Last updated Jul. 26, 2024.
I. Introduction
In 2022, Myanmar generated roughly half of its electricity from hydropower and the other half from fossil fuels. While electricity generation from large hydro and coal will see a decrease by 2030, on the other hand, gas will see an increase.
By 2030, Myanmar plans to increase its share of renewable energy to 11% by 2030. This RE target equates to 2 GW of new renewable energy. The country is very vocal in embracing support for research and development in renewable energy, particularly solar and wind, without casting out possibility for exploring other technologies such as hydro and bio.1ECD.
A large part of Myanmar has to be electrified as its demand constantly increase. Exploring electrification through clean and affordable renewable energy technologies must be prioritized to ensure cheap, abundant, and safe sources of electricity.
II. Current Status of Renewable Energy
Installed capacity of major renewable sources (2022):
- Hydropower – 3.27 GW
- Solar – .18 GW
Electricity generation of major renewable sources (2022):
- Hydropower – 9.70 TWh
- Solar – .10 TWh
In 2022, major renewable energy sources generated a total of 9.80 TWh of electricity. This represents nearly half (48.06%) of the country’s total demand of 19.07 TWh. To fully detach itself from fossil fuels in its power generation mix, Vietnam needs to further accelerate the development of renewable energy sources (RES).
As 44% of Myanmar experience lack of electricity access,2Recourse. it is crucial for renewable energy sources to be rapidly deployed and proliferated. Diversifying the current electricity sources and at the same time creating infrastructure to support the distribution of electricity to electricity deprived areas are important steps to take in addressing energy poverty.
Myanmar will continue to prioritize hydropower as its main source of renewable energy. The country plans on increasing its installed capacity to its 2022 capacity of 3.27 GW to 18 GW. Conversely, solar will only increase to 1.3 GW.
III. Renewable Energy Potential
Hydropower currently dominates Myanmar’s electricity mix, contributing 51%. However, despite this reliance on renewable hydropower, the country still heavily depends on imported LNG for another 32% of its electricity generation.
To reduce this dependence on imported gas, Myanmar needs to diversify its renewable energy sources within the electricity mix. The good news is that Myanmar possesses immense potential for renewable energy. Estimates suggest a staggering 51.9 TW3AEDS. of potential electricity generation from solar power alone. This amount could have easily met the country’s entire electricity demand in 2023.
By developing a diversified and decentralized electricity system that leverages its abundant solar potential, Myanmar could address its energy security concerns while also benefiting from affordable and clean electricity generated from renewable sources.
IV. Summary of Renewables Policies and Incentives
| TYPE OF POLICY | MYANMAR | |
| REGULATORY POLICIES | Renewable energy in INDC or NDC | ✔ |
| Renewable energy targets | ✔ | |
| Feed-in tariff/auctions/premium payment | ||
| Net-metering/billing/direct consumption-supply | ||
| Biofuel blend obligation/mandate/target | ||
| Electric utility quota obligation/RPS | ||
| Tradable REC | ||
| Renewable heat obligation/mandate | ||
| FISCAL INCENTIVES AND PUBLIC FINANCING | Tax incentives | ✔ |
| Public investment/loans/grants/subsidies/rebates | ||
| Reductions in sales, CO2, VAT or taxes | ✔ | |
| Tendering | ||
| Investment or production tax credits | ||
| Energy production payment | ||
View comprehensive list of Renewables Policies here.
A comprehensive policy framework is essential for effectively implementing renewable energy programs and projects. To maximize the potential of these initiatives, it is crucial to collaborate with external partners who can offer experience on investment and markets, and also in technology.4ECD.
V. Summary of Identified Challenges
- Main renewable electricity source is vulnerable to weather conditions.
- Despite immense potential for non-hydropower renewable energy sources, the country cannot harness the electricity immediately as technical, financial,and institutional infrastructure for scaling up RE are not fully developed.
VI. Future Outlook
- There will be no expansion of coal projects beyond 2030. The government plans on phasing out coal by 2050.
- LNG will serve as transition fuel to provide for energy needs until the country develops its technical, financial, and institutional infrastructure for scaling up RE.
VIII. Conclusion
- Myanmar heavily relies on hydropower (51%) and imported LNG (32%) for electricity generation.
- The country aims to increase renewable energy share to 11% by 2030, equating to 2 GW of new renewable energy.
- The country faces challenges in harnessing its renewable energy potential due to underdeveloped technical, financial, and institutional infrastructure.
- A comprehensive policy framework is needed to support renewable energy development.
- Collaboration with external stakeholders is crucial for accessing expertise, investment, and technology.
- Myanmar plans to phase out coal by 2050 and use LNG as a transition fuel until renewable infrastructure is developed.
- Diversifying electricity sources and developing distribution infrastructure are essential for addressing energy poverty.