energy 2013
TRANSCRIPT
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Jonas Moberg
LAST year, PresidentThein Sein announcedthat transparency inthe extractive sector
is necessary to ensure that allcitizens benefit from the countrysresources, not just a small group.Since then, the government ofMyanmar has committed itself totackling the opacity that has longcharacterised Myanmars oil, gasand mineral sectors.
Part of this reform involvesimplementing the ExtractiveIndustries Transparency Initiative(EITI), a global standard thatensures openness about revenues
from oil, gas and mining.Thirty-nine countries currentlysubscribe to EITI standards,while a number of others are inthe preparatory stages, includingFrance, the United Kingdom,the United States and nowMyanmar.
Under the guidance ofthe EITI Leading Authority,chaired by Union Minister USoe Thane, the governmentaims to submit a candidatureapplication to the internationalEITI Board by the end of 2013.Each country implementing theEITI Standard must follow acommon set of regulations whilealso adapting the process toaddress the particular challengesof their own extractive sectors.For some, transparency is away of minimising the risks ofcorruption; for others, it helpsbuild trust and attract responsibleinvestment.
Myanmars extractiveindustries have their own mix of
challenges, all of which the EITIis well-suited to address. Butit will be crucial to include therelevant actors and institutionsin the design process in order toderive the proper benefits.
For instance, estimatesvary about oil, gas and miningproduction and revenue. Whilecitizens deserve to know what thegovernment is getting when thenations finite natural resourcesare sold off, accurate andtimely information is currentlyunavailable. As demonstrated bythe continuous protests aroundthe Letpadaung copper mine, thiscan cause considerable publicdiscontent: Despite government
and corporate claims that themine is profitable for Myanmar,people continue to be unhappybecause they dont yet see thebenefits for themselves.
Under EITI standards,however, Myanmar willpublish annual reportsprepared by an independentthird party. Stakeholders will haveaccess to reliable informationabout how much extractivecompanies pay the governmentfor the right to extract resources.This information will inform theongoing debates about whetheror not the country is receiving afair share, and will be useful incases like Letpadaung and othersrecently in the news.
In July, gas started to flowthrough the 793-kilometre (493-mile) pipeline from the Shwe gasfield on Myanmars west coastto Kunming in China. With aparallel oil pipeline expected tobegin operations next year, andthe existing pipelines to Thailand,
transit revenues are becomingan increasingly importantsource of income for Myanmar.Through the EITI, citizens willknow exactly how much thegovernment receives from thesetransits. This reporting couldeven be expanded to includeverification that oil and gasearmarked for domestic usereaches its proper destinations.
EITI Reports often helpto detect weaknesses orinefficiencies in how revenuesfrom oil, gas and mining arecollected and managed. Havingaccurate numbers can improvetax collection systems, allowregulatory oversight of the sector
and even lead to the recoveryof missing revenue. It can alsohelp stimulate broader sector
reform, including revisions ofrelevant legislation, enforcementand monitoring of standardsand regulations, and moreefficient sharing of sectorrevenues for the benefit of thepeople. With the EITI bringingmulti-stakeholder groups ofgovernment, companies and civilsociety representatives together tooversee implementation, reportscan inform public debate abouthow the extractive sector is beinggoverned.
Another benefit of EITIimplementation is thattransparency and goodgovernance attract foreigninvestment. With companies
now bidding for large onshoreand offshore fields, and debateswirling over the ongoinglicensing rounds, its importantfor bidding companies toknow the procedures by whichcompanies are to be awardedlicences. Potential investorswant to know the investmentenvironment is transparent,which is why many largeinternational companies,including Chevron and Total,strongly support the institutionof EITI standards. Its alsoimportant for citizens to knowthat licences are being awarded tothose with the necessary technicaland financial skills to develop the
countrys natural resources in aresponsible and e fficient manner.With much of Myanmars
natural resources located inareas where ethnic conflict isongoing, the EITI also helpsprovide a platform for dialoguethough its multi-stakeholdergroup, contributing to improved
relationships and building trustbetween all parties.
This is not to say all thesechanges will be easy. EITIssuccess in Myanmar will requirecontinuous political leadership,a commitment to reform andthe courage to engage industryand civil society in debates abouthow the sector is managed.All companies extracting oil,gas and minerals must agreeto disclose information abouttheir payments, whether private,state-owned or other quasi-stateactors. Civil society organisations,academia, parliamentarians andothers, in particular by thoseliving in resource-rich regions,
will also need to be involved inreform. Lastly, the internationalcommunity must be ready toprovide a helping hand wherenecessary.
President Thein Seinscommitment to EITIimplementation signals, however,that the government is readyto step up to these challenges.The progress achieved so farindicates that the process ismoving in the right direction.The next step is to accelerate theconsultations within and betweeneach stakeholder group to form amulti-stakeholder group, whichwill take on the crucial task ofdesigning an EITI process and
work plan thats right for thecountry.EITI implementation alone
cannot resolve all the issues inthe natural resources sector inMyanmar, U Win Shein, Ministerof Finance and Revenue (as itwas formerly known), said atthe EITI Global Conference inSydney in May, but it can makesome important contributions.Hes right on both points.The EITI cannot solve all thechallenges involved in managingMyanmars natural resources. Butan ambitious and inclusive EITIprocess one well connected tobroader reforms is undoubtedlya good place to start.
Jonas Moberg is head ofthe Extractive IndustriesTransparency Initiative (EITI)International Secretariat andis based in the United States.Email: [email protected]
Citizens deserve to know what thegovernment is getting when the
nations nite natural resources aresold off.
Shwe gas pipeline in Rakhine State. Photo: Ko Taik
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EIGHTY-FOUR percentof rural households arestill off the grid in thiscountry, according to the
World Economic Forums NewEnergy Architecture: Myanmareport. While rural dwellers
have traditionally used candlesand kerosene lamps fuelled withdiesel in their homes after dark,conomic development over the
past few years has put a light athe end of the tunnel for some
ural households struggling withhe costs of non-renewable energy.
With new technology finding itsway to some of the furthest reachesof the country, the results are asdifferent as, well, night and day.
One company, ProximityDesigns, has found an especiallyffective solution for those living
without electricity: solar power.Based in Yangon, the companydescribes itself as a socialnterprise, employing hundreds
of people across the country andelling products and servicespecifically aimed at improving theives of its customers. While manyompanies might make similarlaims, Proximity Designs isnt
hilling luxury goods: It figuresout what poor people, particularlyn rural areas, need, then sets outo import or, if they cant find
anything adequate, design andbuild themselves high-qualityproducts at prices customersan afford. With a wide range of
products and services, Proximityoffers anything from technology toadvice to low-interest loans.
One of its most successful units,which has become profitable on itsown terms, is lighting. Accordingo Chris Page, a business analystor Proximity, the company hasold 22,000 solar-powered lightsn rural Myanmar since it began
offering them in March 2012.
