Thai solar developer SPCG has announced plans to operate small renewable solar farms to serve demand for electricity in rural communities in Myanmar.
SPCG Chairwoman Wandee Khunchornyakong said the solar farms and energy plants would have a capacity of less than 2MW.
The project will operate without connection to the main electricity grid and serve rural communities. Each plant will cost no more than 14 million baht. (US$463,000).
Wandee Khunchornyakong said: “Electricity supply in Myanmar is falling short of demand that has grown rapidly. The country's capacity of electricity production is only 2,500MW for a population of 55 million, compared with 32,000MW to serve Thailand.”
Myanmar, also known as Buma, lacks small solar plants to serve rural communities. Investors from large economies such as China, India and Japan are understood to be keen to develop big projects in the region.
“Most Myanmar people use diesel oil generators to generate electricity for households. The cost of an oil generator is twice that of a solar farm. The market has a huge potential to grow,” Wandee Khunchornyakong said.
SPCG is expected to develop a mixture of renewable energy projects, such as solar farms with mini-hydropower plants, to take advantage of Myanmar's vast water resources. Wind power is also a possibility.
SPCG has eyed two potential locations, with the first project likely to be in Mandalay or Yangon.
Wandee Khunchornyakong said the company has secured prospective partners in Myanmar already, with a plan to set up a joint-venture company in the second half of this year. Construction will start in 2014.
Shareholders are said to be negotiating with the prospective partners.