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Power Development Opportunities

in Myanmar

Dr. Maung Maung Kyaw


Chief Engineer
Electric Power Generation Enterprise
Ministry of Electricity and Energy

Myanmar Investment Forum 2017


Nay Pyi Taw, Myanmar
(6~7 June, 2017)
Outlines

 Institutional Framework
 Energy Policy of Myanmar
 Overview of Myanmar Power Sector
 Investment Opportunities
 Challenges
 Conclusion

2
 Institutional Framework for Myanmar Electricity & Energy

Petroleum & Electricity MINISTRY OF ELECTRICITY & ENERGY


Geothermal

MINISTRY OF MINERAL RESOURCE & ENVIRONMENTAL


Coal
CONSERVATION

Energy Efficiency and Conservation MINISTRY OF INDUSTRY

MINISTRY OF EDUCATION (Leader)

Renewable Energy MINISTRY OF AGRICULTURE , LIVESTOCKAND IRRIGATION


(Solar, Wind,
Mini/ Micro Hydropower,
MINISTRY OF ELECTRICITY AND ENERGY
Biomass,
Bio-fuels,
MINISTRY OF MINERAL RESOURCE & ENVIRONMENTAL
Biogas)
CONSERVATION

MYANMAR ENGINEERING SOCIETY & RENEWABLE ENERGY


ASSOCIATION MYANMAR

Civilian Nuclear Energy MINISTRY OF EDUCATION 3


3
 Institutional Framework for Myanmar Electricity & Energy (Cont;)

Ministry of Electricity and Energy (MOEE)

Minister Office

Department Electric Power Planning (DEPP) Electric Power Planning


Department of Hydropower Implementation (DHPI) Implementation of Hydro Power Project

Electric Power Generation Enterprise (EPGE) GENERATION PRIVATE

Department of Electric Power Transmission &


TRANSMISSION
System Control(DEPTSC)
Electricity Supply Enterprise (ESE)

Yangon Electricity Supply Corporation (YESC) DISTRIBUTION PRIVATE

Mandalay Electricity Supply Corporation (MESC)

Oil and Gas Planning Department (OGPD)

Myanma Oil and Gas Enterprise (MOGE)


Mini Office : 1
Department : 4
Myanma Petrochemical Enterprise (MPE) Enterprise : 5
Corporation : 2
Myanma Petroleum Products Enterprise(MPPE)
4
 Institutional Framework for Myanmar Electricity & Energy (Cont;)

Electric Industrial Structure of Myanmar(MOEE)

5
5
 National Energy Policy of Myanmar

Following are specially emphasized points on Power Sector,

 In extraction and utilization of natural resources, following measures shall be taken;


 To minimize the environmental impacts
 To invite the local and foreign investments
 To carry out CSR

 To observe the ASEAN and international energy pricing policy for defining the energy
pricing
 To ensure stable and fair price for consumer
 To guarantee the economic benefits for energy producers and energy distributers

 To change to the privatization

 For getting more generation, we have to utilize not only from hydro, renewable and
thermal power plants but also from other energy resources.

 To be planned for increasing of reserved power

6
 Overview of Myanmar Power Sector

Development of Annual Consumption Consumption by Sectors for (2015-2016)

Total Consumption (kWh - million) Unit (kWh Million)


18,000 15,355
16,000 13,550 248.762
14,000 11,407 1.84%
12,000 9,795
10,000 7,877 8,441
8,000 6,467
2506.079
4120.768
6,000 18.49%
4,000
30.41%
2,000
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
6674.658
49.26%

Per Capita Consumption (kWh / yr)


350
300
300 263
250 222 Industrial Household Commercial Others
200 163
131 141
150
108
100

50

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 7
 Overview of Myanmar Power Sector (Cont;)

Development of Power Distribution to Townships

Nos. Electrified Development of Electrified


of Township Electrified Township Township
Township (2010-2011) (2011 to 2015) (2015-2016)

422 396 (94%) 26 422 (100%)

The Improvement of Rural Electrification

Nos. Electrified Development of


Electrified Village
of Village Electrified Village
(2016-2017)
Village (2010-2011) (2011 to 2015)

63,859 14,171 (22%) 16,179 31,781 ( 49.76%)

The Electrified Household (2016-2017)


(million)

Nos. of Total Household Electrified Household

10.877 4.11 ( 37.8 %)


