Policy Analysis on the Electricity Sector of the ASEAN Countries: Forecasting the Improvement of the Electrification Rate in Myanmar

Abstract

Myanmar is a developing country in Southeast Asia. It has plenty of natural resources for generating electricity, such as natural gas, some crude oil, and sources of renewable energy such as hydropower, solar, wind, geothermal, and biomass energy. Despite its rich natural resources, Myanmar has a very low electrification rate of only 30%, the lowest among the ASEAN member-countries. This very low electrification rate and insufficient power supply are curbing the development of the country, not only economically but also socially and in other aspects. For the development of Myanmar, increasing its electrification rate and supplying sufficient power to its people are its big challenges. For these reasons, this thesis finds out how to improve the electrification rate of Myanmar as soon as possible. First, the 3As (Accessibility, Availability, and Acceptability) model was used to compare the electricity industries of the ASEAN member-countries. Second, based on the 3As model results, a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Myanmars electricity industry was performed. The results of the comparison of the countries 3As and the SWOT analysis showed that Myanmars electricity industry has few strengths and many weaknesses. Some policy implications and measures for the improvement of Myanmars electrification rate were suggested, such as to increase natural-gas-based power generation

to secure sufficient natural gas supply for power generation to formulate a National Electricity Development Plan, a Rural Electrification Plan, a Generation Mix Plan, and a Hydropower Development Plan

to reduce the transmission and distribution losses

to seek financing from international financial institutions

to create a good investment climate for investors in the electricity generation sector

to promote off-grid electrification through renewable energy technologies for rural electrification

and to import electricity from neighboring countries. It is strongly believed that based on the discussions, policy implications, and recommendations from this study, Myanmars electricity industry and electrification rate will soon improve after the country upgrades its electricity industry. This is because these results were based on the comparison of Myanmars electricity industry experience with the high-value experiences of other ASEAN member-countries.