Market Trends of Myanmar Power Generation EPC Industry
This section covers the major market trends shaping the Myanmar Power Generation EPC Market according to our research experts:
Hydropower Segment Expected to Witness Significant Market Growth
In 2020, the renewable generation capacity in Myanmar was 3448 MW, of which 3304 MW was hydro/marine capacity, which amounted to about 96% of the total renewable generation capacity in the country, followed by solar with 84 MW, and bioenergy with 59 MW.
In Myanmar, hydropower has a potential of more than 100GW, however, only 3% was utilized till 2020. There are nearly 27 hydropower stations in Myanmar connected to the national grid for power supply within the country.
The country has several upcoming projects, which are expected to support the growth of the segments. Among the most prominent are Yeywva hydropower projects. In November 2021, Aboitiz Power and SN Power Company signed an agreement to construct 735 MW of hydropower technology projects. The project is likely to get completed by 2027 and is expected to have an installed capacity of 735 MW.
Further, the Government of Myanmar has adopted numerous strategies to develop hydropower electricity generation in the country. For instance, dam construction had a substantial economic impact on individuals residing near the dams. The government plans on compensating individuals who have been or might be impacted by the construction of such dams. This is expected to have a positive impact on the power EPC market in the country.
Hence, owing to the above factors, the hydropower segment is likely to see significant growth in the power generation EPC market during the forecast period.
Increasing Investments in Renewable Energy Expected to Drive the Market
According to statistical data from the Government of Myanmar, by the end of 2021, approximately 62% of the population in Myanmar had access to electricity, which was an increase from 49% in 2010. The electricity demand is expected to witness substantial growth during the forecast period in line with the Burmese government's plan of providing 100% access to electricity to the country's population by 2030.
The government of Myanmar has signed contracts with companies like TTCL Public Co. Ltd and Sojitz Corporation to fulfill the national energy needs, which are expected to register significant growth during the forecast period and support the market's growth.
In May 2020, the World Bank gave a fund of USD 350 million to Myanmar to increase the output and efficiency of power generation. Myanmar is expected to upgrade the Ywama gas-fired power plant to improve the availability and reliability of energy services to consumers in Yangon.
Moreover, the Government of Myanmar has set a goal of securing 12% of its primary energy from renewable sources by 2025 as energy demand in the region is expected to grow by 50%. This, in turn, is expected to provide a significant edge to the Burmese power generation EPC market.
Considering such developments in the renewable sector, the market is expected to witness substantial growth during the forecast period.
