Electrification rate to reach 50 per cent of population: MOEP

Aung Than Oo, Deputy Minister for Electric Power, said in the third Myanmar Power Summit held in Yangon on Tuesday that the Ministry is undertaking a five-year project to supply power to unelectrified areas, aiming to reach out to 1.5 million households by grid expansion and 0.2 million by other means.

“Electricity is the first priority among the core sectors for our government. Electricity demand has been increasing yearly. The MOEP has been taking efforts to implement many power generation projects throughout the country by using different kinds of resources so as to improve the power demand and stimulate 15-per cent annual growth,” he said.

According to the deputy minister, installed capacity for power generation has risen from 3,413 megawatts (MW) in the 2011-12 FY to 4,714 MW today, as new power stations have been installed throughout the country.

However, expansion of the national grid mainly benefited the middle part of the country. Very recently, the grid was extended to Myitkyina, Moe Kaung, Moe Hnyin in Kachin State, Hakha in Chin State, Mineyel, Tantyan, Minenaung, Konhein in Shan State, and Thandwe, Sittwe, and Kyauk Phyu in Rakhine State. In 2010 and 2011, Myanmar supplied electricity to 2.42 million households, about 27 per cent of the population. Currently, about 3.5 million households, or 34 per cent of the population, have access to electricity, according to the Ministry.

“We will get 231 MW of additional power through the implementation of better gas turbines and engines in Myingyan, Kyauk Phyu, Thilawa and Hlaw Ga within a short period. Major hydropower projects such as Upper Yeywa, Shwe Li (3), Upper Kyaing Taung, Tha Htay, Middle Paung Laung, and Deedok will bring us a total installed capacity of 1,658 MW,” said Aung Than Oo.

According to the deputy minister, Myanmar's hydropower potential is estimated to be more than 100,000 MW, as Myanmar has four major rivers -- the Ayeyarwaddy, Thanlwin, Chindwin, and Sittaung. But implementation of these projects would be slow due to public disagreements.

“If we manage to implement these hydropower projects successfully, we will be able to meet the energy demand within the country. In Shan State and Sagaing Region, there have been many core results for commercial production that can be utilised for power generation,” he said.

The deputy minister warned that if the government was unable to implement some of these projects, it would be hard to meet the energy demand targets by 2020.

“There are benefits and risks in every project. Many activists and social groups in Myanmar exert great pressure on the government. If only the shortcomings are highlighted, it may lead to public misunderstanding and possibly m clashes, which would deter the nation’s development,” he said.

In addition to hydropower projects, other energy resources, such as wind, solar and coal fire are being vetted by feasibility studies, and some are slated for implementation.

“Some hydro projects we planned have not yet been implemented due to budget constraints and possible impacts on the environment. Since the implementation of mega hydro projects will take time, we have chosen to implement small hydro projects instead. At the same time, it will also take time to get new gases. At that time, we need to find possible ways in order to meet the increasing demands,” said the deputy minister.

“When we think of solar power, we can get it in the daytime, not at night. So we have planned for some coal-fired power plants. Here, we do not say that we will use the coal forever. But coal is cheaper than gas. Selecting cheaper means of production may lead to cheaper unit prices [of electricity].”

Although the Thein Sein administration has signed the memorandum of understanding with respective firms for the implementation of 11 coal-fired power plants, the projects cannot proceed due to the public objection.

“One of the challenges we faced is public criticism for environmental risks posed by the implementation of coal-fired power plants. Our government will only allow the application of clean coal technology and countermeasures to reduce the impact as much as possible,” said Aung Than Oo, adding that the inistry would investigate and supervise the construction sites.

The deputy minister insisted that the implementation of coal-fired power plants would go ahead only when the public accepts such projects. Yet, he was optimistic about the possible outcome.

“One day, when the public comes to understand that we have undertaken all possible measures to ensure that the new power projects have as little an impact as possible, they will not oppose the projects. We believe with such guarantees, the public will be satisfied, and then the projects can proceed,” he said.

International support

According to the deputy minister, consideration of power sector development needs more integrated plans, some of which will leapfrog the current structure to adopt the latest technology and make significant investments to improve existing infrastructure, including generation, transmission, and distribution assistance.

The national electricity master plan has been jointly conducted with the assistance of the Japan International Cooperation Agency. Other international organisations. such as the World Bank, International Finance Corporation and Asian Development Bank, have provided support for the improvement of the power sector.

ADB helped rewrite the electricity law, which was approved by the Parliament on October 27, 2014. The new law provides the authority to relevant ministries, regional bodies, and sub-administered divisions to conduct electricity business effectively and successfully. Region and State governments will have the right to implement medium-scale projects of up to 30 MW and also small-scale projects of up to 10 MW.

The deputy minister said the enactment of the new electricity law would help restructure the power sector with the cooperation of private companies and regional organisations to encourage more local and foreign investments.

The law also provides incredible opportunities for the emerging power projects, as foreign and local investors can participate in the electricity business by applying for the permission from relevant authorities. The draft of the rules of the electricity law prepared by the DFDL law firm with the assistance of ADB is now in progress and in the process of requesting comments from relevant ministries.

An estimated amount of US$670 million will be used to implement the medium and low voltage distribution lines. The World Bank has committed to provide $400 million in IDA [international development assistance], $310 million of which will go to the MOEP for the expansion of the national grid roll-out. The remaining $90 million will go to the Ministry of Livestock, Fisheries, and Rural Development to promote electricity generation and transmission in accordance with the annual growth of electricity demand. The loan has yet to be approved by the Ministry of Finance and the Parliament.