Customarily, a project sponsor constructs the transmission lines through a BTO or BOT scheme.This has been agreed in the past, but it varies on a project-by-project basis.In our experience, the treatment of deemed generation varies and the drafting can be unclear. However, in practice, this agreement has been substantially amended for subsequent projects.Recently, Myanmar has developed a model form of PPA and concession agreement for use in hydroelectric projects. We expect the supply-demand gap in Myanmar to continue to worsen. This process is likely to move slowly, though, as they’re creating all of the agreements from scratch and doing a fair bit of educating about the logistics of wind power.Myanmar’s energy prospects, emergency tenders and renewablesThe government estimates that the demand for power in the country is growing by 15-17 percent every year. In the last few years, the Myanmar government has taken concrete steps to restructure its energy sector and has identified natural gas as an important component of its energy master plan.. 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.
The country also has large natural gas reserves, estimated at 11 trillion cubic feet (tcf), which is mostly extracted for export.
“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. Officials have previously said they were looking to increase the share of hydro power in the country’s energy mix. Currently, Myanmar's household electrification rate stands at around 30%.The growing demand will have to be met by one or a combination of three options -- hydroelectric, natural gas or coal.The mountainous northern regions have abundant water resources and, once they start operating, hydroelectric stations would be able to provide a reliable, low-cost power source. YESC) to end-consumers.
It tells businesses that the MoEE wants to work with the private sector on electrification and that it’s willing to make necessary reforms, even when they may be unpopular in the short term. More recently, the Ministry of Electricity and Energy has introduced ambitious renewable energy targets that aim to increase the share of renewables in electricity production to 8 per cent by 2021 and to 12 per cent by 2025.Myanmar’s National Electrification Programme 2015 (NEP) aims to connect all Myanmar households to a supply of electricity by 2030. PPAs in recent years have offered protection for increases in capital and operating costs arising from a change in law. 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.
In terms of power and electrification, there have been talks of a new master plan being drafted, as the last one approved by Parliament in 2015 prioritises coal and has faced fierce public backlash. Another complexity is that the retail rates charged to end-consumers are based in Myanmar kyat, although PPAs with international sponsors have been concluded in United States dollars. In some cases, we’ve also seen companies approaching regional governments about small-scale projects under 30MW. The hikes should free up more funding to invest in new projects by reducing what the MOEE has to spend subsidising people’s electricity. Construction is moving along slowly on several existing projects at the moment, and a few others are in the works, but the PPAs have yet to be inked. 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.
Multinationals are stepping up. Since Myanmar has adequate energy resources and private sector has already invested As for solar and wind, companies have definitely expressed interest. CONTACT; ABOUT US; We're Committed to Sustainability. Import tax waivers for products made in ASEAN countries and China may also apply.Tariffs for renewable and non-renewable electricity projects in Myanmar are negotiated on a project-by-project basis. In many of the prior projects, the PPA was negotiated only after the prior execution of a memorandum of understanding, followed by a memorandum of agreement. Myanmar, notwithstanding its plentiful hydroelectricity resources
We expect sovereign guarantees to be issued for large critical infrastructure projects in the future, although specific criteria have not yet been established. 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. Environmentalist groups have been extremely vocal and meetings draw thousands of protesters that the government can no longer ignore.Recent noises supporting coal power generation made by senior NLD figures may just be an attempt to gauge popular reaction.Businesses are also understandably concerned. Myanmar currently does not have any incentive schemes for renewable energy projects specifically. However, nothing has come out to suggest that this plan will be revealed any time soon.