1. Overview of Electrification Options
for Kalone Htar
January 8, 2018
Dr. Chris Greacen 1

2. Grid extension How intermittent is electricity?
Electricity in how many years?
What cost per household to connect?
What tariff per kWh?
This is a somewhat different definition than the def of mini-grid used in North America and Europe. There mini-grids (or sometimes micro-grids) refers to much larger installations that provide backup power for factories, server farms, or other users that require exceptionally high reliability – %reliability instead of he 99.9% that utilities can offer. Mini-grids in remote villages have lower reliability needs, and generaly use smaller amounts of electricity. Generally, but not always, they are not connected the main grid.

3. mini-grid
Mini-grid: an electric network used to distribute electric current within one or several villages. Generally <10,000 customers and include local generation.
Minigrid
This is a somewhat different definition than the def of mini-grid used in North America and Europe. There mini-grids (or sometimes micro-grids) refers to much larger installations that provide backup power for factories, server farms, or other users that require exceptionally high reliability – %reliability instead of he 99.9% that utilities can offer. Mini-grids in remote villages have lower reliability needs, and generaly use smaller amounts of electricity. Generally, but not always, they are not connected the main grid.

4. Minigrid examples

5. Diesel
Currently in Myanmar most mini-grids look a lot like this. In many cases they are built and operated by Village Electrification Committees. These committees are a common part of village-level government in Myanmar, and are comprised of a local leaders. Sometimes a local Buddhist temple owns and operates the generator. Other times it’s a village entrepreneur. Typically less than 20 kW. 230 volt distribution networks snake through the village on wooden poles and

6. Diesel Advantages Disadvantages Low initial cost
High operations cost (fuel)
Noise
Smells
Frequent repairs
Too expensive to run 24 hours/day

7. Micro hydro

8. Myaing village hydro, Shan state

9. 20 kW -- Indonesia

10. 3MW Nam Khun, Kyaing Tong Kyi Thien Family Co. & Kyaing Tong Energy Co
3MW Nam Khun, Kyaing Tong Kyi Thien Family Co. & Kyaing Tong Energy Co., Ltd.
-On behalf of ESE, Kyaing Tong Energy Co. Ltd. distributes electricity in Eastern Shan State.
-In the Kyaing Tong area, the demand for electricity is increasing rapidly. In response, small hydropower schemes have forged ahead to meet the energy demand.
-While Kyaing Tong Energy Co., Ltd. and Kyi Thein Company were implementing new projects in and around Kyaing Tong area, the necessary machines and spare parts were being imported from abroad and the civil works was being addressed by experienced experts from the company.

11. Hydro - Pinluang, Shan State

12. Micro hydro: advantages and disadvantages
No fuel cost
24/7 operation
No batteries to replace
Make us of local labor to build
More easily locally manufactured
Disadvantages
Site-specific design
Higher initial cost than diesel
Social & environmental impact if not implemented well
O&M cost per year = 5% of initial cost

13. Myi Chin Naing – solar PV
One of three identical 3.6 kW solar powered grid-ready mini-grids that power Myin Chi Naing village, Myanmar

14. Solar PV: advantages and disadvantages
No fuel cost
24/7 operation
Sunlight is widely available
Disadvantages
Higher initial cost than diesel
Requires batteries, which must be replaced every 3-8 years
O&M cost per year = 3% of initial cost

15. Royal Htoo Linn Manufacturing Co., Ltd
Biomass gasifier
Royal Htoo Linn Manufacturing Co., Ltd
Sittwe,Rakhine State

16. Biomass gasifier: advantages and disadvantages
Affordable (compared to diesel)
Disadvantages
Requires fuel supply (typically wood chips or rice husks)
Requires cleaning/rebuilding periodically
Pollution issues
O&M cost per year = 20% of initial cost