Proximitys lights are madeby d.light, a US-based companypecialising in solar solutions inhe developing world. The US-
designed, China-manufacturedolar lights sell for between
US$9.50 and $33, depending onhe model. Thats a higher cost thanome of the other, cheaper brandsurrently on the market, but Mr
Page said d.lights products comewith a difference.
These lights are quite durable,he said. We have these three tests:We can step on them, run themover with a motorbike, dump themn water theyre water resistant.
We can drop them out of a coconutree. Quality is a huge thing here.
The value of such a reliableproduct light is obvious to ruraldwellers, as it often helps with theirwork. For instance, rubber tappersn Mon State prefer to work at
around 2am, while many ricehreshers like to work in the middle
of the night, he said.While solar-powered lighting
seems a novel solution to
Myanmars energy problem, itssuccess means Proximity is notthe only game in town. Overthe past two years a number ofprimarily Chinese competitorshave entered the business, oftenoffering solar-powered lights ata discounted price. As a result,Mr Page said, Proximity helpscustomers look at better lightingas an investment in a brighterfuture.
According to the companysresearch, rural households spendan average of $4 to $6 a monthpaying for fuel for lamps or candlesor other options such as flashlightbatteries or diesel for generators.While d.lights may have a higher
cost up-front, they pay off overthe long term. And to alleviate thechallenges of cobbling together thelump sum required for the lights,Proximity offers a credit program,allowing households to pay byinstallments. This is a major sellingfeature, according to Mr Page, as itsrivals do not offer such plans.
People are so starved for cashthey dont want to spend moremoney then they have to on aproduct, Mr Page said. We haveto make a case that its going toprovide an economic benefit tothem rather [than saying] this isreally a quality light with a cooldesign or something.
Another factor differentiating ad.light from a competitors modelis that d.lights rarely requireservicing, while Chinese-madeknock-offs often fall apart in acouple of months.
One competitor recently copieda d.light model directly and soldthe resulting product in Myanmar.Proximity sold the original at
K29,000, while the counterfeit
equivalent could be bought forK18,000. After two months ofuse, however, the counterfeit lightgenerally broke down.
We had to register our copyrighthere, Mr Page said. In China,
d.light took action against this
[counterfeit] manufacturer.Proximity expects its successwith d.lights products to drawfurther competition. Mr Pagepointed to international firmssuch as Unilever and DKSH as
enterprises with well-performing
nationwide distribution systems,and said it was companies suchas these that would capitaliseon Myanmar opening up. Buthe also said Proximitys hard-won reputation and extensivedistribution network are keyadvantages.
For instance, Proximitys partnersin border areas enable it to widenits distribution network beyondwhere it would be viable on its own.It has sold over 1000 lights in ChinState, and pursued a successfulpartnership with a Karen faith-based organisation.
Having the intimate knowledgeof rural areas really gives us an edgeover [competing] companies, he
said. Right now in the solar lightworld, technologys going to getmore and more similar, and so itsgoing to be about who can get intocommunities the best.
One of the next steps forProximity is to offer solar panelscapable of powering an EVD(enhanced versatile disc) player,which Mr Page said are in largedemand in rural areas. Such solarpanels are likely a year away fromintroduction to Myanmar, he said,but the plan is in keeping with thefirms goal of providing in-demandproducts to people who otherwisehave limited options.
In the 1990s, rural people, even ifthey needed to buy stuff, just couldnt
get access to good stuff, he added.Thats what Proximity really wantsto do provide distribution channelsso people in rural markets can getreally good products.
Thanks to aordable and reliable solar technology, its getting easier to keep the lights on, even in some o the remotest corners o MyanmarLighting up the night, one customer at a time
JereMy Mullins
A resident in Hmawbi Township in Yangon Region examines an
S250 model of d.light solar light, which charges cell phones
Photo: Chris Page at Proximity Designs
Source: Global Energy Network Institute
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O
N August 1,the Ministry ofEnergy posteda notice on its
website confirming thatthey are discussing anincrease in the price ofcompressed natural gas(CNG), which is used bymany taxis, buses andvehicles in Myanmar.
The announcementcame as no surprise to taxidrivers in Yangon, whohave been hearing rumoursabout the reported changefor months. But it has setoff a debate as to whetheror not Myanmar, whichhas always had its ownabundant supply of naturalgas, should be raising theprice of CNG fuel.
Sustainability issuesare one reason why thegovernment is considering
raising the price, said UKo Lay, general managerof the CNG departmentof the Myanma Oil andGas Enterprise underthe Ministry of Energy.He said eight years ago,the Aphyauk gas field inYangon produced 100million cubic feet perday. Now, the amount of
natural gas produced hassignificantly decreased, hesaid.
Gas and fuel are naturalresources that have beengiven by nature. So one daythey will be gone. Gas is nota renewable energy so weshould use it economically,U Ko Lay said.
Another possible reasonfor the increase, U Ko Laysaid, is that the governmenthas plans to divert someof the supply for otheruses: For example, the gasmay be used for fuel in gasturbines for electricity, inchemical fertilizer plants
for the agriculture sectoror in cement plants for thepurpose of building more
roads and bridges.Regardless of how the
government plans to use
CNG, taxi drivers say theyare already struggling tomake ends meet and havecome to rely on the CNG-converted cars as Yangonsroads have become morecrowded and they areforced to spend more timein traffic jams and thereforemore money on fuel.
Is CNG not producedin our country? said MinMin Oo, a 45-year oldtaxi driver who has beendriving for 20 years. Othercountries can increase theCNG price because theyimport CNG from foreignsources. But we shouldnt
have to. Our country hasso many gas and oil fields.CNG is a commodity which
brings in foreign income, sowe should be able to use itfreely without charges.
The CNG price iscurrently K273 a kilogram,which is significantly lessthan the price of petrol.Although drivers of CNG-fueled taxis pay less for fuelper day than petrol drivers,they pay more to owners torent their cars K15,000daily compared to K10,000for a petrol car.
In 2005, the Myanmargovernment passed a lawforcing passenger busesand cabs to change to CNG.However, four years agothe government changedits mind and bannedCNG conversion on new
cars. Some taxi drivers arehoping that the ban will belifted and they might again
have the option to converttheir petrol vehicles toCNG.
[Even] if the priceof CNG rises, it is betterthan if they dont allow[conversion to CNG],said taxi driver U HlaKyaw, who now drives aCNG taxi. Now, all taxidrivers are affected bytraffic jams. If driversstop downtown, they arestuck downtown. Andalso, drivers who go tothe suburbs dont comedowntown.
Drivers say they preferCNG taxis for long tripsand for when they are stuckin traffic jams, as the fuel isless expensive.
I have driven CNG taxisbefore, said cab driver KoThet Lwin. I started with a
petrol taxi this month. TheCNG taxi is reasonable forus because we lose more
money on petrol whenwe have to drive and thisaffects income. The incomeis different between CNGand petrol taxis.
