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  • Renewables
29 July 2019

 – 

  • Philippines

MANILA, Philippines — While the national economy is as vibrant as ever, millions of Filipinos have been left behind in the dark.

According to the Department of Energy (DOE), 12 million Filipinos lack electricity and millions more lack 24/7 electricity. A World Bank study notes that lack of electricity results in poor health and education, more criminality, and lower incomes. It is no coincidence that our country’s 30 poorest provinces are also among the 30 with the most brownouts.

But as millions suffer from brownouts, the town of Paluan, Occidental Mindoro, is now brownout-free.

In 2018, Solar Para Sa Bayan (SPSB) completed the largest Solar-Battery Microgrid in Southeast Asia at zero cost to government. With solar panels, Tesla batteries, and backup diesel generators, it serves Paluan 24 hours a day, 365 days a year, at 50 percent below the full cost of the local electric coop.

At the project’s inauguration, residents raised a banner proclaiming “No More Brownouts!” and recognized the event as a turning point for Paluan, which never before in history had 24/7 power.

Mayor Pangilinan further noted that since Solar Philippines began operations in December 2017, Palueños enjoyed their first-ever Christmas without brownouts; students can study at night and use computers at school; families can use electric fans amid the summer heat; sari-sari stores can sell refrigerated drinks; and an ice plant is now being planned to support local fishermen.

SPSB is now serving 24/7 power in over 12 towns, benefiting over 200,000 Filipinos. It has developed projects in 18 provinces and aims to support the Department of Energy’s (DOE) goal for the Philippines to achieve 100 percent electrification by 2022.

Solar Para Sa Bayan has brought 24/7 power to Filipinos in over 12 towns for the first time, including in the MIMAROPA, Bicol, and Davao regions, to help achieve the DOE’s goal of 100-percent electrification of the countryside by 2022.

Two of these provinces, Aurora and Cagayan, were among the worst affected by last year’s Typhoon Ompong.

In Dingalan, Aurora, evacuation centers were powered by SPSB’s Minigrid system, ensuring the town center was energized even at the height of the storm and helping the town achieve zero casualties. Even if the town is connected to the national grid and is only four hours from Metro Manila, Dingalan has suffered decades of worse outages and higher-cost electricity than even island municipalities.

“We thank Solar Para Sa Bayan for fulfilling the dream of Dingaleños, by solving our power crisis and reducing the cost of electricity,” said Dingalan Mayor Shierwin Taay. “This is a great help for a town like ours to achieve a stronger economy and better life for our people.”

In Calayan, Cagayan, SPSB established a Minigrid to bring 24/7 power for the first time in the town’s history, to help the town recover from the typhoon’s devastation.

In Claveria, Masbate, a municipality of over 45,000 people that is this week receiving 24/7 power for the first time in its history, Mayor Froilan Andueza said, “Thank you, Solar Para Sa Bayan for choosing our town, which we are proud will now have the best electricity in the entire Masbate.”

In Dumaran, Palawan, a town that has never been reached by an electric cooperative, Mayor Medwin Pablico said, “We do not need to say more about this project. The smiles of our people who are now enjoying 24/7 electricity for the first time speaks for itself.”

In Lubang, Occidental Mindoro, Mayor Roberto Sanchez said, “For years, investors have had difficulty developing resorts here because of the expensive and unreliable electricity, and we have appealed to the government to give us better alternatives to our electric co-op. Solar Para Sa Bayan has answered our call, and we hope it will be able to serve more people very soon.”

Carlo Alcano of the Solar Energy Association of Davao Oriental wrote: “So many Filipinos have never seen a light bulb, most of all in Mindanao. Now we can end this humanitarian crisis and finally give our people what they have long deserved.”

These sentiments are consistent with the results of a Pulse Asia survey indicating that 82 percent of Filipinos favor new options for electric service. According to Pulse Asia director Ana Maria Tabunda, support for new options for electricity is consistent across all demographics in Luzon, Visayas, and Mindanao.

