Off-grid Electrification Department of Rural Development in Myanmar Republic of the Union of Myanmar 7 states, 7 region and 1 union territory 330 townships 63899 township Ratio of villages to township= 70:30 Area= 676577 km2 Population= 51.4 million Presented By Dr. Soe Soe Ohn Director Department of Rural Development

Introduction Rural electrification in Myanmar is about 33% improve the rural electrification, expansions of on-grid and off-grid power sources must be developed. Renewable energy sources are being utilized as off-grid power sources for rural electrification. DRD (Department of Rural Development) under the MOALI has overall responsibility to promote the rural electrification.

Difference between Rural and Urban Area Category comparison Urban Rural Poverty gap 0.047 0.023 Access to water ratio 65.2% 81.4% Malnutrition 33.7% 25.4% Food poverty 2.5% 5.6% Poverty index 15% 29% Electrification rate 89% 16-18%

Electricity installed capacity Current situation of electrification in Myanmar Electricity installed capacity Sr. Resource Installed Capacity 1. Hydro Power 3005 MW 2. Gas 1236 MW 3. Coal 120 MW 4. Renewable (Mini- hydro, solar, Bio) 5 MW Total 4356 MW 23034 villages out of 63988 villages are electrified in Myanmar up to 2015~2016 Fiscal Year Current Situation of Rural Electrification Household electrification rate is 26% Rural household electrification rate is 18% Urban household electrification rate is 89% (23%) (57%) (10%) (5%) (5%)

Least Cost Power Expansion Plan for Myanmar Natural resources 2015 (4271MW) 2030 (16112MW) Hydro electricity 48% 55 % Natural Gas 44% 15% Coal 2% 16 % Renewable Energy 6% 14 % 6,328 MW from 38 new hydropower plants First 500 MW coal-fired power plant added in 2023 Solar power is competitive in the future with 2,300 MW added to the system from 2025

Energy and Power Sector Support by Development Partners The Government is supporting strategic development and reforms in the Energy and power sector. - The National Energy Efficiency and Conservation Policy - Energy Master Plan - National Electricity Master Plan - National Electrification Plan

National Electrification Plan (NEP) To achieve universal access to electricity in Myanmar by 2030 National Electrification Rate 100% - In areas where grid will arrive later, off-grid “pre-electrification” can provide basic electricity service in the near to medium-term - Over the long-term, grid extension is the least-cost option for more than 90% of households. 76% 47% 33% 517,000 new connections each year till 2030 - The total cost of National Electrification Program is estimated at US $5.8 billion (grid and off-grid) till 2030 - In addition, 2.5-3.0 GW of generation capacity will be needed to meet new residential demand - At the current tariff, the funding gap is $2.2 billion (assuming all loans are concessional, at 1.25% rate, 25 years repayment and 5 years grace) but disappears at the tariff level closed to Vietnam (about 5cents/kWh)

Least-cost recommendation for 2030 By 2030, the majority are grid connections This represents 7.2 million households Total cost is estimated at US $6.0 billion (US$800 per connection, average) Additional investments needed for generation & transmission Note: This map shows all settlement points the same size (regardless of population), overstating electrification with non-grid options (mini-grid and off-grid / solar home systems)

National Electrification Project Phase -1 (2016-2021) Leading Ministries MOEE Grid Extension (310 Mil USD) Dense areas (Phase 1, 2 and 3) require less MV per connection and will be connected first. MoALI Off-grid (90 Mil USD) Remote communities areas (Phase 4, 5) have higher cost per connections and will be connected later.

Budget Allocation of IDA 90 million for Off-grid Electrification Mini-grid Solar Home System Public Institution Technical Assistance Total IDA USD million 7 53 20 10 90

Off-grid electrification by IDA 80 million Phase 1 (2016-2021) Off-grid electrification System Solar Home System Mini-grid (Solar, Hydro and Bio) Result Indicator Number of Households for Solar Home System - 456,500 Number of Households for Mini-grid System - 35,500 School, Clinic and Religious Building - 11,400 Street Light -19,000

Technical Assistance by IDA 10 million Strengthen institutional and personnel capacity within Government agencies and the private sector. Improve the policy and regulatory framework. Support development of a Geographic Information System (GIS) Framework for electrification planning, results monitoring and impact evaluation. Capacity building will span: Union, State/Region, District, Township, Village. Technology option assessment ,technical design, economic and financial analysis, environmental and social impact management, procurement and financial management.

SHS Indicative portion of system cost covered by grant, customer contribution, and financing during Phase I.   Year 1 Year 2 Year 3 Year 4 Year 5 Portion of cost covered by project funds 90% 85% 80% Portion covered by customer contribution 10% 15% 20% Mini-grid Indicative portion of system cost covered by grant, customer and mini-grid business contribution, and financing during Phase I.   Year 1 Year 2 Year 3 Year 4 Year 5 Portion of cost covered by project funds 80% 60% 50% Portion covered by customer contribution 20% 40% Public Facilities Each village that participates in the SHS program shall receive 100% grant funded public lighting for street lights, medical clinics, temple/church/mosque, schools in the village.

Off-grid Electrification (Implementation) 2016-2017 Electrification Item (9 items) House-hold Electrification (small, medium Large) Rural Health Centre School (Primary, Middle, High) Religious Building Rural Street Light

Coordination with Development Partner JICS (The Project for Rural Electrification ) Grant- $ 9.7 million 31 villages in Chin and Shan State ADB (Capacity development and technical assistance) Grant- $ 2 million 12 villages in Sagaing, Magway and Mandalay region KfW (Rural Electrification Program) Grant- EURO 9 million Southern Shan State GIZ (Technical Assistance and mini-grid project for rural electrification) Grant- EURO 2 million ICDF (Technical Assistance for Solar PV mini-grid Systems for lighting) Grant- $ 350,000 3 villages in Sagaing and Magway

Multi -Sector Participation in Off-Grid Electrification Ever Green Project under DRD Local Private Sector International Private Sector National Electrification Plan (Off-grid. DRD) CDD Project under DRD Other Donar

Challenges and Barriers Simultaneous Efforts by Government (especially- DRD, MOEE, MOE (Formerly MOST), MOI), developers, banks and regulatory authority Lack of institutional capacity Lack of private sector participation in remote areas Lack the Rules and Regulations of Rural Electrification Law Lack of feasibility datas and effective business models for mini-grid Need to scale up mini-grid deployment Operation and maintenance cost, collection of tariff, rule and regulations and lack of knowledge in business energy models of communities To scale up capacity builiding

Way Forward Institution and capacity building - Local technical officers - Mini-grid project developers - Procurement for off-grid solar and mini-grids Safeguard measures Public outreach and awareness creation Access to commercial financing Policy and regulatory framework - Rural Electrification Law - Mini-grid and small power producer regulatory framework - Innovative business models Electrification planning, monitoring and evaluation - Geospatial electrification planning - MIS, monitoring and evaluation Standards, specifications and quality assurance Cooperation with related ministries , development partners and private sectors not to overlap the project site  

THANK YOU