Rapid Market Assessment of the Off-Grid Sector in Myanmar

The sector is primarily focused on solar, mini-hydro, and biomass power, with solar power being the most prominent sub-sector. Myanmar's irradiation levels are suitable for solar power generation, with an average of 5.2 peak sun hours per day. The existing mini-grid systems in Myanmar are primarily concentrated in the Yangon and Mandalay regions, with a total installed capacity of 1.3 megawatts. The majority of these systems are solar-based, with a few mini-hydro and biomass-based systems also in operation. The sector is expected to grow significantly, with the National Electrification Plan aiming to provide electricity to 80% of the population by 2030. The key value chain actors in the off-grid sector include manufacturers, distributors, and installers of solar products, as well as developers and operators of mini-grid systems. The sector also has a number of ecosystem actors, including government agencies, international organizations, and civil society groups. These actors play a crucial role in promoting the growth of the sector and addressing the various challenges it faces. One of the key challenges facing the off-grid sector in Myanmar is access to finance and investment. The sector requires significant investment to develop and expand its infrastructure, but the lack of financing options and high capital expenditures are major barriers to growth. Additionally, the sector faces challenges related to access to markets, business enabling environment, and transportation and logistics. The sector also faces inclusive development constraints, including constraints to women's participation and constraints faced by non-urban areas. Women's participation in the sector is limited, with only 12% of the workforce being female. Non-urban areas also face significant challenges in accessing electricity, with many communities relying on traditional energy sources such as firewood and charcoal. To address these challenges, the USAID Responsible Investment and Trade Activity has identified several priority areas for intervention. These include supporting the development of quality solar home systems and solar productive use appliances, strengthening advocacy for improved standards and regulatory frameworks, and promoting women's participation in the sector. The Activity also aims to support the development of alternative financing solutions and build the capacity of businesses to improve corporate governance and comply with new regulations. The off-grid sector in Myanmar has significant growth potential, with the sector expected to grow from 10 megawatts in 2020 to 100 megawatts by 2025. The sector is expected to create new job opportunities and stimulate economic growth in rural areas. However, the sector faces significant challenges related to access to finance, markets, and business enabling environment, which must be addressed to realize its full potential.