Non-paper - 16 Jan 2018 - Investment Opportunities in Electricity Sector14 Feb 2018
Myanmar faces a shortage of electricity supply to meet the demands of industry and private citizens. As such, the government drew up national energy policies to fulfill the nation’s energy needs, which is projected to grow 13 – 15 percent per year. At present, Myanmar’s energy demand is 30% more than the available supply, and only 38 percent of households in Myanmar are electrified. This insufficient electricity supply results in businesses being reliant on private generators to supply electricity during power shortages. Development of Myanmar’s energy infrastructure is one of the essential requirements for Myanmar’s sustained economic growth. Thus, there are ample opportunities for both the local private sector and foreign investors to invest in power generation, transmission, and distribution in Myanmar.
The new Electricity Law of 2014 (announced on 24 October 2014) established the Electricity Regulatory Commission (ERC) and grants some regulatory responsibilities to the ERC. The law also authorizes the Ministry of Electricity and Energy (MOEE), region and state governments, and leading bodies of self-administrated zones and self-administrated divisions to grant permits, and engage in electricity-related works, such as generation, transmission, and distribution. Thus, interested investors can directly contact those parties to invest in the energy sector.
According to the Electricity Law 2014, the electricity business is divided into three business categories: small scale electricity business (equal to or less than 10 MW), medium scale electricity business (more than 10 MW but less than 30 MW), and large scale electricity business (more than 30 MW). The Constitution Law (2008), Section 188, 2, Clause (4)a states that small and medium scale electric power production and distribution have the right to be managed by Regions and States, and might not have any link to the national power grid. Large scale electric power production and distribution are to be managed by the Union Government.
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