ADB Capacity Development Technical Assistance (CDTA) 

Republic of the Union of Myanmar:  

Institutional Strengthening of National Energy Management Committee in Energy Policy and Planning 

/ DRAFT /    Myanmar Renewable Energy Policy 

September 2014

 CONTENTS          Page

1. Policy Development    4 

1.1       Executive Summary     4 

1.2       Rationale for a Renewable Energy Policy       4 

1.3       Priority Action    5 

1.4       Preparation of a Renewable Energy Policy    6 

1.5       Status of Renewable Energy         6 

1.6       Structure, Goals, Visions of the RE Sector      7 

2. Myanmar Renewable Energy Policy        9 

2.1       Domestic Energy         9 

2.1       Thermal Energy 10 

2.2       Grid connected Renewable Energy       12 

2.3       Off-Grid Renewable Energy 17 

2.4       Renewable Energy Research         20 

3. Renewable Energy Institution   22 

CURRENCY EQUIVALENTS (as of 1 April 2014) 

Currency unit – Myanmar Kyat (MMK) 

             MMK  1.00     =         US$    0.00104 

             US$     1.00  =          MMK  962.973 

             EUR     1.00  =          MMK  1325.79   

ABBREVIATIONS 

1.   Policy Development 

Objective

The National Energy Management Committee (NEMC) and the Asian Development Bank are preparing Myanmar´s Energy Master Plan (EMP).  This plan also considers Renewable Energy options for solar, hydro, wind, and biomass electricity generation both, for grid connection and off-grid applications. The objective of this Technical Assistance is to strengthen the National Energy Management Committee in Energy Policy and Planning in view of the use of Renewable Energy technologies.   

This document will formulate the Myanmar Renewable Energy Policy (REP) with support measures, actions and timeframe. 

1.1 Executive Summary 

This National Renewable Energy Policy describes the intention and direction of the Union Government of Myanmar (GoM) for the renewable energy sector. 

It is dedicated to the provision of energy services in Myanmar by using Renewable Energy Technologies (RET). These RET are understood as devices converting natural and non-depletable resources such as water, wind, solar and biomass to productive energy. It defines the position of GoM, of the citizens, private enterprise and other national and international stakeholders and indicates actions and priorities.  

ê  The RE Policy aims to facilitate a stream of RE projects with equal opportunities for qualified partners and viable technologies. It states simple, clear support regulations which shall encourage project developers and energy consumers. 

ê  For grid connected RE generation, a set of measures is proposed which are financed through power purchase arrangements at no direct cost to GoM. 

ê  For off-grid energy services cost is minimized to a connection premium sustainability subjected to a national office responsible for monitoring and evaluation. 

ê  Domestic biomass use and emerging RE technologies are at the care of public / private cooperation. 

The draft Renewable Energy Policy is presented to the board of the NEMC for consideration. 

1.2 Rationale for a Renewable Energy Policy 

Ever since the energy sector was shaken by oil-crisis and nuclear accidents it is finding itself in a serious transitional process. This is enhanced by significant emission problems related to fossil fuels. Conventional sources of energy are experiencing unpredictable supply and long-range rising costs.   

Renewable energy technologies have become essential contributors to the energy supply portfolio, as they stabilize energy security, reduce dependency on fossil fuels, and provide opportunities for growth, employment and long-term development.  

Traditional fossil fuels are being replaced by clean, endless sources of energy. Renewable energy technologies which were a subject of science and technology only 20 years ago, are today major players in the international energy portfolio which has shifted investment to 57% renewables, 40% fossil and 3% nuclear. Another important change is that 58% of the renewable energy investment is now provided by private developers. 

Myanmar is in the process of setting up a new energy infrastructure. This brings the advantage that not so much severe and costly changes from established power have to be made. In recent years, Myanmar has already made significant progress in improving access to modern energy and the share of renewable energy sources in electricity generation. To make this progress available on a national scale, a renewable energy policy is required to appreciate changes and trends in the energy sector and to propose mechanisms which will address the new challenges efficiently. 

1.3 Priority Action 

Recommendations for policy measures and actions for RE are shown in Table 1 (below) with desired outcomes and target dates. Tab.1 compiles these actions according to priority in timely sequence: 

Tab.1 RE Priority Action 

2015 is the fiscal year April 2014-March 2015, 2016 (April 2015-March 2016) and 2017 (April 2016-March 2017) 

1.4 Preparation of the Renewable Energy Policy 

The development and draft of the Renewable Energy Policy was led by the National Energy Management Committee (NEMC) with the assistance of the Asian Development Bank (ADB) and a team of international and national experts. 

Review of the present energy situation and structure was done with the help of representatives from the key energy ministries comprising the NEMC, from NGOs active in the energy sector and from private sector enterprises who have put forward much initiative to strengthen the Myanmar energy perspective. 

The REP is a result of a five month consultation process : 

ê  Broad direction provided in strategic government documents such as the NEP and the National Energy Master Plan. 

ê  Discussion and guidance from key management in the relevant Ministries and subsequent information from representatives 

ê  Discussion with key stakeholders from NGOs and associations as well as private enterprises engaged in energy projects. 

ê   A thorough review of documentation and past reports relating to Myanmar’s renewable energy sector. 

ê   A cooperative consultation process through a series of national consultation workshops which involved all of the key stakeholders (Ministries, States, private sector, public institutions, NGOs)  

1.5 Status of Renewable Energy in Myanmar 

The Government of Myanmar has a long history in embracing the benefits of RE as it is harnessing hydro-power to a significant extent. With such strong technical leadership, other RE technologies were finding less attention. Determined to provide more open opportunities, GoM is inviting partners to implement a consistent and sustainable RE policy. 

The RE Policy follows the National Energy Policy NEP, which was presented early 2014 and provides for the first time an overview of the Energy Sector in Myanmar and the on-going work program. The REP is being formulated during the deliberations of the National Electricity Law, which will further clarify the roles and responsibilities in the energy sector. The REP may then require further laws and regulations in order to create a stable ground of confidence for long term engagements. 

Myanmar has the privilege to enter the RE sector at a time where RE technologies are mature, demand less investment and are proven to operate reliably (late mover advantage). Now the results of those learning curves can be applied to forge a harmonious RE strategy which will allow a beneficial combination of social support, affordability and reliable operation. A wisely applied policy will not have to forcefully shift from fossil to renewable, but can incorporate the right, long term orientation in the energy road map. 

1.6 Structure, Goals, Visions of the RE Sector 

The Union Government of Myanmar recognizes that the challenges faced by the energy sector in integrating RET in the national energy portfolio are best met when they are open to a broader base of energy service providers.  

International policy analysis supports the insight that the acceptance of public services and projects is enhanced by decentralization, establishing more regional responsibility. The union structure of the Myanmar administration provides the right support for such federal approach and is constitutionally founded.  

As a further step, Myanmar is increasingly embracing Community Driven 

Development, enabling rural communities to determine the most important development needs and contributing responsibly to the activities of this development. Renewable energy implementation will positively benefit from this approach in terms of collaborative financing, operation and maintenance of RE installations. 

