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WEBINAR | SEP 2017 | ENERGY DEMOCRACY IN MYANMAR: SCALING UP RENEWABLE ENERGY SOCIAL ENTREPRENEURS
- Myanmar has over 6,000 renewable energy mini-grids powered by biomass gasifiers and micro/mini hydropower that were developed without international funding or government programs. - These mini-grids were established by local social entrepreneurs over 30 years and power villages productively. - The National Electrification Plan aims to expand electricity access but has overlooked these grassroots mini-grids. International partners can learn from how Myanmar's local entrepreneurs have scaled renewable energy decentralized solutions. - Case studies show how specific mini-hydro projects were developed and financed through community contributions and ownership models to provide reliable, low-cost power to rural communities.
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WEBINAR | SEP 2017 | ENERGY DEMOCRACY IN MYANMAR: SCALING UP RENEWABLE ENERGY SOCIAL ENTREPRENEURS
- 1. ENERGY DEMOCRACY IN MYANMAR: SCALINGUP RENEWABLE ENERGY SOCIAL ENTREPRENEURS Dipti Vaghela Fulbright Public Policy Fellow Renewable Energy Association of Myanmar (REAM) "Perspectives on Energy Justice: Views from the UK, India, and Myanmar" Smart Villages Webinar September 29, 2017
- 2. National ElectrificationPlan (NEP) 30% to 100% by 2030 $400M World Bank IDA loan Gap to address: Mini-Grid Integration “Least Cost” analysis overlooked RE mini-grids, yet 6000+ RE mini-grids exist. Rural electrification policy development Top-down ‘Business as Usual’ Subsidized solar home lighting systems Clean coal and massive large hydropower Universal Electrification Target Policy Situation Overview
- 3. Source: Department ofRural Development 2015; World Bank NEP PAD 2015; Consultant Analysis Source: State-wise Statistical Data Collection, Pyi Pyi Thant, Mekong Ecology and Energy Net (MEE Net), July 2017. Source: Interview, Soe Tint Aung, Royal Htoo Linn Manufacturing, Co, Ltd. August 2017. Source: Feasbility Study on Rice Husk Power Generation, Mitsubishi Research Institute, 2014. RE Mini-Grids in Myanmar ~30-years of Experience Micro/Mini Hydropower 6000+ units below 1MW for village electrification Biomass Gasifiers 10,000+ units powering small-scale rice mills 500+ units for village electrification
- 4. Myanmar’s Unique Progress Lessonsfor Int’l Development Practitioners International development programs aim to design programs that can scale, self-replicate, and sustain. How did Myanmar’s 6000+ mini-grids (biomass gassifiers and micro/mini hydro) happen? No technology training No international funding No scaled government program or policy Yet, more mini-grids than any funded program! Opportunity for development partners to learn from Myanmar how locally-driven RE mini-grids can
- 5. Source of Myanmar’sMini-Grid Success Mini-Grid Social Entrepreneurs 20 – 30 years experience 6000+ mini-grids Self-Financed, Community- Owned Self-Engineered Technology Productive End Use built-in
- 6. A Closer Lookat Existing Mini-Grids PV, Biomass Gasifiers, Micro/Mini Hydro
- 7. Solar for Agriculturein Dry Zone Solar PV Drip Irrigation REAM Developer, U Than Htay 1kW per unit, with drip irrigation, no batteries Inclusive Approach Developer provides 5-year financing to the VEC If 5-years not enough, financing provided to land owner, under terms that benefit all households of the village. Developer’s Vision and Need All villages of the Dry Zone
- 8. Elephant in theRoom Biomass Gassifiers 4 designs by Royal Htoo Linn Manufacturing Co., Ltd. Up to 2MW in series of units Productive End Use installed Village electrification, 145 units Rice Mill, 358 units Irrigation Pumping, 45 units Ice Mills, 69 units Oil and Saw Mills, 116 units 1350kW, Biomass-Diesel Hybrid 24-hours electricity for entire state capital Distributions lines leased from MoEP Ran 2010-2015, until national grid arrived Other projects, 500kW – 1150kW each Vision Upgrade 10,000+ gasifiers sustain rice small-scale rice farmers No pollution design in final round of testing at DRI, MoEducation
- 9. Powering Communities andSmall Industry Micro and Mini Hydropower (<1MW) 5000+ projects, mostly Shan State Many yet to be identified Quality Local Fabrication Francis, Pelton, Turgo turbines Penstock and Transformers Ownership Models Based on community’s strengths Community, Cooperative, or Developer owned projects Cooperative of Local Industry Vision Provide low-cost, reliable electricity Tap all micro/mini hydro potential
- 10. Projects Naung Pein Project,Northern Shan State Developer: Sai Htun Hla & Brothers Hydropower Company Output capacity: 200kW Construction: 2009 – 2012 Done in phases – electricity supplied since 2010 Head and Design Flow: 274m and 142 lps Turbine: Pelton; Generator: 300kW Consumers: 550 in 14-villages (out of 2000 households) Transmission and Distribution 45km total of 11kV, 230V, and 400V 15 transformers
- 11. Projects Naung Pein Project,Northern Shan State
- 12. Ownership and Financing Hybrid:Developer + Cooperative Total Cost: $430,000 (as in 2009) or $2150/kW Financing 29% Equity (24 village-based shareholders, plus developer) 52% Community contribution through connection charge 19% Short-term debt, repaid in 10-months Ownership: 25 shareholders organized as a cooperative, as per 1992 revision of Cooperatives Law. Monthly income Before grid arrival: $5500 - $7500 After grid arrival: $1,100 (as in 2017) REAM and Hydro Empowerment Network friends
- 13. Connection Fees andTariff Customized to Community’s Strengths Connection Fees: $230 - $385 (as in 2017) Mini Hydro Tariff: $0.15 - $0.31 per kWh (as in 2017) No. of Villages Single-Phase Additional 3-Phase Lowest Demand 7 230 USD No connection charge Medium Demand 4 307 USD No connection charge Highest Demand (near to highway) 3 385 USD No connection charge Single-Phase Additional 3-phase Types of Consumers < 30 units > 30 units Regardless of consumption Residential 0.23 USD/unit 0.15 USD/unit 0.31 USD/unit Commercial Use 0.23 USD/unit 0.15 USD/unit 0.31 USD/unit Temporary 0.62 USD/unit, plus 77 USD advance Main Grid Tariff: $0.06 <200 kWh; $0.08 >200 kWh, plus connection fee (as in 2017); Main grid has poor voltage.
