This document analyzes the challenges and best practices for designing energy efficiency policies in Myanmar. It discusses key challenges such as low and subsidized electricity prices, unreliable power quality, and different payment methods. It also examines challenges like the lack of mandatory energy efficiency standards and regulations. The document recommends establishing minimum energy performance standards, providing economic incentives for efficient appliances, and improving public awareness through information campaigns. The overall goal is to improve energy efficiency in Myanmar, especially among new middle-income consumers, in order to reduce energy expenditures and consumption.

1. Analysis of the Challenges and the Best
Practices for the better Design of EE policies
in Myanmar
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Aung Thet Paing
17 September 2015, Bangkok
Funded by UK Research Councils’ Energy Program, the department for International
Development (DFID) and the Department for Energy and Climate Change (DECC), and
managed by the Engineering and Physical Sciences Research Council (EPSRC)

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Contents
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Introduction of Energy situation
 Challenges concerning with Electricity supply
 Electricity tariff
 Quality of Electricity
 Different Payment Methods
 Cost-benefit analysis
 Challenges concerning with Standards and Regulations
 Mandatory MEPS
 Tax exemptions
 Energy Labels & Public awareness
 Conclusion

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Population, GDP & Energy
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Million Population
Billion USD (PPP2005)
Total Energy Consumption
Myanmar Population & GDP
Source: Myanmar Energy Outlook
MECON- expected 24%

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Transition in Electricity Consumption
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
3267.94
8253.87
-
2,000
4,000
6,000
8,000
10,000
12,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ElectricityConsumption(GWh)
Domestic / Households Industrial Bulk + Services+Commercial Others
28%
18%
39%
15%
Coverage ratio of electrification = 30%

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Challenges concerning with
Electricity Supply
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Electricity tariff is too low
 Government subsidize on electricity generation
 Quality of electricity is less reliable
 Damages on electric household appliances because of
Voltage fluctuations
 Different payment methods in some rural areas

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Electricity Tariff for Residential
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Electricity Consumption
Price per unit
(kyat/kWh)
Price per unit
(USD/kWh)
The first 100 kWh (1-100 kWh) 35 0.035 (3.5 Cent)
The next 100 kWh (101-200 kWh) 40 0.04 (4 Cent)
Above 200 kWh 50 0.05 (5 Cent)
Maintenance fee
500 kyat
per month
0.5 (50 Cent)
Electricity tariff is very low in the region

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Range of electricity consumption and
cost
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Electricity consumption
Electricity cost
(kyat)
Electricity cost
(USD)
The first 100 kWh (1-100 kWh/month) 535-4000 0.5 - 4
The next 100 kWh (101-200
kWh/month)
4040-8000 4 - 8
Units above 200 kWh/month >8000 > 8
Avg. Electricity Charges is about 3.5% of HH income

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Power Transmission Lines
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Fixed payment on each electrical
appliance
 Prevent interest on Energy Efficiency
Different Payment Methods
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Shan State

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Cost – Benefit Analysis
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Upfront cost of EE appliances are 2 to 5 time more than the
conventional types
 After using several years, total cost (initial cost + operational
cost) of the conventional type appliances are still cheaper
than the EE appliances
 Replacement for damage due to unstable electricity also
affects the cost of using EE appliances
 Fixed cost for each products make choosing the low initial
cost products (or) choosing bigger is better idea

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Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Challenges concerning with
Standards & Regulations
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Lack of mandatory MEPS (Minimum Energy Performance
Standards)
 Low quality low price products can enter into the market
 Lack of economical incentives for EE appliances, e.g. tax
exemptions etc. on EE appliances
 Retailers have not much interest on the EE appliances
 End-users only interest on upfront cost
 Lack of regulations for EE appliances market
 No restriction on the product quality

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Awareness & Energy Labeling
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Awareness
 Lack of public awareness on Energy efficiency that can
save household expenditures
 Energy Labels
 Myanmar do not have own energy labels
 Products with energy labels are available in the market
 Lack of awareness on energy labels

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
 Primary student knows Thailand
Energy label 5 via Thai TV ad
 Graduate, Electrical appliance
retailer do not know EE labels
Awareness case
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Mon &
Kayin State

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Policy considerations on Residential
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Challenges Policy considerations
Electricity Supply  Stable electricity supply should be provided
 Electricity price should not be subsidized
 Payment methods should be gradually changed to become uniform
 Have to consider alternative short term programs for lighting and
cooking in rural areas (off-grid areas)
Standards and
Regulations
 Minimum Energy Performance Standards (MEPS) for appliances should
be introduced
 Regulations are issued according to the MEPS to control the quality of
the products
 Trade incentives on EE products should be made, E.g. tax exemptions
 Improvement is needed in financial mechanism & schemes
Awareness  Awareness programs are promoted through public media such as
newspapers, TV, radios etc.
 Trainings, workshops, EE exhibitions should be done regularly
 Create Energy awards

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Energy saving potentials and targets
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
Sector 2020 2030
Residential 5% 8%EE policy Targets
Source: Ministry of Industry

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“New Modern Energy CONsumers” in the Greater Mekong Subregion
Conclusion
Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
 A new middle class population living above the poverty line is
emerging, mostly in Asia
 Responsible for large share of increase energy demand
 Energy expenditures is an important for household budget
 Still having barriers to improve EE in low-income households
 Government policies and cooperation between public and
private sector are definitely need to overcome the barriers

17. Effective energy efficiency policy implementation targeting
“New Modern Energy CONsumers” in the Greater Mekong Subregion
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