Enabling States and Regions, Communities, and Private Enterprise as responsible actors will create an energy architecture which is more demand driven, more socially acceptable and on the long range more sustainable. As this diversification requires a new quality of coordination, GoM will establish a Renewable Energy Office working with the line Ministries under the NEMC.  

The structure of the new Renewable Energy sector will comprise of five major contributors: 

ê  The Ministry of Electric Power MoEP is mandated to coordinate the national power distribution network and generation facilities of more than 30 MW 

ê  The 20 States and Regions plan and implement (RE based) energy service projects. They work closely with the MoLFaRD as being mandated for rural development, so as to to listen and respond to regional demands. A strong regional capacity in energy planning, RE system design and service operation will be built. 

ê  The strategic component of Community Driven Development (CDD) will have the communities contribute to the selection and prioritization of energy supply models. Their tasks will include operation and maintenance of the systems as well as fee collection for spare parts and service. Local organizational and technical capacity will enable communities to efficiently perform these duties. 

ê  The private enterprise and NGOs will be encouraged to build operate and own grid connected RE generation systems at equal terms with public power providers. In rural electrification they will cooperate with States and communities directly to implement village supply systems. They will be certified through capacity building measures on planning and installation standards and will train user communities. 

ê  The Renewable Energy Office will coordinate national policy, rules and regulations, capacity building and certification, planning, monitoring and service. It will also be responsible for permits and incentives. 

In building Myanmar´s new energy architecture, the contribution of Renewable Energy to the national energy mix can achieve these major goals: 

ê  Constitute a vital element of Myanmar’s energy diversification 

ê  Contribute to the sustainable Energy Supply of Myanmar 

ê  Contribute 27% to the new generation exposure until 2030 

ê  Cooperate in public-private partnerships on purpose and target 

ê  Condition a conducive financial, legal and administrative framework 

An indicative assessment of the anticipated share and volume of the various RE technologies to electricity generation leads to the following distribution towards the year 2030. The overall RE contribution to the newly installed generation capacity (without large Hydro) will then be 26.8% or 3,995 MW compared to a total capacity of 14.9 GW. 

ê  Biofuel for non-electric use such as transportation and production is anticipated to reach a share of 5 % of the national consumption.

The objectives of this policy  

ê  for the citizens of Myanmar seeking access to energy 

ê  for the entrepreneurs offering to provide sustainable solutions, and  

ê  for the Government giving priority and guidance,  

can be summarized in the following 5 points vision for a stable and predictable renewable energy policy framework: 

ê  Provide citizens with adequate energy at sustainable cost  

ê  Encourage citizens to contribute to electricity service, help the Weak 

ê  Give priority to viable distributed generation from Renewable Energy Sources 

ê  Prefer private to public development in Renewable Energy generation 

ê  Ensure proper standards, attractive financing and continuous capacity development 

2   Myanmar Renewable Energy Policy 

In the current economic development of Myanmar a sustainable energy mix demands a clear view on the role of renewable energies and their position in the country´s development. The Union Government of Myanmar GoM wishes to state its position to RE and provide guidance for consumers and investors alike.  

This chapter will focus on the main fields of activity and the targets envisaged. Among technologies of equal maturity, it will as much as possible not prefer or defer certain applications, rather create a conducive environment allowing the most beneficial use. 

The sections will emphasize status and issues of major RE uses, suggest the appropriate policy activity and necessary action.  

A summary of the most pressing priority action is presented under Pos.1.3 

2.1 Domestic Energy 

The largest use of renewable energy in Myanmar is based on biomass for cooking. GoM is determined to reduce this consumption significantly by providing more sustainable alternatives. More than 8 Million households are using traditional wood stoves for cooking which is hazardous and polluting and holds no future.  

In quantity this is by far the dominant energy consumption in Myanmar. Individual firewood collection however, is not a threat to the national forest, nor to the CO₂balance. It is only developing into a problem with industrial production, harvesting and marketing of firewood. Providing more forest for more firewood is not addressing the task of lowering this consumption.  

Business as usual would solidify and expand a firewood industry which inevitably infringes the forest, and leads to increasing wood prices at the cost of sustainability and well-being of rural citizens. 

The issue of household energy has been handled by the Ministry of Environmental Conservation and Forestry (MoECaF) but with the understanding of its consequences reaching far beyond forestry, the need for a lead office in this important field has come up. 

Alternatives exist with fuel efficient stoves of various designs, briquettes and pellets of various compositions, advanced gasifier stoves and cooking from biogas, LPG or electricity. Many of these solutions are well established, many are mature but not deemed attractive. Best designs can be identified and actively promoted. Supply with household LPG can be supported until a stable market is formed. Firewood use can be curtailed. 

2.1.1 Issues  

2.1.2 Policy 

A strong support and leadership shall ensure that GoM is on top of this issue of national importance and that it is sending clear signals to people depending on basic energy provision. The initiatives of many NGOs and rural organizations are appreciated and are supported with due information and endorsement.  

2.1.2.1 To this end the GoM shall invite manufacturers and distributors in 2014 to establish a road map household energy which is targeted to reduce the use of firewood to 50% by 2020 and to 20% by 2030. Accomplishment of the targets shall be reviewed in scheduled intervals. 

2.1.2.2 Viable options by cost and practicability shall jointly be identified and published. These include available alternatives and sources. 

2.1.2.3 Increase availability of improved cooking devices and fuels by direct output-based assistance (OBA) to manufacturers 

2.1.2.4 Discourage the use of firewood publicly as an untimely hazard and a health threat by increasing information on the negative effects and the available alternatives 

2.1.2.5 Reduce urban use of firewood with high priority and monitor results. 

2.1.3 Activity 

2.2 Thermal Energy 

The demand for thermal energy apart from meal preparation and steam generation for power amounts in Myanmar to about 2 MtOE.  

Much of this is low-intensity energy used for purposes such as water heating for cooking or cleaning. Often it is prepared by fuel wood, gas and oil or even electricity. This does not hold commercial value, so alternatives have to be made available and encouraged. 

Hot water demand e.g. for industrial process heat, in the hospitality sector and also in public institutions like hospitals and schools often can be supplied by inexpensive solar water heaters. Solar energy then would save on energy resources, reduce pollution and relieve pressure on the sensitive energy balance. 

As an alternative to stand-alone solar heating, the waste heat from all power generators is a valuable energy source. Particularly in industrial plants thermal cogeneration can increase overall efficiency. Generators from biogas are frequently designed to use the generators heat for productive purpose. 

The market for solar water heaters (SWH) is not well developed in Myanmar. Reasons can be found in the low price for energy, so boilers and geysers appear cheaper in the short term. Another reason is limited information about solar water heating and the understanding of quality, as well as insufficient experience of installers. 

Radiation for solar heating is generously available throughout Myanmar, although flat-plate collectors would be preferred to concentrating design because of the high percentage of diffuse radiation particularly during the rainy season. 

