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 Energy Efficiency, Conservation & Sustainability
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1. Introduction

Energy utilization in Myanmar mainly depends upon traditional energy such as Fuelwood, Charcoal and Biomass. During 2009-2010, 28 percent of the total energy consumption is contributed by commercial energy such as oil, natural gas, coal and hydropower. The balance utilization of different energy types have all along been emphasized and increased production of commercial energy has been prioritized in order to replace traditional energy types and at the same time to meet the requirement of industrial development programme.

Myanmar has abundant renewable energy sources such as Hydropower, Wind, Solar, Geothermal, Biomass and other types of renewable energy sources. Renewable Energy , i.e., Hydroelectricity and Biomass contributed 82 percent of total energy consumption. Biomass in the form of Fuelwood, Charcoal, Agriculture waste and animal dung are predominantly used.

To liberalize the trade and to open up private sector investment opportunities, Myanmar has established a new economic system based on market oriented economy. Thus, the Government promulgated Union of Myanmar Foreign Investment Law and its related procedure in 1988.

As the outcome of the new economic policy, new investments in all sectors of economy and also construction and infrastructure developments are growing at a faster pace, and the energy demand growth has been increasing to fill the gap that occurred due to change from supply oriented to demand oriented.

The total energy consumption during 2000-2001 was 21916 (KTOE) and increased to 26882 (KTOE) during 2009-2010. The average growth rate of total energy consumption is in the order of 2.64 percent. For petroleum product, the consumption compared from 1648.4 KTOE in 2000-2001 to 1245.26 KBOE in 2009-2010. Natural Gas consumption increased from 381.33 KTOE in 2000-2001 to 641.68 KTOE in 2009-2010 with an average growth rate of 4 percent. Hydroelectricity increased from 254.62 KTOE in 2000-2001 to 389.52 KTOE in 2009-2010 with an average growth rate of 35%. Coal consumption increased from 84.67 KTOE in 2000-2001 to 246.74 KTOE in 2009-2010. Biomass increased from 723.45 in 2000-2001 to 9665.1 in 2009-2010.

In order to meet the challenges of the energy demand growth in the 21st Century, energy policy guidelines had been laid and pursued. The policy guidelines for energy sector are :-

To maintain the the status of energy independence.
To promote wider use of New and Renewable Sources of Energy.
To promote Energy Efficiency and Conservation.
To promote use of Alternative Fuels in household.

2. Energy Efficiency and Conservation

In accordance with the guidance of the Government, Ministry of Energy has laid down Energy Policy and Strategy. The main objective of the Policy is to utilize optimum amount of energy efficiently and to save non renewable energy sources. The Energy Strategy emphasized on the development of all available energy resources of the country and to increase the production level of existing energy sources and at the same time to update the unsuppressed energy demand.

Due to population growth and change in the economic system, the demand for energy has increased. Thus energy conservation measures and improvement of efficiency of equipment are becoming essential.

Ministry of Energy in cooperation with New Energy and Industrial Technology Development Organization ("NEDO") of Japan is planning to hold Energy Conservation Seminar to a wide range of people related in energy conservation, policy making and promotion. It aims to provide practical training in the use of NEDO-DB.

Energy Planning Department ("EPD") of the Ministry of Energy is forecasting energy demands by computer energy modeling. In the database management of energy demand and in the sectoral energy demand studies, Database Administration Variable Output Input Data ("DBAVOID") computer software was used. For long term final energy demand simulation system, Energy Demand Evaluation Model ("MEDEE-S") was used.

Also, under the cooperation program between NEDO and Foreign Economic Relation Department ("FERD") of the Ministry of National Planning, Feasibilty Study for Energy Conservation Model Project ("ECMP") was launched. After completion of Feasibility Study, energy conservation measures will be implemented to selected plants and factories.

A continuous energy efficiency programme is being implemented including DSM strategies involving energy related groups, financial sector and institutes of higher learning.


3. Future Programme

In order to implement future plan for energy efficiency, conservation and sustainability, the following keys issues are addressed and are taken into account in drawing up a comprehensive energy development programme:-

Integrated Energy Planning and Policy
Energy Development Options
Energy System Diversification
Energy Interconnection (Electricity, Natural Gas, Petroleum Products)
Renewable Energy Development Technologies
Rural Energy Supply

Energy Pricing System

Private sector participation in Energy Development Programme.


Each sector of energy has its own key issues which are to be taken into account for implementation of future development programme.

In the Petroleum sector, in order to meet the increasing demand growth, the Government has relaxed the policy on import of crude oil and petroleum products. Also, joint venture operation with foreign oil companies has realized improvement in the production of petroleum, both in terms of crude oil and natural gas, with major discoveries of natural gas reserves in offshore area. Key issues in the petroleum sector are as follows:-

To reduce the gap between demand and supply
To have more input in terms of financial resources, equipment, machineries and facilities
To improve technology and management systems
To promote private participation
To have more conducive terms and conditions to attract more foreign direct investment
To formulate appropriate pricing mechanism

In the Hydroelectricity sector, it is estimated that the present hydropower installed capacity of 1171.8 MW will increased to 2672.5 MW in Year 2005 - 2006. In order to meet increasing demand in electricity consumption, mini and medium scale hydropower projects are to be implemented in addition to major hydropower projects for domestic supply that are currently under construction. Also, some hydropower projects are earmarked and planned to be constructed for export to neighboring countries, such as Thailand and India. Key issues in the hydropower sector are as follows:-

To reduce the gap between demand and supply
To have more input in terms of financial resources, equipment, machineries and facilities
To improve technology and management systems
To promote private participation
To have more conducive terms and conditions to attract more foreign direct investment
To formulate appropriate pricing mechanism

In the Coal sector, consumption of coal has also increased and it is expected to increase from 106,423 ton during the year 1999 - 2000 to 150,000 ton in the year 2000 - 2001 and will eventually jump to nearly 400,000 ton per year after the Development of Kalewa Coal Mine Development Project. As Myanmar recently became a member of ASEAN Forum on Coal, it has opened up opportunity for investment in the coal sector. It has also opened means to promote rural electrification by application of Coal Technology and to implement power generation in locations wherever feasible. Key issues in coal sector are as follows:-

To carry out extensive exploration works to identify more proven coal reserves
To invite foreign direct investment and technologies to utilize coal in power generation as well as in industries
To promote private participation to utilize coal in both power as well as non-power generations
To introduce Clean Coal Technology for protection of environmental degradation
To formulate appropriate pricing to compete with other types of energy sources

In the Renewable Energy sector, Myanmar has abundant renewable energy sources such as Wind, Solar, Geothermal, Nuclear and Biomass. However, they are at the very initial stages and presently studies, research and experimental works can be performed except biomass which is the traditional source of energy of the country. As most of the population resides in rural areas, it depends heavily on biomass, in the form of fuelwood, charcoal, agriculture waste and animal residue. More development works together with appropriate technologies are required to be made in order to utilize Wind, Solar, Geothermal and Nuclear Energy as future source of energy of the country. Key issues in the renewable energy sector are as follows:-

To have adequate information on each and every type of renewable energy sources of the country
To encourage more inter-Ministries and inter-departmental interaction and cooperation
To promote private participation in the development programme
To define and specify energy policy incorporating renewable energy.

In the Energy Efficiency and Conservation (EEC), Myanmar is in the awareness state due to lower cost of energy compared to other countries. Thus, Myanmar has no specific EEC policy at present, but as the energy consumption increased, specific EEC policy will have to be formulated.

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