17. Villages with 70% of households electrified
State & Region
Total Villages
Electrified Villages
Electricity
Solar
Solar (Mini-Grid)
Hydro
Diesel
Biogas/ Mass
Unelectrified Villages
Nay Pyi Taw
796
319
242 75 2
477
Kachin
2582
1041
356
494
131 56 4
1541
Kayah
511
534
151 9 18
-23
Kayin
2063
729
281
372 10 15 50 1
1334
Chin
1346
666 11
385
269
680
Sagaing
6005
2631
1076
1019 14
103
391 28
3374
Thaninthayi
1230
390 33
353 3
840
Bago
6495
1315
829
472 8
5180
Magway
4795
1553
624
469
406
3242
Mon
1150
702
402
182
116
448
Mandalay
4781
2700
1549
639 37
441 19
2081
Rakhine
3760
1177 98
594
485
2583
Yangon
2129
1127
821
306
1002
Shan(S)
4965
1511
810
411 40
227 23
3454
Shan(N)
6079
1260
564
506
181 6
4819
Shan( E)
3304
524
107
218
199
2780
Ayeyarwady
11908
2258
709
679
811
9650
Total
63899
20437
8868
7325
150
1215
2407
43462

18. Distribution networks

19. Policies and regulation

20. Mini-grids and the Arrival of the National Grid

21. ESE LV
ESE MV

22. National electrification program (NEP)

23. Myanmar’s electrification challenge is immense…
Current electrification rate: 33%
Goal: 100% electricity access by 2030
Need to connect over 2x as many households per year to reach universal electrification by 2030…
New household connections per year
ESE
YESB
Required
189,000
Source: MOEP ( ), ESE, YESB data and Castalia estimations
Assumes 6.5 people in a household

24. Recommended Sequencing of Grid Roll-out proceeds from low-cost to high-cost connections
Connected earlier
Connected later

25. National Electrification Program (NEP)
First 5 years: $400 Million loan from World Bank
$310 Million grid expansion
Ministry of Energy and Electricity (MOEE)
$90 Million off-grid
Department of Rural Development (DRD)
Roughly $7 million for mini-grids
Next call for proposals in November 2018

26. >50 households in village
Some criteria for NEP mini grid support
>50 households in village
>10 miles from MV grid (national grid?)
Productive use loads (e.g. carpentry, welding, agricultural processing)
Village pays 20%, developer pays 20%, NEC pays 60%
Villagers willing to pay tariff
Prior experience of mini grid developer

27. Cost estimate calculations…

28. Mini grid cost estimates
Micro-hydro cost range:
20 to 30 lakhs kyat per kW
Solar PV cost range:
40 to 60 lakhs per kWp
Distribution cost per household (Low voltage - LV)
2.5 lakhs (average) not including internal household wiring
11 kV lines (per mile)
370 lakhs
11 kV transformer
120 lakhs
Micro-hydro cost range:
2700 to 5400 kyat per watt ($2 to $4 per watt – based on author’s impression of costs of higher quality micro-hydro in Myanmar
Solar PV cost range:
Distribution cost per hh (LV)
2.7 lakhs (average) not including internal household wiring. Based on average of CFP1 costs for mini-grids

29. Example calculations Site 2: 50 kW micro-hydro Site 1: 10 kW hydro
Site 1: 30 kW hydro + 20 kW solar
Site 2: 50 kW micro-hydro

30. Tariffs Connection charge Per kWh Subscription tariff Block rate
Time of Use (TOU)

31. Per appliance Examples 1000 kyat per month 2000 kyat per month
3 lights
Cell phone
2000 kyat per month
4 lights TV

32. Energy Tariff (per kWh)
Example: 100 MMK per kWh

33. Subscription (power) Tariff (per watt)
5000 MMK per month for 50 watts
10000 MMK per month for 100 watts or
MCB
PTC

34. Block rate tariffs: Progressive block rate
Tariff structures
PG&E’s (California) increasing-block residential electricity rate structure

35. Progressive block rate: subscription tariff example
Tariff structures
Progressive block rate: subscription tariff example
Ghandruk, Kaski District, Anna Purna, Nepal
Micro-hydro
Households: rupee per watt per month
Tourist lodges: 2 rupee per watt per month
Lodges use much more than households.
Loads include rice cooking, bread baking, hot showers for guests or
MCB
PTC

36. Time of Use (TOU) tariff
Tariff structures
High price
High price
Low price

37. Pre-Paid Metering Technology
power limiting and disconnection abilities
TOU, block rate
Simplifies payment collection and consumer accounting

38. Thank you!
Chris Greacen