Highest penetration of solar water heating was achieved in countries where SWH were encouraged by a premium or enforced by the building code (e.g. in Yunnan even in cities other hot water sources are banned)  

2.2.1 Issues 

2.2.2 Policy 

An important element of the RE policy of the GoM is a strong support to RE used for thermal energy. A strong RE leadership will arrange for information and training on using waste energy and solar energy. Incentives and regulations may strengthen the application 

2.2.2.1 GoM shall demonstrate solar heating to all public buildings and institutions with hot water demand, such as hospitals, barracks and schools. 

2.2.2.2 Solar water heating in hotels and larger housing units shall be a mandatory requirement of the building codes 

2.2.2.3 A waste heat utilization plan shall be a mandatory requirement of generator operating permits 

2.2.2.4 GoM shall arrange education and training for installers and designers on efficient RE thermal energy use. 

2.2.3 Activity 

2.3    Grid Connected Renewable Energy

The provision of adequate and reliable electricity services is a highly valued factor in the desired economic development of Myanmar. Immediate needs demand that generation based on fossil fuel is undergoing a major but also costly upgrading. Along comes the challenge that this may increase the country’s dependence on highly volatile and vulnerable energy sources.  

Traditionally, hydropower generation as a strong renewable source has been providing a major amount of the national electricity generation.  Other renewable resources however, exist in abundance and during the last decade have achieved the status of mature and viable generation technologies. 

Grid connected RE technologies which internationally receive the most attention and investment are wind, solar and biomass. To this point, none did find utility scale use in Myanmar. Government does not underestimate this new potential and will see that entrepreneurs find no barriers to timely application. 

Wind power in Myanmar is challenged by generally low wind regimes with best potential in the coastal and eastern hills regions. Power conversion will be limited in regional availability and seasonal distribution. Low wind season is the dry season, which resembles hydropower generation. Within these limits, viable locations for appropriately designed wind parks can however, justifiably be explored. 

Solar radiation is exceptionally good all over the country. The annual peak is in dry season which strengthens the energy balance as it complements the hydro generation curve. Photovoltaic (PV) generation appears of primary interest as it has short build time and high cost reduction potential. Concentrating solar plants (CSP) have limits with the high degree of diffuse radiation, which cannot be concentrated. 

PV plants at this time are the first new RE technologies in Myanmar with already existing building contracts. On a national scale, a distributed generation with PV plants is preferred, with more moderately sized plants instead of few big installations. Such distribution facilitates power management, balances weather conditions and can support weak grids.  

Internationally, strongest growth and best operational stability is experienced with a wide distribution of small private PV installations. For economic and social reasons, such energy supply landscape with small and very small power providers (VSPP) is desirable as a community driven development and has political merits. The support measures therefore emphasize SPP and VSPP. 

Biomass power generation in an agricultural country like Myanmar can enjoy ample feedstock and a consequently good potential. The challenge will be in overcoming logistical constraints. For utility size generation from biogas, the need for a constant feed may emphasize applications which are using agricultural and urban waste, more so when they have the potential to utilize the surplus heat generated.  

The production of biofuel is an important development task as it increases energy security, reduces climate gas emissions and can mitigate oil price spikes. Most ASEAN countries are making inroads in biofuel production but are also challenged for the adverse impacts on environment, food security and land use. The existing knowledge in Myanmar will need support to address these impacts and develop a responsible commercialization of sustainable biofuels. 

As long as international fuel prices are low, biofuel will best be used regionally, where biomass is nearby and fuel costs are comparatively high.  

Gasification of woody biomass or agricultural waste like rice husks will similarly  have a preference in regional application for remote or off-grid generation. 

BioPower in all forms is a despatchable technology, can be adapted to demand patterns so as to supplement expensive peak generation. 

Grid connected generation from renewable energy mostly follows a build-operateown (BOO) model so the financial and operational risk is with the entrepreneurs and GoM has the responsibility to contribute guidance and overall power management. 

2.3.1 Issues 

2.3.2 Policy 

Government recognizes that Renewable Energy Technologies offer a valuable contribution 

to the national electricity production and to energy security, as  

ê  Myanmar has a favourably high potential of renewable sources, namely water, solar, biomass 

ê  RET are environmentally beneficial and reduce overall emissions 

ê  RET are a sustainable addition to the generation portfolio and the target of diversification as they are independent from fuel price cost and shortages 

ê  RET can provide distributed generation and thus improve the grid balance 

In view of a strongly growing supply by experienced RET developers GoM sees an attractive field for private sector contribution, which will also release GoM from immediate investment exposure. It can thus concentrate on the supervision and regulation of a National Renewable Energy Action Plan which will contribute to sustainable electricity production in defined tiers of generation size. 

GoM will follow a liberal policy on electricity generation from all viable Renewable Energy Technologies, providing straightforward and non-bureaucratic application procedure, namely 

2.3.2.1 VSPP : For installations up to 50 kW erected by owners on their legal premises all 

electricity produced and not used for own consumption or that of neighbors can be freely fed to the grid. The responsible grid operator will mandatorily issue a permit within 2 months from application, if applicable standard of the generation equipment is demonstrated. Connection by the grid operator will be completed within 1 month from “ready for commissioning” notice by the owner. Investment for the generator shall be tax-deductible. 

2.3.2.2 SPP : For Installations from 50 kW up to 1,000 kW erected by owners on their legal premises all electricity produced and not used for own consumption or that of neighbors shall be metered and purchased by the responsible grid operator, who will mandatorily issue a permit within 3 months from application, if applicable standard of the generation equipment is demonstrated. Connection by the grid operator will be completed within 1 month from “ready for commissioning” notice by the owner.  

Generators of this size could affect the grid performance. GoM will take a liberal view on these installations as long as they total below 10% of the national generation, but may impose regulations for power management and power purchase. Applicable standards of the generation equipment therefore include e.g. an adjustable power factor and a facility for remote power management (gradual shut-down) by the grid operator. The power purchase agreement will compensate losses caused by such shut-down. RE based generation shall be preferred to conventional generation

2.3.2.3 IPP : For installations from 1 MW up erected by owners on their legal premises the electricity produced and not used for own consumption or that of neighbors shall be metered and purchased by the responsible grid operator, who will mandatorily issue a permit within 3 months from application, if applicable standard of the generation equipment is demonstrated. The generation equipment will need to have adjustable power factor and power management facility.  

The power purchase agreement will be negotiated by GoM on the basis of tendering a concession, where the bidder with lowest feed-in tariff shall be preferred. GoM will tender for concessions of 200 MW annually to be installed in different parts of the country in order to benefit from the favorable effects of distributed generation. 

2.3.2.4 Active Support 

GoM shall provide developers access to grid planning data required for project planning. Generally, this includes information on grid capacity and extension plans; for hydropower data on head, flow rate, watershed are needed; for wind power data on wind measurements. 

Government shall help to clarify issues of land ownership, water rights and right of way. 

2.3.2.5 Distributed generation 

GoM will observe the operational and financial regulations of utility-scale power generation and effectuate subsequent improvements. In general, a number of moderate installations would be preferred to a few larger plants. Distributed PV is not only less dependent on regional weather events, it greatly benefits the grid performance and spreads the operational and financial risk. 

There is also the risk of power management reducing plant output severely and often, which will conflict with any investor, because any hour of RE not used is free energy lost. It is therefore imperative that PV grid-feeding is assured of the highest priority. 

