than 5 MW and generation facilities of more than 5 MW.
Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law.
Law no. 2015-039 (2015) on Public-Private Partnerships specifies the legal and institutional framework for awarding and implementing Public Private Partnerships. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
If a project's installed capacity falls below a certain threshold the project need only be declared, with no authorisation required (Hydro <500 kW, wind <250 kW, solar <150 kW). A declaration must be submitted to the Ministry of Energy. However, all distribution facilities require authorisation. Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5 MW
Authorisation contracts can be obtained from the ministry or ADER.
Concession agreements are required for all transmission facilities, distribution facilities of more than 5 MW and generation facilities of more than 5 MW.
Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law.
Law no. 2015-039 (2015) on Public-Private Partnerships specifies the legal and institutional framework for awarding and implementing Public Private Partnerships. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
In 2019, 41,699 solar home systems and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global in Madagascar, down from 51,353 in 2018. Companies supplying products in Madagascar include Baobab+, Greenlight Planet, HERi Madagascar, Jiro-Ve, Mada Green Power, Majinco, Orange, Power Technology Madagascar, SQVision and WeConnex/Madagascar Nexus Company. Reports indicate that suppliers tend to focus on limited geographic scope, given the high cost of distribution across the entire island. Most operate around the Antananarivo region, with some providers clustered in the north and the south.
La Nouvelle Politique de l'Énergie (The New Energy Policy) (2015-2030) aims to achieve a 70% electrification rate by 2030. 10% of these connections will be made in the form of standalone solar systems. Of these standalone systems, half will be solar home systems and half pico-solar.
La Nouvelle Politique de l'Énergie (The New Energy Policy) (2015-2030) aims to achieve a 70% electrification rate by 2030. 10% of these connections will be made in the form of standalone solar systems. Of these standalone systems, half will be solar home systems and half pico-solar.
Regulations
The Electricity Code of 2017 (Law 2017-020) invites private participation to liberalise the generation, transmission and distribution of electricity (albeit with varying degrees). It establishes the new National Sustainable Energy Fund, which finances mini-grids, amongst other rural electrification technologies. It requires any operator of energy infrastructure to carry a licence.
The law requires that customers of solar systems below 10 kW to fill out an application form, available from ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
The law requires that customers of solar systems below 10 kW to fill out an application form, available from ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
Madagascar has a diversity of captive power plants, both by source and by size. The country has significant hydroelectric potential, specifically for small scale plants to provide local electricity supply. Yet despite initial identification of several potential sites, much of it remains untapped. The Sahanivotry hydroelectric power plant (15 MW), developed by Hydelec, is the first privately-owned hydropower plant in the country. It supplies electricity to a local cement factory and sells excess to the grid.
Solar power and biomass also offer opportunities for captive power generation. SEVA installed a 26kW rooftop solar system at a mission in Anatihazo, while SPS installed a 750 kW ground-mounted system at Alphonse Island Lodge. In addition, Phileol Vegetable Oil houses a 23kW biomass facility which uses process waste as feedstock. Other companies operational in the country include GreenYellow, Hydelec, Mada Green Power, Majinco, SEVA, Tanatech (part of Greengywatt) and Tryba Energy.
Solar power and biomass also offer opportunities for captive power generation. SEVA installed a 26kW rooftop solar system at a mission in Anatihazo, while SPS installed a 750 kW ground-mounted system at Alphonse Island Lodge. In addition, Phileol Vegetable Oil houses a 23kW biomass facility which uses process waste as feedstock. Other companies operational in the country include GreenYellow, Hydelec, Mada Green Power, Majinco, SEVA, Tanatech (part of Greengywatt) and Tryba Energy.
Regulations
The Electricity Code of 2017 (Law 2017-020) invites private participation into the generation, transmission and distribution of electricity (albeit with varying degrees). Article 8 requires any operator of energy infrastructure to carry a licence. If a project's installed capacity falls below a certain threshold the project need only be declared, with no authorisation required (Hydro <500 kW, wind <250 kW, solar <150 kW). Declaration must be submitted to the Ministry of Energy.
Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5MW
Authorisation contracts can be obtained from the ministry or ADER. Concession agreements are required for generation facilities of more than 5 MW. Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
Generation facilities that require authorisation include the following:
Hydro 500 kW < P < 5 MW
Wind 250 kW < P < 5 MW
Solar 150 kW < P < 5 MW
Biomass P < 5MW
Authorisation contracts can be obtained from the ministry or ADER. Concession agreements are required for generation facilities of more than 5 MW. Holders of concession, authorisation and declaration licences must submit the signed contracts (if applicable) to ARELEC/ORE.
The law replaces the old electricity law (nr. 98-032) of 1999. ORE published a useful comparison document that shows the changes from the old law to the new law. Decree Nr. 2015-930 on Classification and Management of Electronic and Electric Waste stipulates general guidelines in the disposal of electric and electronic waste.
Clean cookstoves and fuels have very low penetration in Madagascar with less than 5% of the population having access. The primary fuel used for cooking, particularly in rural areas, is wood at 82% of the population. Other fuels used include charcoal - 17.4% which is the main fuel used in urban areas, kerosene - 0.1% and liquid petroleum gas (LPG) - 0.3%.
Mada Compost, Prime Cookstoves, and Zahana develop, manufacture, and sell energy-efficient biomass cookstoves. Clean Cooking Madagascar (Green Development AS) and Safi International distribute bioethanol cookstoves, while Total, Galana, and Vito Gaz distribute LPG to households.
The national government hopes to increase clean cooking in the country and this is clearly described in the New Energy Policy (2015-2030) that aims to achieve 70% access to energy-efficient cookstoves by 2030. The policy also aims for 50% of wood to be sourced from legal and sustainable forest resources and 20% of charcoal to be "green" having been produced efficiently and from legal and sustainable forest resources. Law Nr 2013-13 (on the production and commercialisation of combustible ethanol) exempts alcohol tax on ethanol fuel production and import tax on imports of ethanol cookstoves and sets quality standards for ethanol stoves and fuels.
One example of ground-level government support is its partnership with Association pour le Développement de l'Énergie Solaire (Association for Development of Solar Energy) (ADES) to sell solar cookstoves at subsidised prices. By 2019, the partnership sold 170,000 cookstoves and created 400 jobs.
Mada Compost, Prime Cookstoves, and Zahana develop, manufacture, and sell energy-efficient biomass cookstoves. Clean Cooking Madagascar (Green Development AS) and Safi International distribute bioethanol cookstoves, while Total, Galana, and Vito Gaz distribute LPG to households.
The national government hopes to increase clean cooking in the country and this is clearly described in the New Energy Policy (2015-2030) that aims to achieve 70% access to energy-efficient cookstoves by 2030. The policy also aims for 50% of wood to be sourced from legal and sustainable forest resources and 20% of charcoal to be "green" having been produced efficiently and from legal and sustainable forest resources. Law Nr 2013-13 (on the production and commercialisation of combustible ethanol) exempts alcohol tax on ethanol fuel production and import tax on imports of ethanol cookstoves and sets quality standards for ethanol stoves and fuels.
One example of ground-level government support is its partnership with Association pour le Développement de l'Énergie Solaire (Association for Development of Solar Energy) (ADES) to sell solar cookstoves at subsidised prices. By 2019, the partnership sold 170,000 cookstoves and created 400 jobs.