Madagascar plans to develop more solar power projects in a bid to reduce the costs of electricity production in the country. The government has received approval from the World Bank for a $40 million credit from the International Development Association for its implementation of the Madagascar Electricity Sector Operations and Governance Improvement Project (EGOSIP).
The financing will see the Performance Improvement Plan imposed on the Madagascan utility, a Bloomberg report said. Ultimately, the nation aims to create universal access to electrical power by 2030. Currently less than one in seven of Madagascar’s population is connected to electricity.
Lanto Rasoloelison, the country’s Energy Minister, said the government has set the target to reduce the cost of electricity from MGA850 ($0.26) per kWh for power sourced by oil and diesel, to MGA580 ($0.14) per kWh for solar power.
The project aims to diversify the source of power in the country, which see approximately 50% of its energy provided by thermal power.