8
 Overview of Myanmar Power Sector(Cont”d)
Installed Capacity of Power Plants (2016-2017)
Type of Plant Coal Hydro Gas Diesel Total
Capacity (MW) 120 3,255.18 1,919.9 94.30 5389.37
Energy Mix by
2.23 % 60.4 % 35.6 % 1.75 % 100%
Capacity
Power Generation (2016-2017)
Type of Plant Coal Hydro Gas Diesel Total
Generation (GWh) 9.59 9,743.85 8,052.43 61.12 17,866.99
Energy Mix by
0.05 % 54.54 % 45.07 % 0.34 % 100 %
Generation
Transmission Lines and Substations ( 2016-2017)
Voltage Transmission Line Substation
(kV) Nos. of Line Line Length (mile) Nos. MVA
230 63 2,777.860 37 5,120.00
132 41 1,361.648 23 1,592.50
66 117 2,923.514 217 3,595.55
Total 221 7,063.022 277 10,308.05 9
 Overview of Myanmar Power Sector(Cont”d)
Changes of Energy Mix by Installed Capacity of Power Plant
6000 100% 1.6% 1.7% 2.1% 2.1% 1.9% 1.9% 1.7%
(MW)
90% 20.9% 19.9% 19.2%
5000 22.6%
29.4% 34.9% 35.6%
80%
70%
4000
Diesel 60% Diesel
3000 Gas 50% Gas
Hydro 40% 73.9% 75.1% 75.5% 72.5% Hydro
2000 66.3% 60.8%
30% 60.4%
Coal Coal
20%
1000
10%
0 0% 3.5% 3.3% 3.2% 2.9% 2.5% 2.3% 2.2%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Changes of Energy Mix by Generation of Power


10000 100% 0.4% 0.4% 0.5% 0.5% 0.5% 0.3% 0.3%
(MWh)
9000 90% 23.3% 24.5% 26.3% 26.4%
8000 80% 36.7% 40.8% 45.1%
7000 70%
6000 Coal 60% Diesel
5000 Hydro 50% Gas
4000 Gas 40% 71.8% 72.1% 70.8% Hydro
72.0%
3000 30% 62.4% 58.8%
Diesel 54.5% Coal
2000 20%
1000 10%
0 0% 4.5% 3.0% 2.4% 1.1% 0.5% 0.0% 0.1%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
10
 Overview of Myanmar Power Sector(Cont”d)

Ownership of Power Plants Development of Private Sector


By Installed Capacity (%) (Yearly Generation )
(2016-2017) (%)
2% 100%
6.2%
12.0% 16.0%
8% 90%
23.6% 18.9% 24.9%
80% 35.9%
45.4% 48.4%
12% 70%

60%

50%
93.8%
88.0% 84.0%
40%
76.4% 81.1% 75.1%
18% 60% 64.1%
30%
54.6% 51.6%
20%

10%

0%

State Own JV/BOT IPP/BOT


IPP/Rent IPP/Ren/Transf State Own JV, IPP & Other

11
 Overview of Myanmar Power Sector (Cont”d)
Under Construction Projects Sr. Gas Turbine Project MW Remark

Sr. Hydro Power Project MW Remark 1 Thaton 118 State Own

1 Upper Nanhtwan 3.2 State Own 2 Myingyan (Sembcorp) 225 IPP/BOT

2 Shweli (3) 1050 State Own 3 Thaketa (UREC) 106 IPP/BOT

3 Deedoke 66 IPP/BOT 4 Kanbauk (UPA) 200 IPP/BOT

4 Upper Yweywa 280 State Own Total 649

5 Middle Paunglaung 100 IPP/BOT Sr. Solar Power Project MW Remark


6 Upper Kyaingtaung 51 State Own 1 Minbu 170 IPP/BOT
7 Upper Beluchaung 30.4 State Own 2 Wundwin 150 IPP/BOT
8 Thahtay 111 State Own 3 Nabuaing 150 IPP/BOT
Total 1691.6 Total 470

Transmission Line and Substation Project


Voltage Transmission Line Substation
(kV) Nos. of Line Line Length (mile) Nos. MVA
500 1 146 2 1,500
230 10 603.31 19 1,900
132 - - 1 100
66 13 579.85 16 155
Total 24 1,329.16 38 3,655 12
 Overview of Myanmar Power Sector(Cont”d)

Rehabilitation Power Projects (Hydro) Rehabilitation Power Projects (GT)