For decades, Philippine presidents have tried and failed to reach 100 percent nationwide electrification. Now we have a solution with the potential to energize the entire country and add to the list of reasons why this administration will be remembered as the one that did the most to improve the lives of ordinary Filipinos.

 

  • Energy-Climate & Environment
  • Renewables
29 July 2019

 – 

  • Philippines

At his fourth State of the Nation address, Philippine President Rodrigo Duterte announced policies to advance renewable energy deployment to tap the archipelago’s enormous solar, wind, hydropower, ocean and biomass potential.

ne President Rodrigo Duterte’s call to fast-track a transition to renewable energy from coal use is a welcome move for most civil society groups and the national government as it has an important implication for the country’s climate future, and for the global effort to meet the 1.5 degrees Celsius climate goal.

The Climate Change Commission (CCC) said the policy pronouncement of the President to advance rapidly renewable energy deployment and reduce the country’s dependence on coal for energy generation, a strategy aligned with achieving the goal of the Paris Agreement on climate change which the Philippine government ratified in March 2017.

“We recognise the urgent need to ensure the sustainability and availability of resources and the development of alternative ones. In this regard, I trust that Secretary (Alfonso) Cusi (Department of Energy) shall fast-track the development of renewable energy sources and to reduce dependence on traditional energy sources such as coal,” President Duterte said in his Fourth State of the Nation Address (SONA).

The president’s SONA pronouncement on coal energy clearly conveys that the country is not only taking the low-carbon development pathway, but will also pursue it faster.

Emmanuel De Guzman, secretary, Climate Change Commission

The presidential directive effectively sends a clear signal to policymakers, regulators, investors, and energy industry executives to promote and invest in more affordable, reliable, and cleaner power infrastructure, which in turn, builds diversity of electricity generation, and bakes in long-term energy sector price deflation.

“The president’s SONA pronouncement on coal energy clearly conveys that the country is not only taking the low-carbon development pathway, but will also pursue it faster,” said CCC Secretary Emmanuel De Guzman. “This only means that the country shall pursue socioeconomic development in a manner that is clean, healthy, and sustainable for the Filipino people,” De Guzman explained. “This also means that technology development and transfer and investment in renewable energy and energy efficiency, the country’s energy sector’s transition as a whole, will have to take place in an accelerated manner.”

De Guzman also cited that the Renewable Energy Act of 2008 provides the legal and institutional framework necessary for harmonising policies on the development of renewable energy technologies. The Act aims to enable the Philippines to move rapidly towards its goal by developing and utilising resources such as solar, wind, hydropower, ocean and biomass energy.

“Renewable energy can provide a major share of the Philippine electricity mix in a stable and reliable manner and at the same time increase energy self-sufficiency and reduce supply-related risks,” De Guzman said. “We must act swiftly to transform our energy sector and to deliver its socioeconomic benefits to the Filipino people as we also help achieve the 1.5C Paris goal.”

He referred to the Special Report on Global Warming of 1.5 degrees Celsius, noting that limiting warming to 1.5C entails dramatic emission reductions by 2030 and carbon neutrality by around 2050. This means there is a need to take advantage of the increasing availability of affordable, renewable and efficient energy solutions.

Renato Redentor Constantino, executive director of the Institute for Climate and Sustainable Cities, said the President’s call is the signal that policymakers need to hear, adding that the Philippines is needlessly dependent on economically harmful, unreliable and heavily subsidised polluting coal and imported fossil fuels.

“The country already has $21 billion worth of stranding coal plant assets in the pipeline, and we already pay more than $200 million per year in diesel subsidies. But we can achieve energy security and secure more affordable, cleaner power by hastening the transition to renewable energy,” Constantino explained.

The Philippines’ total installed power generating capacity continued to grow from 22,728 megawatts in 2017 to 23,815 megawatts in 2018, according to the DOE Philippine 2018 Energy Situation. It added that coal-fired power plants constitute the largest share of the installed and dependable capacity in 2017 with 8,049 megawatts and 8,844 megawatts in 2018. Among renewable energy technologies, hydropower maintains the highest share (1,134 megawatts), wherein the majority comes from the Mindanao Grid.

