IMPACT Issue 20 | June 2020 Source: Nurani Oktavia Robelus. LIGHTING THE WAY FOR GROWTH IN RURAL MYANMAR ESMAP’s grants of more than $3 million have been instrumental in supporting electrification efforts in Myanmar as part of the World Bank-funded National Electrification Project since 2014. The project has provided elec- tricity to more than 2 million people, 10,000 health, education, and religious facilities, and over 40,000 street lights. Grid extension has been complemented by mini grid and off-grid solar solutions in remote rural areas, which have contributed to local economic development, income generation, job creation, and social inclusion. Citizen engagement, social inclusion, and gender monitoring mechanisms have been incorporated in the electrification program to enhance its sustainability and development impact. Recently, the citizen engagement mechanism has been utilized to increase public awareness about the COVID-19 pandemic. INCREASING ELECTRICITY IMPACT UNDER THE WORLD BANK’S ACCESS IN MYANMAR NATIONAL ELECTRIFICATION PROJECT (NEP) THROUGH PARTNERSHIPS Electricity has reached 2 million people, of • When the World Bank started its reengagement in whom 50 percent are female, in 7,378 off-grid Myanmar in 2012, less than a third of the population villages and 2,086 grid-connected villages was connected to the power grid. Most rural house- holds were relying on candles, kerosene, and diesel 85 mini grids have been approved, mostly • generators to meet their energy needs, which took up a solar, developed by local and international large share of their daily income. The lack of affordable entrepreneurs, and more than 340,000 off- and reliable power was a key constraint for essential grid solar system installations are serving services such as health and education, as well as marginalized areas income-generating activities. Access to electricity was identified by the government of Myanmar and the World Over 10,000 health, education, religious • Bank as vital for reducing poverty. facilities, and 40,000 street lights have been connected through grid and off-grid solu- Recognizing the scope of the challenges, the World tions, enhancing the project’s social develop- Bank, with support from ESMAP, helped Myanmar ment impact on communities prepare the National Electrification Plan and a road- map for its implementation in 2015. The goal is to • 37 MW renewable energy capacity and bring electricity to everyone in the country by 2030 219 MWh battery storage have been installed through a least-cost framework for the rollout of the providing households with solar home sys- national grid and off-grid electrification with modern tems or mini grids at a high level of service solar home systems or mini grids in the most remote villages that would otherwise have had to wait years for grid connection. Since its adoption, the plan has also provided a framework of engagement with devel- “Better transport and electricity will create jobs and opment partners and donors on the government’s attract more foreign investment,” said State Counsellor electrification agenda. Daw Aung San Suu Kyi. In 2015, the Bank approved a $400 million conces- sional loan for the National Electrification Project (NEP) to finance investment and capacity-building activities in grid and off-grid electrification to support the first phase of the National Electrification Plan. The government’s plan leveraged an additional $200 million in committed funds to date from other devel- opment partners.* These partnerships also led to improving the policy and regulatory framework as well-coordinated capacity building for electrification efforts. The government has also set up a dedicated sector working group to engage on access issues, with Lighting the Way for Growth in Rural Myanmar— participation from donor and government agencies. Agriculture. Source: Nurani Oktavia Robelus. ESMAP’s ROLE IN THE programs of its kind. Lessons learned have been shared with countries from the region, such as Bangla- NATIONAL ELECTRIFICATION desh and Pakistan, and beyond in Sub-Saharan Africa. PROJECT So far, 85 mini grids have been approved, mostly solar. Of these, 37 are already operational—developed Geospatial Planning by local and international entrepreneurs—providing and Multi-Tier Framework 24-hour reliable electricity to rural households, enabling income-generating activities, clean water provision, ESMAP provided the financial support for the geospatial improved health and education services, and street least-cost analysis that underpinned the National Elec- lighting. Women are benefitting from better social ser- trification Plan for reaching the government’s universal vices, increased safety, improved communication, and access goal by 2030, as well as the preparation and new entrepreneurship opportunities. In the context of