IED carries out a Feasibility study for setting-up of a sovereign loan and an associated Technical Assistance & Capacity Building Program to support mini-grids development in rural areas of Myanmar

IED in association with GERES, is driving a Feasibility Study for the implementation of a sovereign loan and a technical assistance and capacity building program to support the development of mini-grids in rural Myanmar .IMG 1136

Myanmar has adopted the Sustainable Development Goals (SDGs) which, among other things, requiring the country to make efforts to provide access to affordable, reliable, sustainable and modern energy for its citizens by 2030. He is also a signatory to the Paris Climate Agreement, which aims to combat climate change and intensify the actions and investments needed for a sustainable, low-carbon future. The country currently has about 42% of the population (approximately 22 million people) connected to the main electricity grid. Among off-grid households, 4 million have no access to electricity and use kerosene, oil and solid fuels as energy sources for lighting, cooking and other household uses. According to the World Bank's 2017 Multi-Level Framework Report, more than half of Myanmar's states/regions are below the average network extension rate.

To increase access to reliable electricity, the government in 2015 formulated an ambitious roadmap to increase the electrification rate to 100% by 2030. This National Electrification Plan (NEP), supported by significant Funding from the World Bank ($400 million), sets intermediate access targets at 47% by 2020 and 76% by 2025.

As AFD highlighted the central role of mini-grids as a means of providing distributed electricity solutions to off-grid areas as the main grid expansion progresses, this study grew out of a demand from DRD to AFD and the EU (EU) to design a project to increase access to energy by facilitating access to finance for developers of mini-networks through the local banking sector.IMG 1152

From January 13 to 25, 2020, a visit to the country was organised and discussions were held with various stakeholders. These included AFD, GiZ,JICA,  DrD,Smart Power Myanmar and various commercial financial institutions. In addition, a roundtable discussion with mini-grids developers was organized to learn more about the background and performance of individual companies, their experience with the World Bank and DRD grant system, and market challenges. Bilateral follow-up meetings were held in the days following the event.

The team also visited a number of mini-grids sites to validate some of the assumptions regarding the establishment and operation of mini-grids in the country. One of the site visits was kindly hosted by GiZ  and took place in the state of  Bago, near Sin Za  Loke. Other visits (both to the BM/DRD supported and WB/DRD unsupported sites) were made to sites located in West  Bago  (Tat  Thit  Kyun,  Mega Global Green Automation, solar-diesel, 101  kWp),South Shan (small informal hydroelectric site) and Mandalay (Dee  Doke,Mandalay  Yoma,solar-diesel, 55  kWp). The field team took the opportunity to assess the site operational model, load models and productive use potential of aircraft and equipment. During these visits, the team also held interviews with VEC members and local RDD staff.

A second mission is planned for the end of March. The project is scheduled to be completed by the end of April.

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