Rural Electrification Access by Department of Rural Development Ministry of Livestock, Fisheries and Rural Development 30. 7. 2015

Outline of Presentation Overview of Off-grid rural electrification by DRD National Electrification Plan (Off-grid)

Relevant Ministries on Myanmar Rural Electrification Ministry of Livestock, Fisheries and Rural Development Vision: In Line with MDG, to develop rural area, to improve socioeconomic life of rural populace and to narrow down the development gap between urban and rural areas. Relevant Ministries on Myanmar Rural Electrification Ministry of Energy Ministry of Electrical Power Ministry of Industry Ministry of Science and Technology Ministry of Agriculture and Irrigation Ministry of Livestock, Fisheries and Rural Development

Systems of Rural Electrified Villages in the Entire Country 1.64% 35% 33.24% 25% 5% Systems of Rural Electrified Villages in the Entire Country Grid Line 35% Diesel Generator 25% Mini-hydro 5% Solar 33.24% Solar Mini-grid 0.11% Wind 0.01% Bio-mass, Bio-gas 1.64%

Implementations of Rural Electrification from 2012-2013 to 2015-2016 ( By Department of Rural Development ) Sr. FY Years Total Electrification Systems Budget Effective Villages Electric Solar Hydro-Power Biogas Diesel Engine (Million) Household Population 1 2012-2013 184  - - 2955.4 17616 93386 2 2013-2014 205 4 148 51 4328.3216 39670 185652 3 2014-2015 1689 84 1595 131 8 40599.974 207465 1034344 2015-2016 2308 223 139863 34 36298.623 146123 749098 4386 311 141790 216 11 84182.3186 410874 2062480

International Development Partners Project Name & Implementer/Owner Brief Description of the project, activities IDA (loan) Grant Implementation Period JICS Pilot Project   994 millions (JPY) 2014-2017 ICDF 350,000 (USD) 2014-2015 ADB CDTA 2 millions (USD) 2014-2016 ESCAP 322,050 (USD) 2013-2015 KFW 9 millions (EURO) 2015-2016 JICA 0.279 millions (USD) WB National Electrification Plan 90 millions (USD) 2016-2021

National Electrification Plan: Phase 1- (2016 – 2030) Objective: To achieve universal access to electricity in Myanmar by 2030 Leading Ministries MOEP Grid Extension MLFRD Off-grid

Least‐cost recommendation for 2030 • By 2030, the majority are grid connections • This represents 7.2 million households • Total cost is estimated at US $5.8 billion (US$800 per connection, average)

NEP - Phase 1 (2016-2021) IDA credit of $400 million by World Bank finance. Four Components Component 1: grid extension (IDA $300 million) Component 2: off-grid electrification (IDA $80 million); Component 3: technical assistance and project management (IDA $20 million), and Component 4: contingent emergency response (IDA $0).

Financial Allocation by IDA for Off- grid Electrification (Phase-1, 2016-2021) Mini-grid SHS Public Institution Technical Assistance Total (USD) Million WB’s IDA contribution (USD) Million 7 53 20 10 90

Component 2: Off-Grid Electrification (IDA $ 80Million) To target the communities unlikely to receive grid-based access ever or within the next 10 years. Technology neutral approach; MFLRD (DRD) to lead needs assessment at community level. Technology options include: solar photovoltaic (PV); mini-hydropower; wind; diesel; hybrid (e.g. diesel/solar). IDA finance will support: Solar photovoltaic devices or systems for a target of 465,500 households Mini-grids to serve some 35,500 households Electricity connections for 11,400 health clinics, schools and other community buildings and 19,000 public street lights

Component 2: Off- grid Mini-grid: (IDA$ 7million) Micro-hydropower Other mini-grid technologies such as biomass, biogas, solar and wind. Up to 1MW in capacity are eligible Solar Home System: (IDA$ 53million) Solar panel peak wattage (Wp) 20 40 60 80 Design 3 LED lights, cell phone 4 – 5 LED lights, cell phone, TV 5-6 LED lights, cell phone, TV 6-7 LED lights, cell phone, TV, fan Estimated cost for quality system (USD) 230 300 350 400

Public institutions potion: (IDA$ 20million) Public institutions potion target Schools, Clinics, Religious buildings and Street lighting Each affected village is assumed to have one school, one clinic, one religious building and five street lights. Connection Type System quantity Cost per system Equipment Cost Total 30,400 N/A $20million Schools 3,800 $1,000 $3.8million Religious building Health clinics $2,000 $7.6million Public (street) lights 19,000 $250 $4.75million

