Pipeline Projects

Hydraulic power development for productive uses in rural areas


Today, the situation of the energy supply in Madagascar is paradoxical. The country is increasingly dependent on fossil fuels and thermal electricity with increasing production cost, while it has a large renewable energy potential undeveloped.

Madagascar represents the 5th potential for hydropower in Africa. Only 3% is currently exploited, while only 20% of the Malagasy population have access to electricity in the cities and 6% in rural areas.

UNIDO, in partnership with the Rural Electrification Development Agency (ADER) within the Ministry of Energy, intends to develop pilot renewable energy projects that are financially sustainable in rural areas.


Create an economic model to stimulate the use of small hydropower (SHP) reducing CO2 emissions and triggering productive use for income generation,  This objective fulfills the governmental priorities, as outlined in the National Policy for the Environment.


  • Relevant  policies and regulatory framework supporting the development of SHP is developed
  • The hydroelectric plant with a capacity ranging from 100 to 1500 KW provide energy to the craftsmen and SMEs in the area
  • Capabilities to develop, construct and manage the supply of hydropower are reinforced while artisans and local SMEs improve their performance and ability to finance the  consumed energy
  • An economically viable model for financing facilities based on a public-private partnership (PPP) is created to ensure that projects are duplicated in other regions.

Expected Output

  • The policy framework for an increased use of SHP for productive use is reviewed
  • Training to assess and develop, build and manage, operate and maintain SHP is provided to targeted institutions  and projects developers
  • Construction of an indicative 1 to 3 SHP plants (in the capacity range of 100 to 1500 kW)
  • SME are strengthened in their management capacity, their competitiveness and in the appropriate use of electricity for income generating activities
  • Best practices and lessons learned are disseminated, and a platform is created to promote cooperation between local actors and international centres and technology suppliers.


  • Industries and local craftsmen supplied with electricity, generated from the small hydropower stations
  • Electricity Distributors
  • Managers of dams
  • Local population.

Deadline and budget

Deadline : 48 months
Previous Budget: 3, 220,000 USD + co-funding
Funds: Global Environment Funds (GEF), Rural Electrification Development Agency (ADER), Private sector.


The country has great potential using hydraulic power