Myanmar Government is planning to buy 1000 MW of electricity from China Southern Power Grid by 2021 to solve an ongoing problem of domestic electricity shortage

Myanmar will buy 1000 MW of electricity from China as a quick solution to an ongoing domestic shortage. It will sell the excess to other countries if needed, said U Soe Myint, deputy permanent secretary from the Ministry of Electricity and Energy (MOEE).

The additional supply of electricity will be purchased in batches from China Southern Power Grid over the next two years, said U Tin Maung Oo, permanent secretary of the MOEE, said at a press conference in Nay Pyi Taw in last week. 

“We will buy 1000MW by 2021 but it is impossible to use all the electricity. We will resell the excess,” U Soe Myint said.

The electricity will be transported from Dohon in China to Muse, Mine-ye, Hopone, Loikaw and Phayagyi. “Even if we are not able to buy the entire 1000MW, we will purchase at least 300MW,” said U Tin Maung Oo.

While Myanmar and China have both signed an initial agreement for the purchase, the authorities still need to discuss pricing and whether the public can afford the additional supply of power. 

“As more electricity is urgently needed, we need to be careful to ensure the price is viable and reasonable for Myanmar and not purchased at a loss,” U Tin Maung Oo said, adding that the final pricing structure will be transparent and made available to the public.  

The country is currently experiencing a 600MW shortage of electricity and this is expected more than double to 1500MW in the coming year, according to the MOEE’s estimates. While several hydropower projects are currently being implemented, these will take a much longer time to complete due to disagreements over the use of land and. 

Meanwhile, coal-fired projects have come under scrutiny for their damage to the environment while details on several other power plants expected to come onstream have not been revealed, said U Soe Myint.

Electricity shortages are an ongoing problem for Myanmar, where existing power supply lags demand. To plug the gap, the authorities have resorted to buying electricity overseas. Last year, the MOEE signed an MOU to purchase power from Laos. The year before, a deal for a Turkish floating power unit to deliver additional power to Yangon was inked but has yet to materialise.

To prevent load reduction due to insufficient power generated in summer 2020, the MOEE is also seeking additional supply of electricity to be powered by liquefied natural gas (LNG), which will be delivered to Myanmar on floating power barges. U Tin Maung Oo said. 

The power barges will include LNG tanks and regasification technology, enabling the gas to be distributed to the nearest power station. Prices and locations for other areas in which power is in short supply are still under negotiation. 

(The Myanmar Times: https://www.mmtimes.com/news/myanmar-buy-power-china.html )

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