Government launches 15-year expansion plan-
With an electricity access ratio of a little over 30 per cent and a per capita consumption of 232 kWh, Myanmar is one of the poorest performers in the Southeast Asian power segment. As of September 2014, the country had an installed capacity of 4,581 MW from 814 power plants, of which 3,044 MW or 65 per cent is based on hydro. This large dependence on hydro has resulted in unstable power supply for the nation owing to the seasonal nature of such power. Consequently, the country has drawn up plans to shift towards conventional power sources in the near future, including those based on coal and natural gas. In its goal for attaining energy sufficiency, Myanmar is receiving significant help from donor agencies and countries like Thailand.
Power development plan
Myanmar has mapped a 15-year power development plan, launched in November 2014, to increase the installed capacity from the current 4,581 MW to nearly 30 GW in the future. The plan aims to shift the pivot of Myanmar’s energy sector, which is currently hydropower, to other power sources including coal and natural gas and renewable sources like wind and solar. Moreover, emphasis has been laid on environmental and social impact assessments to minimise the adverse impact of power projects. In the transmission and distribution segment, the plan aims to work towards the reduction of losses and the expansion of power distribution to cover the entire nation and increase access to electricity.
The plan entails the establishment of 41 new power plants in the country, of which 12 will be new coal-fired power plants and 20 will be hydropower plants. These plants will be built from the years 2016-17 to 2030-31, and potential locations for these projects have been mapped out. The hydropower plants, with a combined capacity of 6,270 MW, will be established in the Mandalay region and in three states, namely, Kachin, Kayin and Shan. Of the 12 coal-based plants, four plants each, with a cumulative capacity of 12,780 MW, will be located in the Yangon and Tanintharyi regions. In the Yangon region, these plants will be located in the Thilawa, Kyauktan, Thilawa special economic zone (SEZ) and Kyunchankone.
Among the 20 new hydropower plants, a joint venture agreement for the Upper Thanlwin project in Shan state has already been signed. The memorandum of agreement (MoA) has been signed for six more projects while MoUs have been signed for another 10 projects. Two projects are at the feasibility study stage while one is still at the pre-feasibility stage.
However, plans for the establishment of these power plants have run into trouble. These projects have been facing resistance from the inhabitants of the region they are expected to be built in. For instance, communities in the Dawei SEZ, where a coal-based power plant is being planned, fear the negative impact of such power generation.
Recent awards and developments
While the government’s mega initiative is a welcome step on account of the fact that less than 100 MW of capacity has been added in the past five years, Myanmar’s power sector has otherwise been witnessing growing investor attention for the past few years. Apart from the newly launched plan, the government has awarded various power projects to private developers in the recent past.
In February 2014, US-based power company APR Energy was awarded a contract to develop a 100 MW gas-based power plant in Kyaukse, Mandalay, which will use gas from the Shwe project.
The Ministry of Electric Power (MoEP) also floated tenders for the generation of electricity in the Kyaukphyu SEZ in Rakhine state in September 2014. The natural gas-fuelled plant is slated to produce up to 50 MW of electricity using 20 million cubic feet of natural gas per day.
The MoEP came out with another tender in September 2014 for four projects. These are for electric power generation projects through an IPP system at the Shwe Taung electric power plant, an electric power generation project after hiring a gas engine or gas turbine at the Myin Gyan area, upgradation of the second gas turbine at the Ywarma power generation plant (240 MW), and provision of long-term maintenance, including upgradation of control systems, at the Ywarma power generation plant (240 MW). The result of the tender is currently awaited.
In November 2014, a 50 MW plant was announced in the Thilawa SEZ. The SEZ will have its own gas-fired backup generator to be built by Myanmar Electric Power with official development assistance loans from Japan. An additional 20 MW needed for the SEZ will be taken from the national power grid.
In the renewable energy segment, an MoA was signed for two solar power projects with a cumulative capacity of 520 MW. These are the Nabuaing and Wundwin plants to be established in the Mandalay region and the Minbu plant to be set up in the Magway region.
In August 2014, US-based ACO Investment Group signed an agreement with the MoEP for the development of two 150 MW solar energy plants entailing an investment of $480 million. In 2013, Green Earth Power (Thailand) announced plans to invest $275 million in a 210 MW solar farm.
Donor agencies and external cooperation
Myanmar is also attracting a lot of foreign investment, which is much needed for this capital-deficit nation. Ironically, the country is rich in natural resources, which, if properly exploited, can solve several of Myanmar’s woes, including those related to power shortage.
Consequently, the country has attracted significant donor aid in the recent past. In January 2014, the visiting World Bank president Jim Yong Kim pledged $1 billion to the country over a number of years to help expand electricity access. In addition, in September 2013, the World Bank approved a $140 million zero interest loan for the government to refurbish a 106 MW gas-fired plant at the Thaton township in Mon state.
Japan’s international aid agency, the Japan International Cooperation Agency, is developing a nationwide master plan for power in Myanmar. The Asian Development Bank and others are also undertaking work to improve the national grid in order to reduce power losses.
Thailand-based Ratchaburi Electricity Generating Holding recently signed an MoU for the development of the 2,640 MW Myeik clean coal-fired power plant project in the Tanintharyi region of Myanmar. In addition, the PTT Group, Thailand’s largest oil company, along with Japan’s Marubeni Corporation and Ayar Hintha Company signed an MoU in October 2014 with Myanmar’s MoEP to conduct a feasibility study for an 1,800 MW coal-fired power plant.
To conclude, while the electricity development indicators of the nation have been in jeopardy for some time now, the country has drawn up elaborate plans to fix the various issues it is facing. As mentioned above, it is being heavily aided by foreign agencies for the attainment of this goal. However, the final impact of such plans is entirely contingent on their effective implementation.