According to s tatisticsfrom the Ministry ofEnergy, there weremore CNG vehicles thanpetrol-fueled vehicles in2013. Official statisticsfor 2004-2013 showthere were 16,460 petrolvehicles convert ed to CNGnationwide (excludingunregistered vehicles),and 9122 diesel vehiclesconverted. Vehiclesmanufactured to run on
CNG number 27,623.
CNG cost
hike worriestaxi drivers
The governments symbol for compressed natural gas. Photo: Aung Htay Hlaing
Mya Kay
Khine
PeneloPe Macrae
IRAQS prime minister onFriday pitched for investmentfrom India to rebuild his war-shattered nation, which is acritical energy supplier to NewDelhi.
Iraqs Prime Minister Nuri
Al-Malaki said there were greatopportunities for Indian firms torebuild the nations infrastructure- constructing ports, highways,housing, railways, schools,
hospitals and investing in oilproduction facilities.
There is so much potential,said Maliki, who is on a three-day trip to New Delhi andMumbai.
Iraq is still struggling torebuild its broken infrastructuresince a 2003 US-led invasion
ousted president SaddamHussein and led to massivesectarian violence.
This is the first head ofgovernment-level visit between
the two countries since 1975,when then-prime ministerIndira Gandhi visited Iraq.
During the visit, the twosides were expected to sign anagreement that would increaseIraqi sales of crude oil to fuel-import-reliant India.
Iraq has eclipsed sanctions-
hit Iran as Indias second-biggest crude oil supplier afterSaudi Arabia.
India reduced its dependenceon Iranian oil in the wake of US
and European sanctions on theimport of oil from the IslamicRepublic.
India and Iraq havehistorically enjoyed friendly ties.
But while China hasbeen energetically seekinginfrastructure contracts in Iraq,and has invested substantially
in Iraqi oil production, Iraqofficials say India has beennoticeably absent.
Iraq has said it may need upto US$1 trillion over the nextdecade to rebuild its crumblinginfrastructure.
We are rebuilding ourcountry, said Maliki, whose visitfollowed a trip to Baghdad byIndian foreign minister SalmanKhurshid in June.
Luring foreign investment toIraq has been complicated anewby the worst v iolence in thecountry since 2008.
We have some securitybreaches here a nd there ,conceded the chairman ofIraqs National InvestmentCommission, Sami Raouf Taqial-Araji.
But he said the country hadspecial forces protecting foreignworkers.
Were committed toprotecting foreign workers,they are away from their homes,
they are in our care, Araji toldreporters.
Despite tensions, Iraqseconomy has been growing,fuelled by oil exports.
Indian exports to Iraqtotalled around $1.3 billion in2012, up from $740 million in2011, according to an Indian
government official.Baghdads exports to India -the vast majority of which wereoil - totalled more than $20billion last year, up from $9billion a year earlier in 201 1.
India has said it is keen toreverse the traffic by investingin Iraqi infrastructure andmoving to a more broad-basedrelationship.
The country, struggling tostabilise its ailing currency,is also pushing Iraq to acceptpayment for its oil exports inrupees, Indian trade ministerAnand Sharma said Friday.
Araji sa id Iraq would have toconsider the request.
Iran, which has long battledneighbouring Iraq for globaloil market share, agreed to takepayments for the oil it sells toIndia in rupees after Westernsanctions over its disputednuclear program blocked otherpayment methods.
- AFP
Iraq pushes for investment as India seeks more oil
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AS Myanmar grapples withthe question of how to up-date its severely outdated
nergy sector, many local com-panies are joining forces withoutside companies to explore thentriguing but largely unproven
world of biofuels. It s an industrytill licking its wounds after a
previous large-scale failure buthose involved say that this timehings will be different.
In April of this year, the Asianwing of Nation First EconomicDevelopment signed an MoU withocal firm Hisham Koh & Associ-
ates to develop algae farms bothupcountry and around Yangon.
While algae is an excitingprofitable source of biofuel orommercial animal feeds for
aquaculture and agriculture, itan also be a sustainable sourceor a broad range of high dollar
value products, a press releaseaid. From food to chemicals
as well as cosmetics and phar-maceuticals, multiple productsrom the same algal biomass are
possible.In addition, California-based
green energy firm Viaspaceigned an agreement in October2012 to bring their signatureproduct, King Grass, to Myan-mar. Speaking at the signingeremony, Viaspace engineersaid their specific focus would be
on using King Grass to generatelectricity.
We hope to work with ourpartners to create a viable andvibrant renewable biomass/bio-nergy business model to servehe national interests and growthn Myanmar, company chairman
Kevin Schewe said.Both algae and King Grass
need several months to grow toa point at which they can sustain
biofuels, so the re lative success ofhese projects will not be knownuntil at least the end of this year.
As previously reported byTheMyanmar Times , however, thesenew initiatives are not the firstime biofuel has been introducedn Myanmar. For many, memo-ies of jatropha the seeds of
which were once said to be ableo solve all the countrys energy
needs still linger painfully inhe mind.
In 2006, the chief researchofficer at state-run Myanma Oiland Gas Enterprise said Burmahoped to completely replace theountrys oil imports of 40,000
barrels a day with home-brewed,atropha-derived biofuel, ac-ording to a report by the Ethnic
Development Forum.Under the governments plan,
8 million acres of jatropha plants an area roughly the size ofBelgium were to be planted by2009. Myanmar wasnt the onlyountry seduced by jatrophas
charms: At one point there weresomewhere around 250 jatrophaprojects worldwide, mainly inAsia, Africa and South Americabut also, yes, i n Belgium itself.
Jatropha was mistakenly
promoted as an almost magiccrop that ordinary farmers couldgrow and squeeze the oil out ofto power their engines, said CarlKukkonen, CEO and co-founder
of Viaspace.Myanmars all-in investment
led to non-farmers being pressedinto service, forced to plantjatropha on every inch of avail-able land and even in some areas
which werent available, suchas fields being used to grow ricepaddy.
The plan seemed to good tobe true, however, and in the end
it was: The jatropha experimentwas a grand fa ilure, folding afterone dismal year.
Mr Kukkonen, who spent severaldecades working at NASA, said thathe remains optimistic about the fu-
ture of biofuels in Myanmar, despitethe jatropha debacle. Whether otherbiofuel groups and the govern-ment itself have learned from thepast remains to be seen.
The rise, all and rebirth o biouels in MyanmarFollowing the epic ailure o a jatropha roll-out ve years ago, is it a case o once-bitten, twice-shy or biouels?
Jatropha was mistakenly promoted as an almost magic crop that ordinary farmerscould grow and squeeze the oil out of to power their engines.
Carl Kukkonen, CEO and co-founder of Viaspace
bill oToole
The male jatropha flower.
Photo: Wikicommons
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Petronas / YetagunThe Yetagun natural gas fieldhas changed hands more thanonce since the first appraisal wellwas installed in 1992. Currentlyowned by Malaysian state energyfirm Petronas, the project wasinitiated by Texaco Co of theUnited States. Developmentstarted in 1996, but the followingyear Texaco sold its entire staketo the United Kingdoms Premier,which in turn sold its share of theproject to Petronas in 2002.