Due to the structure of line distribution in Myanmar, PV plants in the upper part of the country can easier be balanced with hydro power, while PV in the southern capital region can be balanced with gas plants. This corresponds with international studies which recommend generation from gas as the ideal match for PV generation. 

2.3.2.6 Feed in tariff  

Power purchase by application of a feed-in tariff FIT shall be valid for a period of 20 years from the date of first connection. With due notice, GoM reserves the right to adjust the tariff for additional generators in order to account for lower cost and efficiency gains. Likewise, tariff bonus can be granted for feed-in at peak hours. Tariff shall never be reduced retroactively. 

FIT shall be determined in due consideration of the real generation cost and in recognition of the macro-economic effect on electricity prices. Tariff shall encourage self-consumption. For the benefit of planning, a uniform tariff of 150K/kWh shall be proposed. Variations may be established for generators of different size and technology. GoM will publish the FIT for the next period in due time, beginning in 2014. 

Cost of connection and lines to the next suitable connection point if so required shall be borne by the RET owner.  

2.3.2.7 Financing 

In order to facilitate long-term financing for RE investments, a financing window at development banks shall be made available. Generation equipment may be considered as collateral with its marketable value. GoM shall provide a financing volume at interest reflecting government rates. 

Taxing of income from private RE generation shall be equal to the taxing of public generation.

2.3.2.8 Technical regulations

A regulation to the standards of the generation technology and in particular for the grid-feeding power converters shall be formulated and published in 2014. Internationally accepted standards may be applied, so internationally certified equipment can be used.

2.3.2.9 Technical training 

Installations shall be planned and approved by at least one suitably trained and certified technician. Certification will be granted after passing a written and practical test.  Internationally approved certifications will be accepted. A National training and certification program will be designed and started by mid-2015. 

2.3.2.10 Quality Assurance 

For all equipment used in RE installations the supplier shall demonstrate that it conforms with applicable standards, that the supply of replacements and spare parts is secured, and that responsible recycling of obsolete components is arranged. 

2.3.2.11 Piloting 

While GoM prefers private sector investment for RE generation facilities, it shall demonstrate at the same time latest technology application in own generation facilities. These will serve as pilot plants and reference where standards will be demonstrated, power management and grid control will be applied and potential investors as well as general public will be familiarized with latest progress. For hydro power, such pilot installations are already existing. Pilot plants for other major RETs would have moderate utility size, e.g. 100 kW in biogas,  1 MW in solar PV, 20 MW in wind power.  

2.3.3 Activity

2.4    Off-Grid Renewable Energy

The modernization and reform program of Myanmar is to bring about substantial improvement in the national electrification, particularly in the rural areas. The lowest electrification rate in SEA is an extraordinarily hard predicament which can only be addressed by extraordinarily strong action.  

The vision of an eventually fully grid-supplied Myanmar takes significant cost and time and until it can be reached, faster and less costly solutions will have to be applied. The MoEP committed to the task of raising the access to grid connection from 24% at present to 45% by 2020 and 60% by 2025. This is an ambitious target because for 42,476 villages and 8.2 million households this means an average of 388,125 new household connections per year or 1065 households each day for the next 20 years.   

Grid expansion in Myanmar has progressed impressively and will continue swiftly but will meet limits in finance and installation capacity. The further inroads expansion will go, the more time and resources will be needed. With the average low rural household demand of 235 Wh/d remote grid-lines often lose viability beyond 10 km distance but still have to bear cost for repair and maintenance and the not cost-covering price of electricity. For small and remote locations, grid electrification will be the costliest option. 

On the beneficiaries’ side, villages on the electrification list may not want to wait for 20 years and the 40% not on the list have no vision to begin with. The Department of Rural Development DRD of the MoLFaRD therefore has embarked on an RE based electrification program, which is mostly using PV stand-alone systems and mini grids. Currently DRD is distributing these systems for free, so soon the need for finance will constitute an impediment. Free gifts, often also were observed to lower the perceived value of the supply option, leading not to sustainable operation but to early failure. 

Private enterprises active in RE rural electrification as a rule request a contribution from the beneficiaries for the system cost and the operation. Internationally, this requirement has proven the only sustainable model. The RE policy shall provide equal support for both, the public and the private option to give recipients a choice and assure the most efficient accomplishment of the enormous task of rural electrification. 

Rural electrification must not be an attempt by government alone, it will need strong and cooperative effort by the private sector. Such approach can reach the task of adequate electricity supply at considerable lower cost than grid electricity. 

Rural electrification will still meet limits such as quantity, quality and affordability, but RE can push such limits when private sector will be enabled as a partner. Many partners can achieve a substantial contribution to the overall target, and they will afford the valuable determination and willingness of the village recipients. Up to now, slow growth has enticed rural citizens to engineer their own supply solutions. Private enterprise and NGOs have contributed to a large extent. Their major challenge is the required financial long-term exposure. A solid financing base at terms matching Government conditions should help this predicament. All this activity however, will only be preliminary in absence of clear planning and guidance. An updated electrification plan declaring when which village is due for the public grid would help in identifying alternative solutions. 

An overall weakness of rural electrification is service quality, compromised not so much by the delivery model but by remoteness and lack of trained service personnel.  

This applies to grid electrification as much as to off-grid models. But while grid operation has established maintenance routines, these often are not in place for off-grid models. Proper maintenance requires Government supervision and a corresponding institutional set-up.  

Off-grid RE delivery models have been proven in many countries and can be applied in Myanmar with the advantage of learning from these experiences. Learned design and service will bring it to best use and people’s satisfaction. 

2.4.1 Issues 

2.4.2 Policy 

Off-grid Renewable Energy applications find their dominant use in rural electrification. While the GoM considers countrywide grid electrification the ultimate goal, it will strongly encourage RE solutions in order to achieve rural electrification targets as swiftly and efficiently as possible. These solutions shall include local power generation from hydro energy, solar radiation, and biomass, depending on the economic and operational preferences.  

Both, public and private sector shall be entrusted with the implementation in the form of energy service providers and they will cooperate in planning and operation. The cost shall be borne jointly by GoM and the users. An efficient performance supervision shall be established by GoM through certified regional RE Advisers.  

Cognizant of the important role the Myanma communities need to assume in rural electrification, GoM will enable villages to sustainably operate and maintain energy systems. To lessen the burden for rural citizens, GoM shall apply the tool of a connection premium to public and private developers. As an Objectives Based Assistance (OBA), the premium shall be disbursed directly after installation commissioning and acceptance by the recipient village. 

2.4.2.1 GoM shall publish an off-grid electrification support regulation, describing duties and eligibilities of energy service providers and consumers, procedure and standards applicable as well as funding and timeframe available. 

2.4.2.2 New electricity connections in clusters of at least 20 households shall be built, operated and maintained for long-term by operators, who may be village committees or private entrepreneurs.  

Operators will seek to connect a maximum number of households for best efficiency, but are free to determine connection priority. 

