Solving Myanmar's power problem

Solving Myanmar's power problem

Stay in Yangon long enough and you'll probably experience the electricity
going off halfway through your meal at one of the city's many restaurants.
The problem is so common in the city that you might also have noticed the
other patrons carrying on with their dinners unperturbed by the sudden power
disruption. Stay a little longer and you, too, may not bat an eyelid the
next time the lights go off.

But Myanmar's power problem must be fixed if the country is to keep up with
the pace at which its economy is developing, Chaiyot Piyawannarat, managing
director of power grid maker ABB Limited in Thailand, Myanmar, Cambodia and
Laos, told The Myanmar Times.

"The Myanmar economy has been growing fast and the country's infrastructure
has not been able to keep up with the demand. Myanmar could have expanded
even faster than it has if it had better infrastructure for power generation
and distribution," he said.

Myanmar derives most of its electricity from hydropower. In recent years,
the use of imported liquefied natural gas has also been growing.

Solving Myanmar's power problem

Currently though, just around 30 per cent of the Myanmar population receives
electricity, according to Khun Chaiyot's estimates. "The existing power grid
by the Ministry of Electricity and Energy (MOEE) covers just one third of
the population, with two thirds still not covered," he said.

That's because it is not economically viable for the government to invest in
extending its cable and distribution network to areas which are
geographically unsuitable or scarcely populated.

Already, Myanmar is generating electricity at an annual loss of more than
K300 billion, or a loss of K23 per unit of electricity produced, said U
Myint Oo, deputy director general from MOEE's Department of Electric Power.

In 2016-17, it made a loss of about K337 billion in electricity
transmission, deputy minister at the MOEE Dr Tun Naing told the Pyithu
Hluttaw last month.

In 2017-18, the MOEE estimates that the nation's electricity demand should
hit 3,100 megawatts. It expects to make a loss of around K376 billion for
the period.

Microgrid technology

But Myanmar doesn't need to spend hefty amounts to develop its existing
infrastructure, Khun Chaiyot said. The way he sees it, by implementing new
microgrid technologies in Myanmar, large swathes of the population could
enjoy electricity without the need for a conventional power grid.

Microgrids are low or medium-voltage grids located at or near the
consumption site and can generate power from both renewable and conventional
sources. They are also equipped with energy storage systems and can run on
batteries. Importantly, microgrids can be connected to the main power grid
or be completely off-grid.

"Myanmar can actually leapfrog the conventional grid by embracing new
technologies like the microgrid," said Khun Chaiyot. "Currently, the
majority of the population without access to power can enjoy the benefits of
the microgrid, which we can now build and install much more cheaply compared
to ten years ago."

He added that "pulling transmission lines or building a transmission network
that reaches the remote villages take time. But by tapping the microgrid,
many more areas can receive electricity more reliably, efficiently and cost
effectively. Microgrids are ideal for rural areas."

Importantly, the microgrid will also take the funding burden off the
government. "The government subsidises electricity in Myanmar to keep prices
low, but ultimately, it is not sustainable," said Khun Chaiyot.

Implementation checklist

So what should the government and industry do to get implement the microgrid
in Myanmar? "First of all, the country must have a policy which is
supportive of technology and which encourages the implementation of new
technologies," Khun Chaiyot said.

Both the public and private sector must work closely to develop a master
plan for implementation. "Bureaucracy must be minimised from all the
processes and steps involved," he said. For example, getting permission to
invest in and develop the new technology must be simple and painless.

"The technology is already there and it is more economical to implement now
than ever before. It all has to do with how fast and easy things can get
done," said Khun Chaiyot.

Access to funding is also important. "Funding must come from the government
but currently, they are fiscally limited. So, more schemes like
public-private partnerships, international funding from the World Bank, Asia
Development Bank and Asia Infrastructure Investment Bank are needed to
fast-track the pace of investment. There is a lot of money required to get
started," he said.

Renewable challenge

Of course, even with the support of the government, companies like ABB face
stiff challenges in introducing the microgrid in Myanmar. One of the biggest
hurdles is the environment and objections from locals fearing displacement.
In 2011, a US$3.6-billion, Chinese-backed megadam project in Kachin State,
the Mytisone Dam, was called off due to environment concerns. Meanwhile,
investors have been reluctant to fund coal-fired plants, fearing reprisals
from the locals.

The other concern is supply volatility. "The power supply for the microgrid
will most likely come from renewable sources like solar and hydropower. But
supply from these sources is usually erratic. For example, solar power may
be affected by cloud cover and you may not get enough hydropower during the
dry season," Khun Chaiyot said.

"So, our networks and storage systems need to be powerful enough to handle
intermittent fluctuations in power."

Khun Chaiyot isn't worried though. The way he tells it, it's just a matter
of time before microgrids powered by renewable energy takes off in Myanmar.

"The cost of producing 1 unit of power for solar is now matched with that
generated from conventional fossils. Renewable infrastructure and technology
has developed in such a way where the capital expenditure is on par with
fossil power. Myanmar will leapfrog the conventional grid and embrace new
technologies. It will come," he said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.mmtimes.com/index.php/business/27048-solving-myanmar-s-power-prob
lem.html

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com