Madagascar - The Electricity Code is favorable to investments

The NPE reflects the government's commitment to cleaning up the energy sector and providing a favorable framework for investment in the sector, particularly by leveraging new technologies. The goal is to provide sustainable access to 7% households by 2030.

The law aims in particular to:
– integrate provisions relating to the exploitation of renewable energy sources, so that Madagascar can align itself with international guidelines in this area and benefit from related initiatives;
– make the electricity sector more attractive and more secure for potential investors/promoters;
– provide users of the electricity sector with a better quality of service, at an affordable cost and respecting the principle of continuity and non-discrimination;
– contribute to improving the governance of the electricity sector, in terms of transparency and accountability.

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The NPE provides for the massive use of renewable energy sources, with the aim of preserving ecological heritage and participating in the global fight against climate change and its repercussions.

Three regimes have been established for the exercise of production, transmission, and distribution activities: concession, authorization, and declaration. New thresholds have been defined to encourage developers to invest in the field of renewable energy. This simplifies and facilitates the administrative procedures for the installation of green producers. Renewable energies include solar thermal energy and solar photovoltaic energy; wind energy; hydroelectric energy; energy generated from biomass; geothermal energy; energy from marine sources; and energy generated from waste.