World Small HydropoWer development report 2013

www.smallhydroworld.org

MYANMAR

Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP).

2013 © UNIDO and ICSHP

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This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners.

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Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report 2013. United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from www.smallhydroworld.org.

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3 Asia 3.4 South-Eastern Asia

3.4.5 Myanmar Lara Esser and Kai Whiting, International Center on Small Hydro Power

Key facts

Population 54,584,6501

Area 676,578 km2

Climate Tropical monsoon; cloudy, rainy, hot, humid summers (southwest monsoon, June to September); less cloudy, scant rainfall, mild temperatures, lower humidity during winter (northeast monsoon, December to April)

1

Topography Central lowlands ringed by steep, rugged highlands

Rain pattern Rainfall up to 5,080 mm in coastal areas and average 1,500 mm in central areas

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Electricity sector overview The annual electrical power consumption has been gradually increasing by year, reaching 4.4 billion KWh in 2011. Electricity is distributed by Ministry of Electric Power No. 1 and No. 2. Electric Power No. 1 is implementing Hydropower Stations Projects to generate electricity and Electric Power No. 2 is responsible for distribution. The Asian Development Bank (ADB) estimated in 2011 that only 26 per cent of the population had access to grid electricity. The highest electrification rate is 67 per cent in Yangon City, followed by Nay Pyi Taw (50 per cent).

3 The existing grid needs to be upgraded.

Rural areas located far away from the grid system urgently need isolated power supply systems. Small hydropower is one of the solutions for isolated power systems.

2

Myanmar has abundant natural resources for rural electrification, including solar (annual potential is around 52,000 TWh), wind, tidal, biogas and husk.

2

However, only hydropower is being commercially developed with the others in research, development or piloting stage.

3 Hydropower is the main source of

electricity generation (figure 1), and gas, the country’s greatest source of revenue, is exported.

3

Water is a key energy resource with hydropower accounting for 75 per cent of the total installed capacity. Myanmar uses only five per cent of its water resources. It is estimated that the hydropower potential of just the four principal rivers is larger than 100 GW, of which only 1,781 MW are currently developed.

4

5 In 2010, a total of 19 hydropower

projects (413.8 MW capacity) were under

construction.2 Large scale hydropower is expected to

continue to be developed as a main power source.

Figure 1 Electricity generation in Myanmar Source: International Energy Agency

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Small hydropower sector overview and potential The country has abundant renewable energy resources and small hydropower potentials. The topography of the country is suited to isolated power supply systems. At present about 3 per cent of the country potential has already been developed and 26 per cent is under implementation.

Figure 2 Small hydropower capacities in Myanmar Small hydropower is expected to continue to be

developed as a power source for small village electrification. In 2008, up to 33 small hydropower projects with a total of 35.97 MW were in operation (figure 2). Numerous village hydro schemes (capacities less than 50 kW) and turbine installations of 1 kW or less, also supply electricity in hilly regions.

2

In terms of the small hydropower potential, more than 20 per cent is utilized but still nearly 60 sites with individual capacities between 1 MW and 5 MW remain suitable and could result in around 170 MW of total potential capacity.

2

There are some local technical capacities related to turbine manufacturing and installation technology. Appropriate renewable energy technologies exist, and the skills to design and build such systems are available. A hydropower turbine and generator factory exists in the Bago division since 2009.

2

Foreign aid to support small hydropower is strongly recommended as a key factor to promote the development in rural communities. The re-establishment of international banking institutions such as the World Bank and ADB is likely to help bring financial security and facilitate investment for major infrastructure and development indicators. Renewable energy policy There is limited information available on Myanmar’s renewable energy policy. The country is moving towards a market-based economy to stimulate

19.59%

8.94%

71.47%

0% 20% 40% 60% 80%

Hydropower

Gas

Oil

167.35 MW

35.97 MW

0 50 100 150 200

SHP potential

SHP installed

capacity

2

economic growth and development. As financial growth is a priority, the inclusion of environmental sustainability in policy is expected to form a long-term political vision and agenda. The Government has voiced interest in promoting renewable energy. Application of renewable energy, energy efficiency and energy conservation measures are being undertaken extendedly. However, natural resource governance remains a challenge, with limited accountability over the revenues from mining, logging and other extractive activities. The country is highly vulnerable to climate change and extreme weather events, as exemplified by the devastating Cyclone Nargis of 2008. A National More Pure Fuel Policy has been drawn.

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The Greater Mekong Subregion Economic Cooperation Program Strategic Framework 2012-2022 is also likely to have a significant role in development a national framework to combat environmental issues. The programme has an integrated approach to energy security and environmental performance. Legislation on small hydropower There is limited legislation concerning any form of hydropower. Given the rapid developments occurring there is a need to develop a revised framework for hydropower development. During the 5th Mekong Legal Network meeting of legal professional from the six Mekong countries held in 2012 in Chiang Mai, Thailand, the legal challenges, reforms and opportunities in hydropower for lawyers and campaigners working in Myanmar were discussed.

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This small step is a significant move in the right direction. Barriers to small hydropower development

Technical capacity transfer, both with neighbouring countries as well as within the country itself, is needed to develop small hydropower sustainably.

2

The economic sanctions have prevented small hydropower development.

Protestors continue to question the role of hydropower as an export commodity while many people live in darkness. Plans to build several dozen hydropower dams on Myanmar’s rivers have been met with fears of damage to livelihoods and food security.

9 Although this is not

directly related to small hydropower, it could negatively affect the image of small hydropower.

Lack of legal framework for the small hydropower sector.

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References: 1. Central Intelligence Agency (2012). The World Factbook. Available from www.cia.gov/library/publications/the-world-factbook/. 2. Unknown (2010). Small Hydropower and Sustainable Development of Rural Communities In Myanmar. 21 June 2010. Presentation in Hangzhou, China. 3. Asian Development Bank (2012). Myanmar in Transition: Opportunities and Challenges. Available from www.adb.org/sites/default/files/pub/2012/myanmar-in-transition.pdf. Accessed December 2012. 4. Thein, M. and Myint, M. (2008). Japan Cooperation in Energy Sector: Myanmar Perspective Centre for Studies in International Relations and Development Discussion Paper No 39. 5. Kya-Oh (2012). Insight – Myanmar’s Power Struggle Endangers Economic Boom Reuters. 6. International Energy Agency (2009). Electricity/Heat

in Myanmar 2009. Available from www.iea.org/stats/electricitydata.asp?COUNTRY_COD

E=MM. 7. United Nations International Strategy for Disaster Reduction Secretariat (2009). 2009 Global Assessment Report on Disaster Risk Reduction. Geneva. Available from www.preventionweb.net/english/hyogo/gar/report/index.php?id=1130. 8. Earth Rights International (2012). Mekong Legal Network explores regional strategies for hydropower, human rights and business, ERI, 17 July. Available from www.earthrights.org/legal/mekong-legal-network-explores-regional-strategies-hydropower-human-rights-and-business Accessed December 2012. 9. Lei Win, T. (2012). Myanamar in Dark over Hydropower in Asia. Alert Net, 24 July. Available from www.trust.org/alertnet/news/myanmar-in-the-dark-

over-hydropower-for-asia.

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