Electrification of rural areas through renewable energies

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The Electrification of Rural Regions through Renewable Energies project (Phases I and II) aims to achieve an ecologically and economically sustainable supply of previously non-electrified rural regions with electricity generated from renewable energies. The project is sponsored by the state-run Agence de Développement de lElectrification Rurale (ADER), which is responsible for the electrification of rural regions in Madagascar. The project is being implemented as a public-private partnership (PPP) project, within the framework of which two hydroelectric power plants with a total capacity of 9.2 MW are to be planned, (partially) financed, built and operated by private concessionaires. The main target group is the population in rural areas outside the interconnected network of the state energy supplier JIRAMA, i.e. predominantly poorer sections of the population with little or no access to electricity. The project also aims to promote local companies and tradespeople who contribute to creating employment and income opportunities for the local population. The FC primarily provides funds to subsidize the investment costs of the projects via the ADER. This is intended to enable electricity tariffs to be designed in such a way that electricity is affordable for end customers and the resulting income is sustainable for the concessionaires. The total cost of the project is estimated at around EUR 47 million. A total of EUR 31.1 million is to be made available from FC funds, the concessionaires are to contribute around EUR 11 million and the Malagasy state around EUR 4.5 million. An additional FC fund of EUR 1 million is proposed to finance a planned accompanying measure. The project is expected to be completed by the end of 2027.