Renewable energy as a driver of rural development
Title: Promotion of rural electrification through renewable energies in Madagascar
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Water, Energy and Hydrocarbons (MEEH)
Overall term: 2015 to 2022
In Madagascar, only 15 per cent of the population has access to electricity. In rural regions, which are home to the majority of the population, this figure is a mere six per cent.
Most Malagasy households use fuelwood, kerosene lamps, candles, batteries, coal or diesel generators to meet their day-to-day energy needs. The restricted access to energy makes it difficult to operate basic social infrastructure, including schools, health centres and administrative offices, especially in rural regions.
Over the past few years, electricity consumption has increased steadily as a result of population growth and technological development, resulting in an imbalance between supply and demand.
The lack of access to electricity is impeding the country’s development. Improving the general investment climate is an essential step in making Madagascar’s electricity sector more attractive to investors.
The energy industry uses the improved institutional and financial conditions for investments in renewable energy taking into account the climate protection goals.
The project works with stakeholders such as the Ministry of Water, Energy and Hydrocarbons (MEEH), the Board of Electricity Regulation (ORE) and the Rural Electrification Agency (ADER). Measures take place in the following priority areas:
- New legislation aims to improve transparency and regulation of the electricity market. Other project activities include optimising the energy information system, supporting state agencies with the digitalisation of their work processes and developing the legal frameworks for grid connections.
- The project advises the partners on optimising and implementing the awarding of concessions and funding for rural electrification through new tendering procedures. It also provides support in establishing the National Fund for Sustainable Energy (FNED).
- The project supports state and private sector actors in improving academic and vocational training in the field of renewable energy.
Last update: August 2021