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First Ever Madagascar Rural Electrification Forum to Turbocharge Malagasy DRE Market

26 October 2021: The Alliance for Rural Electrification (ARE), together with the United Nations System in Madagascar (UNDP, UNIDO and UNCDF), Joint SDG Fund and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), organised the Madagascar Rural Electrification Forum (FERM), which took place virtually on 20-21 October 2021. The two-day event was also supported by the Ministry of Energy and Hydrocarbons (MEH), Rural Electrification Development Agency (ADER), Electricity Regulation Office (ORE) and Economic Development Board of Madagascar (EDBM). 

The Forum brought together almost 300 stakeholders from the DRE sector, including private and public sector representatives such as the Government of Madagascar, investors, project developers and technology providers. FERM showcased the potential of the decentralised renewable energy (DRE) market in Madagascar and connected key financial and technical players to do business. 

David Lecoque, CEO of ARE said: “We are honoured to organise the first ever Madagascar Rural Electrification Forum and bring together public and private sector actors to help drive rural electrification efforts in Madagascar. We believe that these fruitful discussions will help turbocharge the DRE market in Madagascar and contribute to the massive and rapid deployment of DRE across the country.” 

Sambatra Ramiandrasoa, Director General of Energy & Hydrocarbons of MEH stated that: “Together, we will work hard to bring electricity to every rural, remote and landlocked area of the country. Several projects should be implemented to achieve such ambitions. That is why we have organised this forum to discuss how to effectively achieve the set objectives in a B2B format." 

Issa Sanogo, Resident Coordinator of the UN System in Madagascar underlined that: “The UN System supports the Madagascar Government and other stakeholders in the promotion and development of a green economy to support sustainable and inclusive development. The UN System supports actions for a better electrification of rural areas while promoting renewable energies because these discussions allow not only the strengthening of mechanisms of adaptation and mitigation to climate change but also so we do not leave aside the populations in these areas." 

The discussions demonstrated that DRE technologies were fundamental in harnessing the vast renewable energy potential, delivering vast socio-economic benefits and increasing energy autonomy and diversification in Madagascar, thereby enabling energy access for all. In addition, FERM provided an important opportunity to shed light on how investors can contribute to furthering electrification rates in Madagascar.

Christoph Feldkötter, Country Director of GIZ Madagascar stated that: “This forum is truly an exceptional opportunity for Madagascar to present its renewable energy potential to investors and to contribute to the achievement of the objectives set out in the General State Program. It is also an opportunity to contribute to the mitigation of climate change. We are convinced that this dialogue will contribute to the improvement of the living conditions of the population in rural areas!” 

FERM opened with an overview of the current state of the DRE market in Madagascar. This session outlined that it was important to acknowledge the economic role of DRE and it was vital to grasp this enormous potential, particularly in the most vulnerable areas of Madagascar.

The high-level discussions and debates attracted many key actors from the public and private sector including ARE Members ABC Contracting, Africa GreenTec, ADEME, ANKA Madagascar, Asantys Systems, atmosfair, BAE Batterien, Benoo, ENERSOL, ENGIE Energy Access, Faber, Gommyr Power, NRECA International, Phaesun, Rutten NES, Solar23, Studer Innotec, Tanatech, Upya, Voltalia and Zimpertec.

The second day brought together DRE technology providers and private and public sector investors to highlight the types of financial instruments available to stimulate rural electrification efforts in Madagascar. Practitioners on the ground also had the chance to present their Malagasy projects and technical solutions for mini-grids and stand-alone renewable energy systems.

Lastly, ARE facilitated approximately 150 virtual matchmaking sessions, enabling investors, technology providers, project developers, as well as other innovators in the sector to connect.

 

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The Alliance for Rural Electrification (ARE) is an international business association with the aim to promote a sustainable decentralised renewable energy industry for the 21st century, activating markets for affordable energy services, and creating local jobs and inclusive economies. ARE enables improved energy access through business development support for more than 185 Members along the whole value chain for off-grid technologies.

For 50 years, the UNDP has been the development agency of the United Nations System which has contributed to the promotion of good governance, the eradication of poverty and the significant reduction of all forms of inequality and exclusion in the world. UNDP is present in nearly 170 countries and territories. In Madagascar, UNDP supports Malagasy institutions and communities in promoting good governance, while supporting the transition to sustainable development in which economic growth benefits everyone and where irreversible damage to the environment is avoided. To do this, UNDP provides efficient and equitable services to citizens, especially poor and marginalized groups, and supports democratic and governance institutions to be more inclusive, transparent and efficient.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has been working in Madagascar on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) since 1982. It also undertakes commissions for the European Union. The GIZ country office has been based in Antananarivo for over 35 years. GIZ is assisting the Malagasy Government and the private sector in improving general conditions for public and private investment in order to promote expansion of the country’s energy supply. A new energy policy and an energy act have been adopted, providing legal certainty for private companies investing in renewable energy.

The Joint Sustainable Development Goals (SDG) Fund is an innovative instrument to incentivise the transformative policy shifts and stimulate the strategic investments required to get the world back on track to meet the SDGs. The UN Secretary-General sees the Joint SDG Fund as a key part of the reform of the UN’s development work by providing the “muscle” for a new generation of Resident Coordinators (RCs) and UN Country Teams (UNCTs) to really accelerate SDG implementation.

The agencies of the United Nations System have been operational in Madagascar and work in collaboration with the Government, the private sector and civil society in the social, economic and humanitarian fields. The main activities of the United Nations System in Madagascar revolve around three axes: the promotion of human rights, peace and security and development. Actions and advocacy in favor of theSDGs are a priority. The agencies work in close collaboration with the State to achieve the SDGs and to implement the country's National Development Plan.

UNIDO is the specialised agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. The mission of the United Nations Industrial Development Organization (UNIDO), as described in the Lima Declaration adopted at the fifteenth session of the UNIDO General Conference in 2013, as well as the Abu Dhabi Declaration adopted at the eighteenth session of the UNIDO General Conference in 2019, is to promote and accelerate inclusive and sustainable industrial development (ISID) in Member States.

The UNCDF makes public and private finance work for the poor in the world’s 46 least developed countries (LDCs). UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

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