Official development assistance (ODA) is government aid that promotes and specifically targets the economic development and welfare of developing countries. As such, ODA has been the main source of financing for development aid since it was adopted by the Organisation for Economic Co-operation and Development (OECD)’s Development Assistance Committee (DAC) as the ‘gold standard’ of foreign aid in 1969.
The PowerPath project falls within the scope of ODA because it addresses sustainable development, poverty alleviation and capacity building, through its aim of improving access to electricity in rural areas of Madagascar. PowerPath will provide economic opportunities leading to better living conditions and a reduction in poverty levels, and by utilising renewable energy sources, there will be less environmental degradation and reliance on fossil fuels.
Madagascar faces electricity access challenges. Overall, 70% of the population lacks access and in rural areas, it is 85% of the country's population lacking electricity (World Bank, 2020). PowerPath addresses this by improving access to clean, affordable energy. In turn this helps to relieve poverty rates, in alignment with Sustainable Development Goal (SDG) 8 which promotes inclusive and sustainable economic growth, full and productive employment, and decent work for all.
Access to electricity enhances economic opportunities, improves access to education and healthcare, and supports business growth, all of which contribute to reducing poverty. By 2026, 5,000 nanogrids, and 10-50 microgrids each connecting 10-40 nanogrids, will be deployed through PowerPath, reaching circa 800 rural communities in Madagascar. There are approximately 100 households per community and each nanogrid will serve five households.
Madagascar has the highest biodiversity priority on the planet, threatened by rapid population growth, and leading to increasing demand for land and natural resources (USAID, 2021). PowerPath leverages the country’s abundant, renewable solar energy potential of 4-5.5kWh per square metre per day and 44,000MW in terms of average annual solar irradiation (National Renewable Energy Action Plan, 2021), supporting sustainable development.