“According to our review, energy efficiency is the easiest and often cheapest way to reduce the need for expansion of coal power generation. And with the country’s energy demand projected to increase by 80 per cent between 2017 and 2040, improving energy efficiency in the building sector would be our best course to reduce emissions,” De Guzman said.

Since 2016, the CCC has been facilitating a national policy review and framework development on energy, through a whole-of-nation approach, in order to develop a clear policy on coal-fired power plants in pursuit of a low carbon development pathway for the country.

“The President’s policy pronouncement comes in a crucial time when we are finalising our country’s first Nationally Determined Contributions (NDC), our commitment under the Paris Agreement, due for submission this year,” De Guzman explained.

The CCC has been working closely with all government agencies and civil society in defining the targets and pathways for the country’s low-carbon development from now until 2040. At present, the National Economic Development Authority (NEDA) is revisiting the Philippine Development Plan and Ambisyon Natin, as well as completing its economic modelling for the NDC by September 2019.

The CCC also supports NEDA, DOE, the Department of Transportation, the Department of Agriculture, the Department of Environment and Natural Resources, the Department of Trade and Industry, the lead agencies of government for the NDC sectors, in whole-of-government-and-society efforts to transition our economic sectors into a green economy.

  • Oil & Gas
29 July 2019

 – 

  • Vietnam

HÀ NỘI Foreign investors are diving into developing liquefied natural gas (LNG) and gas-fired power projects in Việt Nam, in part due to country’s growing demand for electricity.

Korea Gas Corporation (KOGAS) became the latest player this week after it entered into a Memorandum of Understanding (MoU) with Energy Capital Vietnam (ECV) that provides a framework for the development of a privately funded liquefied natural gas (LNG) regasification terminal, storage, gas supply system and 3,200 MW gas-fired power project near Mũi Kê Gà in the southern province of Bình Thuận.

David Lewis, CEO of ECV, said KOGAS’ strong presence in the LNG business, along with ECV’s position as one of the first LNG movers in Việt Nam, allows both companies to leverage each other’s strengths to bring low-cost LNG to Việt Nam and help address critical energy security needs.

Interest among foreign investors in Việt Nam’s natural gas and LNG sectors continues to be high, with the likes of Tokyo Gas and Marubeni Corporation interested in forging ties with domestic entities for potential opportunities in LNG, while the US Trade and Development Agency pledged its support to help improve Việt Nam’s energy security status by providing smart, clean technology and developing the LNG power industry.

LNG consumption in Việt Nam is expected to grow at a robust average annual rate of 10 per cent over next decade, driven by Government efforts to gradually diversify away from coal in favour of cleaner alternatives, and the introduction of several LNG import projects to supplement declining domestic production.

The Government has primarily centred on renewable sources such as solar and wind, although their intermittent  nature continues to raise questions about reliability, while hydropower, currently a prominent part of the national power mix, is increasingly being scrutinised for its harmful effects on the environment.

This opens up room for gas-fired power generation to assume a larger role in the national power mix, as a cleaner, less- environmentally hazardous alternative to coal and hydropower with a more reliable baseload power source compared with most renewables.

The country’s current power plan – the Power Development Plan VII, revised in 2016 – provides for the construction of 8GW of new gas-fired capacity across Kiên Giang, Đồng Nai, Quảng Nam and Bình Thuận provinces between 2021 and 2027. The projects are likely to be retained in the forthcoming energy plan.

According to analysts from Fitch Solutions, Việt Nam’s current crop of gas-to-power projects have a good chance of coming online as planned due to a combination of supportive factors including availability of funding, rising foreign capital inflows into the domestic power, natural gas and LNG sectors and increasingly supportive Government rhetoric for reducing emissions and promoting greater gas use. VNS

Read more at http://vietnamnews.vn/economy/523267/foreign-interest-in-viet-nams-lng-sector-remains-high.html#wtYxcrefxPVb847w.99

  • Renewables
29 July 2019

 – 

  • Thailand

BANGKOK, July 29 (Xinhua) — The Thai Ministry of Energy on Monday said it will deploy solar-powered pumps to drought-stricken farmers in the north and northeast.

