scaling up the renawable energy acess in myanmar...allows local private sector participation and...

SCALING UP THE RENAWABLEENERGY ACCESS IN MYANMAR

Green Energy Summit 2015

Jean-Marc Brûlé

Green Lotus NGO co-founder

Electricity demand is projected to increase 700% between 2012-2030

70% of the country isn’t connected to the national grid

NEP 100% in 2030

35% of rural villages are electrified

The grid provides electricity to only 23% of them, most are using off-grid systems

But many issues exist

Shortcuts, Non-reliability, Too cheap and too subsidized

THE ENERGY SECTOR: STATUS AND CHALLENGES

RENEWABLE ENERGIES TO INCREASE ENERGY ACCESS, REDUCE POVERTY AND ENHANCE ENERGY SECURITY

Access to modern energy services is necessary for productive activities and essential services, to create the conditions for

economic growth and improving social equality

(UNDP, 2005-08 Energizing the Millenium Development Goals: A guide to energy’s role in reducing poverty)

Waiting for the national grid to reach the entire country …

Waiting for infrastructure improvement …

Flexible, decentralized community-based renewable energysystems (solar, micro-hydro) can be implemented

RENEWABLE ENERGY RESOURCES AND APPLICATIONS IN MYANMAR

Small-scale and large-scale

systems

SMALL-SCALE RENEWABLE ENERGY SYSTEMS

Many small-scale renewable energy systemshave been implemented, by the government and

by the population

To increase access to modern energy services

And are generally decentralized

And thereby able to provide energy services to communities that are not accessed by the

existing electricity grid

SMALL-SCALE RENEWABLE ENERGY SYSTEMS

2 types:

Photovoltaics Solar house systems (SHS)

Encouraged by the government (free or subsidized in remote areas)

Mini and micro-hydropower systems (SHPs) Since 2010, 26 micro-hydro and 9 mini-hydropower projects have beendeveloped

Micro-hydropower systems built by locals are already providing electricity tothe village level

Lower capital costs, more sustainable than larger systems

Allows local private sector participation and community involvment

SMALL-SCALE RENEWABLE ENERGY SYSTEMS

Biomass represents two-third of the primary energysupply in the country Wood, charcoal, agriculture residue & animal waste

Fuelwood accounts for more than 90% of biomass-sourcedenergy

Harvested from natural forests

Used in both urban and rural areas

Use of biomass for off-grid electricity production ishowever insignificant

Only 5 MW installed

LARGE-SCALE RENEWABLE ENERGY SYSTEMS

LARGE-SCALE RENEWABLE ENERGY SYSTEMS

Huge hydropower potential

Estimated at 108 GW from its 4 main riverbasins(Ayeryarwaddy, Chindwin, Thanlwin, and Sittaung)

Only 4,000 MW of hydropower capacity has been developed

36 projects are formed until 2030

Hydropower contributes to 70% of the total electricity generation

LARGE-SCALE RENEWABLE ENERGY SYSTEMS

Large potential

(around 365 TWh per year)

High initial cost, not enough available data on wind energy sources to evaluate suitable sites for

the construction of wind turbines, & development at the experimental and research phase

The industry is underdeveloped

3 wind turbines are operational

for a total of 5,4 kW

LARGE-SCALE RENEWABLE ENERGY SYSTEMS

High solar radiation levels

Especially in the Central Dry Zone area

Potential is estimated at 52,000 TWh per year

High initial cost, development still at the research and experimental stage industry is

underdeveloped

4 solar projects of 530 MW have been recentlysigned

BARRIERS TO RENEWABLE ENERGYDEVELOPMENT IN MYANMAR

Policy, regulatory, and institutional frameworks

Information and technicalcapacity

Financing and investments

POLICY, REGULATORY, AND INSTITUTIONALFRAMEWORKS

… A better policy and regulatoryframeworks, clear direction and leadershipfrom the government in the form of policiesand regulations

Myanmar’s current policy support, budgetaryprovision, and regulatory regime favour thedevelopment of fossil-fuel energy sources insteadof RE resources

LAC

K O

F …

POLICY, REGULATORY, AND INSTITUTIONALFRAMEWORKS

… A targeted, well developed policy frameworkfor promoting energy efficiency andconservation, with legislative standards, adedicated organization at the national level tosupport it, and specific incentives to encourageenergy savings

The government aims to save 8% of the total primaryenergy consumption by 2030 (compared to 2005)LA

CK

OF …

INFORMATION AND TECHNICAL CAPACITY

… Information and educational programs towards

the population

… Skill transfer system for local entrepreneurs from

national companies, to upgrade their green energy facilities

… Maintenance capacity and additionalinfrastructure investments. The infrastructure is aging

and leads to frequent power supply shortages, especiallyduring the summer monthsLA

CK

OF …

FINANCING AND INVESTMENTS

… Financial capital to support research and

development, market-based investment programs, anddevelopment of physical infrastructures

