Myanmar power and renewables profile

Myanmar is facing severe power shortages and the governmenttargets to electrify the whole nation from the current low rate (37%). Power development requires significant investment from generation to transmission and distribution. However, the government is burdened with the heavy subsidy to the power sector. Power utilities are in financial difficulty owing to power prices being only 75% of the average power supply cost.

Moving forward, Myanmar needs to streamline the process to attract private investors for both gas and renewable power project development. The recent government regulations to award a Notice-to-Proceed for four new gas projects is encouraging. While coal is the most cost-effective technology, the environmental and social concerns have limited its development pace. Consequently, IHS Markit forecasts that it will take another 10 years for the first mega coal project to come online.

Market reform in Myanmar tilts towards a greener and more competitive power system, with foreign investment being the key to success. Solar and wind potential in Myanmar has yet to be exploited, while there remains vast hydro potential to be tapped on. Gas shortages will see Myanmar struggle to satisfy both export demand and growing domestic needs.

Learn more about our coverage of the Myanmar energy market through our regional power, gas, coal and renewables service.

Zhi Xin Chong is an Associate Director leading the power, gas, coal and renewables team covering Southeast Asia.
Posted 10 April 2018

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.