Additionally, over 200 private minigrids and 2,000 nano-grids operate independently,pili highlighting both the demand and the decentralized nature of the electricity market.93 Urban and peri-urban areas face constrained supply and poor service quality, which has a direct impact on economic productivity. outages and voltage fluctuations.94 Despite these challenges, there is evidence of a willingness to pay for better service - 17% of businesses use backup generators, and the diesel genset market was valued at over US$21 million in 2023.95 This underscores the urgent need for reliable energy solutions in high-demand Policy and regulatory frameworks show moderate support for renewable energy expansion. The law (Code de I'Electricité, 2017) that prioritizes renewable energy and liberalization of the electricity de Régulation de I'Electricité (ORE), have demonstrated strong institutional capacity in tendering, processing private applications, and tariff approvals for DER projects.97 However, challenges remain, technologies and coordination issues between various government and regulatory entities.98 As a result, the projects and is committed to tariff reforms.99 Private sector interest is evident, with several existing small IPP projects and more than 30 active private minigrid operators with some of them exploring partnerships with JIRAMA on DER models.1oo Leading private developers like ANKA and Welight are raising significant capital and deploying minigrids at scale.101 to be built and operated by the private sector.102 Overall, Madagascar demonstrates significant potential for IMG deployment, with a weak grid, high proven demand, and strong private sector participation in the electricity sector. The policy landscape will need to continue evolving to accelerate progress. 4.4. Comoros - Moderate potential for IMGs vi Nano-grids are small, localized, solar-powered systems that provide electricity to 4-6 households, primarily in rural