RE installations providing at least 200 Wh daily all days all year shall be eligible for a connection premium of K150,000 per newly connected household. The remaining cost, each newly connected household shall contribute in lump or loan. Operation and maintenance shall be organized on village level and a sufficient O&M fee be collected from users. 

2.4.2.3 For the financially weak households who cannot afford a connection, the operator shall be eligible for a premium of K15,000 per new household for providing a suitable charging facility for batteries or lanterns. Households will pay a suitable fee when charging these devices. 

2.4.2.4 Planning 

For proper site selection, planning and evaluation, GoM shall provide an updated inventory of un-electrified villages with data on contact, location, access and number of households as well as priority and date of planned connection to the national grid. 

In case of prospective hydropower sources, this inventory shall include confirmed data on flow duration, head and topography. 

2.4.2.5 Transition 

GoM is aware that currently numerous rural generation systems are existing for which the upgrading, repair or conversion into hybrid generation using RE technology will be the least cost alternative. For these the same connection premium of K150,000 per newly connected household providing at least 200 Wh/d from RE all days all year shall apply. 

In case the national grid will eventually be connected, the continued operation of the RE supply system as a valuable and reliable resource shall be assured. The system operator shall secure that the existing system will not interfere with grid standards like voltage and frequency, shall act as retailer of the grid electricity and shall retain the O&M fees practiced prior to connection. 

2.4.2.6 On financing, technical regulations and quality assurance the conditions per 2.3.2.7 ff shall apply. 

2.4.3 Activity 

2.5 Energy Research 

Science and Technology holds a very prominent role in the RE development of Myanmar, as it  

ê  Explores improved application of existing technologies 

ê  Establishes an updated data base on RE resources, namely wind and hydro 

ê  Tests and probes biofuels and feedstock 

ê  Develops domestic solutions for emerging technologies 

ê  Educates engineers, technicians and project management for the tasks of RE service. 

Energy research and education in Myanmar is the mandate of the Ministry of Science and Technology MoST. While mature and viable RE applications are already existing and applied to varying degree, efficiencies often can be enhanced by applied research. Other technologies had drawbacks and need improvement, some meet not so much technical but institutional barriers. As an example, biogas generation will improve if the heat produced can be utilized for drying, cooling or process heat. 

The use of biofuel derived e.g. from Jatropha would be more efficient with higher yielding crops and improved extraction technology. Biofuel production from cane or palmoil has to overcome environmental, excise and marketing concerns. Target-oriented applications research by MoST will help to identify and support most promising localized solutions. 

Private sector initiative has already demonstrated remarkable results in many RE related areas, be it in private rural electrification, in the development of bio fuel production, biogas digestion, biomass gasification or in the many initiatives improving traditional wood-burning-stoves. There is however room for closer cooperation between science and industry. GoM wishes to support these initiatives where there are benefits, and to improve where there are challenges. 

One of the main impediments of RE dissemination in Myanmar is the limited knowledge on RE technologies and their application. Education will have to provide capacity in design, operation and service.  

Currently RE is not part of regular education, and training of skilled technical personnel is rarely available. MoST can provide this urgently needed managerial and technical capacity and can incorporate RE in appropriately adapted curricula. 

2.5.1 Issues 

2.5.2 Policy 

2.5.2.1GoM shall conduct research on improving existing technologies and rendering emerging technologies viable and marketable.  

2.5.2.2GoM shall facilitate regular coordination meetings of research and private developers in order to improve market penetration 

2.5.2.3Research and private sector will jointly evaluate the status of technology development, determine technologies most mature and name the missing elements, and will prioritize research demand. 

2.5.2.4GoM shall actively improve data on RE resources e.g. by conducting wind measurements in prospective areas 

2.5.2.5Research and private sector will exchange research data and determine fields of most promising cooperation 

2.5.2.6GoM shall establish RE courses at Universities and colleges to establish a profound knowledge base 

2.5.2.7GoM shall develop and offer training courses with certification for designers, technicians and installers, in cooperation with professional institutions e.g. the Myanmar Engineering Society MES. 

2.5.2.8GoM shall encourage cooperation of education and private sector e.g. by providing students to contribute to field monitoring and evaluation. 

2.5.3 Activity 

3   Renewable Energy Institution 

The RE policy described in this document identifies targets for a national RE development and names priority actions required to achieve these targets. The final and most important measure remaining is to establish an actor who will initiate, monitor and develop these actions on a national level for considerable length of time. 

To date, institutions are not attuned to fast track implementation, replicability, rapid scale-up and viable long-term electricity service. More often, RE projects are handled one by one and devoid of a sustainable long-range development concept. 

To date, private enterprise does not find clear economic conditions in terms of financing and tariffs. They do not find supportive laws and regulations, and face a complicated institutional structure making project development a challenge. 

To date, there is no lead office attending to the national RE development: MoEP has the mandate for utility-scale hydro projects, MoST for non-viable RE technologies and DRD for rural installations. The immense and challenging field of mature RE technologies which internationally have proven to be viable and will be so important for the development of Myanmar´s energy sector are not yet mandated.  

The Myanmar energy sector was often described as impaired by inappropriate structure and regulations. The RE policy component now has an entirely new range of tasks and can use this opportunity to create a compact and efficient national supervisory structure. Institutional fields of responsibility can be seen to : 

ê    Build a National office responsible for national and international Renewable Energy development as a one-stop service unit 

ê    Establish a firmly rooted legal and regulatory base for Renewable Energy 

ê    Cooperate with private enterprise to commit long-term investments 

ê    Prepare and update the RE database needed for planning and evaluation 

ê    Organize operational project supervision, monitoring and evaluation, training and certification 

ê    Arrange maintenance, service and quality assurance for all national RE installations 

ê    Coordinate the financial activities with FIT tariffs, electrification premiums, project financing 

ê    Organize social, economic and environmental impact assessments 

The following section on Institutional Arrangements describes in detail the tasks and options of such an organizational structure. The RE Office (REO) can have the legal form of a public office, a private corporation or a social facility.  

A social enterprise such as a cooperative has the advantage of GoM, private sector and recipients being voting members with fair and equal rights. 

Implementation will require an efficient institutional structure which has a solid capacity and mandate and the confidence of the public and private stakeholders. A reliable long term RE vision will need strong leadership and will have to act independently from the constraints of political hues. 

Any Ministry would be a difficult host as they currently are in the process of divesting from operational obligations, concentrating on policy and project support rather than project installation. Also, projects under 30 MW which is the typical RE range will fall under the mandate of the States and not the Union Ministries. 

A National facility like REO will necessarily report to and cooperate with the Union Energy Ministries. To this purpose, the national Energy Management Committee NEMC has been established and is well suited, as energy policy development and energy planning are part of NEMCs prominent tasks. 

3.1.1 Issues 

3.1.2 Policy 

With the goal to fully utilize the opportunities of mature RE technologies, GoM is setting up a strong institutional support with a solid mandate and clear, transparent and efficient procedures. 

For the energy related Ministries, the States, and the villages as well as for national and international project developers and investors REA shall be tasked the one-stop shop facilitating rapidly and with a long term sustainable vision. 

3.1.2.1GoM shall establish a National Renewable Energy Institution which supervises the wide-scale national RE implementation with a network of trained advisers.  

