Madagascar Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Madagascar

  1. World Bank, 2018, The force of the sun-Madagascar embarks on renewable energy production, https://www.worldbank.org/en/news/feature/2018/10/10/the-force-of-the-sun-madagascar-embarks-on-renewable-energy-production
  2. Irena, (August 8, 2023), Energy Profile Madagascar, , https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Africa/Madagascar_Africa_RE_SP.pdf
  3. Africa Energy Portal, 2022, Madagascar, https://africa-energy-portal.org/aep/country/madagascar
  4. Irena, 2012, Renewable Energy Technologies Cost Analysis Series, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2012/RE_Technologies_Cost_Analysis-HYDROPOWER.pdf
  5. Scaling Solar, Madagascar, https://www.scalingsolar.org/active-engagements/madagascar/
  6. PV Magazine, (June 16, 2016), Plan to double size of 20 MW Madagascar solar park, https://www.pv-magazine.com/2021/06/16/plan-to-double-size-of-20-mw-madagascar-solar-park
  7. Esi Africa, (January 9, 2024), Solar PV at oil power plants in Madagascar for energy efficiency, https://www.esi-africa.com/magazine-article/solar-pv-at-oil-power-plants-in-madagascar-increase-energy-efficiency/
  8. Borgen Project, (October 18, 2020), Alleviating poverty with solar energy in rural Madagascar, https://borgenproject.org/solar-energy-in-rural-madagascar/
  9. PV Magazine, (July 18, 2023), Madagascar launches tenders for 210mw of pv https://www.pv-magazine.com/2023/07/18/madagascar-launches-tenders-for-210-mw-of-pv/
  10. Database Earth, Electricty Generation Madagascar, https://database.earth/energy/electricity-generation/madagascar
  11. IEA, Energy system of Madagascar, https://www.iea.org/countries/madagascar
  12. Energizing finance, December 2019, Taking the pulse of energy access in Madagascar https://www.seforall.org/system/files/2019-12/Taking-Pulse-Madagascar_0.pdf
  13. Repp, Malile, https://repp.energy/project/malile/
  14. Enerdeal, A 1 MWh solar park in Nosy Be/Madagascar, https://www.enerdeal.com/en/projects/finexpo-madagascar
  15. Next source materials, (July 6, 2023), NextSource Materials Announces Completion of 2.6MW Solar Farm at Molo Graphite Mine in Madagascar, https://www.nextsourcematerials.com/nextsource-materials-announces-completion-of-2-6mw-solar-farm-at-molo-graphite-mine-in-madagascar/
  16. Africa Energy, (September 10, 2020), Madagascar: Filatex to start up solar projects, https://www.africa-energy.com/news-centre/article/madagascar-filatex-start-solar-projects
  17. GOGLA, December 2022, Madagascar Country Brief, https://www.gogla.org/wp-content/uploads/2022/12/Madagascar-Country-Brief.pdf
  18. Advanced Salary, Average Salary in Madagascar 2024, https://advancedsalary.com/insights-into-income-levels-and-trends/average-salary-in-madagascar/
  19. Worldometer, 2024, Madagascar Population, https://www.worldometers.info/world-population/madagascar-population/
  20. Solar Quarter, (December 1, 2023), Investment Opportunities in Madagascar’s Solar Sector (2024), https://solarquarter.com/2023/12/01/investment-opportunities-in-madagascars-solar-sector-a-2024-perspective/
  21. World Bank, (April 7, 2023), Madagascar Set to Expand Access to Renewable Energy and Digital Services thanks to $400 Million Credit, https://www.worldbank.org/en/news/press-release/2023/04/07/madagascar-afe-set-to-expand-access-to-renewable-energy-and-digital-services-thanks-to-400-million-credit
  22. Economic Development Board of Madagascar (EDBM), January 2018, Invest in Energy Madagascar: The Boundless Energy Island, https://edbm.mg/wp-content/uploads/2018/01/Guide-Energie-ENG.pdf
  23. Enfsolar, Solarmad, https://fr.enfsolar.com/solarmad
  24. Investisseurs & Partenaires (I&P), HERi https://www.ietp.com/en/company/heri
  25. Jiro Ve, https://jirove.com/
  26. Gogla, https://www.gogla.org/about-us/
  27. Enfsolar, Greenline Technologies, https://www.enfsolar.com/greenline-technologies
  28. Enfsolar, Mada Green Power, https://www.enfsolar.com/mada-green-power
  29. Enfsolar, Power Technology, https://www.enfsolar.com/power-technology
  30. Greengywatt, http://www.greengywatt.com/
  31. Ministry of Energy, Madagascar, Scaling Up Renewable Energy In Low Income Countries Program (SREP) https://www.cif.org/sites/default/files/meeting-documents/madagascar_eoi_0.pdf

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Madagascar boasts an average of 2,800 sunshine hours per year, making it an ideal location for Madagascar solar energy production. The country enjoys abundant sunshine across all regions, with an estimated solar power potential of 2,000 kWh/m²/year.1