Energy Minister Sontirat Sontijirawong said solar-powered pumps would be immediately installed to pump ground water to quickly assist residents for consumption and to irrigate their farmland.

“I have instructed provincial energy officials to fully use their solar-powered pumps especially during periods of strong sunlight to relieve the hardships of farmers and villagers who are seriously suffering from water shortages,” Sontirat said.

Since last year, the Energy Ministry has approved the spending of its energy conservation and promotion fund for 1,450 solar-powered pumps nationwide and 119 of them have been installed.

The energy minister said the rest will be installed before the end of this year.

The Meteorological Department on July 17 said Thailand is going to experience the worst drought in a decade, as average precipitation across large swaths of the country has fallen far short of the monthly average.

The drought is expected to affect 105 districts across 12 provinces.

  • Eco Friendly Vehicle
29 July 2019

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  • Indonesia

Japan-based Softbank Group has pledged to invest in renewable energy and the electric vehicle ecosystem in Indonesia as well as announcing another round of investment for the Indonesian operation of the Singapore-based ride-hailing company Grab.

Softbank’s founder and CEO Masayoshi Son said on Monday the company was seeking opportunities to commit more investments in Indonesia, particularly in the electric vehicle sector as well as the country’s renewable energy sector.

“We are definitely interested in electric vehicles, the batteries and the charging system. We will invest in the ecosystem,” said Son following a meeting with President Joko “Jokowi” Widodo at Merdeka Palace, Jakarta. “We would like to get the blue sky back to Jakarta.”

Jakarta’s low air quality took center stage recently as the capital’s residents filed a civil lawsuit with the Central Jakarta District Court, demanding that the central and regional governments fight air pollution in the capital city.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said the government would set up a pilot project in the electric vehicle ecosystem in Jakarta and he expected the supporting infrastructure for the pilot project to be completed in the next three years.

Such a move came amid the government’s plan to issue a presidential regulation that will provide fiscal incentives to spur the development of electric vehicles in the country, as it has set a goal of exporting 200,000 electric cars by 2025, or 20 percent of the overall export target.

In addition, Son also announced that Softbank would invest US$2 billion to expand the Indonesian operation of ride-hailing firm Grab, which would include the establishment of Grab’s second headquarters in Jakarta, as well as increased investment in homegrown marketplace Tokopedia.

The latest pledge to invest in Grab was an addition to the $1.5 billion Softbank invested in the ride-hailing company in March.

Son added that Softbank would also seek to add more investments to local start-ups in a bid to create more unicorns – technology start-ups with a valuation of at least US$ 1 billion  – in Indonesia with a particular focus on artificial intelligence.

Such a focus was in line with the recent unveiling of Softbank’s $108 billion Vision Fund 2, launched with the financial backing of technology giants Apple and Microsoft, among other investors, with the aim of investing in technology firms.

In a statement, Grab said the company’s second headquarters in Indonesia would be home to its research and development center as well as its food delivery service GrabFood.

“We will expand our food [delivery] service and we also would like to develop research and development [facilities] as well as artificial intelligence in Indonesia,” said Grab Indonesia president Ridzki Kramadibrata. (hen)

  • Renewables
29 July 2019

 – 

  • Indonesia

Indonesian government plans to offer three areas of preliminary and exploration survey (WPSPE) assignments for geothermal energy in 2019 with a total of 126 MW potential.

The Directorate General of Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources (EDSM) plans to offer three areas of preliminary and exploration survey (WPSPE) assignments for geothermal energy this year with a total of 126 MW.

The three WPSPE that will be offered this year are Pentadio in Gorontalo with resources of around 25 MW, Ria-Ria Sipaholon in North Sumatra 60 MW, and Lokop in Aceh 41 MW.

The ESDM Ministry’s Geothermal Director Ida Nuryatin Finahari said that she had made eight WPSPE offers in 2018 and at the beginning of 2019 as many as three WSPE. The eight WPSPE offered in 2018 have a total development plan of 510 MW and in 2019 have a total of 80 MW.