A subsidiary of the Malaysian
firm is the current operator ofthe Yetagun natural gas field,operating in a partnership withPTTEP, Nippon Oil Exploration,and Myanma Oil and GasEnterprise, according to PTTEPswebsite. Production began at thesite in 2000, and the additionof four new wells in 2004 wasthought to double Yetagunscapacity. The site produced anaverage of 376 million cubic feetper day during the second quarterof 2013, PTTEP has reported.
Located in the Gulf ofMartaban, the concessionscomprise blocks M12, M13, andM14 and cover 24,130 squarekilometres.
Total / YadanaAlthough i nternational o il andgas firms have drawn criticismregarding industry practices,French firm Totals activitiesin Myanmar have been singledout as worth emulating. Calleda responsible investor byDaw Aung San Suu Kyi during
a trip to Europe last year, inwhich she highli ghted theneed for democracy-friendlyinvestment by companiessuch as Total. The firm begancommercial production of theoffshore Yadana Gas Field in2000 following an investmentoutlay of about US$1 billion.With Total serving as operatorin a consortium including
Chevron, PTT Explorationand Production of Thailand,and Myanma Oil and GasEnterprise, the field hasaveraged 18.54 million cubicmetres (654.7 million cubicfeet) per day from 2001to 2010, according to itswebs ite. With some 30 yearsof estimated reserves, gas fromYadana fuels Thai power plant sas well as the domestic market.
Company officials have alsomulled further activities in thecountry, and Total is one of the61 firms currently shortlistedfor Myanmars 2013 offshore oiland gas tender.
Pipeline frmsThe pipeline project involvestwo separate pipelines, theSoutheast Asia Crude Oil Pipeline(SEAOP) and the Southeast AsiaGas Pipeline (SEAGP), crossing
Myanmar from Rakhine state toChina and delivering overseascrude and offshore gas to thecountrys northern neighbour.The organisation behind the twinpipelines is understood to be aconglomerate majority ownedby China National PetroleumCorporation. Other partnersinclude two South Koreanfirms (Daewoo and KoreanGas Corporation), two Indianfirms (Gas Authority of IndiaLimited and Oil and NaturalGas Corporation), and state-runMyanma Oil and Gas Enterprise.While the project pumped its firstgas in late July, the enterprise hasdrawn protests over environmental
and safety concerns. Protesters alsosaid the contract, which was signedunder the military regime, shouldbe revisited and that Myanmarshould not export gas when three-quarters of the population lackelectricity.
The gas pipeline is designed totransmit up to 12 billion cubic feetof natural gas a year, though it willinitially transmit only 5.2 billion in
the first phase, according to SEAGP.
Daewoo/ShweSouth Koreas DaewooInternational started productionat the Shwe natural gas field onJune 22 of this year, with a pilotoperation of its onshore pipelineand sales to Chinese and Myanmarbuyers beginning in July. The firmestimates there are 4.5 trillion cubicfeet of gas available for exploitationfrom Shwe, Shwe Phyu and Mya inthe A-1 and A-3 blocks, and called itthe largest oil and gas field in scale
discovered by a Korean companyabroad in the past 30 years in a
statement announcing the start ofcommercial production.
Currently producing some 100million cubic feet of gas daily,Daewoo says it aims to produce500 million cubic feet daily by late2014. The gas is to be sold largelyto the Chinese National PetroleumCorporation for the coming 25 to30 years equivalent to the dailypower usage of 670,000 homes.
Daewoo announced thediscovery of Shwe in 2004, and thethen-military government awardedpurchasing rights to China in July2008. With a controlling interestof Daewoo held by large Koreansteelmaker Posco, the firm is alsojointly exploring the AD-7 block
adjacent to the Shwe field in theRakhine basin with WoodsidePetroleum Ltd of Australia, andhas conducted onshore explorationactivities as well.
MOGEMyanma Oil and Gas Enterprise(MOGE) is the 100 percent state-owned upstream producer. Thefirm in its present form dates to1989, though it is the successor tothe nationalisation of the Burmah
Oil Companys Myanmar assets in1963. MOGE participates in mostdomestic projects as a joint venturepartner, and is regarded as a majorsource of Myanmars state revenue.
Meanwhile, the Ministry ofEnergy is currently conductinga tender for 19 deep water and11 shallow water blocks. Sixty-one companies are currentlyreviewing data, including industryheavyweights such as Total andChevron, with the results of thetender expected to come later in2013. Ministry officials told TheMyanmar Times earlier this monththat previous tenders had notdrawn this level of internationalparticipation due to the sanctions.
Who's who in oshore eorts
Editors:
Myo Lwin, Jessica Mudditt
Writers:
Jonas Moberg, Mya Kay Khine,
Jeremy Mullins, Fiona MacGregor,
Ei Ei Thu, Jessica Mudditt,
Bill OToole, Khin Su Wai
Photographers:
Kaung Htet, Aung Htay Laing, Ko Taik,
Boothee, Fiona MacGregor, Chris Page,
Jessica Mudditt
Cover & Layout Design:
Tin Zaw Htway, Ko Pxyo, Khin Zaw
A Myanmar Times Special Report
EnErgy
For enquiries and feedback:
Photo: MT Archives
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Global energy news update
FRENCH firm Technip will layhe worlds deepest gas pipeline for
energy giant Shell in the US Gulf ofMexico, the oil services company saidn a statement on Friday.
This was the second big announce-ment by Technip in 10 days concern-ng deep-sea pipelaying.
In the latest statement, the com-pany said it was awarded an impor-ant engineering, procurement andnstallation contract for the develop-
ment of subsea infrastructure for theStones field, at a depth of approxi-mately 2900 metres (9500 feet).
The project will be the deepestfloating, production, storage andoffloading (FPSO) unit in the worldand Shells first in the Gulf of Mexico,Technip said, without specifying how
much the contract was worth.With the award of this high-
profile project, Technip confirms itssubsea leadership and keeps differ-entiating itself through innovationto remain at the forefront of fron-tier projects, Technips Senior VicePresident for North America SavidDickson said.
On August 12, Technip said thatwith Norwegian shi pping group DOFit had won contracts worth 1.35 bil-lion euros (US$1.8 billion) involvingthe construction of the biggest pipe-laying ships of their type for Brazil.
Technip said that they had woneight contracts from Brazilian oilgroup Petrobras to lay flexible pipe-lines at great depth.
- AFP
THE prime minister of energy-poorJapan heads to the oil-rich MiddleEast this weekend in his latest push topromote nuclear technology exports, apokesman said Friday, despite grow-ng problems at the crippled Fuku-hima plant.
Shinzo Abe was due to leave Tokyoon Saturday for a six-day trip thatwill take in Bahrain, Kuwait, Djiboutiand Qatar, with discussion of Japansnuclear know-how expected to be onhe agenda.
Qatar and Kuwait have shownnterest in Japans nuclear safety tech-
nology, said an official at the foreignministry.
