1. Discussion of Grid-Connected Small Scale Electrical Power Enterprise Regulations Nay Pyi Taw, March Chris Greacen, Ph.D.
Good morning. It‘s a deep honor to be here with you all toady. Take a moment to look around this room. When it comes to building mini grids in Myanmar, no one knows more about it than you.
As Patrick said, our priary purpose here today is to learn from you, from your expertise so that by the end of the day we have clear understanding of how these draft regulations might work to encourage greater invetment

2. MOEE (Union) State & Region
Any project connected to the national grid
*The Relevant Union Ministry*
Myanmar Grid-Connected Small Scale Electric Power Enterprise Regulations 2018
Notification No: [*]
(-) date, (-) month, 2018
State & Region
Any project not connected to the national grid
*The Relevant State Ministry*
Myanmar Off-Grid Small Scale Electric Power Enterprise Regulations 2018
Notification No: [*]
(-) date, (-) month, 2018
As noted in my earlier presentation, the regulation framework is broken into two parts. We’re focusing on the MOEE part, which asddresses grid-interconnection. As you know, in the room over there participatns are discussing state-level regulations that address projects that are isolated from the main grid.
08/11/2018

3. Characteristics of Small Scale Electric Power Enterprises
Type of Small Scale Electric Power Enterprise
Generation
Distribution
Sale
Small Power Producer (SPP)
Small Distribution Network (SDN)
Small Electricity Retailer (SER)
The small scale electricity electric power enterprises come in different flavors depending on whether they are engaged in generation, distribution, sales, or combinations of the these three things.
Isolated mini grids are projects that are not connected to the main grid, and have their own generation, distribution and sell electricity directly to customers.
In either the isolated or grid-connected realm, Small power producers (SPPs) only generate electricity and sell it at wholesale.
Small Distribution networks (SDNs) operate the poles and wires, bringing electricity from the national grid or an SPP and distributing electricity to customers. Small electricity retailers (SERs) use the poles and wires of SDNs and sell electricity to retail customers. Entities can be combinations of these -- for example, a project can be both an SDN and an SER.

4. Grid-connection Process
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Interconnection certificate
Based on review of engineering plans – agreement to allow interconnection
SPPA or SPSA
Contract to purchase / sell electricity at specified price
Permit
Legal right to operate (streamlined approval for projects <1 MW)
Commissioning
Interconnection with the national grid and commencing operations
Grid-connection Process

5. Interconnection certificate
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Interconnection certificate …
SPPA or SPSA
Permit
Commissioning
Application

6. LoI definitions Letter of Intent (LoI) On-grid LoI Off-grid LoI
means a statement of intent by a LDN operator to connect to a SPP or SDN;
On-grid LoI
means a LoI issued by a LDN operator to an existing or proposed project which intends to connect to a LDN which is in the vicinity of the project;
Off-grid LoI
means a LoI issued to an existing or proposed project that operates, or will operate, in a mode that is not connected to a LDN and that intends to connect when a LDN expands into the vicinity of the Off-grid project;

7. Request for Letter of Intent (§7)
Receive notification of receipt of complete request within 7 days 3
Identification of suitable project site 1
Submit Request for LoI to LDN 2
Receive LoI within 30 days from date of receipt of complete request 4
LDN distribution upgrade & cost estimate within 30 days of LoI 5
MMK
Accompanying documentation:
GPS coordinates of the proposed location of project assets;
Proposed project power export/import capacity (kW)
Basis for denial:
Can only be denied for technical (engineering) reasons or if it conflicts with another project
Validity
On-grid LoI: Valid for 12 months, but can be extended for a period of up to 6 months at a time up to 2 years
Off-grid LoI: Indefinite (does not expire) until LDN network is within one mile of the project
… at which point it is nullified and replaced with an on-grid LoI
Transfer only with LDN approval
Distribution Cost Upgrade Estimate
Upgrades to LDN paid for by SPP/SDN developer

8. Application for interconnection
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Application for interconnection
Based on review of engineering plans – agreement to allow interconnection
SPPA or SPSA …
Permit
Commissioning
Application

9. Interconnection certificate definitions
means a certificate issued by a LDN operator certifying approval of the interconnection engineering design submitted by the Electrical Project;

10. Interconnection certificate application (§12)
Receive notification of receipt of complete request within 7 days 3
Interconnection Certificate issued within 60 days from date of complete request 4
Before LoI elapses… 1
Submit Application for Interconnection 2
Accompanying documentation:
Description of the project, site details
Service territory (if SDN or SER)
Electrical engineering design specifications
Engineering studies (e.g. load flow or fault studies)
Prescribed fee
Basis for denial:
Only technical (engineering) criteria

11. Interconnection certificate
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Interconnection certificate
Based on review of engineering plans – agreement to allow interconnection
SPPA or SPSA
Contract to purchase / sell electricity at specified price
Permit …
Commissioning

12. Standardized Small Power Purchase Agreement (SPPA)
SPPA Key definitions
Standardized Small Power Purchase Agreement (SPPA)
means a standardized contract by which a Small Power Producer sells electricity at wholesale
Feed-in Tariff
means a generation technology-specific, standardized electricity rate paid for electricity sold to the LDN operator under a SPPA

13. Standardized Small Power Sales Agreement (SPSA)
SPSA Key definitions
Standardized Small Power Sales Agreement (SPSA)
means a standardized contract by which a Small Electricity Retailer purchases electricity at wholesale

