World Small HydropoWer development report 2013

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MADAGASCAR

Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP).

2013 © UNIDO and ICSHP

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This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners.

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Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report 2013. United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from www.smallhydroworld.org.

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1 Africa 1.1 Eastern Africa

1.1.4 Madagascar Lara Esser, International Center on Small Hydro Power

Key facts

Population 22,005,2221

Area 587,041 km2

Climate Tropical climate along the coast, temperate in the inland and arid in the south. The wet season is from the end of December to April. River discharge decreases gradually after April. The dry season starts in the middle of October and continues to the end of December, during which the output of most hydropower plants decreases.

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Topography The island has a high plateau and mountains in its centre, with narrow coastal plains.

Rain Pattern

Most rain falls during summer (November to April), with rainfall during winter (May to October) restricted to the southern and eastern coasts. In the south rainfall may remain low (on average less than 800 mm each year), in contrast to regions in the northeast of the country which on average receive more than 3,500 mm of annual rainfall.

2

Electricity sector overview Information on the country’s electrification rate varies. According to the German Agency for Technical Cooperation-Poverty-Oriented Basic Energy Services-European Union Energy Initiative (GTZ-HERA-EUEI) - and as of 2010, the electrification rate in Madagascar was about 23 per cent with a large difference between urban areas (rate above 60 per cent) and rural areas (less than 10 per cent).

3 According to the Rural

Electrification Agency, the national electrification rate was 10.56 per cent in urban areas and 4.07 per cent in rural areas.

4 There are three grids in the country:

Antananarivo Grid, Toamasina Grid and Fianarantsoa Grid.

5 The majority of electricity is generated using

hydropower (figure 1).

Figure 1 Electricity generation in Madagascar Source: Jiro sy Rano Malagasy

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Note: Data from 2010.

Since 2004, the fully state-owned utility responsible for the provision of electricity and water services in the country has ceded its electricity activities to the Rural Electrification Agency (REA). REA decided to promote private sector participation in rural electrification and developed local energy plans with the aim of providing electricity to the entire country by the end of 2010.

3 It

offers a maximum of 70 per cent of investment costs to private operators, who contribute the remainder and receive the concession to utilize the plant for 10-20 years.

3 Local commercial banks are also interested to

partially finance small hydropower projects and could provide approximately 30-60 per cent of the investment costs.

3

The Ministry of Energy and Mines (MEM) is the authority having jurisdiction over the energy sector, taking charge of the investment and the development strategy policy, including foreign assistance requests. MEM issues permits for plants larger than 1 MW. Smaller plants are handled by the REA.

3 The electricity

sector is regulated under the Office de Régulation de l'Electricité (ORE). JIRAMA (Jiro sy Rano Malagasy), the state-managed company that provides electricity and water services takes charge of the technical aspects of the power sector.

5 It operates and maintains power stations,

transmission and distribution lines in the comparatively widespread electrification region, and obtains its income from the sale of electricity.

7 In general, the

majority of electric power plants are operated by JIRAMA, and the rest by the private power utility companies. In the past years, about 50 small new electrification projects were realized by private companies.

7

Small hydropower sector overview and potential There is no database for the installed small hydropower plants in Madagascar. According to the REA, there are four plants with a total installed capacity of 22.51 MW (figure 2).

4 All of them need renovation, since they were

commissioned averagely 25 years ago.

Figure 2 Small hydropower capacities in Madagascar Source: Rakotoarimanana

4

55.95%

44.05%

< 0.01%

0% 10% 20% 30% 40% 50% 60%

Hydropower

Thermal

Solar

23 MW

unknown

2600 MW

101 MW

0 500 1000 1500 2000 2500 3000

SHP potential (> 10 MW)

SHP installed capacity (>10 MW)

SHP potential (up to 10 MW)

SHP installed capacity (up to 10 MW)

2

In 2006, the REA as part of its objective to promote renewable energy projects sponsored seven small

hydropower plants which are located in a radius of not more than 120 km of the capital Antananarivo.

