Newsletter n°03 # 2018/2019

As executing agency of the Global Environment Facility (GEF), the United Nations for Industrial Development Organization (UNIDO) launched in 2015 the project entitled "Increased energy access for productive uses through small hydropower development in rural areas in Madagascar" in close collaboration with the Ministry of Environment, Ecology and Forest (MEFF) and the Ministry of Energy, Water and Hydrocarbons (MEEH) and their related entities.

This Newsletter presents some of the major achievements of the GEF/UNIDO project for the year 2018 and forecasts for 2019.

MadagascarRURAL ELECTRIFICATION – SMALL HYDRO POWER (SHP)

In partnershipwith :

SOURCE DE BIEN ETRE, PILIER DU DEVELOPPEMENT

UNIDO Madagascar 01 Newsletter n°3 / # 2018/2019

The GEF/UNIDO project supports the implementation of SHP in rural areas. To select sites and operators, the project follows the procedures of the Rural Electrification Agency (ADER) and Call for Proposals n°1 launched in 2015. With regard to the SHPs in the SAVA Region, it is important to underline the very close cooperation with the German Cooperation (GIZ and KfW). A letter of co-financing and partnership was signed in July 2018 with the KfW to carry out these projects.

To date 3 projects had been followed with attention:

Hydropower requires a lot of study to be able to define future hydroelectric production schemes. In 2018, several studies were carried out that will allow the implementation of the field projects expected to begin in 2019:

1/ Detailed Feasability Studies (DFS) of the SHP of JIRO TARATRA project in the Bongolava Region. The JIRO TARATRA project led by Casielec, foresees the installation of a mini isolated grid powered by two renewable energy sources: a 600 kW SHP capacity on the Mandalo River and 400 kW of direct injection solar power installed in strategic villages to be connected. UNIDO's support focused mainly on the overall design of the project, the energy demand studies carried out by EOSOL, the technical study of the SHP had been carried out by Artélia Madagascar, as well as support for the drafting of the business plan. The sizing of the solar installations, the grid connection and the environmental

study (PREE) still needs to be completed by Casielec in order to be able to present its application for the concession, secure co-finance and start construction in 2019/2020.

OVERVIEW OF STUDIES CONDUCTED IN 201812/ Launch of tenders for environmental studies for two SHP projects in the SAVA region. The technical pre-feasibility studies for the two SHPs in the SAVA Region are mainly supported through the SHER/Artélia office, commissioned by the KfW (German Development Bank). UNIDO follows the different stages and also supports the study phase by taking over the environmental studies. A call for tenders was launched in November 2018 for the recruitment of a consultancy firm which will be in charge of drafting: an Environmental Commitment

Program (PREE) for the Andriamanjavona project (1.3 MW) led by the company MADEN and an Environmental Impact Assessment (EIA) for the Belaoko Lokoho project (8 MW) led by the company HIER.

3/ In order to support ADER in the preparation and follow up of Regional Calls for Proposals, hydrometric stations were installed along 4 rivers in 3 regions in 2017 by the 3ERAE office (recruited through tender). 3ERAE mandates is to install stations, monitor data collection studies, write hydrological reports. A full year of measurements took place throughout 2018. The data recorded were both collected in the field by the station keepers and through automatic readings sent by satellite. The complete hydrological study reports will be available by March 2019. We appreciate the cooperation of the ADER, the General Direction of Meteorology, the local authorities and the diligence of the station keepers who made it possible to obtain reliable data.

Mandalobe

Andriamanjavona

Belaoko Lokoho

BONGOLAVA

SAVA

SAVA

Maritampona

Ampanefena

Belaoko

Mandalo

Ampanobe

Lokoho

600 kW

1200 kW

8000 kW

Name of the site Région Commune River Capacity

Casielec

MADEN

HIER

Operator

TITLE OF PROJECT:Increased energy access for productive uses through small hydropower development in rural areas in Madagascar

PROJECT OBJECTIVE:To stimulate the use of small hydropower to reduce Greenhouse Gas emissions and trigger productive use for income generation, in align-ment with strategic and policy priorities of the Government of Madagascar.

