e-ISSN (O): 2348-4470

Scientific Journal of Impact Factor (SJIF): 4.72

p-ISSN (P): 2348-6406

International Journal of Advance Engineering and Research

Development
Volume 4, Issue 2, February -2017

Strategy for Wind Energy Development in Myanmar An Overview

ThiThi Soe1, A. Hari Bhaskaran 2, K. Boopathi2, S.Gomathinayagam2
1
Renewable Energy Research Department, Department of Research and Innovation, Myanmar
2
Wind Resource Assessment Unit, National Institute of Wind Energy, India

Abstract Electricity plays a substantial role in the upliftment of socio-economic status of the population in third world
& developing countries and the demand for electricity in these countries are growing at a very fast pace. In response to
this, countries are using various generation technologies that use conventional resources (coal, gas, oil) and either very
little or negligible technology for tapping energy from renewable energy sources due to lack of unified policy on
renewable energy. This paper intends to support the sustainable development of wind power in Myanmar by adopting
few major policy frameworks and its components to promote wind energy projects in Myanmar in an orderly way, with
an intention to achieve the target of 9% of the renewable energy share by 2030 as per National Electricity Master Plan
mechanism of Myanmar.

Keywords-policy, renewable energy, socio-economic, wind potential

I. INTRODUCTION

In Myanmar, energy consumption would play a pivotal role in the transformation of countrys economic growth
in the coming years. Meanwhile, electricity is a key infrastructure component to social and economic development for
improving livelihood of the people, helping to meet basic needs such as heating, lighting, and cooking across various
income levels, making goods and services across all possible economic sectors. During 2015-2016, total electricity
consumption in Myanmar is 13550 GWh and only 3.7 million (34%) households could access grid-based electricity
services. The per capita energy consumption is 263 kWh per annum and the total installed capacity is 5,235 MW of
which 61% from Hydro Power Plants and 39% from conventional sources (35% of gas, 2% of coal and 2% diesel) [1].
Electricity shortages and supply disruptions remain prevalent in the country due to accumulated delays in investments in
power infrastructure, over-reliance on seasonal hydropower production and together with a rapid increase in electricity
demand. The peak load demand reached 2,100 MW in 2014, growing on an average of 14 percent per annum in the past
five years [2]. The maximum power demand will vary in the range with minimum of 9,100 MW to the maximum at
14,542 MW by 2030. To achieve energy sustainability, the government aims to increase electricity generation from
renewable energy resources [1,3,4]. However, renewables have fewer shares and total installed renewables capacity is
only about 150MW [5] such as biomass, small hydro and solar home system.
Myanmar lacks a unified policy for promoting the development and use of its renewable energy resources. The
government has not yet officially established renewable energy targets. The national grid infrastructure is not reliable to
accept the renewable energy generation sources. In these respects, the need for investment in the power sector and the
potential for renewable energy power projects have been subjected to many discussions during the past few years in
Myanmar. National Energy Policy had been accomplished with the help of Asia Development Bank (7-energy related
Ministries are cooperating under the National Energy Management Committee, patronage by Vice President) in 2014 and
nine energy policies were mandated to public. Policy No.5 of the energy policies is Renewable Energy Policy which is
To implement programs on a wider scale, utilizing renewable energy resources such as wind, solar, hydro, geothermal
and bio-energy for the sustainable energy development in Myanmar while renewable energy policy [6] is being
formulated and drafted. Electricity Law was legislated by the Union Parliament in Oct, 2004 and formalization of bye-
laws are also ongoing. National Electricity Master Plan (final draft II) was prepared by JICA and submitted to Ministry in
Aug, 2014. In the National Electricity Master Plan, renewable energy (only solar and wind) share would be 9%
(2,000MW) of installed capacity by 2030[3]. Followed by ASEAN target, the component of renewable energy will be
increased to 23% by 2025 in the ASEAN Energy Mix [7]. The Myanmar National Electrification Plan (NEP) aims to
electrify 100% of Myanmars households by 2030[8]. However, institutional and regulatory framework is still
fragmented in renewable energy sector [2,6].
Indeed, investment in the renewable energy sector is expected to be an important catalyst for the development of
countrys energy needs and socio-economic status. This paper aims to support the RE policy implementation by
providing more focus to wind energy policy framework that was adopted based on regional and international experience.

