The Department of Electric Power Planning under the Ministry of Electric Power signed a Memorandum of Agreement (MoA) on wind power projects in Ann (150MW), Gwa (100MW) and Thandwe (110MW) townships of Rakhine State with Myanmar company Primus Advanced Technologies Limited, Hong Kong-based Asia Ecoenergy Development Limited and Chinese company Yunnan Machinery and Equipment Import and Export Co Ltd in Naypyitaw on 1 March.
The signing ceremony was attended by Union Minister for Electric Power Thaung Han, Deputy Minister U Aye Kyaw, Chinese Ambassador to Myanmar Chen Hai, and executives of the aforementioned companies.
At the signing ceremony, Thaung Han said efforts should be made to generate power from the three projects by 2025 and to start the construction for the first phase of the 50MW Gwa project in December 2023.
Ambassador Chen Hai hailed the projects and China’s contribution to establishing the first wind power projects in Myanmar.
Myanmar Energy Monitor notes that both Primus and Asia Ecoenergy set up six wind measurement towers in Ann, Gwa and Thandwe in November 2018.
Primus and Asia Ecoenergy have previously explored joint projects in Myanmar. In July 2016, the companies were involved in a feasibility study for a 800MW solar power project in Magway and Sagaing regions.
Little is known about Primus, which was registered in 2006 and its directors are Myanmar nationals Thae Myat Soe and Kyaw Hla Win. Primus previously submitted a joint bid with SPIC Yunnan International Power Investment for a solar project tender at Thabyaywa in Mandalay Region, which they lost to Gold Energy.
Asia Ecoenergy is a subsidiary of Zhefu Holding Group, a Shenzhen-listed company. Zhefu is a backer of the 1,390MW Mee Laung Gyaing LNG-to-power project.
Yunnan Machinery and Equipment Import has a long history of engagement in the Myanmar energy sector and is best known for its involvement in the Paunglaung 1 (or Lower Paunglaung) project, which was announced in 1998 and came online in 2005; and the Paunglaung 2 (Upper), which was announced in 2005 and came online in 2015. The facilities provide power to the capital city Naypyitaw.
The MoA signing comes only weeks after the military-appointed Myanmar Investment Commission waived taxes on the production and distribution of renewable energy (see separate article). The exemption specifically includes solar and wind power generation and distribution.
Companies investing in these renewables, which is a promoted sector, will be exempted from or pay reduced taxes on imported materials, including machines, equipment, spare parts and construction materials not available in Myanmar.
A member of a Myanmar energy business association, who did not give permission to be identified, told Myanmar Energy Monitor on 28 February that both the authorities and certain businesspeople in Myanmar and China were turning away their attention from solar to wind power projects, given the complexity of securing finance for solar projects in Myanmar.
The authorities have been hinting at a turn to wind power projects in other parts of the country increasingly in recent weeks. For instance Min Aung Hlaing told SMEs during a meeting held in Pathein in Ayeyarwady on 7 February that the State Administration Council is planning to conduct studies on producing wind energy soon.
Back in December 2022, the Ministry of Electric Power and Ministry of Science and Technology held a joint meeting with Russia’s state-owned atomic energy corporation Rosatom in Naypyitaw, where ground studies for wind and small-scale hydropower completed by Rosatom were discussed. The study identified six potential sites for wind power projects with a potential capacity of 8,100MW.
Thaung Han also visited a number of wind projects during his tour of Russia, including the 210MW Kochubeevskaya wind facility, which is owned by Rosatom.
Of note, in December 2022 PowerChina met with the Rakhine State Administrative Council to discuss six potential wind power projects in Kyaukphyu, Pathein, Yangon, Mawlamyine, Dawei and Myeik towns.
It was also reported that the company was seeking approval from the state government to conduct feasibility studies for the projects.