FUNDER: Global Environment Facility (GEF) – RAV-5

TOTAL BUDGET: 17.000.000 USD ■ GRANT: 2.855.000 USD ■ COFINANCING TO BE SECURED: 14.305.000 USD

DATES: 20 July 2015 – 15 July 2020 (Extension to 15 October 2021)

NATIONAL COUNTERPARTS:Ministry of Environment and Sustainable Deve-lopment (MEDD)• National Coordination Office for climate

changes and REDD+ (BNCCC-REDD+)

Ministry of Energy and Hydrocarbons (MEH) • Rural Electrification Development Agency

(ADER)• Regulatory Office of Electricity (ORE)

ASSOCIATED SUSTAINABLE DEVELOPMENT GOALS (SDG):

PROJECT OVERVIEW

At least 2 MW installed.

At least

13,140 MWh produced annually from SHP;

131,400 CO2 tep. avoided through direct emission methodology.

KEY OBJECTIVESOF THE PROJECT

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One of the components of the GEF/UNIDO project aims to promote capacity building and experience sharing among key actors in the rural electrification and small hydropower sector. Thus, during the last Steering Committee meeting, it was agreed that UNIDO will organize a mission in 2018 to the International Center for Small Hydropower (ICSHP) based in Hangzhou, China. ICSHP is a public non-profit organization under the auspices of UNIDO, the Chinese Ministry of Water and the Chinese Ministry of Commerce. Its main mission is to provide international training, research and consultancy services on SHP (< 30 MW). The ICSHP is also in charge, every two years, of writing and publishing the World Report on Small Hydropower.

Thus, from 18 to 26 November 2018, a mission was organized for a delegation from Madagascar. In line with UNIDO requirements and the requests of the Malagasy participants, ICSHP designed a tailor-made program combining theory and practice mainly on small hydropower but also on solar and biomass.

Fifteen people from Madagascar participated, including seven people from Ministries and related

entities (MEH, MEEF, ADER, ORE, BNCCC), six representatives of private operators working in the Small Hydroelectricity sector (HIER, BETC Nanala, MADEN, AIDER, SERMAD, CASIELEC); a professor from the Polytechnic Superior School of Antananarivo (ESPA) accompanied by part of the GEF/UNIDO project team based in Madagascar, the international project expert and a UNIDO headquarters representative. The mission started with a day of technical exchange and theoretical presentations by various engineers/researchers from ICSHP. In particular, technical innovations, safety, maintenance and good environmental practices were discussed. The rest of the mission was organized around field visits including several hydroelectric power plants, manufactures of turbines, solar panels and electrical equipment as well as a visit to the Chinese Bamboo Research Center. The various field visits were a real opportunity for the Malagasy delegation to realize the specificities of hydropower and solar development in China. The ICSHP is currently working on International technical guidelines for the development of SHP that would be very relevant to share with Madagascar which is currently reviewing its legal framework on the electricity sector.

The GEF/UNIDO project is supporting universities and young engineering students as much as possible. Thus, a memorandum of understanding was signed between the GEF/UNIDO project and ESPA in May 2018. This agreement highlights responsibility and involvements of both parts. It includes in particular yearly “recruitment” of interns (especially for 5th year students from hydraulic engineering and industrial engineering) throughout the project lifetime. In addition, once the construction projects of the SHP will start, sites’ doors will be opened to students in order to benefit from practical experience. Also, the creation of a master's degree in hydroelectricity is under discussion and various lectures (at least 2 / year) are planned to be given for the students by international and national consultants. The GEF/UNIDO is very pleased about this collaboration and does not exclude other partnerships with other academic institutions.

HIGHLIGHT

VISIT OF A DELEGATION FROM MADAGASCAR TO THE INTERNATIONAL CENTER ON SMALL HYDROPOWER (ICSHP)

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CLOSE COLLABORATION WITH POLYTECHNIC SUPERIOR SCHOOL OF ANTANANARIVO (ESPA)

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Signature of the Agreement-in-Principle between the GEF/UNIDO project and ESPA.

DID YOU KNOW?

What is the “LCOE”? The LCOE (Levelized Cost Of Energy) is increasingly becoming a bench-mark indicator for renewable energy production projects.