II. CURRENT STATUS OF WIND PROJECTS IN MYANMAR

Although the estimated wind power potential is about 4,032 MW, particularly in the Shan and Chin states, high elevated
areas of the central region, and along the coast, no utility scale grid connected wind power projects had been developed
in these regions. However, Government of Myanmar initiated the development of wind power projects in the country (by
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Volume 4, Issue 2, February -2017, e-ISSN: 2348 - 4470, print-ISSN: 2348-6406

collaboration) by signing a MOU (Memorandum of understanding) with various Private Stakeholders (internationally
termed as PPP meaning public private partnership mode). Gunkul Engineering Public Company (Thai) and China
Three Gorges Company (China) had signed a MOU in 2012. Gunkul Engineering Public Company carried out a
feasibility study for wind power plants (2930 MW) in Mon State, Kayin State, Thaninthayi Region, Shan State and Kaya
State. China Three Gorges Company carried out a feasibility study for 1102 MW in Chin State, Rakhine State,
Ayeyawaddy Region and Yangon Region [9]. According to the feasibility study, the wind power projects have been
proposed to be implemented in the targeted areas as shown in Fig.1. The wind projects are planned in accordance with
existing transmission line. Recently, a wind farm project of 30MW capacity have been planned to install in the
Chaungtha, Pathein area of Ayayawady Region [10] with an intention to develop more number of wind power projects in
Myanmar.

Figure 1.Wind Project Proposed Area and Population Density in Myanmar

Hence, to enhance the development of wind power projects in Myanmar, challenges such as large upfront cost,
weak grid infrastructure and inefficient policy framework for investment attraction are to be addressed on war-footing
basis by the policy makers. Further, Government of Myanmar needs to address issues such as supply reliability, greater
accessibility, and affordability.

III. WIND POWER POTENTIAL OF MYANMAR

While Myanmars consumption of electricity is expected to grow drastically, the demand for electricity may be
mitigated by considering the opportunities beyond hydro power, with renewable energy sources such as wind and solar
power. As per a study, Yangon (49.8% of total share) and Mandalay (17.2% of total share) are the highest demand zones
and Thilawa (Yangon), Kyaukphyu (Rakhine), Mandalay and Dawei (Tanintharyi) will be special economic zone and
high demand zone [4]. The population density at Mandalay, Mon, Magway, Ayeyarwaddy, Yangon regions and Rakhine
State is either medium or high level as shown in Fig.1.To fulfill the increasing energy demands in these zones, power
from wind energy can be one of the solutions as per a research finding. Based on MERRA_2 reanalysis data set,
theoretical and technical wind resource potential was estimated at 50 m, 80 m, 100 m and 120 m hub height [11]. The
promising areas for the development of wind power projects are identified in Ayeyarwaddy, Yagon, Mandalay, Magway,
Saagaing, Tanintharyi Regions and Rakhine States. At 50 m hub height, wind speed falls under class one (<200W/m2)
and possible for rural electrification and other off grid solutions. The available area for wind farm siting and installable
capacity of each area at 80 m, 100 m and 120 m are shown in Fig.2. The total installable capacities are nearly 71 GW at
80m hub height, 153 GW at 100 m hub height and 239 GW at 120 m hub height respectively. Mandalay is having the
highest potential and the installable capacity is approximately 38 GW, 50 GW, 75 GW at 80 m, 100m, 120m levels
respectively, and also Ayeyarwaddy is having second highest installable wind power potential.

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 International Journal of Advance Engineering and Research Development (IJAERD)
Volume 4, Issue 2, February -2017, e-ISSN: 2348 - 4470, print-ISSN: 2348-6406