Component 3: Technical Assistance, Off-grid (IDA$10Million) Capacity building and training of the Project Management Offices. (Union, State/Region, district, township and village level, private sector) Improve the policy and regulatory framework. Standards, technology assessments and technical design, economics and financial analysis, environmental and social impact management, procurement and financial management, Strengthening project management

Financial Contribution for sub-components of Component 2 System DRD contribution (USD) Million WB’s IDA contribution (USD) Million HH contribution (USD) Million Total (USD) Million Mini-grid 7 11 25 SHS 53 20 126 Public Institution - Total 60 80 31 171

SHS - Under the National Electrification Plan’s National Geospatial, Least-Cost Electrification Plan.; and - Only households that did not receive SHS previously under DRD’s earlier SHS programs are eligible. - focuses on best available, price-competitive technologies from pico-photovoltaic units and solar kits up to large solar home systems of 100 watts peak (Wp). 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 % 87 % 85 % 82% 80% Portion covered by customer contribution 10 % 13 % 15 % 18 % 20 % C

Mini-grid - Micro-hydropower , biomass, biogas, solar and wind. - Hybrid systems that include a backup diesel generator are also eligible. Mini-grids up to 1 MW in capacity are eligible for support under the program. Site conditions - Clustered housing - Nearby stream of sufficient water flow and head in case of mini-hydropower - - Opportunities for productive-use loads 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 institutions 100% grant-funded systems for schools, religious buildings, and health clinics , street lightings in target villages where households solutions are provided Connection Type System Quantity Schools 3800 Religious Buildings Health Clinics Street Lightings 19,000 Total 30,400

Implementation Arrangements

Organization Structures National Electrification Executive Committee (NEEC) NEP( PMO) MOEP (PMO) MLFRD (PMO)

Announcing the program to Target villages In coordination with Union level (PMO) DRD office and Local government The district or township level DRD office informs the villagers at Local Township Development Committee meeting. DRD is ready to initiate a local program to make available SHS, mini-grids, or both SHS and mini-grids in the area. To inform the public of the process by which SHS and /or mini-grid will be deployed, household contribution and subsidy through media.

procedures for SHS Site, villages and projects selection Prioritizing villages Community organization and mobilization Opportunity to pursue a Mini-grid Household-by-household solar home system size selection process Customer SHS selection and collection of down payment VEC / DRD down payment receipt and village total number of systems of each type Public Facilities and Costing Technical Standards for SHS products Tendering and procurement Supply and installation, user training and supervision Compliance verification of installations O&M and spares services Monitoring of company performance

procedures for Mini-grids From pilot mini-grids to full implementation Village criteria for mini-grid eligibility Mini- grid size limits Mini-grid screening process Projects identified by developers Projects identified by DRD Technical Standards for Mini-grids Commissioning and training O&M and spares services

Mini-grid Screening Process Viable Needs further investigation Screening by PMO (union level) SHS Not viable Feasibility study Projects identified by developers List of Mini- grid project proposals Projects identified by DRD Pre-feasibility study PMO evaluation Not viable Mini-grid construction & commissioning Input from VECs Project proposals

Monitoring & Reporting Report indicators every six months – put into their system. Reports – every 6 months need to send financial management report. Combination of record keeping, report generating, field visits and discussion meetings.

Budget Allocation for NEP, Off-grid Electrification Fiscal Year (2016-2017) System DRD budget USD World Bank (IDA) Community USD (Million) Total Estimated (HHs) Remark 36 million 18 million 6 million 60 million   SHS - 58 million 165714 350USD/HH Mini-grid -  2 million 2500 800USD/HH Technical Assistance 2 million 

Project Benefits Access to electricity (estimated 6 million people by 2021). Reduced cost of electricity supply. Enhanced well being through electricity for lighting in houses and streets, telecommunications and entertainment. Enhanced income generation opportunities and potential productivity improvements. Prioritization of connections for health clinics, schools, religious buildings and community centers. Strengthened institutional capacity of implementing agencies, including public and private sector agencies and organizations active in the grid and off-grid components. Improved participation of community members in decision-making processes for rural electrification. Strengthened capacity of Village Electrification Committees (VECs).