Sr. Hydro Power Project MW Remark Sr. Gas Turbine Project MW Remark
1 Blauchaung No. (1) 28 Japan ODA Loan
1 Thaketa 57 JICA Loan
2 Sedawgyi 25 Japan ODA Loan

Total 53 Total 57

Power Stations to be Rehabilitated New Power Stations to be Developed


Sr. Hydro Power Project MW Remark Sr. Solar Power Project MW Remark
1 Zaungtu 20
1 Zaungtu 30 State Own
2 Zawgyi (2) 12
2 Kun 30 State Own
3 Yenwe 25
3 Shwegyin 30 State Own
4 Kinda 56
5 Mone 75 Total 90

6 Thapeinzeik 30
7 Kabaung 30
Total 528

13
 Overview of Myanmar Power Sector(Cont”d)
 conducted by the assistance of JICA

Demand Forecast for 20 years period (2011-2030)

16,000 Demand Forecast Results


Low Case High Case 14542
14,000
12944

12,000 11520

10253
10,000
9125 9100
MW 8121 8353
8,000 7668
7227 7039
3075 MW 6431 6461
(23.5.2017) 5723 5930
6,000 5443
5092 4996
4531 4585
3192 4032 4208
4,000 3587
2840 3862
2527 3178 3503
2055 2248 2617
2,000 1,600 1,850 2884
2055
1,600
1,850 2157 2376

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
YEAR 14
 Overview of Myanmar Power Sector(Cont”d)
Installed Capacity and Power Supply in Scenarios for 2030
Scenario 1 Scenario 2 Scenario 3
(Domestic Energy Consumption) (Least Cost) (Power Resources Balance)
Annual Transition of Power Supply Annual Transition of Power Supply Annual Transition of Power
for Peak Demand (MW) for Peak Demand (MW) the most feasible
Supply for Peak Demand (MW)

2015 2020 2025 2030 2015 2020 2025 2030 2015 2020 2025 2030

15
 Overview of Myanmar Power Sector (Cont”d)

National Electricity Master Plan

conducted by the assistance of JICA 2015-2016 (5029)


120MW 101 MW MW
Target (3%) (2%)

1,623 MW
(32%)
50% to be Electrified in 2020 3,158 MW ရအ
Hydro
(63%)
သဘ ဝဓ တ င
Gas
75% to be Electrified in 2025
က ကမ သ
Coal
100% to be Electrified in 2030 Diesel
ဒဇယ

2020-2021 (8,815) 2030-2031 (23,594)


200 MW MW
MW
(2 %) 2,000 MW 4,758 MW
1,969 MW (9%) (20%)
4,721 MW (22 %)
(54 %)
8,896 MW 7,940 MW
1925 MW (38%) (33%)
(22 %)

Hydro Renewable Hydro Renewable


Gas Coal Gas Coal 16
 Overview of Myanmar Power Sector(Cont”d)

National Electrification Plan(NEP)

NEP Electrification Target conducted by MOEE and WB from May, 2014 to Sept,2014.

47% HH to be Electrified in 2020


76% HH to be Electrified in 2025 99 % Electrify by National Grid
100% HH to be Electrified in 2030 1 % Electrify by Off Grid (Mini Grid, Solar Home, etc.)

Investment required to fulfill the NEP Target

 Distribution Portion : USD 5.4 Billion (for 6.767 million Household)


 Transmission & Distribution Portion : USD 40 Billion.

First 5 year plan (2015 ~ 2019) : 1.7 million Household to be electrified.


 Investment Needed : USD 670 million ( for Distribution only)
 World Bank IDA Loan : USD 400 million (On Grid:310 MUSD + Off Grid: 90 MUSD)
 Requirement : USD 270 million ICB, NCB, Shopping17
Investment Opportunities

 Strategies on Power Generation Sector

 Generation Sector (Hydro, Coal, Gas, Renewable)