3.1.2.2GoM shall provide laws and regulations to facilitate national RE development 

3.1.2.3GoM shall install financing mechanisms for RE projects at competitive terms 

3.1.2.4GoM shall cooperate with private enterprise to commit long-term investments 

3.1.2.5GoM shall prepare RE based training and education to establish national capacity in design, installation, operation and service. 

3.1.3 Action 

ADB Capacity Development Technical Assistance (CDTA) 

Republic of the Union of Myanmar:  

Institutional Strengthening of National Energy Management Committee in Energy Policy and Planning 

/ DRAFT /     Institutional Arrangements

September 2014

CONTENTS                                                                                                   Page                                                                                                                     

1.  Executive Summary                                                                                     26 

1.1  Priority Action                                                                                                            26 

2.  Institutional Background                                                                      26 

2.1  Project Cycle Management                                                                              30 

2.2  Institutional Gaps                                                                                                    32 

2.3  Institutional Requirements                                                                              33 

3.  The Renewable Energy Office                                                        34 

3.1  REO National Activities                                                                                        35 

3.2  REO Legal Options                                                                                                   36 

3.3  REO Integration                                                                                                         37 

3.4  Capacity Development                                                                                        40 

Institutional Arrangements 

Objective 

The National Energy Management Committee and the Asian Development Bank are preparing Myanmar´s Energy Master Plan. This document will give an outlook on the required framework on capacity and institutional arrangements.

1. Executive Summary 

This document looks at the organizational management of RE projects in Myanmar, identifies gaps and recommends a suitable administrational structure. It introduces a Renewable Energy office, the tasks and organizational set up required and the embedding into the National energy administration. 

The initiative aims to create an enabling environment which supports a sustainable stream of RE projects which is carried by private initiative. 

1.1. Priority Action 

For the institutional tasks below Tab.1 recommends measures and actions with desired outcome and dates are listed. Actions are according to priority in timely sequence. 

Tab.1 RE Priority Action 

2015 is the fiscal year April 2014-March 2015, 2016 (April 2015-March 2016) and 2017 (April 2016-March 2017) 

2. Institutional Background 

The energy administration in Myanmar was originally formed for oil, gas and coal exploration and generation primarily based on hydro energy. Through time as the tasks expanded, so did the administrative structure and has reached a complex, sometimes fractured structure which is deemed by the GoM too faceted for the challenges ahead. 

These challenges include a definition of the energy mix which places Myanmar in a sustainable position for the changes ahead in energy supply and demand. While energy demand is explored by the ADB´s 2014 Energy Masterplan initiative, the energy supply assessment needs to consider the opportunities of Renewable Energy sources beyond hydro power. These include grid connected and off-grid technologies. 

Both offer the advantage that they are indigenous and unlimited resources, which render the country free from importing energy in highly competitive and volatile markets, using valuable foreign currency. 

Grid connected RE internationally has shown a tremendous development in recent years. It is by now representing the major field of energy investments with the additional advantage that most of this investment is provided by private developers.  

Fig.1 Global New Investment in renewable energy: Developed vs. Developing Countries 2013 

Off-grid RE technologies offer the opportunity to provide energy access to unelectrified, remote locations which is particularly beneficial in a large country like Myanmar with a widely dispersed population. Off-grid solutions enable rural people to put energy to practical use right at the place of consumption without the need for long and expensive grid lines or transportation of fuel.  

Even if a strong and determined grid electrification initiative will eventually reach many of those locations, RE supply can reach there earlier and will have exposed and trained people to efficient energy use.

All NEMC Ministries have experience in off-grid systems. Mostly, it is based on projects funded by donor assistance, where the respective Ministries were kind enough to volunteer for the implementation. Generally, off-grid projects were done diligently, often with substantial personal effort. A common shortcoming however is the absence of funds for monitoring and service, so little is known about the current status. A list of existing RE projects would therefore not be useful, as it necessary were incomplete because official lists do not include the numerous small projects done by private companies and donors, and not include the substantial number of private home installations. This document will rather describe the fields where the various Ministries are active. 

Ministry of Electric Power (MoEP) 

Plans, installs and operates grid based hydropower projects generally above 30 MW.  As the constitution since 2005 grants sovereignty to the states MoEP considers power projects below 30 MW as the states responsibility. Where state energy departments do not have the capacity to do such projects the MoEP promises to assist. The NEP refers for some time already to a number of 98 MH projects for which States and MoEP also seek foreign assistance. 

MoEP is also answering to wind power projects. Given that the few wind data available indicate mostly moderate wind speed, few projects along the coast have been earmarked and are under negotiation with potential developers.  

Ministry of Industry (MoI) 

Plans, installs and operates off-grid PV projects and has probably the widest experience in PV. Since 2000 it operated a manufacture of thin-film CIS based PV panels and installed a number of pilot systems, some with international assistance. The concept of a national manufacture is inoperable today, as it is outdated and not competitive to stateof-the-art manufacture available on the market. The existing quality control (flasher) might however be used to perform tests and certifications on panels for on-going projects.  MoI also operates some biomass projects. It cares to keep the existing installations operable but does not avail of a budget for operation and maintenance.  

MoI is the lead Ministry for Energy Efficiency and Energy Conservation and has formed an EEEC Directorate in 2014. 

The ADB’s Energy4all project was started in 2013 with MoI handling the first stage of project planning. 2014 it was transferred to MoLFRD. 

Ministry of Livestock, Fisheries and Rural Development (MoLFRD) 

The former Ministry of Border Affairs is present in 14 States and 284 township offices, was in 2013 assigned the duties of rural development and formed a Department of Rural Development (DRD). As such it supports the construction of roads, bridges, water supply and electricity generation.  

Leading the national rural electrification initiative, it is installing numerous systems for village electrification, PV accounting for about 93% of the projects.  

On micro-hydro systems it will cooperate with MoEP, on installations using biomass it seeks cooperation with the MoST. 

Installation and operation is currently being transferred to the States and Regions. For coordination with the ongoing line electrification efforts, DRD and MoEP seek cooperation in an Executive Secretariat for Electrification. 

Ministry of Science and Technology (MoST) 

The Ministry is mandated to provide the education on (Renewable) Energy and to explore RE technologies which have not reached viability. Officially named as the lead Ministry for RE, there have been wind and solar installations and there are currently projects on biomass.  

Ministry of Agriculture and Irrigation (MoAI) 

Using the ministry´s agricultural irrigation systems, MoAI is operating a number of hydro power systems which are used for electrification of villages and farms. As these micro hydro installations compete with the core purpose of irrigation particularly during the dry season, their output is characterized by a strong seasonal profile. This reduces viability and requires additional generation capacity. 

An important role of MoAI could be bioenergy projects (biofuel, biogas) Such projects require agricultural supply management more than technical operation, will need support from the ministry. Large scale energy crops agroindustry has become hardly justifiable, but the use of by- and waste-products from agriculture leaves attractive opportunities, which first of all require a smart logistical structure. 

