Hydro Power (GIZ - Madagascar)

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This articles describes the approach and activities of GIZ in Small Hydro Power in Madagascar.


Market Situation

Potential of Hydro Power

The theoretical hydropower potential of Madagascar has been estimated at 7,000 GW of installed capacity. A more conservative estimation in terms of the economically exploitable potential has not been established so far but a couple of potential large hydro power sites have been identified and are currently in various stages of feasibility studies.
There is no reliable data on small hydro power potential in Madagascar and also no database for existing small hydro power plants. On the basis of a pure desktop study, GTZ-PERER has recently assembled data on at least 700 potential sites, but the technical and economical potential can be expected to be far lower.


Existing Hydro Power Plants

The experience with hydro power in Madagascar plants dates back to the beginning of the 20th century when the French colonizers installed insular systems to provide electricity to run sawmills and other appliances to profit from natural resources. In the 1960ies, several SHP plants have been put into place by private initiatives to accommodate tourist locations.

Since 2006, the Rural Electrification Agency has focused its project pipeline towards renewable energy projects, focusing mainly on small hydro power plants. So far, the agency has sponsored 9 small hydro power plants which are grouped in a radius of not more than 120 km around the capital. With the support of GTZ-PERER a larger project pipeline is currently under way with some 50 feasibility studies established until the end of 2010.

The table shows the small hydro power plants co-financed by the Rural Electrification Agency. Additionally there are several small hydro power plants put into place by NGO for rural electrification.


Existing small hydro power plants in Madagascar:
Name Installed capacity Year of operation Operator Contact Email Phone
Ranomainty 120 kW 2010 Sermad M. Ratefiarivony ratefi@moov.mg 033 1217850
Ankazomiriotra 120 kW 2009 Power and Water M. Henri Ramananarivo power.water@moov.mg 033 0205040
Mangamila 85 kW 2009 Elec.&Eau M. Théophile elec.eau@orange.mg 032 0484302
Amboasary gara (2*35 kW) = 70 kW 2010 Vitasoa Energy M. Raharison araharison@blueline.mg 034 1262164
Merikanjaka 40 kW 2010 AIDER M. Rakotoarimanana aidermadagascar@yahoo.fr 033 1167320
Ranomafana Est 30 kW 2007 Elec.&Eau M. Théophile elec.eau@orange.mg 032 0484302
Ranostara Nord 25 kW 2009
Anosibe 10 kW 2009 AIDER M. Rakotoarimanana aidermadagascar@yahoo.fr 033 1167320
Ambohijoky 7,5 kW 2009 AIDER M. Rakotoarimanana aidermadagascar@yahoo.fr 033 1167320


Hydro Power Manufacturing

There are currently 2 local turbine manufacturers, AIDER and Vitasoa, who produce Banki and Pelton turbines with a capacity of up to 30 kW. Larger turbines and all generators need to be imported.


GIZ Activities

► Homepage GIZ

Project PERER

At the beginning of 2009 GTZ started the PERER project (Promotion de l’Electrification Rurale par les Energies Renouvelables) financed by the German Federal Ministry for Economic Cooperation and Development (BMZ). The objective of the project’s first phase until 2012 is to improve the ability to identify, plan and implement projects for rural electrification using renewable energies, mainly small hydro-power. To this end the project works closely with the Rural Electrification Agency (ADER), responsible for the implementation of the rural electrification policies and subsidizing the investments in renewable energy projects with up to 70% and the private sector, responsible for planning, executing and running of the rural electrification schemes.