Magway
Sagaing
Mandalay
80m
Tanintharyi
100m
Rakhine
120m
Yangon
Ayeyarwaddy

0 50000 100000 150000 200000 MW

Figure.2 Installable Capacity in Promising Areas

For the analysis/research purpose, the wind potential locations are classified as per the guidelines of CERC
(Central Electricity Regulatory Commission, New Delhi). As per CERC, wind zone -1 (Up to 200 W/m2, CUF 20%),
wind zone - 2 (201 - 250 W/m2, CUF 22%) and wind zone - 3 (251 - 300 W/m2, CUF 25%) identify and levelized total
tariff as of FY 2016-2017 are 6.61 (INR/kWh), 6.01 (INR/kWh) and 5.29 (INR/kWh) respectively [12]. In this
regards, the resultant of wind potential at 80 m, 100 m and 120 m are wind zone 1, 2, 3 and the levelized total tariff can
be assumed around 120 kyats/kWh (1INR= 20. kyats). Taking this as a baseline, the levelised cost of electricity
generation from wind energy has been determined and it is found that the reference unit cost is higher for household (Mk
35/kWh, upto 100 kWh) and for industry (Mk75/kWh, upto 500kWh) as of FY 2015-2016[1]. While comparing the off-
grid applications, the tariff may vary between Mk100 and Mk300 per kWh (or between US$0.10 and US$0.31/kWh) due
to high diesel price. Hence, the wind power connected to minigrid systems could be competitive in these areas and may
replace/reduce dependency on diesel.
In global scenario, when wind energy technology is matured and rapidly growing over worldwide, the cost of
wind energy had declined significantly and the weighted average regional values for the LCOE (levelized cost of
electricity) of onshore wind in 2013 and 2014 ranged from a low of USD 0.06 to USD 0.07/kWh in Asia. Moreover, the
LCOE of wind energy of Myanmar could be estimated about US$0.093/kWhUS$0.114/kWh in the Asia Development
Bank report [13].
Considering low average wind speeds and stability of the grid systems, the cost of wind energy in Myanmar
might be higher than prevailing tariffs for electricity. Hence, Government of Myanmar needs to attempt an incentive
mechanism for large-scale wind project development in Myanmar such as import duty exemption, waiving of land
use/lease fees, corporate income Tax, higher depreciation rate, and improved conditions for Public Private Partnerships
(PPP) and requires to develop adequate policy frameworks to attract investments. Likewise, wind energy project can be
planned in short term, medium term and long term according to Myanmar electricity prospects. One of the most
important drivers for the investment of the wind power sector in Myanmar is formulating an exclusive wind energy
policy/RE policy.
IV. MAJOR POLICY MECHANISMS

By considering the best practices followed by various developing countries for the development of wind power
project in their countries [14], the following are major policy mechanisms that can be adopted/considered by Government
of Myanmar for the promotion/implementation of large scale wind power projects development in the country.
(i) Long term wind measurements
From a policy standpoint, a country can significantly impact the risk probe of wind projects through collection
of long-term reference wind data. This can be done by installing tall measurement met-masts with a life of 20 years, in
regions with the highest prospective resources to measure wind speed in order to generate a high quality bankable
reference wind speed dataset. Such data can significantly reduce the duration and cost of wind project.
(ii) National targets
Renewable energy action plans are major drivers for the development of wind energy and targets give clarity
and confidence to the industry and investors for making long-term investments. The development of large scale wind
farm is strongly driven by the renewable energy policy frameworks in many countries. The role of the governments is
critical in developing adequate policy frameworks able to attract large investments to the sector. Most countries have
formulated short term, medium term, long term targets for RE deployment as the policy targets serve as an essential
condition for developing a stable and integrated policy framework. This would be an important element of the awareness-
raising process, and a strong long-term signal for investors. The Government of Myanmar could identify national targets
and set out plans for renewable energy and appropriately wind energy as like Thailand, Philippines, Sri Lankha, and so
on as shown in Table 1.
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(iii) Support Agency/ Responsible Institution for permitting