LCOE is a method of calculating the cost of electricity produced that can be used to compare different sources of electricity production or projects with each other. It is an economic estimate of the cost of an energy producing asset, which is generally defined as: the discounted sum of capital expenditure and operating and maintenance costs, divided by the discounted sum of the annual quantities of energy (the number of kWh) that the asset will produce over its lifetime.

The result is presented in EUR/kWh (or other currency). It is therefore a decision support tool to guide decision-makers in the choice of projects. Although widely used, the LCOE must be used with caution as the results are highly dependent on the initial assumptions and do not take into account all the services rendered.

Signing of internship contracts for ESPA students with UNIDO.

Tour of the Pheonix Hydroelectric Powerplant, Anji, 500 kW.

Visit of the Tianhuangping Pumped Energy Transfer Station (PETS), 1800 MW.

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A MEASUREMENT, REPORTING AND VERIFICATION (MRV) TOOL FOR THE RENEWABLE ENERGY SECTOR IS AVAILABLE.

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NEXT STEPS 20196

SPOTLIGHT5We are pleased to introduce Mr. Heng LIU, the new GEF/UNIDO Project Manager. Mr. LIU took office in February 2018. After 8 years as Director of the International Center for Small Hydropower (ICSHP), Mr. LIU lately joined UNIDO Headquarters team in Vienna and replaces Mr. Mark DRAECK, whom we thank warmly for his management of the project during the first three years. “Tonga soa” Mr. LIU!

OPPORTUNITY STUDY FOR THE LOCAL MANUFACTURING OF BANKI TURBINE. March 2019 Following the mission of an international expert and the drafting of a scoping note on local turbine manufacturing, a national consultant was recruited to draft a market-oriented opportunity study for the potential local manufacture of Banki turbines between 50 and 300 kW. This note will be available in March 2019 and will present the opportunities/challenges for local turbine manufacturing. It is a necessary and complementary prerequisite to the launch of a call for tenders to select companies potentially interested in this activity.

ATLAS OF POTENTIAL SMALL-SCALE HYDROELECTRIC SCHEMES IN THE VATOVAVY FITO-VINANY REGION. October 2019 The GEF/UNIDO project faces delays but will deliver the Atlas of potential SHPs (<20 MW) in the Vatovavy Fitovinany Region. About 60 sites are listed and will be detailed in this atlas which will be divided into 3 volumes. The atlas will be handed over to ADER and the V7V region in October in view of the launch of the next Call for Rural Electrification Projects, which will be freely available from December.

QUALITY TEST - PRE-STRESSED CENTRIFUGED CONCRETE POLES. March 2019The JIRO KANTO hydroelectric project carried out by the company BETC Nanala in Ambatondrazaka and supported by the European Union has developed a decentralized manufacturing activity of concrete electricity poles. First of its kind in Madagascar, the company has chosen an innovative manufacturing process by producing prestressed centrifugal concrete poles. UNIDO supports this sector by recruiting the National Laboratory of Public Works and Building (LNTPB) to realize quality tests on these poles.

A Measurement / Reporting / Verification (MRV) tool for renewable energy / electricity sub-sector is operational and implemented since the end of May 2018. This MRV tool is the first step towards a national carbon registry for the energy sector. The objective is to standardize the reporting of information relating to renewable energy production and to associate calculations of greenhouse gas (GHG) emission reductions to be used on the international stage. It also serves as a monitoring tool for the objectives set by Madagascar in the National Determined Contributions (CDN) (Madagascar's commitment following COP21 and the ratification of Paris Agreement) as well as in relation to the New Energy Policy (NPE). In practice, it enables to calculate each year i) the GHG emission coefficient of the Antananarivo interconnected grid ii) the emission reduction associated with the production of renewable energy at the national level compared to the year 2015 (baseline). The MEH and the MEEF have signed a memorandum of understanding in order to share the tasks of monitoring, calculation and validation to be carried out each year.

Field visit to the electricity dispatching center JIRAMA of Ambohimanambola Antananarivo.

End of the training day for the working group in charge of the definition of the MRV tool.

UNIDO Office in Madagascar Bât Ariane 5, Zone Galaxy Andraharo BP 1348 – Antananarivo 101 - MADAGASCAR

+261 20 23 365 40office.madagascar@unido.org

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