Madagascar's energy production capacity

Official Name: Republic of Madagascar.

Summary: Madagascar has a limited energy production capacity, mainly through hydroelectric and fossil fuel-burning power plants but is improving efforts in energy development through international partnerships. Only 36 percent of the population has electricity.

Madagascar, the fourth-largest island nation, is situated in the Indian Ocean off the southeast coast of Africa. Since gaining independence from French colonial rule in 1960, Madagascar has faced challenges in energy and infrastructure development. The rail system and road network are in disrepair, impeding the transportation of goods and services. Chronic electricity shortages result from decades of subsides that have caused Jiro sy Rano Malagasy (JIRAMA), the state provider of water and power, to go into debt. Despite liberalization of the electricity sector in 1999, JIRAMA still retains the monopoly in transmission and distribution. JIRAMA is being privatized to better diversify energy-generation sources and provide affordable and reliable power to the public. Technological and financial foreign investments remain integral to collaborations in energy exploration and sustainable development in Madagascar.

Production and Consumption

As of 2022, the primary energy sources for Madagascar were fossil fuels, hydroelectricity, biomass and waste, and solar power. Many individual households harvest wood for fuel, which has caused concerns over soil erosion, deforestation, and declining habitat for Madagascar’s rich biodiversity. Efforts to reduce pressure on forest resources include implementing off-grid solar technologies and planting woodlots to provide sustainable firewood sources.

The country’s electrification rate was only 15 percent in 2013 but rose to 36.1 percent by 2022, with 71.6 percent of the urban population and 10.9 percent of the rural population electrified. The nation set a goal to expand to reach 70 percent electrification by 2030. According to the US Central Intelligence Agency's World Factbook, in 2022, Madagascar generated 663,000 kilowatt-hours and consumed about 2.248 billion kilowatt hours.

JIRAMA oversees dozens of isolated power plants, which provide approximately one-third of Madagascar’s electricity. The 40-megawatt Mandroseza Station, burning heavy oil, began operating since 2007. This station was constructed to end the frequent blackouts and avoid load shedding on the grid of the capital city, Antananarivo, as well as to reduce the utility’s production costs and extend the availability of electricity around the island. The 10-megawatt Ambohimanambola Station, east of Antananarivo, using diesel oil, was built in 2000. It was Madagascar’s first foreign-owned power plant and is operated by the French electrical company Hydelec. Both power stations were still in operation as of 2024.

With the rising costs of fuel needed for thermal generators and the abundance of small rivers in Madagascar, hydropower has become an environmentally and economically sound choice, and generated 33.1 percent of the island’s electricity according to 2022 estimates. In 2008, the 15-megawatt Sahanivotry Hydroelectric Power Station was planned to feed the Antananarivo and Antsirabe grid and produce 10 percent of the island’s electricity supply. Sahanivotry is Madagascar’s first privately owned hydropower plant, also operated by Hydelec. It is the first to be built in the country since 1982, when the Andekaleta Hydroelectric Power Station, east of Antananarivo, began operation with a capacity of 58 megawatts, although there are plans for more hydropower projects from Hydelec and other operators.

Madagascar has been largely import-dependent for oil, but exploration is occurring. The World Factbook reported that in 2022, Madagascar consumed 19,000 barrels per day. Oil prospecting has occurred since the early 20th century, and Madagascar’s first oil refinery was established at Toamasina in 1966. US-based Madagascar Oil is the sole owner and operator of oil projects and pumping in Tsimiroro and is partnered with French oil company Total to explore heavy oil reserves in Bemolanga. In 2022, these combined reserves were estimated at 9.9 billion barrels, although it is technically difficult and expensive to process heavy oil.

The development of Madagascar’s extensive coal reserves, estimated at 150 million tons, has been inhibited by the poor road and rail system and costs of exploration. Madagascar Consolidated Mining (MCM), a subsidiary of the United Kingdom company Vuna Energy Limited, is the sole company on the island with a license for production in the primary coal deposit, Sakoa. In 2022, Madagascar consumed 511 metric tons of coal, nearly all of which was consumed.

Bibliography

African Development Bank. "AfDB and Climate Change." www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/MADAGASCAR%20anglais.pdf. Accessed 5 Aug. 2024.

"Madagascar." The World Factbook, 30 July 2024, www.cia.gov/the-world-factbook/countries/madagascar/. Accessed 5 Aug. 2024.

"Madagascar Energy Sector." Africa-EU Renewable Energy Cooperation Programme, Africa-EU Energy Partnership, 19 Jan. 2022, www.africa-eu-renewables.org/market-information/madagascar/energy-sector/. Accessed 5 Aug. 2024.

"Madagascar, Power Sector." US International Trade Association, 20 Feb. 2024, www.trade.gov/country-commercial-guides/madagascar-power-sector. Accessed 5 Aug. 2024.