The World Bank-funded National Electrification Project extends a USD 400-million credit for ficing and technical assistance to increase electrification rate in the country. The National Electrification Project has four principal components: 1) grid extension, 2) installing mini-grid and solar home systems in rural areas that are not likely to be connected to the main grid by 2025, 3) technical support and training to Myanmar government staff, and 4) reallocating resources if needed for disaster response.
The basis of the project are laid by the National Electrification Plan (also referred to as National Electrification Programme or NEP) that aims to provide electricity access to all Myanmar households by 2030, with a rural electrification rate of 33% in 2014. The NEP calls for the electrification rate milestones of 50% in 2020, 75% in 2025 and 100% in 2030.
While long-term electricity access will chiefly be provided through the main grid, the short and mid-term will require substantial mini-grid and off-grid investments to ensure basic electricity services reaching large number of users in relatively little time. The NEP therefore takes a two-fold approach: (1) A grid extension programme and (2) an off-grid programme. The off-grid programme is composed of solar home systems and mini-grids with the target population being those who would have to wait especially long for the main grid to reach their homes and/or the regions where grid expansion entails prohibitive costs.