Developments in the Energy Generation Sector and Advancement of Renewables.
According to the Myanmar government’s initiative, ‘National Electrification Plan’, by 2030 the nation will have achieved 100% electrification. However, execution is behind schedule and the country is at risk of a potential energy crisis. During this year’s hottest season, the electricity generation was 600 megawatts short of demand. The current capacity for electricity generation is at 3.6 gigawatts.
In the past, the lack of tariff rise has been considered to be the cause of the depleting state of energy generation in the country. However, now as a result of the tariff hike, off-grid solutions such as renewable sources of energy have become a popular option. These solutions which were previously inaccessible have now become more economically feasible.
The tariff hike has also brought in the increased purchase of solar rooftop panels by companies to bring down their monthly bills. This action also reflects positively on the Myanmar power sector as it shows signs of working with the private sector and willingness to make necessary reforms although they may be unpopular in the short term. Hence, when the hike was first announced several businesses reacted positively although it meant their electricity bills would go higher.
The role of renewable energy is rapidly growing in Myanmar’s electrification plan. The country has abundant resources in terms of hydro and solar power. Currently, hydro makes up the bulk of the country’s energy generation capacity and hence shows the promising possibility of development in the future. Companies such as Yoma Strategic Holding have expressed interest in the development of the generation of wind and solar energy. Hence, we can definitely say that the future of Myanmar’s power generation, albeit slow seems extremely bright.