The Sustainable Energy Fund for Africa approved a $1-million grant to finalise pre-investment activities for a hybrid renewable-energy project on Nosy Be Island, in Madagascar.
The grant would be used to finance feasibility studies for a combination of hydro, wind and solar technologies and provide technical assistance to the national power utility.
The $30-million renewable-energy project was aimed at constructing a more sustainable power generation complex with an initial capacity of 8 MW to partly substitute and complement the existing high-cost thermal electricity generation on the island.
It would also reinforce the quality of services to existing customers of the utility and double the electricity access rate in Nosy Be to 70% within five years from the operational start.
Seventy new businesses and around 300 additional jobs a year would be created as a result of the additional electricity supplied by the project.
As a result, around 50 000 people would benefit from more reliable energy services.
The African Development Bank would also play a catalytic role and pave the way for private investors and other financiers to work towards delivering a sustainable energy solution for the island.