All of the offered WPSPE are targeted to operate commercially in the period between 2024 and 2028.

“There are three WPSPE left and have not been offered. Usually they will be offered if there are those who are interested,” she told local news last week.

According to her, each company that intends to take up the WPSPE offer has three years to complete the exploration. After exploration, the company must provide a report for WPSPE to become a geothermal working area (WKP) which is ready to be auctioned.

In addition to auctioning WPSPE, this year the ESDM Ministry also plans to auction five WKPs with a total development plan of 175 MW. The five auctions are Lainea WKP in Southeast Sulawesi with 66 MW of resources and a 20 MW development plan, Sembalun WKP in NTB with a development plan of 20 MW of 100 MW resources, Telaga Ranu WKP in North Maluku with 5 MW development plans from 72 resources MW, WKP Gunung Wilis in East Java with a development plan of 20 MW from 50 MW resources, and Mount Galunggung WKP in West Java with a development plan of 110 MW from 289 MW data sources.

Meanwhile, the assignment of the Kotamobagu WKP in North Sulawesi with the planned 80 MW of 185 MW resources has been given to PT Pertamina Geothermal Energy (PGE).

  • Energy-Climate & Environment
28 July 2019

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  • Malaysia

On July 20, Darell, who is also International Trade and Industry Minister, witnessed Penampang District Council join the 10,000-member coalition Global Covenant of Mayors (GcoM) for Climate and Energy at the Kinabalu Hyatt Regency. Also present was Local Government and Housing Minister, Datuk Jaujan Sambakong.

Immediately, this puts Penampang on GCoM’s massive worldwide team who may help make its flood woes look a little less insurmountable.

Everything happened almost like an immediate reward, fast and serious, thanks to Darell who used his clout, especially as a very senior national Minister to make that historic decision, “yes, go ahead”.

But a couple of prime movers behind the scene were individuals like Boyd Joeman, Environment Head of Iskandar Regional Development Authority Johor, and District Council member Freddy Ekol who convinced Darell, through Special Officer, Albert Jaua.

“The moment Datuk Darell agreed on April 30 to officiate, our District Officer (Henry Idol) gave me the greenlight to form our GCoM Committee Penampang to coordinate and chair the organising committee,” Freddy related.

Political leadership critical in climate actions: Secretary General

These sequential events proved beyond doubt that the political leadership  of Darell really counts to make essential actions happen and fast.

The critical importance of political leadership in driving successful climate action was exactly what Dr Bernadia Irawati Tjandradewi singled out for mention at the inaugural GCoM meet in Johor, March 19-21.

Dr Bernadia, a bright and energetic Japan-trained Indonesian atmospheric scientist, is the Secretary General of United Cities and Local Governments Asia Pacific which is a partner of EU-sponsored GCoM in executing climate action initiatives in Southeast Asia.

Historic moment: Penampang, KK City hall, Muar and Melaka join GCoM, witnessed by Darell, Jaujan, Pier, Freddy and others. Mayor Nordin Siman (2nd left) signed for City Hall, DO Henry Idol (3rd left) signed for Penampang.

Her mandate under the Bangkok-based UN Conference Centre gives her the responsibility to ensure successful institutional arrangements and mechanisms in empowering local actions in the region, in this case climate actions.

Darell: I was once a critic of the great floods

IN his speech, Darell confessed he was once a great critic of the Penampang big floods.

One reason is, his own house constantly got flooded.

Now that he is part of the new government, suddenly the duty to solve the problem becomes an imperative with political implications. Expectation hurts, should nothing be done.

There is no question that he needs to take the issue seriously, as does the Penampang District Council.

An effective solution means understanding and tackling one sure major root cause – global warming and how it has magnified normal rainfalls into massive  deluge.

Penampang floods can’t be solved by sleeping on climate change

One thing is certain, the flood issue cannot be solved by people who don’t believe climate change is real because all they do will be little or nothing. Matters will get worse with grave repercussions for leaders.

To those who think the monstrous Penampang flood have nothing to do with climate change, which has actually rapidly degenerated into a climate emergency,  says GCoM lead expert in climate action, Peir Roberto Remitti, consider what the science of rising atmospheric heat does to the famed water cycle that raises the volume of rainfalls.

