Madagascar - The Electricity Code is favorable to investments

The NPE reflects the government's commitment to reforming the energy sector and providing an enabling environment for investment, particularly by leveraging new technologies. The goal is to provide sustainable access to 71% of households by 2030.

The law aims in particular to:
– 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; ;
– to make the Electricity sector more attractive and safer for potential investors/developers; ;
– to ensure that users of the Electricity sector receive a better quality of service, at an affordable cost and respecting the principle of continuity and non-discrimination; ;
– to contribute to improving the governance of the Electricity sector, in terms of transparency and accountability.

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The NPE plans for the massive use of renewable energy sources, with the aim of preserving ecological heritage and participating in the global effort to combat climate change and its repercussions.

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