An Analysis of Chinese Enterprises Opportunities to Invest in Myanmar Electric Power Industry

Under “one belt one road" initiatives and the smooth progress of reform in Myanmar political, more and more Chinese enterprises "going out" to invest in the electric power sector in Myanmar. This paper analyzed the first-hand field research data and investment opportunities. Domestic support policies together with the better political situation in Myanmar provide Chinese enterprises an excellent encourage platform. In the field of power generation and grid construction field-funded enterprises have significant opportunities. In different power structure of power plant field, Chinese enterprises should be tailored to discover suitable investment opportunities. Keywords—myanmar; electric power sector; investment opportunities I. DEVELOPMENT SITUATION OF ELECTRIC POWER INDUSTRY IN MYANMAR A. Electric power’s construction development situation in Myanmar The electric power system which is the electricity production and consumption system consisting of power generation, transmission, substation, distribution and use. The electric power system transforms natural energy into electricity by power plant, and through the transmission and substation systems and power distribution systems,electricity will be supplied to the users. Myanmar does not have the technical ability to afford the construction of electric power production independently. At the same time, the Myanmar government does not have enough money to invest the electric power system. The early development is very slow, but in the past twenty years, Myanmar government attract business vigorously [1]. According to the Electricity Ministry of Myanmar, the number of power stations which have been put into operation is 43, the national installed capacity has reached 5089 MW till the end of 2015. From 2009 to 2014, the annual generating capacity of Myanmar power plant has increased from 6829863 MW to 13674558 MW and with an annual growth rate of 13%. In the aspect of electricity power coverage, only 1/3 of the country’s population get electricity supply in Myanmar, rural areas are lack of electricity seriously, among country’s 60000 villages and towns, only about 15000 villages and towns have access to the national grid. Per capita electricity consumption of Myanmar is 222 KWH, Myanmar is only higher than Cambodian in Southeast Asia [1-8]. Per capita electricity consumption can reflect the power of a country or region’s economic development level and people’s life level in a certain extent. The world per capital consumption grade is shown in table I, table shows that Myanmar’s per capita consumption is of the lowest grade level in the world [9]. TABLE I. WORLD PER CAPITA ELECTRICITY CONSUMPTION GRADE The first grade The second grade The third grade The fourth grade Over 10000 KWH 5000-10000 KWH 2000-5000 KWH Less than 2000 KWH Developed countries such as north America, north Europe and Australia Most developed countries BRIC countries and other emerging countries Some developing countries and less developed countries Source: the world bank website According to the Myanmar Ministry of statistics, till the end of 2015, Myanmar’s electric power is supplied by hydroelectric power, natural gas, coal, hydroelectric power accounts for 67%, natural gas accounts for 28%, coal accounts for 3%, wind power, solar power and biomass power accounts for 2%. TABLE II. INSTALLED CAPACITY OF MYANMAR HYDRO POWER STATION Sequence number Power station Province / state Installed capacity (MW) of Myanmar Hydro power Station Design output (MWh) Production time 1 Baluchaung (1) Kayar State 28 672 1992 2 Baluchaung (2) 168 4032 1960 3 Baluchaung (3) 52 1248 2014 4 Kinda Mandala y Division 56 1344 1985 5 Sedawgyi 25 60