POWER AFRICA BRINGS ELECTRICITY TO MADAGASCARS’ ENERGY-HUNGRY CONSUMERS

Madagascar has substantial natural resources, including hydro, wind and solar.

Diesel powered electricity generation is a prominent form of energy generation, resulting in localized costs which can run as high as $0.70-0.80/kWh.

High tariff rates result in low collection rates, and subsequent power plant failures have been the result of a lack of funding for maintenance.

Access rates to electricity for the 26.26 million inhabitants are low countrywide, and are described as ‘very low’ in rural areas. There are seafood processing areas in the south which would economically benefit from cold chain storage, if only reliable power sources were made available.

The United States Agency for International Development (USAID) offers a program called Power Africa. It has awarded grants totaling US$1.2 million to mini-grid developers lighting up more than 5,200 households and businesses in rural Madagascar.

Although rich with renewable energy resources like solar and wind, only 5% of rural Madagascar has access to electricity, resulting in dependency on candles, batteries, and firewood to meet daily energy needs. Off-grid electrification solutions, such as mini-grids, can play a vital role in electrifying Madagascar’s rural areas. However, private developers and operators capable of installing and operating mini-grid systems often struggle to enter and expand the mini-grid market because they lack access to project financing.

Power Africa launched the “Power Africa Madagascar Mini-Grid Development Grant” to bridge the financing gap and support implementation of new mini-grid projects as well as expansion of existing mini-grids to new customers.

What the grant awards have achieved

Following a request for applications in May 2020, 17 companies applied for grant funding. After evaluation, shortlisting and negotiation phases, Power Africa awarded grants to three companies: Autarsys Madagascar, Henri Fraise Fils & Cie, and Hydro Ingénierie Etudes et Réalisations (HIER).

Collectively, the three companies project that this grant funding will help them bring electricity to approximately 14,000 people.

Autarsys is involved in electrifying three settlements located in the Atsimo Andrefana region with new hybrid solar PV-powered mini-grids with integrated battery storage technology.

“These facilities, in particular the storage systems, are in line with ‘state of the art’ international technology,” says Matthias Ross, Autarsys Chief Executive Officer.

Henri Fraise Fils & Cie is responsible for building a new solar mini-grid with battery storage, a backup generator, and a 4-kilometre low-voltage line at Manaratsandry village in Boeny region.

“This grant will allow us to not only reduce the initial investment cost but also to drastically reduce the cost of energy for the beneficiary village, Manaratsandry,” explains Charles van der Straeten, Henry Fraise Fils & Cie General Manager.

HIER’s role is to extend the distribution network of an existing hydro-powered mini-grid in the town of Tsarazaza, which is a part of Amoron’i Mania region.

“This grant will allow us to extend the areas served by our existing hydroelectric production plant while allowing, in a short time, the connection of more than 1,500 households,” says H.I.E.R. General Manager, Raolijaona Dieudonné.

Solar PV mini-grids can power carpentry tools such as saws and drills, larger-scale agricultural processing such as milling and grinding, as well as irrigation pumps and cold storage.

This productive use of electricity provides a foundation for sustainable economic development by increasing incomes and improving the welfare of communities.

The grant winners will incorporate community outreach programs into their projects to promote the use of clean, affordable and sustainable energy, and to ensure that communities have the knowledge to get the most out of the productive use potential that the mini-grids introduce.

The award of these mini-grid development grants advances Power Africa’s goal to connect 60 million new homes and businesses to electricity by 2030.

Mark Carrato, Power Africa

Co-ordinator comments: “Mini-grid developers and operators play a critical role in expanding access to electricity in Madagascar, especially to rural and hard-to-reach areas. He concludes: “Through these grants we hope they can continue to significantly improve the lives of the Malagasy people.” powerafrica.medium.com