They dont necessarily plan to
build a nuclear plant themselves, butheir neighbouring countries do, the
official said.Qatar and Kuwait are therefore
oncerned about a possible accidentand any environmental impact thatmight be inflicted.
Japan has continued to push itsatomic expertise as an importantxport, despite the 2011 catastrophe
at the tsunami-hit Fukushima Daiichinuclear power plant, where multiplemeltdowns cast a pall of radiation overa swathe of the countrys northeast.
An already-lengthy list of problemsn the clean-up got longer this week
when around 300 tonnes of highlyadioactive water was found to haveeeped from one of the 1000-odd
torage tanks on the site.
Workers looking for other leaks onThursday identified two more radia-tion hotspots near the containers, al-though plant operator Tokyo ElectricPower (TEPCO) says they were dryand it cannot yet explain where theycame from.
While the atomic catastrophe hasput a crimp on Japans own nuclearpower generation, with all but twoof the countrys 50 reactors shutdown, the government has been keento push exports of its technology aspart of efforts to boost infrastructureexports to 35 trillion yen (US$350billion) a year by 2020.
Abe, a supporter of nuclear power,visited Turkey in May as part of a
wider Middle Eastern tour, signing along-awaited deal to build a sprawl-ing nuclear power plant on TurkeysBlack Sea coast, in a milestone for theJapanese nuclear industry.
The agreement came a day after Ja-pan signed a nuclear cooperation dealwith the United Arab Emirates.
The foreign ministry officialbrushed aside suggestions that thelatest setback at Fukushima mightput a dampener on talks during theupcoming trip, saying the governmentdoes not expect them to have anyimpact.
The nuclear shutdown in Japan hasalso increased the countrys relianceon imported fossil fuels, of which theMiddle East is an important source.
- AFP
SOUTH Africa may startexploration for shale gasbefore elections in April nextyear, the trade minister saidlast week
We need to advance thework on taking a decision onshale gas exploration, saidtrade and industry ministerRob Davies almost a year afterlifting a freeze. We want tomove before the end of thisadministration.
The current governmentsterm ends next April.
Africas largest economy,heavily reliant on coal, ismulling nuclear power andshale gas as new energysources.
The countrys semi-desertKaroo region potentially hasone of the worlds largest
untapped shale fields.The reserves are perhaps
even larger than those ofits neighbour Mozambique,Davies added, after massivediscoveries there in the lastthree years.
The gas fields of Mozam-bique which have just openedhave about 100 trillion cubicmetres of gas, and the shalegas deposit - some of the esti-mates would suggest that it ismultiples of the Mozambican,he said in a news conference.
If this was the case, thiscould be a very, very signifi-cant game changer in terms ofthe energy situation in SouthAfrica.
If the estimates are ac-curate South Africa couldhave gas equal to 400 years of
crude oil imports at the cur-rent rate, according to a studyreleased last year and com-missioned by Anglo-Dutchenergy giant Shell.
Authorities last Septemberlifted a freeze on shale gasexploration in the Karoo,sparking a national debateand concerns among envi-ronmental activists about theeffect on water quality in thearid region.
But Davies was reassuring:of course we are not going todo this in any kind of irre-sponsible way.
Its exploitation could createup to 700,000 jobs in a na-tion where more than one infour are unemployed.
- AFP
US scientists said last week that they havebuilt the worlds most precise clock, whoseticking rate varies less than two parts in 1quintillion, or 10 times better than any other.
The clock, made from the element ytter-bium, could be used for technological advance-ments beyond timekeeping, such as navigationsystems, magnetic fields and temperature.
The stability of the ytterbium latticeclocks opens the door to a number of excitingpractical applications of high-performancetimekeeping, National Institute of Standardsand Technology physicist, and co-author of thestudy revealing the clock, Andrew Ludlow saidin a statement.
While mechanical clocks use the movement ofa pendulum to keep time, atomic clocks use anelectromagnetic signal of light emitted at an ex-act frequency to move electrons in cesium atoms.
The physicists built their ytterbium clocks
using about 10,000 rare-earth atoms cooledto 10 microkelvin (10 millionths of a degreeabove absolute zero) and trapped in an opticallattice made of laser light.
Another laser that ticks 518 trillion timesper second triggers a transition between twoenergy levels in the atoms. The clocks highstability is owed to the large number of atoms.
The new clocks can achieve precise resultsvery quickly.
Technicians must average the current UScivilian time standard, the NIST-F1 cesiumfountain clock, for about 400,000 seconds(about five days) to obtain its best perfor-mance.
But the new ytterbium clocks can achievethat same result in about one second of averag-ing time.
The study was published in the journal
Science.- AFP
IRANS representative to theUNs International AtomicEnergy Agency (IAEA), AliAsghar Soltanieh, announcedhis resignation on Thursdaywithout giving any reason, theFars news agency reported.
My mission is finished ...and I return to Iran with sat-isfaction, said Soltanieh, whohas held the post since 2005.
On August 15, new Presi-dent Hassan Rowhani namedAli Akbar Salehi to head IransAtomic Energy Organisationas part of his team.
Salehi, who holds a doctor-ate in nuclear science from
the Massachusetts Instituteof Technology, already headedthe organisation between2009 and 2010 before takingup the post of foreign ministerunder former president Mah-moud Ahmadinejad.
Meanwhile, foreign minis-try spokesman Abbas Aragh-chi was quoted by the pressThursday as saying a newambassador (to the IAEA)has been chosen and will beannounced soon.
Western countries and
Israel suspect Irans nuclearprogram is cover for a drivefor a weapons capability, anambition Tehran stronglydenies.
The IAEA has been prob-ing the program for the pastdecade, and a number ofinternational sanctions have
been slapped on Tehran for itsrefusal to stop enriching ura-nium. That process can leadto producing the fissile core ofan atomic weapon.
Talks between Tehran andmajor world powers have sofar failed to yield an agree-ment. - AFP
Japans Abe to visit Middle East in nuclear push
Technip to lay worlds deepest gas pipeline in Gulf of Mexico
South Africa aims to start shale gas exploration by April
US scientists claim worlds most accurate clock
Irans envoy to UN nuclear watchdog quits
Iran's envoy to the International Atomic Energy Agency (IAEA) Ali
Asghar Soltanieh. Photo: AFP
apanese Prime Minister Shinzo Abe. Photo: AFP
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AS controversial damprojects continue to popup along Myanmarsriverways, activist
groups warn that, rather thandeveloping the nation, theseprojects are actually contributingto instability, environmentaldamage and ethnic conflict inmany rural areas.
The most well-known projectis the Myitsone dam in KachinState. President U Thein Seinhalted construction on the damin 2011, citing environmentalconcerns. While members ofthe Chinese government haverecently expressed their doubtsabout whether or not the projectwill be restarted, villagers in the
surrounding area report thatthe construction equipment andbuilding materials from the sitehave yet to be removed.
Despite concerns andsetbacks, the Union Governmentappears as committed as everto hydropower. In Februarythe Ministry of Electric Powerreported to parliament thatsix new dam projects had beenapproved along the Salween Riverin Shan and Kayan states.