Ministry of Environmental Conservation and Forestry (MoECaF) 

Biomass for cooking, mostly from firewood and charcoal, represents more than 80% of the country´s RE use and is the major energy concern of the Ministry. While rural collection of firewood is not critical, the growing demand in villages and cities has given rise to a growing firewood industry which the Ministry finds difficult to control.  Research on fuel efficient stoves (FES), on efficient production of charcoal and on briquettes have produced encouraging results, but are now discontinued.   

As an alternative to forest exploitation for firewood, forest management could provide a substantial source of biomass e.g. for gasification from forest waste (tops and logs), much of which remains currently unused.  

State Governments 

The Myanma Constitution grants the 20 States and Regions sovereignty on power projects below 30 MW, which applies to most RE projects. As a consequence, the line Ministries are transferring execution of such projects to the State level. This transition will separate RE projects gradually from the Ministries, but may complicate a national RE supervision and monitoring. 

The RE project experience in the different States varies, with micro hydro projects having the most extensive background. Others like e.g. Mandalay Region are handling PV and biomass projects already. 

The recent ADB RE Consultation included energy officers from the States and they expressed a strong need for clear guidance and engineering capacity with RE projects. They would need RE advisers for development of the different technologies and for the villages demanding best option advice. Added the requirement for national monitoring and evaluation, the State engineering departments will have to establish additional staff to perform the tasks demanded in rural RE projects. A national RE institution will have to train and support these RE advisers in all 20 States and Regions. 

Private Sector / NGO 

In Myanmar as anywhere else private enterprise takes the lead in innovation.  It is experienced, internationally versed and also prepared to take risk on a new technology. Installations are most often commissioned by international partners / donors. 

NGOs mostly have private partners for implementation. Private communities / villages as well have to rely on private enterprise to install their privately funded local projects. 

Private sector also answers the tenders to install for the various Ministries. 

The most extensive RE experience in terms of years and engineering challenge is with hydropower. As however the opportunities are changing, also the number of specialists in this field is diminishing and existing knowledge is effectively being lost. 

Biomass based RE activities similarly see reduced enterprise engagement. Donor engagement, once strong on bio-digesters and fuel-saving stoves is no longer a strong economic factor; biofuel engagement was effectively stopped with international competition and national restrictions; gasifiers find the market increasingly difficult with more restrictions. 

The dominating business today is solar PV electricity generation (solar thermal being almost insignificant) since enterprises find PV easier to implement throughout the country and financially more attractive. The market has developed tremendously with PV panels at internationally competitive prices very visible all over the country. 

But also the PV market is facing restrictions with public projects beginning to be distributed in large scale and free of charge. 

 Fig.2 : Myanmar public and private RE experience  

2.1 Project cycle management 

The experience with RE projects to date has provided valuable technical insight. For a sustainable, viable and adequately scaled distribution however, two impediments were observed: 

ê    Most projects are single, one-off initiatives, handled with significant input of time and effort, and terminate when external funding is ended. Viability mostly is no factor so replicability is low.  

A large scale national roll-out will require a smooth coordination which creates a self-sustaining and expanding stream of projects. 

ê    Most projects do not follow a project cycle, which spans from development to implementation to evaluation and feed-back and will typically last several years. Projects rather concentrate on installation and often end when difficulties arise. 

Project cycle management (PCM) follows distinct steps and aims to learn from the experiences along the way in order to improve the next cycle. This evolutionary approach was developed for rapid scale up of dispersed distribution projects and has shown reliable results. It applies to public and private projects, to grid connected and to off-grid applications and to all technologies. It requires consistent project supervision and a dedicated budget for monitoring and evaluation. 

1. PCM starts with the technical design and the development of a viable project model. 
2. The following project preparation seeks to select most appreciative recipients who are willing and able to perform the project technically and economically. Clear rules have mutually to be committed. Most prosperous communities are the best start, weaker recipients will follow when the project conduct is established and stable. 
3. Only when commitments are met, procurement and installation of hardware will follow. Longevity and serviceability of material are important. Recipients should know where to get service and replacements. 
4. Operation starts with a mutually agreed commissioning document. Performance data will henceforth be noted and remitted, in the early phase more often than later in a stable condition. Operation data are most important for a useful feedback. They allow early detection of problems and a continuous improvement for all. In spite of clear benefits, monitoring is often neglected. 
5. Service is a scheduled inspection, before costly repairs become necessary. For cost reasons, this service visits are done in levels of intensity, the most simple servicing to be performed on recipient´s level. Service has a cost, and recipients have to be ready from start to shoulder this cost. 
6. The evaluation of monitoring and service reports is critical to determine whether the original design and project model is useable. All improvement enters into pos.1 and closes the project cycle. 

Fig.3 : RE experience development with project cycle management (PCM) 

Myanmar RE projects follow this cycle to differing degrees. Utility scale hydro power projects by the MoEP follow the cycle quite diligently. PV and wind power projects are not yet operational. Biofuel projects have not gone beyond pilot phase. Small hydro and biogas projects are focused on installation and performance data are mostly unavailable. So are data on numerous small PV projects. New PV electrification projects under the DRD are installed at larger scale, have developed models and preparation procedures, but no provision for service, monitoring and evaluation.  

All international experience including that of neighboring countries like Bangladesh, Thailand, Vietnam and Philippines, has shown the importance of maintaining this cycle. It always was possible with strong public support to concentrate on installation alone, but it always failed sustainability. As soon as structural problems arose, projects had to enter into costly repair measures or abandon the entire plan. Myanmar has experienced such a corrupted approach with its large scale Jatropha program. From today´s view, this could have been successful with structured project management.  

The institutional setup for project management will vary for the technologies and also from country to country based on organizational capabilities, available budget, geographical extent and administrational support. 

Generally however it follows the rule of starting small in an easy environment, improving decisively with strong monitoring and evaluation, and then scaling up fast. 

2.2 Institutional Gaps 

RE technology development in Myanmar is handled by the responsible institutions in different ways, according to technical requirements and mandate. 

Utility scale hydropower as an established technology is the responsibility of the Ministry of electric Power. Emerging and non-viable technologies are at the attention of the Ministry of Science and Technology. 

This is consistent with the vision of the International Energy Agency IEA: 

Fig.4 : Generations of Renewable Energy 

IEA defined 3 generations of renewable energy technologies: 

1^stgeneration which is long time established, like hydropower in Myanmar 

2^ndgeneration which has matured within the last 20 years to a reliable source, such as solar and wind plants, large biogas installations. Existing regulations, have not always kept up and planning capacity needs to be updated on these technologies. This is where this TA will set the focus. 

3^rdgeneration which is continuously developed, but has not always reached maturity and viability. This will need further public support. 

MoP clearly represents the established generation which in Myanmar is hydropower. MoST is clearly mandated for the third generation, which needs further attention and sometimes research to establish viability. MoST also is responsible for training and education which for RET is a key factor. 

The 2^ndgeneration which is on mature RETs however, which are solar, wind and biogas, and today internationally represent the most dominant field of energy investment and receive the highest capital investment foremost from private operators, is still marginalized to undefined “others” in the National Energy Policy: 

“If on the basis of studying made by the directorate indicate feasibility for construction of electric power plant for other industries, the said project would be transferred to other relevant ministries or other interested private parties” 

It is this 2^ndgeneration of RET where Myanmar is most lagging behind and is in need for a strong lead office. These technologies are readily available and commercially proven internationally to hold an important potential to economic development and technological world standard. 