 Transmission Sector

 Distribution Sector

18
 Strategies on Power Generation Sector

 Sole investment by Ministry

 Investment by local entrepreneurs on B.O.T basis

 Investment by foreign companies on J.V / B.O.T basis

19
 Investment Opportunities in Generation Sector (Hydro)

Numbers of Potentials Capacity


Resources Total : 108,000.00 MW Sr Region
10~50 MW >50 MW (MW)
Already Investigated : 46,330.55 MW (302 Nos) 1 Kachin 5 14 18,744.5
< 10MW : 231.25 MW (210 Nos) 2 Kayah 2 3 954.0
10 MW ~ 50 MW : 806.30 MW ( 32 Nos) 3 Kayin 1 8 7,064.0
4 Sagaing 2 4 2,830.0
> 50 MW : 45,293.00 MW (6 0 Nos )
5 Tanintharyi 5 1 711.0
Already Installed : 3,231.50 MW 6 Bago 4 4 538.0
( 3% of Resources) 7 Magway 2 3 359.0
( 7% of Investigated) 8 Mandalay 3 6 1,555.0
9 Mon 1 1 290.0
10 Rakhine 3 3 764.5
Shan
East 1 3 719.8
11
South 3 5 7,569.5
North - 5 4,000.0
>10 MW 32 60 46,099.30
12 <10MW 210 231.25

Total 302 46,330.55


20
 Investment Opportunities in Generation Sector (Hydro) (Cont;)

Hydropower Development Plans up to 2030-2031


Installed
Completion No. of
No. Capacity Remarks
Year Projects
(MW)
1. 2016-2017 1 66 Mong Wa HPP (B.O.T)
2. 2018-2019 1 3.2 Upper Namtrum HPP (Sole Investment)
Two are on sole investment.
3. 2019-2020 4 381.4
Two are on B.O.T basis.
Two are on sole investment.
4. 2020-2021 17 10,087
Fifteen are on JV/B.O.T basis.
Four are on B.O.T basis.
5. 2021-2022 6 1,196
Two are on JV/B.O.T basis.
6. 2022-2023 1 140 Dapein (2) HPP (JV/B.O.T)
7. 2023-2024 1 1,400 Upper Thanlwin (Kunlong) (JV/B.O.T)
8. 2024-2025 1 225 Mang Taung HPP (JV/B.O.T)
9. 2025-2026 5 828 All are on JV/B.O.T basis.
10. 2026-2027 5 2,400 All are on JV/B.O.T basis.
11. 2027-2028 1 285 Nam Tabak HPP (JV/B.O.T)
12. 2030-2031 6 18,700 All are on JV/B.O.T basis.
Total 49 35,711.6 21
 Investment Opportunities in Generation Sector (Coal)

Coal Potential 540 Million Tons


Investment by foreign companies on J.V / B.O.T basis
No Projects Location MW Remark
A JV / BOT basis
1 Kengtong Shan 660 MOA
2 Ye (Andin) Mon 1280 MOA
3 Rammazu Tanintharyi 500 MOA
4 Kalaywa Sagaing 540 MOA
5 Kyauktan Yangon 600 MOA
6 Ngayokekaung Ayeyarwaddy 540 MOA
7 Tanintharyi (Myeik) Tanintharyi 1800 MOU
8 Tanintharyi (Myitwa) Tanintharyi(Myeik) 2640 MOU
9 Ayeyarwaddy(Ngaputaw) Ayeyarwaddy 600 MOU
10 Yangon (Thilawa) Yangon 315 MOU
JV/BOT Total 9475
B BOT basis
1 Yangon (Kungyangone) Yangon 300 MOU
2 Myeik (Thanphyoethu) Tanintharyi 50 MOU
BOT Total 350
Coal Total 9,825

All the Coal Fire Power Projects are Suspended. 22


 Investment Opportunities in Generation Sector (Gas)
Onshore 5.6 TCF (Proven)
Natural Gas
Offshore 11 TCF (Proven)

Existing Offshore Projects in Myanmar


YADANA PROJECT YETAGUN PROJECT
TOTAL 31.24% PETRONAS 40.75%
UNOCAL 28.26% NIPPON 19.40%
PTTEP 25.50% PTTEP 19.40%
MOGE 15.00% MOGE 20.45%

Export 650 MMscfd


Domestic 200 MMscfd Export 250 MMscfd

SHWE PROJECT ZAWTIKA PROJECT


DAEWOO 51.00% PTTEP 80.00%
ONGC 17.00% MOGE 20.00%
GAIL 8.50%
KOGAS 8.50%
MOGE 15.00%

Export 450 MMscfd Export 250 MMscfd


Domestic 100 MMscfd Domestic 80 MMscfd 23
 Investment Opportunities in Generation Sector (Gas)(Cont;)
Prediction for Gas Demand & Supply in Myanmar