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kWh per kWp installed

While precise figures are not readily available, an estimate of 1,600 kWh/kWp/yr is common for Madagascar, given the abundant sunlight.2

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Average cost per kWh from utility company

The average cost of electricity from JIRAMA, the national utility, is relatively high, often around $0.26 USD per kWh, making off-grid solar a more attractive option for many households.3

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Reliability of electrical power supply grid

The electricity grid in Madagascar is often unreliable and suffers from frequent load shedding, primarily due to operational challenges and financial shortfalls faced by JIRAMA.5

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    Madagascar has an installed solar capacity of approximately 33 megawatts (MW).20

    Total solar panel production capacity (projected)

    Madagascar is poised for significant growth in solar panel production capacity, with a projected increase to a much larger capacity, including added energy storage.

    • The Ambatolampy solar field is set to double in size, from 20 MWp to 40 MWp, with added energy storage.6
    • The country has launched tenders for a 200 MW solar project near Antananarivo and a 10 MW facility on its north coast.9

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    • Hydropower: The levelized cost of electricity (LCOE) for hydropower refurbishments and upgrades ranges from USD 0.01/kWh to USD 0.05/kWh. The Farahantsana Hydroelectric Power Station sells electricity to JIRAMA at seven cents per kWh.4
    • Solar: Off-grid solar home systems can cost between USD 27 and USD 35. The World Bank’s LEAD19 project aims to electrify 1.7 million people with solar home systems.8 Specific costs for grid-connected solar are not readily available.

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    • Other Fossil Fuels: In 2021, these accounted for 53.11% of the total electricity produced.10
    • Hydro Power: Hydroelectric sources contributed 33.49% to the electricity mix.10
    • Coal: Coal was responsible for 12.44% of the electricity generation.10
    • Solar: Solar energy made up 0.96% of the total.10
    • Biofuels and Waste: In 2019, these made up 85% of the total energy supply.11

    Average daily availability of electricity from the national grid (measured in hours)

    Specific data on average daily electricity availability is not readily available, but JIRAMA faces challenges, resulting in an unreliable grid with frequent load shedding.12

    Number of residential solar panel installations

    By the end of 2018, nearly one million stand-alone solar products had been sold, mostly in the preceding three to five years.12

    Total number of solar farms (installed and projected)

    There are currently 3 solar farms in Madagascar, with several more in various stages of development.69

    Off-grid market demand for solar panels (current and projected)

    • Current: Madagascar has a high demand for off-grid solar solutions due to an unreliable grid, affordability concerns, and ample sunshine. Between July and December 2020, approximately 59,000 off-grid solar units were sold, a 557% increase compared to the first half of 2020. This is attributed in part to the USD $40 million Off-Grid Market Development Fund Program.17
    • Projected: The demand for off-grid solar solutions is expected to grow as the government and international donors support the development of the sector.17

    On-grid market demand for solar panels (current and projected)

    • Current: In 2022, renewable energy, including solar, accounted for 83.6% of the total electricity volume in Madagascar (excluding wind power plants).8
    • Projected: The on-grid solar market demand is characterized by a growing interest in renewable energy to increase the national electrification rate and reduce reliance on non-renewable energy sources. Madagascar’s energy self-sufficiency increased from 83% in 2015 to 87% in 2020.2

    Average monthly income of workers in solar industry (labor cost)

    The average monthly salary for workers in the solar industry in Madagascar is not explicitly stated. However, the average monthly salary in urban areas is estimated to range from approximately $215 to $670 USD.18

    Population of the country

    Madagascar has a population of approximately 31,024,603 people.19

    Average overhead costs of solar panel production (with a brief breakdown)

    Data on average overhead costs of solar panel production in Madagascar is not available.

    A summary of the energy infrastructure

    • Electricity Generation: Madagascar’s primary energy sources include biofuels and wastes (85%), oil products (11%), coal, and hydro. The country has seven hydro-electric power stations, which generate about two-thirds of the country’s power output.11
    • Challenges: Only 26.9% of the population has access to electricity, and the existing infrastructure is often unreliable. This presents a significant opportunity for solar energy to address energy poverty and improve energy security.17
    • DECIM Project: The DECIM project aims to double energy access from 33.7% to 67%, connecting underserved areas to renewable energy and the internet.21

    Some of the government regulations surrounding solar panel production

    31

    • Law No. 98-032: This law, passed in 1999, reformed the electricity sector and promotes private investment and competition in the sector.
    • Board of Electricity Regulation (ORE): A regulator was created to regulate the sector and facilitate the participation of Independent Power Producers.
    • Law No. 2005-020: This is the competition law guaranteeing freedom and fair competition.