implementation of the World Bank-funded NEP. The Covid-19 pandemic, the mini grid developers engaged support has allowed the prioritization of grid and off-grid local communities in the distribution of soap, protective investments, and catalyzed public and private funding equipment, and hand sanitizer, while also providing tar- based on a specific electrification roadmap. Progress iff discounts and donations. Displacing polluting diesel on achieving the electrification results has been tracked generators, these mini grids have also contributed to through the ESMAP-funded Multi-Tier Framework, a reduction of greenhouse gas emissions by 93.9 ktC which contributes to informed policy and decision mak- carbon dioxide equivalent. ing by the government on its electrification priorities. Reliable Electricity Supply and a Brighter Future through Mini Grids ESMAP has supported the mini grid program through technical assistance, capacity building, and advisory services aimed at developing the policy and regulatory framework, design, and cost optimization, promoting productive use of electricity, and screening of envi- ronmental and social impacts. The mini grid scale-up Lighting the Way for Growth in Rural Myanmar— in Myanmar has become one of the most dynamic Agriculture. Source: Nurani Oktavia Robelus. * Partners include the Italy Agency for Development Cooperation (AICS-Yangon), the French Development Agency (AFD), German KfW and GIZ, Asian Development Bank (ADB), Japanese International Corporate Agency (JICA), the UK Department for Interna- tional Development (DFID), Norway, New Zealand, Pact, and Smart Power Myanmar/Rockefeller Foundation. 2 ESMAP Impact | Issue 20 The efforts of the successful implementation of this large mini grid solar program have been recognized through the 2019 Association of Southeast Asian Nations (ASEAN) Energy Awards to the Department of Rural Development, which implements the off-grid component of the NEP. U Khaing Soe Oo, a farmer in Myanmar’s Ayeyarwady Region, said: “Since getting the mini grid in 2017 we feel like we’ve been living in a town. We have street lights like those in towns. We have televisions like those that are being watched in towns. We can charge cellphones, use electric cookers. Water is boiled by electric kettles. We can use these at any time of day. There are no power cuts in our village. Since we can diversify our business activities, our income has increased.” Off-grid solar providing light and socioeconomic opportunities to marginalized communities The government has an ambitious goal of delivering An analysis of solar home system installations under the 456,500 solar home systems to rural communities National Electrification Program based on geospatial mostly in border states, fragile, and remote areas of the tagging shows the program has, to a great extent, reached country, as well as promoting private sector-led market the most marginalized regions of the country. Red dots development of solar home systems in central Myan- show households with solar home systems, while township mar. ESMAP’s support has been pivotal in developing colors are based on their score in the Multi-dimensional sustainable public- and private-led business models for Disadvantage Index (MDI). The more disadvantaged the off-grid solar, bringing a focus on product and service township, the darker is its representation on the map. quality, accountability, and community engagement. Source: World Bank. The government needed a systematic and efficient way of post-installation operation and maintenance, have identifying households, recording which system size they laid the groundwork for long-term sustainability of the selected based on electricity usage, and tracking and ver- program. ifying installation progress. ESMAP’s technical assistance supported the development and implementation of a In Kanti village in the Tanintharyi Region, mini grids and “management of information system” with several layers solar home systems have allowed nurses and midwives of data—households survey, installation, verification, to work with bright lights when seeing patients and they and payment—that has allowed the government and the no longer have to depend on charcoal to boil and ster- World Bank team to closely monitor progress, ensuring ilize medical instruments. “Now that we have electricity, timely reporting, and decision making related to program our medical tools are sterilized by simply inserting a implementation. This system is a first of its kind and can plug and turning on a switch,” said Khin Shwe San, a be replicated in other electrification programs. village health officer. In addition to households, solar home system instal- ESMAP has also provided grant support for commer- lations for public facilities (clinics, schools, religious cial market development for Lighting