Myanmar has abundant energy resources, including renewable alternatives such as hydro, biomass, wind and solar. The country’s primary energy supply includes coal, oil, gas, hydropower and biomass.
Hydropower is the main source of fuel in the country and electricity from hydropower plants contribute nearly 70% of the total electricity generated in the country, followed by 22% produced from natural gas and 8% from coal.
Over the last 10 years, electricity consumption in Myanmar has almost doubled; however, Myanmar’s per capita electricity consumption still remains the lowest among the ASEAN-10 countries. Out of 62,218 villages, 2765 villages are electrified by the System and 14,195 villages via a “self help basis” (such as Biomass, Solar, Wind, Diesel, Mini Hydro, Biogas).
Seven ministries in Myanmar are responsible for energy matters, with the Ministry of Energy (MOE) as the focal point for overall energy policy and coordination.
There are significant investment opportunities for both foreign and domestic companies to invest in the generation, transmission and distribution of power.
Myanmar’s power sector is under-served and investments in hydropower, coal-powered plants, gas fields, and oil and gas pipelines are coming in rapidly.
Under the Foreign Investment Law released in November 2012 and the subsequent rules that were issued in January 2013, foreign investments in production of electricity through hydropower and coal fired plants will require the approval of the Government, and can only be effected through a joint venture with the State or on a BOTbasis.
The investor is also required to satisfactorily complete an environmental and social impact assessment before beginning the construction of power generation or power transmission infrastructure. Foreign investment is not allowed in trading of electricity or inspection services in this sector.
Provided the economic reforms in the country are sustained, Myanmar has the potential to
attain much higher power consumption levels over the next two decades.