Background
Madagascar has a rich and hitherto little used potential in renewable energies. The conditions for resource-saving energy production - by photovoltaics, hydropower or wind power - are excellent in Madagascar as compared with other African countries. But the country’s energy production is highly dependent on fossil fuels; this is due to the very low electrification rate (in 2013 only approx. 12% of the population) and to the current legislation on regulation of the energy sector, in which renewable energies are only marginally addressed.
The electricity regulation authority now plans a revision of the law, with one of its aims being a faster and more efficient implementation of renewable energy projects in the future and, in this context, investment security for projects in the energy sector.
Project
GAUFF Engineering provides technical and legal assistance in the revision of Law No. 98-032 on the regulation of the electricity sector in Madagascar. Its client is Madagascar’s electricity regulation authority, through the agency of the German Society for International Cooperation (GIZ).
In four participatory workshops on the step-by-step development of the revised version, GAUFF Engineering analyzed the local electricity sector and accompanied the legislation process. Weak points of the current legislation were explored, and improvement suggestions developed. The following topics were found to be particularly problematic:
- High market entry barriers
- Cumbersome procedures
- Lack of possibilities to sanction defaulting market participants
- Lack of regulations on the use of renewable energies
The new version of the revised text of Law No. 98-032 was presented to the client in June 2017, and submitted by the client to the National Assembly for approval. The new version of the law now provides the guidelines for the use and promotion of renewable energies, and the legal basis for investments from the private sector. This will allow for the development of a sustainable and modern energy supply in Madagascar.
Services
Analysis of the Madagascan electricity sector
Editorial and technical preparation of the update of Law No. 98-032
Support of the legislation procedure in six workshops
