Interview with Andry Ramaroson, Director General of Energy and Hydrocarbons, a sector on which all key sectors depend. of economic emergence.
Energy for all is one of the cornerstones of the Emergence plan. What progress has been made?
The second pledge (Velirano) of His Excellency Mr. Andry Nirina Rajoelina, President of the Republic of Madagascar, is to double our production capacity. Technically, this can be interpreted in two different but complementary ways. Indeed, if we had approximately 400 MW of operational power plants in 2018, we should reach 800 MW by 2023. Here, we are referring to installed operational capacity. Similarly, if we consumed approximately 1500 GWh of energy per year, we should reach 3000 GWh by 2023.
To achieve this, there are five actions to be taken simultaneously, namely: the hybridization of all thermal power plants; the installation of solar power plants on regional networks; the installation of large-scale solar power plants on interconnected networks; mini-hydro in the regions; structuring hydroelectric power in interconnected networks.
Generally speaking, we have two major players in this sector: Jirama, a state-owned company responsible for urban and suburban areas, and ADER, or the Rural Electrification Agency. As its name suggests, it is not a company, but an agency whose role is to promote electrification in rural areas.
What concrete progress has been made?
We will answer this question on two different subjects, Jirama and ADER.
At the end of 2018, Jirama had several major issues to address: load shedding, debt, and the aging infrastructure, especially the distribution networks. As we speak, we have reduced the load shedding problem by 851 TP3T. That's tangible. By the end of 2020, our debt had dropped from 1,870 billion ariary to 903 billion. This was achieved thanks to the renegotiation of major thermal power contracts that we considered almost exploitative.
Since 2020, Jirama has spent between 100 and 200 million ariary per week to fix the technical problem of the distribution networks.
In terms of tangible or visible results, the hybridization of large thermal power plants in all provinces has taken place. Indeed, in Toamasina, where the need is 20 MW, 2 MW of solar power are already operational. The remainder will be completed this year. In Toliara, 10 MW are already operational, fully covering local needs, at least for the next three to five years. In Mahajanga, 1.2 MW has just been inaugurated out of a total of 12 MW that will be operational this year. In Antsiranana, the solar power plant is currently under construction.
It should be noted that hybridization increases installed capacity but not energy output. However, it contributes significantly to improving Jirama's financial health. Thus, several medium-sized sites are also in progress, namely: Morondava, Antalaha, Sambava, Andapa, Vohémar, Ambositra, Belo Tsiribihina, Mahabo, Betioky south, Bezaha, Manja, Ihosy, Sakaraha, Ranohira, Maintirano, Brickaville, Bealanana, Miandrivazo, Bekily, Ankazobe, Ampanihy, Manja, Antsirabe north, Mitsinjo, Morafenobe, Soalala, Antsalova, Ambatondrazaka, Andilamena, Amparafaravola, Anosibe an'Ala, Tanambe, Ambovombe, Ankazoabo, Nosy Be, Ste Marie, Mananara Nord, Foulpointe, Vatomandry, Soanierana Ivongo, Fianarantsoa, Ambilobe, Manakara, Fénérive Est, Farafangana, Tsiroanomandidy, Marovoay, Mahanoro, Vatomandry, Vangaindrano, Vavatenina, Vohipeno, Antanambao Manampotsy, Besalampy, Nosy Varika, Marolambo, Antsalova, Antsohihy, Mampikony, Port Bergé, Maevatanana, Ambanja, Anivorano north, Anahidrano, Befandriana north, Ankadinondry Sakay, Amboasary south, Ambato Boeny, Analalava, Tsaratanana, Mandritsara, Mananjary.
It should be noted that 75% of these hybrid sites fall within the framework of the PPP, in other words IPP, it is a Private Operator that has the energy supply contract and Jirama remains the buyer and Distributor.
Now, the remainder is to be credited to ADER's account. This includes mini-hydropower projects such as the 1.2 MW Androkabe project in the Alaotra Mangoro region, which is already operational; the MADO project of similar size on the Antananarivo Interconnected Networks; and the PHEDER project in Amoron'i Mania, also with the same power output. The list is long for small-scale projects between 10 and 100 kW, using hybrid solar thermal or high-power solar power, as in the case of Sarobaratra, or even mini-hydropower.
The Ministry, for its part, has provided several cities with 4,700 solar-powered streetlights. This will improve lighting in these cities and also reduce energy consumption. Similarly, more than 5,000 SHS (Solar Home System) kits have been distributed to vulnerable households in rural areas. And 29 hospitals have received a small 10 kW three-phase solar power plant.
What role will renewable energies play?
Still within the framework of Velirano n°2, the PRM insists on the development of renewable energy sources and on the tariffs to be applied which must correspond to the purchasing power of the population.
It is worth recalling that over 701 TEUs of Madagascar's electricity production in 2018 came from fossil fuels. Not only is this expensive, but it also pollutes the environment. This situation severely penalizes Jirama (the national electricity company), as well as the government, the population, and the professional sector, particularly industry.
The goal is therefore to reverse this trend; by the end of 2023, more than 501 TPP3T of our power generation facilities must be powered by renewable sources. Moreover, the current Codelec (electrical code) prioritizes the use of green energy over other sources, especially fuel-based ones.
What opportunities are available to investors in the energy sector?
These projects are not all funded or deployed by the state. Most even fall under the umbrella of public-private partnerships (PPPs). Progress has been made, but much remains to be completed and implemented. The current Codelec (Code of Energy and Climate) clarifies several ambiguities regarding the concept of renewable energy and encourages the development of PPPs.
The Ministry remains very open to any operator interested in investing in Madagascar. It will fulfill its role as a ministry, but it will also support each operator to better manage any problems or misunderstandings they may encounter. The Ministry is a driving force.