Dec 19, 2013

Govt. invites private sector to generate electricity

The Ministry of Electric Power has invited private firms to produce electricity in any part of the country, according to an official release on December 17.

Currently, 23 companies have been granted permission to generate electricity in 84 townships. Any private firms which want to build gas-fired power plants, hydropower plants and coal-fired power plants are invited to submit applications to the Ministry of Electric Power, said the release.

Interested investors have to mention the details of the proposed project including the type of the power plant and the exact location where it will be set up. Projects that meet the required standards of environmental and social assessments will be allowed, according to the ministry.

This is the third time the Ministry of Electric Power has invited private sector for electricity generation. The first and second times took place on June 1, 2012 and September 21, 2012 respectively.

Myanmar currently produces 3,300 mega watts in total. The production capacity falls nearly half in summer, so the country is always in deficit of over 300 MW every year, according to Yangon City Electricity Supply Board.

One of the reasons for electricity shortage in summer is that most of electricity production facilities in Myanmar are hydropower plants. They operate fine in the rainy seasons between June and October but their production falls in summer between February and May, according to Aung Khine, chairperson of Yangon City Electricity Supply Board.

South Korea-based Korea Western Power Company is planning to invest between US$ 500 million and US$ 700 million to set up a 500 MW gas-fired power plant and a trash-fired power plant in Myanmar.

Source: Eleven Weekly Media