Activists of all stripes,however, have decried the newdevelopments.
U Maung Maung, of the
Mandalay-based environmentalgroup Green Activities, hasoften spoken out about theneed for international bestpractices and environmentalassessments on such sites,calling for greater transparencyin the decision-making andbuilding process. Speaking toThe Myanmar Times, he said
that even when environmentalimpact assessments are carriedout, the results are all too oftenkept confidential and out of thepeoples hands.
In addition, the environmentaladvocacy group Salween Watch,in their 2013 update on damconstruction in Shan State,documented several communitiesin which projects have broughtmassive deforestation anddamage to the local ecology.
The groups report also saidthat dam construction is activelycontributing to the armed conflictthat has come to define so many
rural areas.In a recent press release,Salween Watch warned that therecent build-up of Tatmadawtroops along the northern stretchof the river is directly related todam projects.
It is feared that the BurmeseArmy will use force to seize theSSA-N territories ... The seizure
of the Kokang area has enabledChinese dam-builders to proceedwith the giant Kunlong dam onthe Salween, where constructionof access roads to the site byAsia World Company is almostcompleted.
Sai Khur Hseng, aspokesperson for Burma RiversWatch, agreed. These are thecosts of dam-building in Burmaswar zones, he said.
Naw Phyo Phyo, aspokesperson for the KarenWomens Organization, saidearlier this year that thegovernment and foreign investors
should halt all hydropowerprojects until genuine peacecomes to the countrys conflictareas.
Karen activist Pati Saw Koconcurred.
We all want development,but development must not bringsuffering and difficulty for localcommunities.
Ongoing hydroelectric projects
unleash ood o criticism
bill oToole
THE construction of two hydroelectricdams in Argentinas Patagonia region hasbeen awarded to a consortium of domesticand Chinese companies, President CristinaKirchner announced Wednesday.
Local Electroingenieria e Hidrocuyoand China-based Gezhouba Group Com-pany Limited secured the deal, Kirchnersaid.
Those losing out include Alstom(France), Odebrecht (Brazil), Isolux(Spain), Sinohydro (China) and Hyundai(South Korea).
The dams, to be built on the Santa Cruzriver, will have a production capacity of1.740 megawatts, or 4.7 percent of nationalelectric production.
Kirchner said the new constructionwould mean that the Santa Cruz riverwould have the second largest dam afterYacyreta, a dam located on the Paranariver and jointly administered by Argen-tina and Paraguay.
Argentina relies heavily on the Yacyretadam, which covers 22 percent of the coun-trys electricity needs.
The Santa Cruz river, which extendssome 385 kilometres (240 miles), origi-nates in the Andes and flows into theAtlantic Ocean.
Argentine officials say construction,which will begin in December, will takefive years and create 5000 jobs.
The two new dams will be named afterformer governors of Santa Cruz state -Jorge Cepernic and Nestor Kirchner, whowas president from 2003 and 2007. - AFP
Greenpeace ship
defes Russia by
entering Arctic routeGREENPEACE said on Saturday ithad deed the Russian authorities
by sending its icebreaker throughan Arctic shipping route to protestagainst oil drilling in the ragileecosystem.
Earlier this week the globalenvironmental group said Russiahad reused its ship permission toenter the Northern Sea Route onseveral occasions citing concernsabout the icebreakers ability towithstand thick ice.
Greenpeace has called themove a thinly veiled attempt tostife peaceul protest.
In deance o the Russianauthorities, the Greenpeaceship Arctic Sunrise enteredthe Northern Sea Route earlySaturday morning to protest
plans by the countrys top oilrm Rosnet and its US partnerExxonMobil to drill near theRussian Arctic National Park, thegroup said.
We reuse to let illegalattempts by the Russiangovernment to stop us romexposing dangerous oil drilling inthe Arctic.
The Russian Arctic NationalPark is a special place ull o rareand threatened Arctic wildlie, andaces an innitely greater threatrom reckless oil companies thana ully equipped Greenpeaceicebreaker, Christy Ferguson,Greenpeace Arctic Campaigneraboard the Arctic Sunrise, was
quoted as saying.I Rosnet and ExxonMobilbring in oshore drillingplatorms they will riskcatastrophic blowouts and spillsthat could devastate the region,said Ferguson, adding the twooil majors rely on secrecy andevasion.
Greenpeace said the plans todrill in the protected ecosystemwere in contravention o Russiasown environmental laws.
Rosnet, headed by one oPutins closest condants, IgorSechin, did not immediately react.
Both Russia and the UnitedStates hope that the globalwarming gradually melting the
Arctic sea ice will help themtap the vast oil and natural gasresources believed to be buried inthe region.
Putin has pledged to turnthe Northern Sea Route into akey shipping artery, part o theKremlins bid to mark out its stakeover the energy-rich Arctic. - AFP
Argentine dam deal awarded to Chinese, domestic frmsSanta Cruz River. Photo: Wikicommons
A woman in a creek near Myitsone dam. Photo: Boothee
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THE illegal road-side sale of petrolremains a lucra-tive business in
Yangon, but profit marginsare getting smaller as thenumber of private petroltations increase, sev-ral petrol sellers told The
Myanmar Times.Roadside petrol sellers
have always been a staple
around Yangon, particu-arly so during times whenhe government was limit-ng the supply and cost of
gasoline.Up until a few years ago,
however, roadside deal-rs caught selling petrol
without a permit facedteep fines and potential
punishment, and often hado bribe authorities. But athe time, business was so
profitable it was worth the
risk, say sellers.Now, they face a different
kind of threat not fromthe government, but fromthe free market system.With more petrol stationsin Yangon, their businesshas declined.
I have been sellingpetrol and diesel for a longtime, about 13 years inKamaryut, U Myint, 42,said. On average, he earnsK25,000 and sells about 15gallons of petrol and diesela day. We made a lot ofprofit before, but now theservice stations are every-where so we are down in
the trade, he said.Still, there is a market
for the small roadsidesellers, U Myint said. Mostcustomers seek out theillegal traders when theelectricity goes out in theirshops, or when they arestuck in a traffic jam andfind themselves far from acommercial station. Others,he said, prefer not to go tothe petrol station duringthe rainy season and will
instead use a roadside sellerthey already know.
U Myint said he buys thepetrol he sells from severalsources, often from privategas stations but sometimesfrom other drivers, bothprivate and government.He said profits are goodenough to support his fam-ily and much better thanhis previous profession inthe cement and brick trade.
Roadside petrol salescan support my family andhelp me save a little money,U Myint said, adding thatprofits depend on circum-stances. If electricity is
regular, petrol stations areeverywhere and sales arenot good, then I will changeto another job maybe arice station or electricalshop.
Another roadside petrolseller, U Saw Thein, 52,from Hlaing township inYangon, has worked in thebusiness of illegal petrol forfive years. He said profitsare better now under thefree market because he no
longer has to pay bribes toofficials. However, he is notgetting rich from his sales,he said, selling only about10 gallons of petrol anddiesel on an average day.
