Rural Electrification Programme - Myanmar
Overview
Myanmar is still one of the poorest countries in Asia. This goes in line with low energy consumption. With only approximately 44% of its population being connected to power, Myanmar has one of the lowest electrification rates in the world.
Since access to energy is one of the key factors for economic growth and poverty reduction, the Government of Myanmar is giving high priority to the electrification of the country. In 2014, a comprehensive and ambitious National Electrification Plan (NEP) was developed. The goal is to bring electricity to everyone by 2030. The German Government via KfW Development Bank is supporting the power sector of Myanmar in order to achieve this ambitious goal.
Context
Access to energy is one of the main factors reducing poverty and creating acceptable living conditions. Myanmar is estimated to have over 7 million households without electricity.
Most of the electricity (approximately 58%) is produced by hydropower. The remaining share is generated by fossil fuels, thereof mainly gas (39%) followed by coal and oil. As of March 2018 the installed electricity generation capacity in Myanmar was about 5,640 MW.
Due to the country’s economic development the demand for energy is expected to rise by up to 15% per year.
The electrification rate is especially low in rural areas, where the vast majority of households are not connected to the power grid.
Therefore, KfW on behalf of the German Government supports the expansion of the electrification network as well as off-grid electrification solutions focussing on solar energy power in rural areas.
The Rural Electrification Programme aims to effectively implement the efforts of the Government of Myanmar within the National Electrification Plan in Southern Shan State.
Off-grid component
The off-grid component is implemented in close cooperation with the Department of Rural Development (DRD) at the Ministry of Agriculture, Livestock and Irrigation (MoALI). The DRD is also KfW’s partner for the Rural Development Programme (RDP) in Myanmar.
Rural areas which will not be connected to the grid in the near future shall be electrified by SHS. Apart from giving direct access to electricity, the programme intends to develop and broaden the necessary market structures for an environment friendly electrification through off-grid solutions. The programme will support the development and/or expansion of market structures providing the target group with these rural services (financial services, competent retail and installation, after-sales services, recycling of batteries). Further, special training measures for DRD staff, local enterprises and technicians as well as micro-finance providers are envisaged.
On-grid component
The grid extension component is implemented with the Electricity Supply Enterprise (ESE) under Ministry of Electricity and Energy (MoEE).
The Rural Electrification Programme enhances sustainable and affordable access to basic energy services through the extension of the distribution grid network and the connection of new households and enterprises to the national grid.
Impact
At least 200,000 people in rural areas in Shan State will benefit from the Rural Electrification Programme. Together with the Rural Development Programme, this programme will have positive impacts on the living conditions of the rural population.
This relates to the reduction of the negative health effects of conventional lighting (fire-wood, kerosene lamps) such as accidental burns and respiratory diseases. Furthermore it will give the target group access to information and technology (e.g. through charging of mobile phones, radios etc.). Brighter light enables children to learn longer hours, and family members to undertake further tasks in evening hours. Since electricity and/ or SHS will replace wood as the main energy provider for cooking in rural areas, saving in wood consumption and reduction of CO2 pollution will be foreseen.
Further Information
Reference
- For further information, please contact :
KfW Bankengruppe
KfW Development Bank
Palmengartenstraße 5-9
60325, Frankfurt, Germany
Phone +49 69 7431 - 8985
kathrin.kaestle@kfw.de
KfW Office Myanmar
No. 45, Inya Myaing,
Golden Valley Ward (2),
Bahan Township, Yangon, Myanmar
kfw.rangun@kfw.de
