Hydropower is the main type of energy used in Madagascar. With the abundance of small rivers on the island, hydropower has become the environmentally sound choice for generating electricity. It has contributed about two-thirds of the country's electric power. Madagascar has huge potential in the field of renewable energy with regards to hydropower. This could help improve the electricity coverage for people living in rural areas.Madagascar has an installed total electricity generating capacity of 810 megawatts. The average cost of electricity for domestic consumers is about US $0.14 per kilowatt hour. This cost is principally due to the use of expensive imported diesel fuel to feed the thermal plants. Given the dependency on the oil imports and in the line of long term development of the country, Madagascar has ideas for extending electricity access. Madagascar plans to increase the electricity access rate to 74% in urban environment and 10% in rural environment in the next 5 years. The energy supply will be derived from all possible sources of energy in Madagascar (solar, hydro, wind, bio).
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