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Madagascar

Madagascar combines one of the world's lowest electrification rates (39.4 % in 2023) with 7,800 MW of hydropower potential, most of it untapped. Diesel dependence keeps tariffs high and supply fragile — the State now imports fuel directly for JIRAMA. Run-of-river hydro, mini-grids and solar hybridisation are the practical route to scale access.

Key data

Electricity access (WDI)39.4 % (2023)
Installed capacity≈2.5 TWh / year (consumption)
Hydropower potential7,800 MW (World Bank study, 2014)
Utility / grid operatorJIRAMA
Key factVolobe 120 MW — expected to add ≈20 % to national supply (Africa50 / CGHV)

Data: World Bank World Development Indicators (EG.ELC.ACCS.ZS, 2023), CC BY 4.0 · IHA country profiles.

Hydropower & mini-grid opportunities

Run-of-river hydro fits Madagascar's topography and scattered demand: most regional towns run on isolated mini-grids that today burn diesel at very high cost. Replacing or hybridising that base with 100 kW–15 MW hydro plants — plus solar where hydrology is seasonal — cuts generation cost permanently and keeps energy spending in the local economy.

Ageing public plants create a second market: refurbishment. Runners, governors, excitation and control systems on 1980s-era units can be rebuilt to original drawings and upgraded with digital governors and SCADA, recovering lost output without new civil works — exactly the retrofit service TC × HIER and HIER operate in-country.

Policy & financing updates

  • Law 021/2026: the State Procurement Office now imports fuel for JIRAMA — first 67-million-litre cargo landed 12 Aug 2026 (Ecofin Agency).
  • Energy state of emergency reactivated 17 July 2026 amid regional fuel-supply pressure.
  • Volobe 120 MW (Axian; Africa50 holds 25 % via CGHV): financial close targeted, construction to follow (fDi Intelligence).
  • Mission 300 national energy compact — access expansion supported by World Bank and AfDB programmes.

FAQ

Why is diesel so expensive in Madagascar's grid?

Fuel is imported over long, difficult logistics routes and JIRAMA sells below cost. Every kilowatt-hour moved to local hydro or solar removes fuel purchase, transport and currency risk from the tariff.

What size hydropower plants fit Madagascar?

Most viable sites are run-of-river schemes from roughly 100 kW to 15 MW — village and town mini-grids up to regional supply. TC × HIER manufactures Pelton, Francis, Kaplan and Turgo units across this range.

Who develops and operates mini-grids in Madagascar?

HIER, our Madagascar partner, has developed and operated run-of-river plants since 2008 (Sahanivotry, Sahatona 1.6 MW, Ambatosia 1.7 MW and others) and handles permitting, construction and O&M locally.

Sources

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