The great flood of Penampang.

How soaring heat dumps extra volumes of rains worsened by hill cutting

It’s an established law in water cycle processes that an increase in average global temperature by 1 degree Celsius raises evaporation by 7 per cent.

Since the 1880s, surface temperature has risen at an average pace of 0.13 degree F (0.07 degree C) per decade for a net warning of 1.69 degrees F, that is, 0.94 degrees Celsius by 2016.

So what does that extra heat energy or near 1 degree C warming do?

It intensifies upward movement of water or evaporation by some 7 per cent and the increase the volume of rainfall probably by that amount.

Professor Ho, Head of the Low Carbon Centre Asia at Universiti Teknologi Malaysia and an active Malaysian partner of GCoM, thinks that is what has dealt a big blow to Penampang.

Not only the volume of rainfall has increased greatly over the last decade or two, the speed of runoffs into the Moyog river had also increased greatly because of rampant hill-cutting. If these twin problems coincide with the coastal effect of high tide especially a king tide, it just turn Donggongon township and administrate centre into a huge water reservoir.

It’s in the interest of Penampang to act fast and serious

Does this not make it clear that it is in Penampang’s interest to join the war against global warming to bring the excessive volume of rainfalls right down via a low carbon policy?

According to Eu climate action guru Pier, the problem is not carbon dioxide but a runaway surge of carbon dioxide concentration in the atmosphere which was 280 parts per million (ppm) before the First Industrial Revolution which started in the mid 1870s in England and soared to 411ppm just last month in June 2019.

The safe level is 350 ppm, Pier says.

So, this extra 131ppm of C02 pumped into the air is causing the earth to overheat and anybody who owns a car knows how overheating will destroy the engine.

Business as usual may lead to average temperature to rise beyond a catastrophic 4 degrees Celsius. The UN basically gives the world a very short window of 11 years to act on a low carbon goal to cap the rise at 1.5 degrees Celsius by 2030.

So, Pier says it’s either now or never.

Prof Ho: Comprehensive understanding needed before jumping into action

However, Prof Ho cautioned jumping into conclusions on solution with regard to the Penampang flood.

“A comprehensive understanding of the problem must first be established before recommending options and this is where GCoM can come in to help develop a comprehensive action plan.”

But will that take years?

“No, it can be done in one or two years.”

So Penampang’s newfound GCoM  membership with this coalition of 10,000 cities is clearly raising hope there might be a quicker answer to this miserable scourge than previously thought.

For this reason, it pays Penampang folks to do their best to understand that the main devil is global warming and give full  support to GCoM’s chase for a low carbon society.

The two prime movers behind getting GCoM here, Boyd (left) and Freddy.

The mission of Global Covenant of Mayors explained

Asih Butiati, who works for both the International Urban Cooperation Asia and Surabaya-based GCoM Secretariat, explains in her introductory speech at the Hyatt event on July 18.

First and foremost, a budget of 20 million Euros makes it possible for IUC programme to come down to this level to boost international urban co-operation with EU partners in Asia to support the main international climate agendas under Habitat III goals; the Paris Agreement and UN Agenda 2030 Sustainable Development goals.

So what is GCoM?

“It was announced on June 22, 2016 and ‘live’ since January 2017, GCoM became an international coalition of local and regional authorities with a shared long term vision of promoting and supporting voluntary action to combat climate change and move to low carbon society, based on the following core principles : a)  local governments are the key contributors; b) city network is the critical partner; c) a robust solution agenda; d) reduce greenhouse gas emission, foster local climate residence and access to energy; e) standardising measurement approaches and reporting for cities,” she noted.

So, the IUC is an EU-funded programme to support the international implementation of the IUC agendas.

“In this case we support the establishment of GCoM in the region, and here we come, Penampang and Kota Kinabalu City Hall, ” she said.

The biggest coalition of local government will reduce 17 billion tons CO2

“GCoM is currently the biggest coalition of local governments in the world. It is a merger between two big local government networks – the Covenant of Mayors for Climate based in Europe and the Compact of Mayors based in the US.