- 14. Management Body (samestaff for 7- yrs) Naung Pein Mini Hydropower Utility Staff Salaries: Total $825/month (as in 2017) Manager Cashier Powerhouse Operators Intake Operator Linesmen Management Issues Minimal, e.g. late payments Peak Load – no issues Social awareness Volt meters in enterprises
- 15. Cornerstone of FinancialViability Productive End Use Changed from Diesel Powered After Arrival of Mini Hydro Project Corn milling 4 units Air compressors for micro water utilities 12 units, 1.5kW each Corn drying 1 unit, 10- hp Cement Brick Making (mixer and molder) 3-units Telecom Station 1 unit, 2kW Patrol Pump Stations 2 units, 3hp each With exception of a few shops, all use Mini-Hydro instead of Main Grid, due to voltage issues.
- 16. Cornerstone of FinancialViability Productive End Use
- 17. Policy Recommendations Role ofLocal Social Entrepreneurs Why the NEP would benefit from scaling RE mini- grids? Common Sense Faster to expand existing sector than build new China, Germany Biomass gasifiers and micro/mini hydro supply lowest cost electricity Invaluable: Myanmar’s Local Social Entrepreneurs Local engineering/manufacturing Cost-effective and reliable Entrepreneurial skills to identify productive end use Sustainablity Not-for-profit Motivation Local communities with long-lived projects Decades of trust and networks built in remote areas Scalability How to support Local Social Entrepreneurs of
- 18. Patronized Policyand Program Development Can local and external actors be equal knowledge partners? Thinking Beyond Solar PV Can donors take effort to understand all technologies? Inclusion of Local Social Entrepreneurs Can we overcome language, culture, institutional barriers? Can local and non-local private sectors cooperate to prioritize Myanmar over profit margins? Grants (Capital Subsidies) vs Financing (Interest Subsidies) Can we see that ‘free money’ is short-lived; creates Challenges Can we overcome? Yes, in Myanmar!
- 19. Acknowledgements This presentation includesdata, photos, and/or inspiration from: U Aung Myint, General Secretary, Renewable Energy Association of Myanmar Bikash Pandey, Innovations Lead, Winrock International Kapila Subasinghe, DFCC Bank, Sri Lanka Pyi Pyi Thant, Mekong Energy and Ecology Network U Sai Htun Hla, Sai Htun Hla and Brothers Mini Hydropower Company U Soe Tint Aung, Founder and Director, Royal Htoo Linn Manufacturing Co. U Than Htay, Renewable Energy Association of Myanmar Walt Ratterman, late founder, Sun Energy Power International Witoon Permpongsacharoen, Mekong Energy and Ecology Network
- 20. Thank you Dipti Vaghela Fulbright-ClintonPublic Policy Fellow 2016-2017 Burma (Myanmar) Coordinator Hydropower Empowerment Network diptimv@gmail.com
Editor's Notes
- #4 Note on “solar”: includes both solar household systems and solar mini-grids.
- #5 As important as the numbers is the approach, Yes, Myanmar’s mini-grids technology needs upgrading. The local developers have been the first to ask for this. But the fact that thousands of projects have been -- using local technology and self-financing -- deserves to be called a SUCCESS and case to LEARN FROM, rather only than a case to ‘rescue’ of ‘fix’.
- #7 Let’s a take closer look at the 3 prominent mini-grid sectors in Myanmar.
- #8 There are several new solar mini-grid developers which REAM would like to connect with. This is a snapshot of U Than Htay’s work, in which PV is packaged with drip irrigation.
- #9 Here I share about the work of the leading biomass gassifier developer, U Soe Tint Aung. The development community hasn’t yet warmed up to biomass gassifiers. But we hope this changes. Thousands of biomass gassifiers are running in Myanmar, particularly at rice mills. Because these units need upgraded technology, they continue to pollute natural water sources. It is likely that they will not be abandoned even after the grid arrives. And here is where the ‘elephant in the room’ provides an opportunity.
- #10 70% of community-owned projects function, and 100% of cooperative-owned or developer-owned projects function.
- #14 Having worked on the ground, designing micro hydro with community’s, I know firsthand that creating AND implementing this type of a nuanced consumer cost structure requires much process and trust between all local stakeholders.
- #18 It is better strategize to expand mini-grid electrification in Myanmar by organically building on the capabilities of existing developers while gradually allowing new entrants. Existing micro-hydro and biomass gasification mini-grids currently supply the lowest cost electricity to off-grid populations. Existing developers have developed trust with their customers and models that have productive end use as a cornerstone to financial viability. These models need to be built upon rather than discarded in favor of new technologies and new developers who will need time to establish that trust, particularly at a time when the grid is also expected to expand rapidly. Needed technology improvements can be achieved by providing incentives to developers as they construct new systems or expand and upgrade existing ones.