… Solid regulatory framework, which makes it

hard for the private sector, banks and lending facilitiesto enhance their investments in renewable energysystemsLA

CK

OF …

RECOMMENDATIONS FOR SCALING-UP REFROM THE MYANMAR ACTION PLAN FOR

GREEN GROWTH (BY GREEN LOTUS)

General Recommendations

Focus on Solar, Wind,

Hydropower and Biomass Energy

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Draft a clear policy framework forrenewable energies

Definition of RE

Clear guidelines and orientations

Focal Ministry (MOST) should bestrengthened in his mission of developing REand a specific department should becreated

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Clearly support renewable energy Cooperate with internationalorganizations

Recognize the RE solutions alreadyimplemented by local populations

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Prioritize on Decentralized RenewableEnergy (DRE) solutions

Focus in developing DRE solutionsalongside grid development

Transfer responsibilities about REdevelopment to region or stategovernments

Implementing demonstrators

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Encourage seasonal diversificationof Hydro, Solar and Wind Even if wind energy is less predictablethan the others, it is possible to considerhybrid renewable energy system basedon these 3 energies

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Integrate renewable energies intorural development strategies RE has to be integrated in a holisticapproach of rural development:

End-uses of clean electricity can bescaled-up

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Communicate on the national gridroll-out Impacts on private companies’ businessplan

Deployment of the national grid shouldsupport off-grid options when they arecost-competitive

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Facilitate foreign investment Risk mitigation tools, improvement ofinformation access and transparency onland management and rules to invest inthe country

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Design Standard Power PurchaseAgreement (SPPA) regulation

Then, set technical standards for theimplementation of the infrastructuresinspired by ASEAN standards

Shift emphasis to high-quality material andinclude maintenance and minimum warranteesduring planning and procurement stages

GENERAL RECOMMENDATIONSPOLICY AND INSTITUTIONAL ENVIRONMENT

Set interconnection rules betweenlocal grids and national grid Improve the quality of the electricitydelivered and substantial revenue forsmall power producers

GENERAL RECOMMENDATIONSREGIONAL INTEGRATION, NETWORKING AND CAPACITYBUILDING

Empower local population’s capacitybuilding and community engagementto support sustainable solutions

Organize technical training about cleantechnologies

Develop an awareness program aboutRE solutions with an emphasis aboutquality materials

GENERAL RECOMMENDATIONSREGIONAL INTEGRATION, NETWORKING AND CAPACITYBUILDING

Organize technical trainings for allrelevant stakeholders, includingregulators, banks and donors Technical training for the main actorssuch as decisions makers and regulators,banks, and donors, organized byinternational/national experts

GENERAL RECOMMENDATIONSREGIONAL INTEGRATION, NETWORKING AND CAPACITYBUILDING

Enhance academic research onrenewable energy Innovation and academic transfer,and development of national research

FOCUS ON SOLAR ENERGY

Develop a recycling mechanism forenergy systems waste, such asbattery used in solar home systems Prevent from damaging theenvironment

Regulations or financial incentivesdeveloped by the government

FOCUS ON SOLAR ENERGY

Promote quality materials Quality materials, if properly installedand operated, will be cheaper on thelong run

FOCUS ON WIND ENERGY

Improve data on wind potential, todefine a “wind resource map” The last studies in this area, led byJapanese organizations, have beenmade almost fifteen years ago (NEDOin 1997 and JICA in 2001)

FOCUS ON HYDROPOWER ENERGY

Prioritize small and medium scalehydropower over largescaleinfrastructure projects

Small and medium-scale hydropowerprojects represent a more sustainable,economically viable and socially acceptablealternative to large-scale hydropowerprojects

FOCUS ON HYDROPOWER ENERGY

Systematize Environmental ImpactAssessment (EIA) and publicconsultation for hydropower projects

Such studies and consultation arealready implemented for many projects;it would be necessary to make themmandatory

FOCUS ON HYDROPOWER ENERGY

Clarify licensing process andregistration To scale up micro-hydropower plantsand address local practitioner’s issues

FOCUS ON HYDROPOWER ENERGY

Develop productive use ofelectricity for social benefits Small and medium-size companieswould have the ability to developwhile individuals would use theelectricity for lighting

FOCUS ON HYDROPOWER ENERGY

Create an inter-country commission to minimize the impact on rivers

(Example: Mekong River Commission) An international cooperation between ASEAN members would aim to: Gather development objectives,

Induce a geographical perspective (instead of boundaries perspective),

Reduce the costs of projects implementation

FOCUS ON BIOMASS ENERGY

Initiate a transition toward cleanbio energy uses Strong potential to develop modernbio energy uses with innovativetechnologies

3 drivers: proper technology,regulation & financial mechanism

THANK YOU!Our next conference

Green Construction in Myanmar

October 16th

Yangon City Hall

jmbrule@gmail.com

contact@green-lotus.org

www.green-lotus.org