Myanmar: Garment factory installs rooftop solar PV to fend off rising electricity cost

Myanmar: Garment factory installs rooftop solar PV to fend off rising
electricity cost

A garment business in Myanmar installed a solar photovoltaic system in a bid
to reduce consumption of grid-based electricity, as electricity prices are
expected to increase further in the coming years.

On Monday, July 03, Laos-headquartered Sunlabob announced the completion and
commission of a 92.6-kilowatt peak (kWp) rooftop solar photovoltaic (PV)
installation at Austrian-owned garment factory Anita Asia, the second solar
PV system ever built in Myanmar. The first system was installed in Junction
City, Yangon, in late 2016.

In an interview in July 20, representatives from Sunlabob told The Myanmar
Times that they aim to expand the solar power industry and provide an
alternative, cost-saving power source as the electrical price in Myanmar
seems to go nowhere but up.

The system is designed to operate for more than 25 years and is expected to
cover up to 25pc of Anita Asia's power demands by operating on a
self-consumption basis, providing ongoing cost-savings to Anita Asia.

"Nearly 25pc of Anita's energy needs in Yangon are now covered by
solar-based electricity, which enables the company to save money, reduce its
environmental footprint and demonstrate its commitment to sustainable
manufacturing practices," Stephan Seidel, managing director of Anita Asia,
said.

Founded in 2000, Sunlabob is a Laos-based renewable energy development
business which aims to decentralise renewable energy and clean water
solutions throughout the developing world. The company has extended to
countries in Africa, Asia and the Pacific Islands.

Evan Scandling, managing director of the firm, told The Myanmar Times that
it focuses on commercial and industrial, grid-connected rooftop solar energy
operating systems in urban areas, as well as off-grid, commercial and
village-level solar energy operating systems in rural areas. The team help
set up power systems which are designed to operate in harsh physical
environments.

Having started their operations in 2014, the company has since built the
first two solar PV systems in Myanmar, but they have also installed
solar-powered mini-grids in 11 villages throughout Shan and Chin states with
the support from the Japanese International Cooperation System (JICS).

Mr Scandling said that the likes of Asian Development Bank (ADB) and World
Bank Group have cultivated a growing awareness of the new concept of solar
power technology in the Myanmar market.

"Three years ago, there were only a handful of mini-grids. But in three
years' time, with the support from the ADB, GIZ, DRD and the World Bank,
lots of progress have been made, in terms of showing a variety of
stakeholders that solar energy is available.

"Government officials also begin to understand solar energy," Evan Scandling
told The Myanmar Times.

"Projects have started to happen; people can see that solar energy is a
viable option.

"There was a lot of doubt on solar energy initially because it's a new
technology. Now they have the data and the proof that it is a viable option.
Awareness and understanding have shifted," he added.

With all the optimism in its future, solar power, however, is still in its
awareness-building stage in the country. A lot of work remains to be done to
bring Myanmar's solar power industry up to pace with the rest of the world.

The solar power sector faces challenges that most businesses face here:
complex and unclear regulations.

Clarity and transparency in policies and regulations will provide industries
with a clear direction in Myanmar's market development, creating a better
business environment which all businesses, including the solar power
industry, can benefit from, according to Mr Scandling.

However, there are observable efforts from Nay Pyi Taw in supporting the
solar power industry.

"To the government's credit," Mr Scandling said, "there are exemptions on
import duties on solar panels, converters and charge controllers - all three
are important components in building a solar PV system. This shows
recognition from the government."

He suggested that the government should publish an electric rate schedule
which outlines the cost of electricity within a range of three to five
years. This will allow the solar power industry to project its
competitiveness in comparison to grid electricity.

In addition, he predicted that electricity prices from the main grid in
Myanmar will only increase, hence solar power systems will be a cost-saving
asset to the Myanmar people.

The rise of solar energy should be understood in the context of severe
shortage of grid-based electricity supply for Myanmar's rising energy
demand.

This energy shortage and lack of access have affected big businesses,
multinationals, SMEs and residents in both urban and rural areas.

Last month, Katsuji Nakagawa, chair of Japan Chamber of Commerce and
Industry in Myanmar, told The Myanmar Times that the lack of reliable power
supply is the single biggest obstacle in doing business in the country.

Without stable and sufficient energy supply, manufacturing companies cannot
operate with their optimal capacity.

According to research data from the IFC, more than 65 percent of Myanmar's
population, a total of seven million households, has no access to grid-based
electricity services. In rural areas, more than two thirds of households
rely on candles, kerosene, low-quality batteries and diesel generators to
meet their energy needs.

With the assistance of the World Bank Group and other donors, Myanmar's
government has adopted the National Electrification Plan, which aims to
achieve universal access to sustainable electricity services by 2030 through
a combination of grid extension and off-grid programs.

Solar energy has been spearheaded by international investors, with some
aiming to decentralise the access to solar energy.

On July 6, Greenlight Planet launched its retail store under the brand Sun
King in Bago Region. The store offers both EasyBuy and upfront payment
options across a range of solar lamps and home systems.

For Sunlabob, Mr Scandling said his objective is to become the first
international solar company with a local team on the ground in Myanmar to
install the products and provide maintenance services, leading the
development of commercial and industrial solar power technology.

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Link to Original Article:
http://www.mmtimes.com/index.php/business/26905-garment-factory-installs-roo
ftop-solar-pv-to-fend-off-rising-electricity-cost.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com