INDUSTRY

ElectriFI : an opportunity to boost energy access in Madagascar

 

Energy access in Madagascar is still at a very low level ;  5 % in rural areas and around 15 % to 20% in urban areas.  In reality, only 14 % of malagasy houselholds have access to energy. To support the country in promoting this growth sector, the European Union (UE) has been working closely with local government in the development of the New Energy Policy (NPE) in 2015 which is actually being implemented.

 

In Madagascar, a non refundable sum of 30 millions € (100 billions Ariary) was given to fund tens of projects such as Jiro Kanto, Boreale, Pheder and Rhyviere … to target 70 000 households in rural areas not connected to the JIRAMA network. In 2030, the current government wants to reverse the trend,  75 % energy access of which 80 % will be from renewable sources as stated the ministry of Energy Herilanto Raveloharison.

 

A partner of private sector,  Electrifi ( Electrification Financing Initiative) was presented officially during a workshop orgnized by the UE, ADER and GIZ in Carlton Hotel last Thursday, ElectriFI  is the new financial instrument of the EU to replace the « Energy Facility ».  The lack of access to capital constitutes one the constraints  in financing energy sector in developing countries. In practice, ElectriFI is an additional source of funding (of not more than 50 %) and a bridge financing to private companies requiring less than 5 millions $. ElectriFI has only selected 19 projects out of 300 received after  the first call for proposals in April 2016.

Published on Friday, 11 November 2016 07:48
Written by F. RAFIDIHARINIRINA