The energy related Ministries in Myanmar are in a process to divest from implementational tasks and rather concentrate on policy and supportive framework.  

The RE lead office for mature energy project development therefore will be founded closely attached but independent from the existing Administration. 

2.3 Institutional Requirements 

In the attempt to fully utilize the option of today’s mature RE technologies, GoM will need to set up a strong institutional support with a solid mandate and clear, transparent and efficient procedures. 

In order to become successful and use the limited resources efficiently, a National Renewable Energy project management has to include both, public and private project initiatives. 

The good work of the various Ministries in the RE field has the benefit that Administration is aware and exposed to technologies, and this should be continued by all means.  In order to share experience to the national RE development, monitoring and service of these systems have to be bundled and evaluated. 

1. As the first step, available data on RE project experiences throughout the institutions will be compiled and evaluated. The evaluation will cover technical, economic and institutional aspects. This will require limited personnel resources. Good results were achieved using students from technical colleges. 

2. In a Second step the evaluations serve as a basis for the formulation of project development procedures and the necessary regulations. This will need to adapt to Government procedures and consider financial arrangement. So legal and economic capacity will be required.  The regulations will be coordinated with the relevant offices in Government, particularly DRD and States energy planning as well as with private sector actors. 

As the number of projects will rapidly expand, so will the need for trained project management and monitoring and the need for trained project design and development. As projects will increasingly be designed and implemented by the 20 States and regions, all State engineering offices will need trained RE advisers.  

3. The Renewable Energy Office 

The institutional body to perform this development and training needs to be of a National scale and independent of political and commercial constraints. 

The proposed organizational structure is shown in Fig.5. 

Only an independent institution can provide the required service: 

ê    Consistent design and application of standards and quality control 

ê    Consistent performance monitoring and evaluation  

ê    Consistent financial management and sustainable operation. 

Such an office is not yet existing and needs to be established. In this document it will be dubbed the Renewable Energy Office (REO) and can be set up in different legal forms, as will be detailed below.  

REOs personnel requirement could start with about 8 qualified staff in the first step, and would expand to 90 specialists when National operation is fully developed. Added would be staff to perform the regular monitoring tasks. 

The present activities on RE projects are deeply rooted in the various ministries. It is therefore unlikely to assume that this engagement will be changed within a short time frame in favor of a centralized handling of RE, as this is the case in neighboring countries. This pertains in particular to hardware acquisition and new installations. 

Repair and upgrading is less favored as is regular maintenance. This leaves a serious gap for service, advice and information which needs to be addressed with utmost urge and importance. The need for such a body is acknowledged by the GoM and addressed in the NEP by the commitment to a RE directorate.  

The final size and structure of the REO will depend on the legal background and position within the national energy administration. An important factor is the extent of nationwide actions, as can be gleaned from the task list below. 

3.1 REO National Activities 

ê    Prepare and maintain a nationwide inventory of RE installations 

ê    Organize and supervise a nationwide network of monitoring staff who will at regularly and at scheduled intervals review RE systems and their performance and report in a standard format to the REA 

ê    Provide a nationwide service for RE installations with regular, scheduled maintenance to ensure proper performance.

ê    Arrange for data sheets and installation instructions to be commonly available and to be distributed with the sale of RE products 

ê    Monitor the project data and facilitate necessary action 

ê    Establish standards of RE components by selection and adaptation of international standards and regulations 

ê    Maintain standards in the design, procurement and  installation od RE systems 

ê    Arrange certifications of RE components by testing compliance with standards  

ê    Issue labels of compliance to mark products of tested quality 

ê    Assist in the assessment, planning, and installation of RE systems supplied by government, private companies or NGOs 

ê    Assist in the sourcing of suitable spare parts, appliances and add-ons to RE systems 

ê    Assist village energy committees in operation and maintenance of systems, collection of service fees, formulation of rules and efficient upgrade and expansion of energy services 

ê    Advise GoM in tendering RE projects according to national and international practice 

ê    Establish and summon regular and scheduled meetings on the steering committees on environmental issues, biomass management, biofuel development, and household energy  

ê    Establish standards for training and certification of RE designers, technicians, service advisers 

ê    Develop and improve curricula for training interventions 

ê    Arrange for regular and scheduled training courses for RE designers, technicians, advisers 

ê    Advise MoST in the development of syllabus and curricula on RE technology in technical Colleges and Universities. 

ê    Arrange for information campaigns on RE for the benefit of suppliers and end-users by radio, TV, print media and suitably targeted brochures and leaflets 

While hardware acquisition and installation will likely remain with ministries and states, the REO will concentrate on providing the knowledge to sustain the country’s enormous RE options.  

Many of the services described above need to be performed centrally, such as data management, training, certification and information. Many however, must be provided locally, side by side with the state planning and close to the people and villages. This calls for a regionalized network of knowledge and advice.  

GoM has an opportunity if not obligation to form a workforce of knowledge and highly skilled service, creating an RE employment demand in the process where before it was solely providing material.  

3.2 REO Legal Options  

A Renewable Energy institution, her for consistency called REO, needs to have full Government support and also confidence from private enterprise and development partners. REO may have different legal forms, from a public office to a private corporation or a more socially oriented cooperative.

During the creation of the National Energy Plan NEP the extent of REO´s tasks and 

responsibilities were not mentioned in detail, so at that time the proposal of a Government Directorate appeared to be appropriate. In the light of the need for an efficient energy service unit as described above, there may be alternative options to be considered: 

1. Government Directorate  

2. Private corporation 

3. Social corporation   

Each of these options has its merits and risks. The third option of a social enterprise like a cooperative has the advantage that GoM, private sector and recipients are responsible members. 

Although in view of the on-going activities and the demand for clear signals on RE development there is a need for a decision. 

As a fourth alternative, the options can be combined.  There are good reasons to centralize tasks like data collection and performance monitoring, like standards development, certification and training.  

But advisory services and maintenance service can be regionalized in social corporations such as cooperatives. Other than in highly centralized countries like Thailand or Malaysia the federal system of Myanmar would support a regionalization. India e.g. has numerous regional service corporations working in cooperation with the national REO. 

3.3 REO Integration 

Whichever organizational model is chosen, it is imperative that a Renewable Energy office must be firmly integrated in the Myanmar Energy Administration and enjoy a clear and robust mandate. The tasks and interventions related to Renewable Energy in many ways need institutional support and orientation. In the on-going restructuring of the energy sector GoM will be determined to streamline frame conditions and procedures and establish responsible mandates. An important step is the creation of the Executive Secretariat on rural electrification which secures high-level support, but for the day-to-day cooperation REO will be indispensable.  

The most appropriate administrational link of REO to the energy administration would be the National Energy Management Committee NEMC. 

Fig.6 : NEMC Institutional Framework  (as shown in National Energy Plan)

As stated in the National Energy Policy, the NEMC has a wide variety of tasks :