Electricity production : the hydroelectrical potential of Madagascar is largely unexploited, with a technical potential of 7800 MW opposed to a mere 293 MW actually produced. Huge investments are necessary to fulfil the whole technical potential of 180 TW per year.

- Petrol: exploration of Madagascar’s existing reserves is under way.
- Coal: very abundant in Madagascar, it was considered non profitable until the recent ongoing increase of petrol prices.
- Solar energy: with more than 2800 hours of sunshine per year all over the island, Madagascar can be classified as a high potential country. Just like coal, solar energy was made more attractive by petrol costs.
- Wind power: mainly used for water pumping and electricity production, it is not interesting at the moment because high potential areas are too far away from industrially active areas.
Other energy sources could be used in replacement for petrol gas, such as wood, biogas, jatropha, etc.

Sector is still underdeveloped despite great potentialities.

Energy consumption in Madagascar is shared between sustainable sources and petrol gas. Sustainable source are mainly composed of hydro electricity, while other sources play only a negligible role. 77% of total electricity produced in Madagascar comes from fuel oil, and this ratio has been stable for a few years now. Energy consumption per capita is very low, only 160 KW, probably because of poor economic performances. Because of rising prices, energy consumption has even backed off in 2005, and without a major revolution, economic growth objectives to fight against poverty will not be attained.

Prospects

Aware of the high stakes, the Malagasy government has initiated a series of actions to make the sector more competitive and efficient. Since 1998, the government has taken decisive steps in order to: grant electrification all across the country at affordable prices; quicken urban electrification (50% in 2005) and rural electrification (10% in 2005); promote alternative sources of energy. As for the hydrocarbons sub sector, the government’s aims are to: grant equal access to good quality products and services to all citizens; ensure that the market is really free and competitive; attract new investors and companies by creating favourable conditions in order to develop and diversify supply infrastructures.

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