    Government initiatives in solar panel production (includes investments and subsidies)

    • OMDF Program: The USD $40 million Off-Grid Market Development Fund Program aims to enhance electricity access for households and SMEs through off-grid solar energy solutions.17
    • Scaling Solar Project: Madagascar is working on a 30-40megawatt solar facility, supported by the World Bank Group, to reduce daily power service interruptions and improve access to electricity.5
    • Ambatolampy Solar Field: The 20 MWp Ambatolampy solar field is set to double in size with added energy storage.6
    • Economic Development Board of Madagascar (EDBM): This office facilitates and promotes investment in Madagascar.31
    • National Electricity Fund (FNE): This fund was created in 2002 to accelerate the electrification of the country.31
    • Tax reductions: The 2017 Finance Law offers potential tax reductions of 50% for investments in renewable energy production and supply.22
    • Exemptions from duties and taxes: Various renewable energy equipment, including PV panels and solar kits, are exempt from import duties and taxes.22
    • Financial support: The National Fund for Sustainable Energies (FNED) provides guarantees, debt financing, and subsidies for sustainable energy projects.22

    Notable solar projects in the country (installed and projected)

    Installed:

    • Ambatolampy Solar Field: This was Madagascar’s first utility-scale solar park, commissioned in 2018 with an initial capacity of 20 MWp. It is located in Ambatolampy.6
    • Malile Solar PV Hybridisation Project: This groundbreaking project involves hybridizing heavy fuel oil plants with solar power. It aims to support Madagascar’s greenhouse gas emission targets. The project delivered 5.7 MW in the first phase.13
    • Nosy Be Solar Park: Inaugurated in November 2023, this park is located in Nosy Be, a popular tourist destination. It comprises 2022 solar panels installed on a one-hectare plot of land. The park provides 500 kWh per day, benefiting approximately 15,000 households.14
    • Molo Graphite Mine Hybrid Plant: NextSource Materials Inc. awarded a power supply contract to CrossBoundary Energy for the long-term supply of solar and thermal generation to power the operations of the Molo graphite mine. The hybrid plant includes a 2.5MW solar PV energy system, a 1MWh battery energy storage system, and a 3.3MW thermal energy system.15
    • Tamatave Solar Plant: This plant, with a capacity of 20 MW, is one of the first renewable projects commissioned by Filatex.16
    • Majunga Solar Plant: This plant, with a capacity of 12 MW, is another operational project by Filatex.16

    Projected:

    • Ambatolampy Solar Field: This is a 20 MWp solar park set to double in size to 40 MWp with added energy storage.6
    • Malile Solar PV Hybridisation Project: This groundbreaking project involves hybridizing heavy fuel oil plants with solar power. It aims to support Madagascar’s greenhouse gas emission targets. The project delivered 5.7 MW in the first phase with plans to add an additional 36.4 MW in the second phase.137
    • Ihazolava Solar Power Plant: This is a 200 MW solar project planned for development near the national capital, Antananarivo.9
    • Mahajanga PV Facility: This 10 MW solar facility is planned for the north coast of Madagascar.9
    • Scaling Solar Project: This project aims to establish a 30-40 megawatt solar facility to reduce daily power service interruptions and improve access to electricity.5

    Some of the notable solar companies (plus brief details on what they do)

    • Solarmad: Solarmad is an installation and solar panel distributor based in Antananarivo, Madagascar, providing photovoltaic panels and related services. They also offer installation services and are involved in distributing solar panels and related equipment.23
    • HERi: HERi is a local company specializing in solar home systems installation in Madagascar. They are known for their focus on providing clean energy solutions for homes in the country. They have been operating since 2012 and is leveraging its 10 years of experience.24
    • Jiro-Ve: Jiro-Ve is another local company actively involved in providing solar energy solutions in Madagascar. They are focused on delivering solar power solutions to the local community. They were established in 2014 and their mission is to make renewable energy accessible to people in Madagascar.25
    • GOGLA (Global Off-Grid Lighting Association): GOGLA promotes off-grid solar products globally, working with distributors and manufacturers to improve energy access and quality-verified products. They play a crucial role in ensuring the quality and accessibility of off-grid solar products in Madagascar and other countries.26
    • Greenline Technologies: Greenline Technologies began operations in 2017 and focuses on solar power solutions, including installation, maintenance, and consulting services in Madagascar. They provide a comprehensive range of services in the solar energy sector.27
    • Mada Green Power: Mada Green Power is committed to sustainable energy development, offering solar panel installation and related services in Madagascar. They specialize in providing sustainable energy solutions for various sectors in the country. Mada Green Power was established in 2016 and has been a driving force in sustainable energy development in Madagascar.28
    • Power Technology: Power Technology specializes in solar energy systems, catering to residential, commercial, and industrial clients in Madagascar. They are known for providing a wide range of solar energy solutions to different customer segments.29
    • Tanatech: Tanatech has been active since 2008 and specializes in solar panel installation and clean energy promotion in Madagascar. They are a well-established company with a focus on promoting sustainable energy practices.30

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