Myanmar: Interview - Ken Tun, CEO, Parami Energy Group

Myanmar: Interview - Ken Tun, CEO, Parami Energy Group

What current projects are being considered to bolster rural electrification
efforts in Myanmar for the coming years?

KEN TUN: The World Bank has devised a plan to electrify the whole country by
2030, which would require approximately $3bn per year in investment, given
current transmission, distribution and generation shortages. However, rural
communities cannot afford to wait 15 years.

If you look at the current mindset worldwide, there is a focus on efficiency
and green development when it comes to energy. In the past, there has been a
focus on the top-down approach but now we see that the bottom-up approach is
cleaner, more efficient and better for the people. The best possible
strategy to get electricity nationwide more quickly is a combination of a
centralised system (the top-down approach) and distributed energy (the
bottom-up approach).

A distributed energy system is where a national grid is supported by
multiple regional power initiatives in the form of mini-grids. In terms of
bureaucracy for energy development, you have the Ministry of Electricity and
Energy taking care of the union level and you also have the Ministry of
Agriculture and Irrigation taking care of rural development. This leaves
little confusion as to who is responsible for certain projects.

According to the constitution, regional governments can implement projects
no bigger than 30 MW. If Myanmar completes 1000 projects of 30 MW over five
years - a distributed energy project - then people will have access to
power, which can improve productivity and uplift those in poverty.

The challenge of this kind of model is getting the first major project up
and running. Parami Energy Group is working alongside EDF Energy to
electrify 7000 households within five years - the first minigrid project of
this scope in Myanmar. This project will act as a showcase for social
engagement and will demonstrate the potential of renewable energy in
bringing power to rural communities.

How are the obstacles to developing renewable energy expected to be
overcome?

TUN: In terms of resources, there is an abundance of renewable options,
including solar, wind and hydro. However, to develop renewable energy you
need good policies in place.

This does not require a rocket scientist: you can adopt policies from the
governments of Thailand, Morocco or the Philippines, which have all put in
place successful frameworks and incentives to attract investment. It is also
critical to have a government body to act as the regulator and monitor of
renewable energy standards. All Myanmar needs to have is the political will
and look at what other countries are doing.

A major issue is that everyone thinks the term renewable means charity. It
is critical to develop a business case or environment in which renewable
energy is not viewed as a charity case, but as a sustainable and practical
business model. The only solution to create the demand is a mini-grid. The
national grid will need to adapt in order to receive renewable electricity,
but the mini-grids can achieve this by tapping into the national grid. We
first need to develop a mindset around mini-grids. If you want to electrify
the country within a reasonable timeframe then mini-grids are the best
solution. Myanmar can become the champion of clean energy by adopting this
mindset.

Another major hindrance that is holding back energy development is the cost
that emerging countries pay for energy projects due to their risk profile.
Financiers, international governments and developers need to sit at the same
table and view access to power as the basic human right that it is.

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Link to Original Article:
http://www.oxfordbusinessgroup.com/interview/powering-outskirts-ken-tun-ceo-
parami-energy-group-rural-electricity-efforts-and-potential-renewable

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com