14. Interconnection certificate application (§12) + SPPA/SPSA (§13 & §15)
Accompanying documentation:
Description of the project, site details
Service territory (if SDN or SER)
Electrical engineering design specifications
Engineering studies (e.g. load flow or fault studies)
Prescribed fee
Basis for denial:
Only technical (engineering) criteria
Receive notification of receipt of complete request within 7 days 3
Receive Interconnection Certificate within 60 days from date of complete request 4
Submit Application for Interconnection 2
Before LoI elapses… 1
Developer and LDN sign SPPA / SPSA within 90 days from Interconnection Certificate
SPPA / SPSA:
Standardized contract -- No need for each project to draft and negotiate from scratch each time.
SPPA (SPSA) will specify a tariff for sale (purchase) of electricity to the LDN
The Ministry may modify the SPPA / SPSA, but modifications only apply to agreements signed after the modification.

15. Feed-in Tariffs determined by:
A standardized methodology established by the Ministry;
An avoided cost calculation as determined by an LDN operator, with approval from the Ministry; or
Through a competitive bidding process.

16. SER Tariffs (§33) SER Retail tariffs
Allowed to be higher than tariffs charged to retail customers by LDN (e.g. higher than 35 kyat/kWh)
Ministry allows tariff taking into consideration factors including:
SER’s costs (capital, O&M, taxes, etc.)
amount of electricity sold,
Reasonable profit to SER
Customers' alternatives.
(§34) SER wholesale tariff
Sufficient for well-managed company to earn profit at or above prime interest rate plus 8%
08/11/2018

17. Interconnection certificate
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Interconnection certificate
Based on review of engineering plans – agreement to allow interconnection
SPPA or SPSA
Contract to purchase / sell electricity at specified price
Permit
Legal right to operate (streamlined approval for projects <1 MW)
Commissioning …
Application

18. Permit application (§21)
Receive notification of receipt of complete request within 14 days 2
Ministry publishes in 2 newspapers, 14 days public comment 3
If > 1 MW
Ministry evaluates within 60 days 4
Submit Application for Permit to Ministry 1
For all projects:
Fee
Site description
Copy of SPPA/SPSA
For projects >1 MW additional requirements:
Business registration
Business plan
Proof of financial capacity
Evidence of rights to use land (& water rights if hydro)
Health & safety approvals
Evaluation critiera (all projects):
completeness, veracity and legality of the information
Evaluation critiera (projects > 1 MW):
The applicant’s record of compliance;
Public comments and representations received from the public, if any;
Protection of the environment;
Financial capability of the applicant
Economic efficiency and benefit to public & applicant.

19. Authority to issue waivers (§20)
The Ministry is authorized to issue waivers to requirements otherwise applicable to Permit holders pursuant to the Ministry of Electric Power Permitting (Permit Applications, Issuance, Modifications and Enforcement) Regulations, 2016, or its replacement, in order to minimize the regulatory requirements applicable to SPPs, SDNs and SERs.
08/11/2018

20. Interconnection certificate
Letter of Intent (LOI)
Indication of intent by national utility to allow project of specified size/location to connect
Interconnection certificate
Based on review of engineering plans – agreement to allow interconnection
SPPA or SPSA
Contract to purchase / sell electricity at specified price
Permit
Legal right to operate (automatic approval for projects <1 MW)
Commissioning
Interconnection with the national grid and commencing operations
Application

21. Commissioning (§30)
Commissioning must happen no more than 3 years from SPPA signing (unless exception granted in SPPA or extension granted by Ministry);
SPP/SDN must submit quarterly progress reports to LDN leading up to commissioning (and annual reports thereafter);
Inspector General must verify interconnection equipment compliant with technical codes prior to interconnection. Issues Interconnected Facility Commissioning Certificate upon completion of testing;
Ownership of all relevant assets on the LDN operator’s side of the Interconnection Point shall be transferred to the LDN operator upon commissioning.
08/11/2018

22. Small Scale Electric Power Enterprises Unit (§32)
The Ministry shall establish Small Scale Electric Power Enterprises Unit
Single point of contact
Coordinate interactions among departments within the Union Government and the LDN operator;
Facilitate the issuance of:
LoIs;
Environmental, health and safety approvals
Review annual reports.
Monitor project performance and maintain a database of all SPP electricity sales and SER electricity purchases.
08/11/2018

23. Feedback from Union-level consultation workshop with MOEE/MOI/DRD Tues 6 March, 2018 – Naypyitaw
Regulations need to better integrate with existing (or soon to be released):
MOEE technical codes (grid-code, distribution code, metering code),
technical and industrial standards,
code of conduct and inspection methods, and
environmental regulations
Feed-in tariffs need to be consistent with reasonable least cost approach
Regulations should be promulgated under Electricity Law §72(b) rather than §72(a) so as to not require parliamentary approval.

24. Questions? Suggestions?

25. Guiding questions
If these regulations were passed, would they help your business?
What, if anything, would you change?
Small Scale Electric Power Enterprises Unit – should there be one in each LDN, or just one inside MOEE?
At the moment, ESE, YESC, MESC are the only LDNs. Should LDNs be defined to include smaller distribution utilities?
If a request for LOI or application for interconnection is submitted to ESE, should it be submitted to the state-level office, or to the union/head office?
What do you think about the processes on the flow-charts?