Fostering the development of an innovative sustainable electricity network in rural areas (Nanoé)

While the population is set to double by 2050, over 20 million Malagasy in a total population of 28 million currently live with no electricity. Most depend entirely on “traditional” methods for lighting: wood fires, candles, petrol lanterns, torches. Furthermore, people aged under 35 - making up over two-thirds of the population - are for the most part without stable employment so are economically insecure. In this context, access to low-cost renewable electricity is an economic, social and environmental necessity.

Supported by the FFEM, the project from the French-Malagasy company Nanoé is working to facilitate the development of an innovative lateral electrification model, something made possible by renewable energies as well as new information and communication technologies.

The project has 4 components:

• Consolidate the lateral electrification model in preparation for its upscaling on a technological, organisational and institutional level.
• Progressive roll-out of new lateral electrification platforms, structuring entrepreneurial industries, constructing nano-networks (intelligent solar arrays) and connecting subscribers.
• Undertake set of small-scale technological and social experiments alongside phased roll-out of the model to allow it to ultimately magnify its economic and social impact.
• Analyse and share the programme’s results and preparing its subsequent phases.

• Deploye 9,000 supplementary nano-networks in 8 rural districts across 4 regions of northern Madagascar.
• Open 6 new lateral electrification platforms for use by nano-entrepreneurs in the 8 districts.
• Train and support for 270 young rural nano-entrepreneurs.
• Connecte 40,000 subscribers, of whom over 2,000 are commercial users, and 1,000 public lighting points, to an affordable and sustainable electrical base supply.
• Create operational micro-financing solutions for the nano-entrepreneurs.

The programme supported by the FFEM brings numerous innovations. In fact, this smart grids project - combining digital technologies with electricity - aims to revolutionise the construction of electrical grids through a progressive and flexible approach, in a context of fast-growing energy demand. In addition, the innovations implemented aim to set up a horizontal rural services sector built around a community of independent entrepreneurs. The provision of energy comprises the basic service for these entrepreneurs, but there is scope to extend their offer to other essential services. At the financial level, the project should open up a new field for microfinance in the sustainable infrastructure construction sector.