It is enough to supportmy family, U Saw Theinsaid. We live in a roadsideshop and can count beadsand listen to Buddhistliterature with a CD player We will [sell petrol] as
much as we can, but thisjob is not making me rich I have just enough to eatand live.
Ko Aung Khaing, 25,lives in Sanchaung and hasbeen working as a roadsidepetrol seller for over sevenmonths. He buys petroland diesel from a privatepetrol company. Most of hisbuyers are taxi drivers andprivate car owners.
I undercut the price atpetrol stations by aboutK100 or K200, so Im ableto sell about a tanks worth aday, Ko Aung Khaing said.
He enjoys his work butadmits that times are get-ting tough.
Private stations are ev-erywhere, he said, so salesin the roadside petrol shopsare lower than before. Itsdifficult for me.
The rise o legitimate lling stations, with their stable, low prices, arebeginning to discourage illegal roadside sales
End looming or illegal roadside petrol salesei ei Thu
Illegal petrol stations such as the one pictured are less common than they used to be. Photo: Kaung Htet
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IN a leafy area along ShweGon Daing Road, theressome serious training un-derway at MTM Ship Man-
agements manning and trainingcentre. There are classroomsfull of young men in white shirtspouring over notebooks whiletheir teachers animatedly issueinstructions.
It goes without saying thatoil and chemical tankers arebig business globally howevertraining the industrys seaman on
safety measures is a quieter, yetequally valuable understanding.
The cargo we carry is oftenflammable, very highly toxic,corrosive in short, it can bevery dangerous to human health,said Captain Kyaw Min, head ofMTMs fleet personnel.
Its so dangerous, in fact, thatif a seaman was exposed to thecarcinogenic cargo while in thetanker, there is a real risk of con-tracting leukemia.
So we are doing very serioustraining here, he said.
Most of the 14 ships MTMowns and runs are chemical tank-ers carrying what is known asliquid bulk. It also acts on behalf
of owners in a managementfunction, which includes admin-istering crew wages (which canamount to US$1 million a yearper ship), ship maintenance, ac-counting for operational expensesand dry docking expenses. MTM
charges the ships owners someof whom reside in Japan and theUnited States and include com-panies such as Shell manage-ment fees, which is what makesthe business a profitable one. In
total, MTM operates 28 chemicaltankers, eight oil tankers and twoproduct tankers.
MTMs tankers ply routes allacross the world from the USto South America (MTMs mainroute), to Japan from the majoroil producing area, the PersianGulf, as well as an Asian routethat encompasses Taiwan, Indo-nesia and Singapore becausethey are all oil consuming coun-tries, Captain Kyaw Min said.
Singapore cannot produce oilbut it has enormous refineries,including Shells.
Domestically, MTM has asmaller sized tanker that travels
from Singapore to Myanmar,which delivers oil to Myanmarand carries diesel to Singapore.
Under British rule, Myanmarwas an oil-producing country.Across the Yangon River in Than-lyin, there is a refinery that wasset up by the British and whichhas still the potential to be aprofitable venture, said CaptainKyaw Min. It was nationalisedin 1962 and has since fallen intodisrepair.
A lot of trees and vegetationhas grown up around it, but thetowers and tanks are still there;plus the jetty and pipelines, hesaid.
There has been talk that it willbe upgraded with assistance fromJapan though the project will ofcourse take years to complete.
Meanwhile, as reports emergein the media about the exploita-tion of seamen and corrupt prac-tices becoming more common,such as issuing false Departmentof Marine Administration certifi-
cates for unqualified candidates,it is reassuring to see firsthandhow stringent reputable compa-nies are about safety.
No deaths have occurred onmy ships, said Captain KyawMin, who has 15 years of experi-ence. According to the UnitedNations International MaritimeOrganisation, every year thereare approximately 100 deaths ontankers, all of which occured inthe enclosed space of the cargoarea.
Rather than the dramaticexplosions on tankers occasion-ally documented by the media, itis the cargo area that poses the
greatest risk to life on a tanker.As Captain Kyaw Min explained,entering the cargo area, whichon average holds about 30,000tonnes of chemicals, is absolutelyprohibited until the cargo itselfhas been emptied.
After discharge and while enroute to the next port to pick upthe new cargo, we do the clean-ing. Only once this has beencompleted can we can go in tocheck. Even then a person shouldnever enter alone a minimum oftwo is necessary.
The entire tank is cleaned ac-cording to stringent requirementsset by international conventionsand industry bodies. There arevarious procedures, includingsteaming and spraying the areawith chemicals. The walls arethen washed and samples sent toa laboratory to test for traces ofharmful chemicals.
Another reason why the clean-ing is so rigorous is that a tankermay subsequently carry a differ-
ent type of cargo that could havefatal results if mixed. For ex-ample, if lubricant oil were to mixwith ethanol, Everyone woulddie, said Captain Than NyaingTun, MTMs head of training andpersonnel.
In addition to the above men-tioned risks, the cargo area lacksnatural light and has depletedoxygen levels sometimes to thepoint where fainting is a likeli-hood. The Safety of Life at SeaConvention of 1974 (known asSOLAS) requires that a widevariety of personal protectiveequipment must be on onboard.There are also different types of
firefighting equipment.Each time there is an accident,SOLAS is amended to make itmore and more stringent, saidCaptain Mow Kyaw, MTMs train-ing principal.
An important step in improv-ing the safety of seamen ontankers worldwide is the Mari-time Labour Convention, whichcame into force on August 23. Inaddition to tightening up safetyrequirements, it also includesmeasures to better ensure thewellbeing of seamen, such asadopting social security require-ments set by the InternationalLabour Organisation (ILO).
Senior Caption Zaw NaingCho has a total of 25 years ofexperience on tankers, including15 years with MTM. He studiedchemistry at university and wasinitially hoping to secure a gov-ernment post.
But I decided against it in theend, he said. I feel more free outat sea.
Jessica MuddiTT
How dangerous is lie on an oil tanker?
A breathing apparatus set is worn when entering the enclosed space of the
cargo area. It prevents suffocation due to lack of oxygen and poisoning due to
harmful chemicals. Photo: Jessica Mudditt
One of MTM's tankers. Photo supplied by MTM
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Fiona Macgregor
WHEN I was a youngwoman all we had tolive by was candle-light. I was 42 be-
ore we got electricity in our villageand the first time they switched iton, everybody started to celebrate.My daughter was 12 at the timeand she and all the other childrenwere singing and dancing I feltike singing and dancing too.
Inside I felt very proud. I cantxplain exactly why I felt that way,
but I knew something significanthad happened.
Some things didnt change agreat deal: After all, it was onlyan electric light. We still cookedby burning wood and much of life
went on as before. But in otherways things immediately got better.I dont think electricity signifi-
cantly altered the important thingsin our culture, but what did change,and what was so wonderful, wasthat we were able to mix together
socially in the evenings.Before we had electricity, life was
quite boring. In the evenings theonly thing to do was to sit underyour house with your family. Whenit got dark we would all go to bed.And that was how it was night afternight.
