Sembcorp Industries’ US$300 million gas-fired power plant in Myingyan, Mandalay commenced full commercial operations on Wednesday following its first phase of operations in May.
The 225-megawatt Sembcorp Myingyan Independent Power Plant (IPP) is one of the largest power plants of its kind in the country and also among the most efficient, Dennis Foo, managing director of Sembcorp Myingyan Power Co, told The Myanmar Times.
The facility utilises advanced combined-cycle gas turbine technology that maximises power output while minimising emissions. The company said in a statement that this is “in line with our sustainability commitment to reduce carbon emission intensity by close to 25pc by 2022.”
The plant is expected to generate around 1,500 gigawatt hours of power which will be supplied to state-owned Electric Power Generation Enterprise (EPGE).
Neil McGregor, Sembcorp’s head, said, Sembcorp Myingyan IPP will serve Myanmar for decades to come, “providing power to support the country’s continued development, and thereby enhancing living standards there.”
Mr Foo added that the IPP was completed with “an uncompromising focus on health, safety, security and the environment.”
The project’s completion follows the signing of a long-term power purchase agreement as well as a build-operate-transfer agreement with the Ministry of Electricity and Energy. Sembcorp will operate the plant for 22 years, after which the facility will be transferred to the government.
The project is expected to benefit 5 million residential customers with improved access to electricity, according to the International Finance Corporation, which served as the lead transaction adviser for the project tender.
Myanmar has one of the lowest electrification rates in the world, with less than 30pc of the population having access to electricity and annual per capita electricity consumption at less than 100 kWh. In particular, many rural areas have almost no electricity at all. With regular blackouts and electricity shortages, Nay Pyi Taw hopes that the privately financed IPP can augment power supply and alleviate short- and medium-term power needs.