Plans are underway for an independent power producer to provide electricity to 52 villages in Ayeyarwaddy Region, which is not connected to the national grid, said regional Electricity, Industry and Transportation Minister U Win Htay.
Pathein, the state capital of Ayeyarwaddy
Currently, the present capacity of power in the Ayeyarwaddy Region could only serve 17 per cent of the requirements of household and industry. There are also villages that are not connected to the national grid system.
The regional government will choose 26 townships, which an independent power producer can serve, he told the audience during a meeting which focused on increasing investments to develop the electricity sector in Ayeyarwaddy Region on July 3. The meeting was held by the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI).
“The regional government has chosen 52 villages from three village tracts in 26 townships in the Ayeyarwaddy Region.
“If electricity can be generated through the IPP system in two, five or 10 years, not only will the 52 villages have access to power supply, but also the small and medium enterprises [SMEs] and businesses in those areas,” said U Win Htay.
In the Ayeyarwaddy Region, there are various kinds of methods to generate power, such as bio gas, rice husk, solar, wind and the hydro energy, but the regional government has conducted a study because the places where electricity production can be done in the region may be different.
U Win Htay said that while there is still a need to conduct various studies on the commercial feasibility of renewable energy resources in the region, what can be done in the short period of time to generate power is through the use of Liquefied natural gas (LNG) or natural gas.
“If it must be done in a short period of time, then by using LNG or natural gas, we can generate electricity in a few years time,” he said.
U Win Kyine, an electrical engineer, said the Ayeyarwaddy Region is one of the places that can utilise renewable energy in the long-term.
He said that 25 percent of energy in the region should be sourced from renewable sources.
Currently, the government has yet to sign a contract with power companies in the energy sector in the region. However, there are three firms which are conducting studies on power generation.
During the current government’s term, there have been many domestic and foreign companies approaching the government concerning the various options for power generation, but the government has not yet approved any of the projects.
There are some proposed long-term projects which will take a while to fulfil the current energy demand. Thus, in order to get power quickly, small scale projects will be carried out, the regional government minister added.
“If it’s not connected to the national grid then we can work it out freely, I’m going to have to plan out the small details,” he said.
Under the previous administration, there were plans to start a coal project in the Ayeyarwaddy Region, but it was halted due to objections from the local residents.
There have not been any talks from the NLD-led government to operate the coal project but there are studies and surveys being carried out, the minister went on.
Companies will have to clearly explain the benefits, consequences and detriments of the coal project to the public and the government will be transparent, he continued.
As of now, distribution lines are being set up in the Ayeyarwaddy Region and plans have been drawn up to accommodate the rising energy demand.
Calculations will be done by taking into account the development and expansion of the industrial zones in the Ayeyarwaddy Region.