  • Renewables
28 July 2019

 – 

  • Myanmar

Myanmar’s launch of its first commercial solar plant last month is a step in the right direction for a country that has yet to provide more than half of its citizens with proper access to electricity.

Constructed on over 836 acres of land, an area equivalent to almost 530 football fields, the Minbu Solar Power Plant will be ASEAN’s largest solar power plant according to Thailand’s META Corporation – the project’s contractor and developer.

Although the project has been hailed as ground-breaking, there is still a long way to go before Myanmar achieves its goal of 100 percent electrification by 2030.

Myanmar solar power

Source: Ministry of Electricity and Energy, Myanmar (2017)

Supply and demand

The power plant will have a total capacity of 170 megawatts (MW) and is capable of producing 350 million kilowatt hours (kWh) annually, electrifying about 210,000 households. Constructed in four stages, the completion of the plant’s first stage now allows it to produce up to 40 MW of electricity.

The next two stages will add 40 MW each while the fourth and final stage will add 50 MW.

With Myanmar media reporting that the country produces between 2.9 gigawatts (GW) and 3.1 GW of electricity – which is just enough for 44 percent of the country’s population of 55 million people – the 170 MW that the Minbu Solar Power Plant will be capable of generating can only contribute to less than 0.5 percent of the nation’s current power demand.

According to recent estimates by the World Bank, energy consumption will grow at an average annual rate of 11 percent until 2030. In a report published last month titled ‘Myanmar Economic Monitor: Building Reform Momentum’, the World Bank predicted that peak demand is expected to reach 8.6 GW by 2025 and 12.6 GW by 2030, which is a significant increase from current levels.

Tellingly, the World Bank notes that Myanmar needs to invest twice as much – up to US$2 billion annually – and implement projects three times faster if it is to address its rapidly growing electricity demand.

Myanmar’s economic growth is expected to rise to 6.5 percent in the 2018-19 fiscal year due to strong performance in its industrial and services sectors – and the lack of electricity is a huge turn-off for any investor.

“Only when the government can fulfil the electricity requirements can it practically invite foreign investors,” said Gevorg Sargsyan, the head of the World Bank’s Myanmar Office.

As it is, Yangon – the largest city and former capital – consumes half of the nation’s power supply, with the rolling blackouts throughout the country painting a bleak picture of the immense challenges facing Myanmar’s power sector

Why solar?

While the government has plans to use liquefied natural gas (LNG) to increase its electricity generation to 6 GW, nearly double the current supply, LNG is an expensive investment and one that takes much longer than solar to get off the ground.

The country’s energy needs are largely met through hydropower, but its environmental, geopolitical and social costs are now growing concerns for the average Myanmar citizen.

Dams also take longer to construct than LNG plants, and the fact that water levels in the Mekong River are at its lowest in a century – partly due to climate change and regulated flow at upstream dams – also point towards solar as being the most cost-effective and reliable source of power for Myanmar.

Myanmar State Counsellor Aung San Suu Kyi praised solar power for its low maintenance costs, reduced emission levels and contribution to the nation’s technological development during the Minbu Solar Power Plant’s opening ceremony. While solar energy has its disadvantages – its dependence on sufficient irradiance, large land areas and expensive batteries – it seems like the most promising option for Myanmar.

A lot of research has been done on the country’s potential to generate power through solar, with the International Growth Centre (IGC) – an economic research centre based at the London School of Economics – estimating in 2016 that Myanmar’s solar potential could be 51.9 terawatts (TW) per year. 1 TW is equivalent to 1,000 GW.

“Myanmar has an incredible potential for solar energy, but the government still has a lot of work to do to unleash the potential and to attract foreign direct investments into Myanmar´s solar industry,” noted Stefano Mantellassi, Chair of the SolarPower Europe Emerging Markets Taskforce.

“Rising electricity demand, rapid demographic growth and strong neighbour solar countries like China, India, and Thailand give Myanmar great opportunities to increase the installed solar capacity.”

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