So in those days we would bein bed by about 7pm. After we gotelectricity I wouldnt go to bed till10pm, 11pm, even midnight, eventhough I am not so young anymore.Living with electricity is good fun.We can stay up talking late into thenight, and friends and neighbourscan visit or we can visit them. Lifeis much more interesting.
It was quite a while after we got
electricity that the first people inour village got a television. Thatwas very exciting. Everyone would
go to the house where the televisionwas and the people had a videoso we could all watch the films.Sometimes 20 people would all be
crowded round the television.Ive heard people say that
television can change people, butI am not sure thats true. Someof the girls wanted to wear shortskirts and clothes like the peoplethey saw in the films, but I dontthink it really changed them. Onething I do remember, though, wasseeing the big houses the peoplein the movies lived in and think-ing, How are we ever going to getsomething like that?
After our house was burneddown [during the Rakhine Stateethnic violence of 2012] it was likegoing back to the old days onceagain living without electricity. Irealised what an important role it
had come to play in my life, and Ireally cant think of anything goodto say about a life without it, apart
from perhaps not having to pay forit. Candles are cheaper!
But having electricity also allowsus to do more work in the eveningto earn money. My daughter andgranddaughters learned how tomake beaded crafts from an NGO.Because weve not had electricitysince we lost our house, theyveonly been able to do that during theday if they have time. When we getour lights back on theyll be able todo it in the evening too.
One thing Id forgotten aboutwas how scary it can be when it isdark and you have no electricity.
If its dark I am so scared ofghosts, but when we have electric-ity I can put the light on and I am
not frightened at all.I feel proud that we are going to
have electricity again soon. Life hasbeen very hard since we lost ourhouse and having electricity willhelp us feel we are getting back tonormal again.
The government built these newhouses for people who lost theirhomes and we moved in here abouttwo weeks ago. They are still build-ing things and there is no electricityyet, but weve told were going toget it very soon.
In the meantime, my son-in-law has made something with a
battery so we can have some light,but it will be much better when theelectricity is working again.
How electricity
changed my lieMa Thein Nu has lived two-thirds o her lie without electricity. Now 66, she willnever orget the day electricity arrived in her village near Sittwe in Rakhine State.From acilitating late-night parties to keeping ghosts at bay, electric lights made lieeasier and better, she says. And when she and her amily lost their home duringethnic confict last year and ound themselves living without electric power again,he grandmother o three realised just how much shed come to rely on electricity.Ma Thein Nu told her story to Fiona MacGregor
N developed countries, solarpower is taking off as annvironmentally friendly, cost-aving alternative to traditionalources of power. For thosen developing countries like
Myanmar, however, many of whomack more reliable sources of power,olar power is more than a lifestylehoice; its a necessity. But its also
a relatively recent option, onewhich despite obvious benefits remains, for the time being, toopricy for all but a few.
In 2008, while researching solarpower for a university paper, Iound it nearly impossible to findven a 1-foot-square solar panel.
Even a big city such as Mandalayhad only a couple of shops sellingolar panels. By late 2010 and
2011, however, solar panels startedbeing imported from China inarger numbers, and more and
more electrical stores startedelling them. As the media beganncessantly highlighting solar
power as a way to access electricityin rural areas, public awarenessgrew.
Today, solar panels havebeen installed everywhere frommountainous areas like Chin State
to villages in central Myanmar.Under a rural development schemeinitiated by the Ministry of BorderAffairs, 16,000 villages have hadsolar panels installed since 2012,with priority given to autonomousareas and places away from thenational power grid. Even Sittwe,in Rakhine State, may be convertedto solar power, according to astatement byMP U Aung MyaKyaw which waspublished in theRakhine independent news websiteNarinjara.
Other reports elsewhere havepraised solar as a natural sourcefor electricity and lighting indevelopment project sites in ruralareas. All these changes raise onequestion: Has solar power becomeindispensable in Myanmar?
U Zaw Win Min managerof Sun Power, based in YangonsLanmadaw township, which hasbeen in the solar panel market for15 years said that for all solar
panels benefits, they have yet toreally light up the market.
People still need to know moreabout solar power and the rightattitude they should have towardusing it, he said.
The major factor casting ashadow over solars future in theprivate sphere, he said, is the pricetag.
A person would have to earnabout K3 million a year to beable to give priority to electricity,lighting and other lifestyle things.Those earning less than that willautomatically spend their earnings
on food, medicine and education.He said the costs are especially
challenging in precisely the areaswhich could benefit most fromsolar energy, as the high start-up costs prevent people frombenefiting from solars long-termsavings.
We did some surveys in therural areas, U Zaw Win Minsaid. It is difficult for [ruralpeople] to buy solar panels evenby installment, let alone by downpayment.
They spend K100 or K200 forcandles and are reluctant to spendK20,000 or K30,000 on solarpanels.
Panels made in Singapore,Thailand and Japan are typically
higher quality, he said, but comewith a higher price tag compared tothose imported from China, Taiwanor India. While the panels SunPower imports from Singapore sellfor K2000 a watt, Chinese-madepanels go for around K500 a watt.
The difference adds up quickly panels range from 5 to 10 watts upto 300W, with most being 200W
and U Zaw WinMin said the pricedifference makes itimpossible to compete
with Chinese brands.In addition to companies
like Sun Power, the Ministry ofIndustry 2 sells a range of solarpanels, enough to power eight 3Wbulbs, four 5W bulbs or six 7Wbulbs. But solar power requiresvoltage regulators and batteriesto store the power as well, andthe prices of these materialsalso depend on the voltage andwatts. The system also requiresmaintenance to keep the batteriesand panels in good working order.
The high costs limit solar paneluse to government projects andprivate donation ceremonies. UZaw Win Min said the marketcould grow further if more donorswere willing to help with initial
investments by pushing the start-up cost to below, for example, theK200 it might cost to replace afluorescent bulb.
For now, its only the mostaffluent or the most dedicated individuals who can fit solar panelsinto their budget. Still, things arechanging: As expensive as solarpower seems today, prices havefallen 50 percent over the pastfive years, according to U Zar Niof Manlay Zar Ni Electronics inMandalay.
Sales of solar panels increasedthree times in the past five years, UZar Ni said, adding that sales havebeen brisk since 2010.
And as prices drop, its becomingeasier for the average middle-classcity-dweller to make the jump tothe benefits of solar.
Many are buying more solarpanels because they realise thebenefits are greater than theamount of money spent on thesystem.
Translated by Myo Lwin
Its only the most afuent - or the most dedicated -individuals who can t solar panels into their budget.
The high cost o harvesting sunlightSolar power is catching on among the very rich and via government development projects the very poor. But what about those in the middle?
Khin su Wai
Ma Thein Nu is waiting for an electricity supply to power a light and socket inher new house. Photo: Fiona MacGregor
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