The project comprises three components


1) Institutional capacity development for ADER
The project supports ADER with institutional, organisational, administrative and technical questions.
Some examples of activities are:

  • SWOT-Analysis of ADER, analysis of internal procedures, formation of ADER staff in Capacity Works
  • Support to implement appropriate procedures for operating and tariff models
  • Establishment of an expert network with consultants and engineering offices
  • Promotion of the cooperation with EU and other donors, set-up of a web site for ADER, establishment of an annual report for ADER
  • Proposals of how to improve legal framework conditions


2) Improving regional energy planning
In order to establish a strategic planning the project supports ADER in its investment planning on a regional basis prioritizing sites for realisation on the basis of demand and accessibility of SHP sites.
Some examples of activities are:

  • Implementation of the planning software GEOSIM; collection of socio-economic data for 3 pilot regions
  • Collection of data on the hydro-power potential through desk top studies, engagement of professional Hydroscouts, formation of Scouts, etc.
  • Establishment of a database with potential hydro power sites


3) Promoting the private sector and project implementation
The project assists the private sector in the planning and realisation of small hydro power projects and gives financial support to single exemplary investment projects.
Some examples of activities are:

  • Support of the association of private operators; organisation of exchange of experiences
  • Several day trainings for private operators and ADER staff in:
    - Establishment of business plans
    - Accounting
    - Civil engineering
  • Establishment of (pre)feasibility studies through engineering offices
  • Investments in 1 grid-extension of a small hydro power plant, 2 small hydro-power plants


It is planned to have a second phase of the PERER project focussing on the investment in small hydro power plants.
Technical aspects of the promoted technology/service


Activities of Other Stakeholders

In the EU:

There are several small hydro-power projects funded by the EU Energy Facility I being implemented at the moment:

Under the EU Energy Facility II some more small hydro power projects are being evaluated.


Others:
Except for the EU there are no other big donors active in the small hydro power sector. But there are a few additional projects being implemented by NGO as for example Electriciens sans Frontières, CICAFE, ADEVE, etc.


Technical Aspects of the Promoted Technology / Service

The small hydro power plants constructed in Madagascar are usually run-of-river plants connected to a small isolated grid. As there is only a very limited national grid they hardly ever feed into the national grid. There are some plants which operate a small grid plus a battery charging station.
The table below shows some technical details about the 9 small hydro-power plants commissioned by ADER which are in operation or about to start operation.


Technical details of existing small hydro power plants:
Name Installed power
 Type of turbine
 Turbine Manufacturer Year of operation
Ranomainty 120 kW Francis imported, Shao Yang 2010
Ankazomiriotra 120 kW Banki imported, entec 2009
Mangamila 85 kW Banki imported, IREM 2009
Amboasary gara (2*35 kW) = 70 kW Pelton local, Vitasoa 2010
Merikanjaka 40 kW Banki local, AIDER 2010
Ranomafana Est 30 kW Perlton imported, IREM 2007
Ranotsara Nord 25 kW Banki local, Vitasoa 2009
Anosibe 10 kW Banki local, AIDER 2009
Ambohijoki 7,5 kW Banki local, AIDER 2009


The hydro-power plants were all planned and implemented by the future operator, for the smaller plants the operator even produced the turbines. Generators are all imported.


Financial and Socio-economic Aspects of the Promoted Technology / Service

Financial Aspects

Together with the establishment of the Rural Electrification Agency in 2004, Madagascar has introduced a consumer tax on electricity consumption (1.25% on electricity bills for consumptions being higher than 20kWh per month) which is provided to the Rural Electrification Agency to co-sponsor rural electrification projects. The agency offers a maximum of 70 % of investment costs to private operators who contribute the remainder and receive the concession to exploit the plant for 10-20 years. Local commercial banks have played a minor role in financing small hydro power plants up to now, but are also interested to partially finance small hydro power projects.
With less than 70% subsidies small hydro power projects face problems with financing as costs per kWh are high (2500 $/kWh without grid), as are capital costs (20% interest rates) and the purchase power of the rural population is very low.


Socio-economic Aspects

Tariffs are being defined between the Rural Electrification Agency, the Electricity Regulatory Office and the private operator on the basis of a business. They are usually composed of the connection fees (about 120’000 MGA = 45 €) and monthly fees plus fees per kWh (abound 400-700 MGA/kWh = 0,15-0,25 €/kWh) or a flat-rate tariff (abound 3000 MGA/month = 1,10 €/month).
The rural clients usually experience problems to pay the relatively high connection fees and the monthly fees during 2-3 months of low-income. The private operators and the PERER project are therefore testing different solutions with connection fees being paid in instalments and variable fees over the year.


Further Information


References


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