4

Table 1 Installed small hydropower capacity in Madagascar

Date Town/ Village District Region Operator Production mode

Installed capacity

THER (kVA)

RE (kW)

1986 Sahamadio Fandriana Amoroni Mania JIRAFI MHP + GE 275 160

1992 Milamaina Fandriana Amoroni Mania JIRAFI MHP + GE .. ..

2003 Antetezambato Ambositra Amoroni Mania ADITSARA MHP .. 53

2003 Mangamila Anjozorobe Analamanga ELEC /EAU MHP 15 85

2003 Ranotsara Nord Iakora Ihorombe VITASOA MHP .. 25

2005 Imerimandroso Ambatondrazaka Alaotra Mangoro SAEE GE + MHP 60 ..

2006 Ankililoaka Toliara II Atsimo Andrefana SM3E GE + MHP .. ..

2006 Morarano Amparafaravola Alaotra Mangoro MCH + GE .. ..

2006 Amparihints Ambatondrazaka Alaotra Mangoro SAEE GE + MHP 30 ..

2006 Andromba Ambatondrazaka Alaotra Mangoro SAEE GE + MHP 45 ..

2006 Andrebakely Ambatondrazaka Alaotra Mangoro SAEE GE + MHP 30 ..

2006 Vohimena Ambatondrazaka Alaotra Mangoro SAEE GE + MHP 40 ..

Source: United Nations Industrial Development Organisation8

Note: MHP – micro hydropower, GE – diesel generator. THER – thermal, kVA – kilovolt ampere, RE – renewable energy

Table 1 shows some of the installed small hydropower in the country. The theoretical overall hydropower potential of Madagascar has been estimated at 7,000 GW of installed capacity.

5 The economically feasible potential

has not yet been determined. According to a questionnaire sent to REA, the small hydropower potential was evaluated in 2010 and the gross potential was 5,600 MW, technical potential 3,200 MW and economically feasible potential was 2,600 MW. The definition used however to define small hydropower was >10 MW.

4 A desktop study by German Agency for

Technical Cooperation-Promotion of Rural Electrification by Renewable Energies (GTZ-PERER) assembled a data set of at least 700 potential sites, but the technical and economic potential can be expected to be far lower.

3

Table 2 Small hydropower potential in Madagascar

Study source Potential capacity (MW)

Range of sites

Number of plants

ADERa >150.00 19 kW – 10 MW 60 MEMb 48.19 40 kW - 6.5 MW 28

Source:

a. Leutwiler7

b. NewJec 5

Note: ADER - Agence pour le Développement de l'Electrification Rurale, MEM - Madagascar Ministry of Enyerg and Mines There are about 60 potential small hydropower sites ranging between 19 kW and 10 MW in capacity, with a total potential of more than 150 MW. According to the

NewJec Report in 2009, 48.19 MW capacity of small hydropower potential was available in Madagascar, with a potential electricity production of 398.28 GWh/year.

7

GTZ-PERER also supported a large project where 50 small hydropower feasibility studies were to be concluded by the end of 2010. The project activities are linked with the introduction of the software Geosim to establish regional energy investment plans and prioritize sites on the basis of demand and accessibility; however up-to-date information is not available.

3

In the Sava Region of North Eastern Madagascar, Electricité de Madagascar had finalized the feasibility study for a mini-hydropower plant and distribution networks to be implemented in the Lokoho river basin, in order to supply electricity to the two small towns of Andapa and Sambava and surrounding rural villages.

9

The project would have provided electrical power of up to 6 MW to the surrounding areas if the small hydropower generators had been replaced. However a political crisis in Madagascar occurred in 2009 during which Electricité de Madagascar planned to launch its tenders, since then the project has been frozen.

10

The hydropower development programme (Programme rivière 2008-2012) aimed to supply eight rural communities with a total of 14,000 inhabitants with electricity from micro-hydropower. The programme included the design and testing of mechanisms in the sector ‘small autonomous networks’ adapted to the rural world, with the active participation of local actors,

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e.g. Malagasy entrepreneurs involved in the manufacturing of turbines. These innovations in different regions should then serve as benchmark demonstrations.

7

Some agricultural projects in Madagascar need large amounts of energy, mostly for pumping water for irrigation and feeding ponds for shrimp farming. The option to use hydropower instead of diesel engines is in discussion. Similar projects are being developed for mining sites.