GAS DEMAND AND SUPPLY FORECAST IN MYANMAR


1100

1000
Gas Demand Forecast

900

800 LNG
500 500 500 500 500 500 500
Daily Average mmscf

700 500
450 500
600

500
0
Zawtika0
100 100 100 100 80
400 100 150
190
Add Off Blocks
100
100 100 100 100 83 280
70 310
300 46 77 Shwe 100 69 330 350 365
11.98 100 57
0.92 68.44 100
40.69
200 100
100 46
181.22 186.79 182.35 187.43 225 225 225 225 38
158.04 165.46 200 180 31
100 160 100 25
120 90 21
Yadana 100 82 68
25 56
65 65 65 60 50 50 50 MOGE
50 50 50 40 40 40 40 40
0 30 30 30 30 30

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

 Currently, two existing out of 4 offshore projects are being declined, so we consider to encourage the domestic
requirements using by LNG till to produce from new discoveries in Myanmar offshore region.
 LNG is one of the options for future gas supply to fulfill the domestic needs. Due to the gas shortage in power
sector and industrial sector, LNG business is significantly feasible for short term and long term period to fulfill
the gap of gas demand. 24
 Investment Opportunities in Generation Sector (Gas) (Cont;)

Sole investment by Ministry


No. Projects Location MW Remark

1 Thaton Mon 118 U/C

2 Kyaukphyu Rakhine 50 Loan Process


3 Pahtoelone Magway 12 To be Tendered
4 Myanaung Ayeyarwaddy 25 JICA Grant
5 Thaketa Yangon 25 Negotiate PPA
JV/BOT Total 168

Investment by foreign companies on J.V / B.O.T basis


No. Projects Location MW Remark

1 Myingyan (Sembcorp) Mandalay 225 U/C


2 Kanbauk (Adman Power) Tanintharyi 200 U/C
3 Thaketa (UREC) Yangon 106 U/C
4 Shwedaung (Daewoo+MCM) Bago 70 Negotiate PPA
JV/BOT Total 601
25
 Investment Opportunities in Generation Sector (Renewable)

Solar power • 51,973.8 Terra Watt Hour / year

• 365.1 Terra Watt Hour/year


• Costal strip of 2,832 Km with
Wind
• Southwesterly wind – 9 months
• Northeasterly wind – 3 months

• 52.5% of total land area covered with forest


Biomass potential available annual sustainable yield of
wood fuel 19.12 million Cubic Ton

Geothermal • 93 locations

26
Solar Power Projects in Myanmar

Sagaing, Mandalay
880 MW
Asia Ecoenergy Nabuaing (Myingyan)
Development, Primu 150 MW
s Convalt Energy
Myanmar Co., Ltd.

Min Bu
170 MW Wundwin(Meikgtila)
Green Earth Power 150 MW
(Myanmar) Co., Ltd. Convalt Energy
Myanmar Co., Ltd.

Thapyaysan
100 MW Shwemyo
Jewoo Lightech + 10 MW
Investconsult Group Thinkhaypa Energy
& New Energy Service+ JADE IT
GmbH

Total: 1460 MW

MoU finished (990 MW) PPA finished (470 MW) 27


Planned Floating Solar Projects in Myanmar

Land Cost : No.


Installation Cost : higher compare land based
Evaporation Rate : Reduce 70%
Efficiency of Solar Panel : Increase
Water Quality of Dam : Improve
Cleaning of Solar Panel : Easy
Installation time : Less Shwe Gyin Dam
Kun Chaung Dam (Solar_30 MW)
TL & SS to access Grid : No Need. (Solar_30 MW)

Zaung Tu Dam
(Solar_30 MW)

28
28
Wind Power Projects in Myanmar

Chin, Rakhine, Ayeyarw


addy,Yangon
3648 MW Shan, Kayah
CTGI 1000 MW
GK + Zeya
Rakhine, Ayeyarwaddy,Y
angon
830 MW Tanintharyi, Mon,Kayin
Asia Ecoenergy & Primus 1000 MW
GK + Zeya
Chaung Thar
30 MW
CTGI
Total: 6538 MW

