Coal plan sparks ire as Myanmar struggles to keep lights on

Coal plan sparks ire as Myanmar struggles to keep lights on

Opposition to a planned US$3 billion coal-fired power plant in eastern
Myanmar is highlighting the challenges facing Aung San Suu Kyi's government
in crafting a coherent energy policy in one of Asia's poorest and most
electricity-starved countries.

With only a third of the country's 60 million people connected to the grid
and major cities experiencing blackouts, finding investors is tough for
Myanmar and it is now looking at options, from coal to deep-sea gas, to
boost its power supply.

Myanmar has reserves of natural gas, but most existing offshore production
is exported under agreements struck during the junta era, while new blocks
will not come on stream for some years.

Coal would be one of the quickest ways to ramp up power generation but, as
protests against the proposed 1,280 megawatts (MW) project in the eastern
Kayin state show, the option is unpopular in Myanmar.

More than 100 activist groups across the country have signed a joint
statement calling for the project to be cancelled and urging the government
to look at renewable energy instead.

"They are worried about their land and water, which would be affected by the
coal-fired plant," said Kayin-based activist Nan Myint Aung, referring to
residents in the area who mostly depend on agriculture.

Attracting investment is crucial for Suu Kyi, who has made job creation one
of her top priorities. Foreign direct investment has fallen 30 percent from
the previous year to US$6.6 billion in 2016/17 due to sluggish progress on
retooling the economy after decades of military rule.

Myanmar aims a more than fourfold increase in its electricity generation of
over 23,500 MW by 2030 to meet rising demand, a target experts said will be
difficult to achieve - particularly, they say, if policy remains confused.

UNCERTAINTY OVER ENERGY MIX

The Kayin state project, which is still awaiting approval from the
authorities, is among the 11 planned coal-fired plants in Myanmar and, by
itself, would increase the country's current electricity production by 25
percent, official data shows.

But it is uncertain how many of those projects will go ahead. The former
quasi-civilian government led by President Thein Sein had to stall more than
10 coal projects across the country due to opposition on environmental
grounds.

Some western experts advising the government also oppose the solution,
arguing that importing coal - which is not abundant in Myanmar - would mean
an outflow of dollars from a country with tiny reserves of hard currency.

Officials have previously said they were looking to increase the share of
hydro power in the country's energy mix.

Most of its 49 planned hydropower projects have stalled, however, amid a
lengthy dispute with China over the building of the Myitsone mega dam.

An electricity master plan has been under review since last year, but the
government has yet to reveal details. Several energy officials said the
share of coal and gas could be increased at the expense of hydro.

"International investors would like to see more clarity on energy policy. It
is presently very difficult to say exactly what Myanmar's energy plans are,"
said Jeremy Mullins, researcher at Yangon-based consulting firm Frontier
Myanmar.

"DILEMMA OF COAL"

Kayin's energy minister, Soe Hlaing, told Reuters that the government would
go ahead with the project if there was "enough public support." He did not
elaborate.

Residents and environmentalists say the risks the plant in Kayin could pose
to the environment and the livelihoods of local people are not being
properly investigated.

A feasibility study on the environmental and social impact will be ready
later this year before the final decision from the energy ministry, local
authorities said.

Thailand-based TTCL Public Company Ltd , developer of the project, said it
would build a high-efficiency low-emissions station with advanced "clean
coal" technology to mitigate environmental impact.

Coal currently generates just 1 percent of Myanmar's electricity.

Win Htein, one of the top leaders from Suu Kyi's National League for
Democracy, said alternatives such as hydropower would take time and coal was
ideal for the country's urgent energy demand.

"If we have to choose between the dilemma of coal and the development of the
country, we prioritize the development," he said.

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Link to Original Article:
http://www.channelnewsasia.com/news/asiapacific/coal-plan-sparks-ire-as-myan
mar-struggles-to-keep-lights-on-9024022

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com