Global-certified facilities) and street lights have extended the benefits of solar products in close collaboration with IFC. IFC-led electricity to entire communities. Enhanced monitoring Lighting Myanmar’s intervention has generated market systems, robust technical standards, and a network intelligence, and enabled business-to-business support, of service centers set up by local entrepreneurs for access to finance, and customer awareness on quality ESMAP Impact | Issue 20 3 solar products. A results-based financing off-grid solar • Citizen   engagement and accountability of ser- facility ($3.45 million) funded by ESMAP and the Global vice delivery: A call center combined with the use Partnership for Results-Based Approaches (GPRBA) is of the Viber app has facilitated two-way communi- expected to accelerate private sector-market develop- cation between the government and households to ment for off-grid solar in central Myanmar through support get feedback directly from the beneficiaries on the to companies for the development of the supply chain. quality of installation and electricity services, and the customer service provided by the installation con- Solar systems bring enormous benefits to whole villages. tractors. The feedback provided early confirmation of Just two light bulbs in a rural family’s home allow for positive results, where services needed improvement many more hours of productivity and for students to study or repair—which was provided within two weeks in the evenings. In a village, they allow for street lights to of notice—allowing grievances to be addressed in improve safety and for shopkeepers to stay open later to almost real time and improving the accountability of earn extra income. Given the evolution of solar technol- electricity service delivery. This citizen engagement ogy and energy-efficient appliances, the off-grid solar has mechanism has been utilized recently to increase significant productive-use potential in Myanmar. public awareness about the COVID-19 pandemic. Tracking Impact, Citizen • Public   outreach and stakeholders’ engagement have been critical in communicating the project’s Engagement, Gender Benefits, results, addressing implementation challenges, and and Social Inclusion rallying broader support for scaling up electricity access. Myanmar has 135 distinct ethnic groups. Implement- ing an electrification program is often complex on the ground, as it deals with people of various ethnic LOOKING FORWARD and religious backgrounds. ESMAP funds have been Altogether, the NEP is expected to benefit around channeled to support initiatives aimed to improve the 6 million people with new electricity connections by broader development impacts of Myanmar’s electrifica- 2021. To reach the universal access goal by 2030, the tion program encompassing: business models successfully piloted under the NEP are expected to be further mainstreamed and scaled • Inclusive   community participation: Field research up through government programs and donors’ support. was carried out to understand barriers for women and The World Bank with ESMAP assistance will con- other vulnerable groups in accessing electricity con- tinue to support the government of Myanmar expand nections and participating in those decision-­making access to electricity and clean cooking solutions, with processes. The insights were distilled in a report that increased focus on fostering economic impacts and informs the design of a power-to-poor scheme that social inclusion. The electrification program represents will enable services to the poorest areas. Moreover, a central piece of the World Bank’s engagement in the gender and social inclusion monitoring surveys energy sector in Myanmar along with improved reliabil- have been implemented for the solar home system ity of power supply and sector governance. program, which revealed positive impacts for women, including reading, improved health and safety, com- For more information visit www.worldbank.org/ munication and information, entrepreneurship, and myanmar or www.esmap.org empowerment. ESMAP MISSION The Energy Sector Management Assistance Program (ESMAP) is a partnership between the World Bank and 18 partners to help low- and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP’s analytical and advisory services are fully integrated within the World Bank’s country financing and policy dialogue in the energy sector. Through the World Bank Group (WBG), ESMAP works to accelerate the energy transition required to achieve Sustainable Development Goal 7 (SDG7) to ensure access to affordable, reliable, sustainable, and modern energy for all. It helps to shape WBG strategies and programs to achieve the WBG Climate Change Action Plan targets. 1818 H Street, NW Washington DC 20433 www.esmap.org esmap@worldbank.org 4 ESMAP Impact | Issue 20 Jun e 20 20