Pre-feasibility Study: Renewable Electricity Supply for Rural Communities of the Diana and Atsimo-Andrefana Regions

Project Description:

In Madagascar, the Diana and Atsimo Andrefana regions contribute substantially to the development of touristic, agri-business and industrial activities. In order to support those activities, the Malagasy government is planning to invest strongly in the electricity supply sector during the forthcoming years.

MicroEnergy International in collaboration with 3E have been selected to conduct a pre-feasibility study for the electrification of targeted rural areas in the two regions, by prioritizing renewable energy in the energy mix. The pre-feasibility study will explore the possibilities for wind, solar and hydro energy to feed into several mini-grids of the rural areas, based on the site and resource assessment, as well as the demand assessment for the varying level of energy needs of institutions, businesses and households in the communities.

MicroEnergy will work with 3E to design appropriate operational and business models for the proposed minigrid technical designs.

Fig 1: Current situation in village cluster

Technologies analyzed:

 Minigrids; solar PV, wind, hydro and hybrid systems.


Project objectives:

 The study will outline the most appropriate minigrid technologies and sizing per village cluster as defined by project contractor, PIC, and propose a viable operational and business model for each. Ultimately, conclusions concerning the feasibility of minigrids in each village cluster will be presented.

Fig 2: Children listening in on an energy questionnaire

Project Phases:


 Within the project phases, MEI was primarily responsible for the following:

 Phase 1: Planning and Demand Assessment phase

  • Methodological support for project implementation and demand assessment such as design of questionnaires to be used by partner for the data collection

Phase 2: Conception the economic systems and elements

  • Assessment of investment budgets and operating costs: overview of investment costs per location (among them potential costs to replace equipments), as well as operating and maintenance costs

Phase 3: Business models, assistance and supply model

  • Assessment of ability and willingness to pay for electricity; this included a demand assessment for companies, industries and commercial partners, according to different energy technologies. The data is used to identify the companies’ financing needs and to formulate recommendations for the implementation of different business models
  • Assessment of required subsidy levels:  identification and assessment of market barriers and determination of the required level of participation of public entities, in order to facilitate success for the private actors
  • Establishment of different business models:  viable energy distribution models, which will facilitate the region’s income generating activities, and more generally economic development, ranking of these models according to a SWOT analysis and cost benefit ranking

Phase 4: Final results

  • Proposition of an action plan to PIC to implement such mini-grids (supporting 3E)

Writing of provisory and final reports (supporting 3E);


Fig 3: Local shop



Time Period:

 June 2014 – August 2014

Partner :

 3E (Belgium)