7

There are currently two local turbine manufacturers in Madagascar: AIDER and Vitasoa, who manufacture Banki and Pelton turbines with a capacity of up to 30 kW. Because of limitations in technical expertise in the country, large turbines and all generators are imported.

3

Renewable energy policy The MEM has a policy to promote the development of the abundant renewable energy potentials for rural electrification to replace the existing diesel thermal power plants with renewable energy systems such as small or micro hydropower plants. In 2009, MEM was preparing a power source development plan in cooperation with the ORE.

5

Barriers to small hydropower development Lack of funding for private investments and lack of a transparent model for commercialization are important small hydropower development barriers. The fact that the country does not have an electricity network is another barrier to small hydropower development. At least in the coming decade, small hydropower projects will typically not feed into a grid, which is detrimental to the financial viability of these types of projects.

3

A feed-in tariff (FIT) is neither in place nor on the current policy agenda. JIRAMA has been reluctant to offer favourable FITs.

11 Only two operators of small

hydropower plants have managed to conclude individual feed-in contracts with JIRAMA on the basis of a 10-years tenure and a rather low FIT, of approximately €0.04 per kWh.

3

The other barriers to the development of small hydropower in rural areas are:

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long distance between consumption points and potential sites;

low population density and low electricity demand;

low utilization factor;

prohibitive high capital costs;

lack of capital and liquidity by entrepreneurs.

Furthermore, economic potential sites for energy production with high heads, which are favourable for development, are located in isolated areas what considerable increases transport costs.

6 Easily accessible

sites tend to have low heads and therefore, they are technically and economically less attractive. Site selection among alternatives (i.e. high vs. low head, large vs. small sites) are ultimately political decisions, considering the social and economic synergies and ecological impacts, according to different sites in question, especially given a systemic development of the landscape. Low institutional capacity and experience to manage a strategic resource, such as water, is also a challenge.

6

References 1. The National Institute of Statistics (2011). Population and démographie. Effectif de la population de Madagascar. Available from www.instat.mg/index.php?option=com_content&view=article&id=33&Itemid=56. Accessed December 2012. 2. Tadross, Mark, Luc Randriamarolaza, Zo Rabefitia and Zheng Ki Yip (2008). Climate change in Madagascar: recent past and future. Madagascar. Available from www.gripweb.org/gripweb/sites/default/files/disaster_risk_profiles/Madagascar%20Climate%20Report.pdf. 3. Gaul Mirco, Fritz Kölling and Miriam Schröder (2010). Policy and regulatory framework conditions for small hydro power in Sub-Saharan Africa: Discussion paper. Eschborn. Available from www.giz.de/Themen/en/dokumente/gtz2010-en-HERA-EUEI-PDF-framework-conditions-hydropower.pdf. 4. Rakotoarimanana Mamisoa Fidele (2011). Agence de Developpement de l’Electrification Rurale in Madagascar. Survey by International Center for Small Hydro Power answered in October 2011. 5. NEWJEC In. Engineering and Consulting Firms Association (2009). Preliminary Study for Expansion of Manandona Hydroelectric Power Plant in Madagascar. Study Report. Tokyo. Available from www.ecfa.or.jp/japanese/act-pf_jka/H21/newjec/english.pdf. 6. Jiro sy rano malagasy (2012). Production Electricité 2011. Available from www.jirama.mg/index.php?w=scripts&f=Jirama-page.php&act=pdcelec . Accessed December 2012. 7. Hanspeter Leutwiler (2008). Valorisation des potentiels hydroélectriques pour l'électrification rurale à Madagascar. Final Report. Affoltern. 8. Beguerie, Victor and Kevin Blanchard (2010).The potential for renewable energies in rural areas of Madagascar. United Nations Industrial Development Organization. 9. Global Electricity (2007). Energy in Action e8. Montreal. Available from

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www.globalelectricity.org/upload/File/07293_brochure

_energyinaction-7_0_final.pdf. 10. Électricité de Madagascar (2012). Étude de faisabilité de la centrale hydroélectrique de Lokoho. Andraharo.

Available from www.edm.mg/index.php/fr/etude-lokoho.html. 11. Energypedia (2011). Homepage. Available from

https://energypedia.info/wiki/Main_Page.

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