MoU finished (6508 MW) MoA finished (30 MW) 29


Geothermal Resources of Myanmar

Sr. No. of Hot Average Surface


State/Region PH Number
No. Springs Temperature Degree C

1 Kachin State 2 -

2 Kayah State 5 -

3 Kayin State 15 48.61 (37.78 - 61.67)

4 Sagaing Region 10 32.41 (29.44 - 48.89) 7.8

5 Taninthayi Region 19 51.46 (37.78 - 51.67) -

6 Magway Region 5 40.78 (32.22 - 48.89) 7.6

7 Mandalay Region 3 36.65 (30.56 - 40.00) 6.5

8 Mon State 19 51.08 (37.78 - 65.8) 7.7

9 Rakhine State 1 - -

10 Shan State 17 43.50 (27.8 - 61.7) 6.9

Total 93 30
 Investment Opportunities in Transmission Sector

Summary of Transmission Expansion Plan


(From 2013 to 2031)
2013-2016 2017-2021 2022-2026 2027-2031

No. Type Line Line Line Line


Length MVA Length Mile MVA Length MVA Length MVA
Mile (km) (km) Mile (km) Mile (km)

167 752 299 250


1 500 kV 1,500 5,000 1,000 -
(269) (1,211) (481) (402)
1,838 1,963 366
2 230 kV 2,700 4,010 1,150 - 700
(2,957) (3,160) (589)
60 60 44 50
3 132 kV 990 0 260 300
(96) (97) (71) (81)
1,371 858 93
4 66 kV 641 405 150 - 75
(2,206) (1,381 (150)
3,436 3,633 802 300
Total 5,831 9,415 2,560 1,075
(5,528) (5,849 (1,291) (483)

 Not allow Ownership for foreign and local company in Transmission Sector.
 It is considerable for low interest rate and soft financing term.
31
 Investment Opportunities in Distribution Sector
Summary of Distribution Expansion Plan
(From 2013 to 2031)
2013-2016 2017-2021 2022-2026 2027-2031

No. Type Line Length Line Length Line Length Line Length
MVA MVA MVA MVA
Mile (km) Mile (km) Mile (km) Mile (km)

119 182 152 152


1 66 kV 750 500 1,050 1,050
(192) (293) (245) (245)
1,079 1,108 1,506 1,695
2 33 kV 1,060 1,210 1,880 2,450
(1,736) (1,783) (2,423) (2,727)
2,121 2,876 3,400 5,192
3 11 kV 446 1,405 2,043 3,322
(3,413) (4,627) (5,471) (8,354)
2,039 5,692 7,783 8,239
4 0.4 kV - - - -
(3,281) (9,158) (12,523) (13,257)
5,358 9,858 12,841 15,278
Total 2,256 3,725 4,973 6,822
(8,622) (15,861) (20,661) (24,583)

 Franchise system in township-wise utility task improving private sector.

32
Existing Laws & Regulation

 Electricity Law (2014) (27.10.2014)

 Electricity Rule (30.12.2015)

 Electricity Regulation in Draft by ADB

 Myanmar Investment Law (2016)

 The Environmental Conservation Law (2012)

 Grid Code

ADB…….Draft , NVE…..Norconsult…..GAP Analysis Finished…..Final Report


not finish yet.

33
 Challenges
 Low Electricity Tariff : Government Subsidize (23Kyat/kWh)
Difficult to Increase Tariff.
Tariff proposed by Investors could be high comparing to the
Government subsidized tariff.

 Payment : We can pay local currency (Kyat) only to the Investors for
Purchased Power.

 Government Guarantee : No practice for Sovereign Guarantee.

 Legal Framework : Electricity Law already established. But ERA was not founded.
Regulation for Tariff not established yet.
Renewable Energy Policy not established yet.
Grid Code in Draft Condition.
 System Condition : Myanmar National Grid System not strong enough to integrate
the huge Renewable Energy Power Plants. / (N-1).
Need to construct new Based Load Power Stations such as
Hydro, Coal. And also related New T/L & S/S.
 People Acceptance : Since people worry about Environmental & Social impact due to
the large Hydro & Coal Fire Power Projects, investors need to
get agreement from people. It is time taken for the public awareness and
public consultation. Thus, Investors can not proceed the project in time. 34
 Conclusion

 In Myanmar, Electric Power Sector plays a vital role for the development of the
Nation.

 Although Myanmar face with power shortage in current situation, it will ensure that
electric power sector of Myanmar will not binding constraint for economic growth by
timely transforming the power sector.

 Since Myanmar has adequate energy resources and a lot of opportunities for
investment, we are welcoming the local and foreign investors to invest in Myanmar
Power Sector.

35
Thanks for your kind Attention.

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