1. The NEP Workshop on Off-Grid Electrification in Myanmar
ADB’s Energy Sector Program
29th January 2015

2. Current Sector Context
Low electrification ratio (ER)
Cost effective way to extend electricity supply to about 6.4 million unconnected households, ER is around 31% as of 2013.
Electricity shortage in dry season
Yangon required load shedding of 200 MW in summer 2013, while its peak demand growing at 13.7% annually and insufficient gas availability
High technical and non-technical losses in transmission and distribution
27% in 2011
Grid extension to rural areas will be expensive and could be delayed
Population of about 60 million with more than 70% in rural areas
Need to explore off-grid applications on a large scale

3. ADB’s Involvement in the Energy Sector
First-ever Sector Assessment Completed –
New Energy Architecture Report: In collaboration with Accenture – (released at the World Economic Forum, Nay Pyi Taw)
Facilitated drafting of the Electricity Law –
First Investment Program Approved – 2013
Additional Investment Programs are being developed
Ongoing technical assistance programs focussed on power sector reform, capacity development and off-grid renewable energy applications

4. ADB’s Assistance Enhancing Governance Programs On-grid Programs
Off-grid Programs

5. Enhancing Power Sector Governance Programs
TA for Enhancing the Power Sector’s Legal and Regulatory Framework (TA 8469)
- Upgrading the Myanmar Electricity Law (1984) and the Electricity Rules (1985)
Institutional Strengthening of National Energy Management Committee in Energy Policy and Planning (TA 8356)
- Energy Master Plan, Energy Efficiency Policy, Renewable Energy Development Strategy
Capacity Development and Institutional Support (TA 8244)
- Power Sector Advisor to the Ministry of Electric Power
Capacity Building for Project Identification Support (TA 8251)
- Grid performance standards, Transmission and Distribution Grid Code
Financial Management Assessment of Energy Sector (TA 8216)
Strengthening the Use of Country Safeguard Systems (TA 7566)
- Capacity building for implementing environment and social safeguards
Support for Public-Private Partnership Framework Development (TA 8624)
- Capacity building and awareness of PPP project process requirements
Environmental Safeguard Institutional Strengthening (TA)
- Capacity building for comprehensive environmental quality management

6. On-Grid Programs
2013
Power Distribution Improvement Project ($60 million)
Five townships in Yangon region; four districts in Mandalay region; five districts in Sagaing region; and two townships in Magway region
Loan agreement was signed on 28 January 2014
On going bids evaluation for goods, PIC mobilized in Dec. 2014
2015
Power Transmission Improvement Project ($80 million)
Rehabilitation and expansion of 66kV & 230kV transmission lines and four substations in Yangon
2016
Power Transmission and Distribution II ($75 million)
Project scope - TBD

7. Off-Grid Program Phase 1 (Q4/2013 – Q3/2015)
Counterpart: Ministry of Industry (MOI)
Pilot Regions: Mandalay Region and Chin State
Outputs
Design and implement off-grid energy solutions for 20 villages
Least cost electrification plan for Mandalay region
International Investor forum in Nay Pyi Taw in March 2014
Phase 2 ( Q2/2014 – Q2/2017)
Counterpart: Ministry of Livestock, Fisheries and Rural Development (MLFRD)
Coverage: Mandalay, Sagaing, and Magway Regions
Design and implement off-grid energy solutions for public and community infrastructure in 25 off-grid villages
Least cost electrification plan, and related policy and regulatory support
Phase 3 (tentative – Q3/2016)
Combine loan and grant funds (link with other energy access programs)

8. Proposed Pilots under Phase 1

9. Guiding Principles for Phase 1
Responsive to government’s request for immediate deployment of RE based solutions
2. Adopt sustainable delivery approach
>5km from Grid
capitalize on existing RE resources
Scaled up in phase 2 & 3
Promote private sector participation
Bring ADB experience in service delivery models.
Leverage ADB’s Energy for all Program
Stock taking in off-grid villages: energy poverty, affordability and willingness to pay, links to government plans, community participation and technology suppliers.

10. Challenges and Opportunities
Government commitment and government reach at village level
Recent programs by MOI, DRD, MOAI, MOEP and others. Current program by MLFDRD and regional governments.
Community based organizations in place
Community interest and willingness to accept change
SHSs are in use in several villages and help to provide a demonstration effect
Challenges
Low loads and very low affordability to pay
Difficult terrain
Lack of access to financing
Lack of technology awareness among rural communities
Lack of reach of private RE suppliers at village level and after sales support mechanism
Need a road map for rural electrification including clear targets, enabling policies, incentives, models, and concessional funds.
Pictures of street lights, solar lantern shs etc

11. 1. Solar Home Systems Procurement contract signed on January 2015
Around 1,000 SHS will be distributed at a subsidized price:
Nay Phi Taw: 2 Villages, Mandalay: 11 villages, Chin: 2 villages
Output Based Aid (OBA) protocol used to promote efficiency of subsidies. Payments after delivery
Large scale-up potential of the project
Size
Sale Price (US$)
Subsidy (%)
30 Wp 87 41
70 Wp
203 31
110 Wp
329 27

12. 2. PV Solar Mini-grid component
2 villages selected in Mandalay Region
Preliminary socioeconomic assessments carried out
Tender documents and tech specs under preparation
Construction aimed to start by April 2015
Funding Sources:
Source
Concept
Portion
ADB
Distribution network
90% of cost
Government
10% of cost
Beneficiaries
HH connection
Token contribution
Private operator
Generation assets
100%

13. 2. PV Solar Mini-grid component
- continued
2. PV Solar Mini-grid component
Approach :
All consumption revenues will be collected by the private operator to cover for their investment and O&M costs
AC supply, 60 HHs for 5Hrs/day, 150 watts/HH
A formal agreement between the village and the private operator is necessary before ADB disbursements
Tariff structure, metering, and payment arrangements will be agreed bilaterally by the community and the operator
Private operator will be selected competitively among local companies

14. 3. Solar Lantern Charging Stations
3 villages identified for pilot projects in Mandalay Region
Target to Bottom of Pyramid (poorest households)
Support local business in rural off-grid areas
Private company invest in a charging station and recovers investment by renting and/or charging lanterns
Charging fee below cost of alternative uses (e.g. candles)
ADB subsidizes a portion of the total cost to incentivize private sector to invest and train local entrepreneurs to operate the station
Tech Specs and tender documents under preparation
Model: 50 lanterns with 5 junction box, 6hr/day, mobile charging facility, solar lanterns selling point
Expected implementation to start by March 2015

15. TA 8657-MYA: Off-Grid Renewable Energy Demonstration Project (Phase 2)

16. Off-Grid RE Project Outline
Capacity Development Technical Assistance
ADB approved the TA on 23 May 2014
Funding: US$2 million (Japan Fund for Poverty Reduction/JFPR)
Executing Agency (EA): Ministry of Livestock, Fisheries and Rural (MLFRD) Development (MLFRD), Implementation Agency (IA): Department of Rural Development (DRD)
Implement an off-grid renewable energy demonstration project that will:
Support the design and install renewable energy systems in 25 villages; targeting the central dry zone (Mandalay, Sagaing, and Magway regions)
Develop a geospatial least-cost energy access and investment plan for select regions and states
Strengthen the capacity of government institutions to design and implement small-scale renewable energy systems
Status of Implementation
Mobilization of consultants: January 2015
Pictures of street lights, solar lantern shs etc

17. Choon-Sik Jung, SEEN/SERD
Thank you for
your attention!
For further inquires
Choon-Sik Jung, SEEN/SERD