120MW hydropower plant to be constructed in Madagascar

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A 120MW hydropower plant is set to be constructed in Madagascar. This is after Africa50 partnered with, Jovena (Axian Group) and SN Power to develop the plant which aims to support the implementation of the country’s socio-economic development agenda.

The project will consist of a 120MW hydropower plant being constructed and operated on the Invodro river under a 35-year concession. In addition to the plant, transmission lines will be constructed and access roads will be refurbished as well as infrastructure for the neighbouring villages.

Partnership contract

Jovena, will provide institutional support, while Africa50, will bring project development and finance expertise. Additionally, SN Power, will offer its technical and operational knowledge on hydropower infrastructure and Colas, will provide its expertise of major infrastructure construction in Madagascar.

Under partnership agreement, the partners have agreed to co-develop the plant by acquiring equity in Compagnie Générale d’Hydroélectrique de Volobe (CGHV), whereby the shareholding will be comprised of Jovena (40%), Africa50 (25%), SN Power (25%) and Colas (10%). The project is expected to be commissioned by 2023 and is estimated to create up to 1,000 direct jobs during construction.

Upon completion, the power plant is projected to provide reliable and affordable access to electricity for over two million people, contributing to the country’s transition towards renewable energy as well as reducing the cost of electricity to the end user.

Also Read:Nigeria seeks US $5bn loan for construction of Mambilla Hydropower Project

Energy sector in Madagascar

The installed capacity of electricity production in Madagascar is approximately 650MW only. According to figures published by the World Bank in 2018, access to electricity remains low with about 20% of the total population having access to this form of modern energy.

In the rural areas, only about 5% have access to electricity. The currently utilised capacity is even lower due to the poor efficiency following the lack of rehabilitation of some of the large hydro power plants.

To improve electricity supply, the country’s authorities are now focusing on renewable energies. An option for which Madagascar has great potential: 2,000 kWh/m²/year thanks to the 2,800 hours of sunshine per year, in terms of solar energy. The State is counting on renewable energy to meet 70% access by 2030.