Investor and operator of rural electrification of an isolated network supplied by two small hydroelectric power plants

The Lake Alaotra region in Madagascar, a major rice-producing area with an annual output of over 200,000 tonnes, faces severe electricity access challenges. The current supply relies on a few polluting and expensive generators, which negatively impacts health, social services, and local economic development.

In 2015, the company BETC Nanala launched a project to electrify the Lake Alaotra area using two small hydroelectric power plants: Adrokabe (1600 kW) and Maheriara (700 kW). However, Cyclone Batsirai in 2022 caused significant damage and highlighted the need for extensive rehabilitation and expansion of the electricity network, including 150 km of medium voltage and 157 km of low voltage lines.

In 2024, following a competitive selection process, iED Invest became the majority partner in Jiro Kanto Sarl and took on the technical and financial management of the project. This partnership will enable Jiro Kanto to provide electricity to over 13,600 subscribers by the end of 2024, a significant increase from the 1,220 subscribers at the beginning of the year, and support numerous rice hulling units around Lake Alaotra.

The following work program will be implemented between 2024 and 2027 under the technical direction of the IED Consult teams, who will conduct detailed studies, prepare consultation documents, recruit construction companies, and oversee the work:

• Rehabilitation and Security of Existing Structures: This includes restoring the dam and loading basin, adapting the Androkabe control-command system, installing the penstock, rehabilitating the power station building, and updating the control-command system for the Maheriara power station.
• Network Improvements: Securing existing electricity networks, densifying coverage in the 24 current Fokontany, extending the network to 70 additional Fokontany, and installing meters for all subscribers, including those currently on a flat-rate plan.

The following activities will be carried out by iED Invest teams:

• Business Development and Financing: Development of the business plan, negotiation of the tariff revisions with the regulator, and raising secure financing through banking and investment subsidies.
• Team Creation and Training: Establish and train Jiro Kanto’s operating and maintenance teams, and define and implement operating procedures for security, management, and technical monitoring.
• Partnership Agreements: Implement agreements with municipalities within the Jiro Kanto network, including the supply of social infrastructure.
• Support for Productive Uses of Electricity: Assist in connecting productive users such as hullers, wood processing units, and welders to the electricity network. Promote energy efficiency and manage load effectively.