Dedicated Ministry/department for renewable energy may be created and held responsible for streamlining the
legislation and undertaking the role of an interlocutor on relevant renewable energy issues with other related ministries
and departments. The responsible Ministry may undertake permitting processes, auction/tendering system, renewable
portfolio standards, investment tax credits, siting regulations, import and tax deferral incentives and be a focal point for
the orderly development of Renewable Energy targets in Myanmar. The government could mandate to set up line
Ministry or dedicated nodal institution under Ministry of Energy and Electricity for the promotional and developmental
activities of Renewable Energy in Myanmar.
(iv) Financial incentives
Several financial incentives such as Feed-in Tariffs, Tax incentives, Capital cost grants etc. may be introduced
similar to most of the ASEAN countries as part of its policy mechanism to accelerate the investment in RETs (Renewable
Energy Technologies).
(v) Feed-in tariff
Feed-in tariffs (FiTs) offer long-term power purchase contracts to renewable energy producers and electricity
generated from renewable energy sources (RES) is paid a premium price for delivery to the grid. Price support for
renewable energy sources, through an incentive or subsidy. In India, the State Electricity Regulatory Commissions are
defining purchase obligations for renewable energy and tariffs, which are complemented by federal incentives such as-
Generation-based incentive (GBI), Accelerated Depreciation, Tax holiday, Duty exemptions for the import of wind
operated electricity generators, etc. Likewise, Government of Myanmar may attempt an approach to attract investors,
Public Private Partnerships, etc.
(vi) Grid integration
Ease of access to the electricity grid is another important aspect of a successful framework for the growth of
wind energy. This would guarantee that the projects would be effectively connected and investors would be able to
recover their investments.
Table.1 Target Wind Capacity by Country [5,7,15,16]
Country RE/Wind Potential of Installed Line FiT
Energy Target Wind Energy Capacity Ministry/Intuition
Thailand 25 % by 2021 190,000MW 224.75 MW Ministry of Energy USD
1200MW by Department of 0.09/kWh
2021 Alternative Energy
Development and
Efficiency
Sri Lanka 20% by 2020 20,740MW 33 MW Sustainable Energy USD
250 MW by Authority of Sri 0.195/kWh
2015 Lanka
Philippines 1,540 MW by 7,400MW 282.90 MW Department of USD
2030 76,000MW Energy (DOE) 0.197/kWh

Indonesia 5 % (biomass, 9,300MW 1.12 MW Ministry of Energy USD

nuclear, hydro, and Mineral 0.092/kWh
solar, and Resources
wind) by 2025
255 MW by
2025
Vietnam 5% by 2020 642000MW 30MW Ministry of Industry USD
(2,900MW) and Trade 0.078/kWh
11% by 2050
Bangladesh 10% by 2020 20,000MW 1.9 MW Bangladesh Power USD
12,00MW by Development Board 0.21/kWh
2020
Laos 30% by 2025 380000MW MOU Status Ministry of Energy -
73MW and Mines

V. DISCUSSION AND CONCLUSION

From the various research findings, the wind power potential of Myanmar have been determined and concluded that
Myanmar has sufficient wind energy potential to fulfill countrys energy demands through Renewable Energy resources.
However, it is recommended that the Government of Myanmar may take up exclusive wind resource assessment
programme (long term data collection) at the promising locations as a part of National Electricity Master Plan mechanism
to ascertain the actual wind power potential of the country. Subsequently, the Government can launch a wind resource
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map of the country to the public officially for creating awareness and promotion of the technology. Depending on the
outcome of the wind resource assessment study, a firm exclusive wind energy policy can be framed by the policy makers
for the orderly development of wind power projects in Myanmar by providing specific targets for wind power. To
achieve the target, a new dedicated nodal Ministry/department may be formed to implement the projects as per the wind
energy policy for achieving the short, medium and long term plan as per National Electricity Master Plan. For the
implementation of the wind power programme in Myanmar by the nodal Ministry, this paper may be useful, since the
paper mentions about various schemes, incentive programmes adopted by various developing countries for the successful
implementation of the wind energy programme in their respective countries. In order to achieve and meet the countrys
energy needs, wind energy may play a pivotal role in the countrys energy mix. Therefore, it is important to note that
there is no silver bullet wind energy policy. So, the paper provides an overview on various facets of schemes for the
policy makers to review and adopt in their wind energy policies. The wind energy policy framework contains five
components.

a. Incentivessupply-side and demand-side incentives should be part of a policy.

b. Grid integrationpolicies for integrating wind energy into the grid with upgrades to power systems infrastructure and
systems operations.
c. Wind resource exploitationpolicies for exploiting the wind resource in a manner that minimizes the system-wide
cost as opposed to just the generation cost.
d. Licensing guidelinespolicies like one-stop shop for licenses, approvals, and permits.
e. Public awareness and human resource developmentcampaigns that address misconceptions of wind energy and
policies that support human resource development of the wind industry.

VI. ACKNOWLEDGEMENTS

The authors acknowledge the financial support for this work provided by the Centre for International Co-
Operation in Science (CICS) and the India Science and Research Fellowship Program.

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