If Myanmar is to use its resource wealth properly, the government needs to encourage more wind and solar investment, keep more of its resources inside the country, and resist the temptation to speed up infrastructure for short-term gains.
The oil and natural gas industry is the largest sector for foreign investment, but European and American firms are more interested in investing in sustainable energy in Myanmar, according to U Kyaw Kyaw Hlaing, managing director of Smart Group of Companies, which provides services to oil and natural gas industries in Myanmar.
“It is hard to predict if [the renewable energy] sector would be profitable. If we don’t change our source of energy,
it will be difficult to keep the economic development going in the long run. It is not impossible to produce energy commercially in this sector,” he said.
Since the electricity prices in Myanmar are cheaper, it can produce more than other countries with higher prices. However, insufficient and inconsistent supply has proven troublesome.
“Companies from Malaysia also discussed investing in renewables. We also have other discussions. The investments might start to happen within the next two years,” said U Zaw Min Win, chairman of Myanmar Industries Association.
Only about 30 percent of the population of Myanmar have access to electricity, while more than 70 percent of the population live in rural areas. In few cases in Myanmar’s rural area people do use solar energy, but the majority relies on bio-fuels.
