Post on 19-May-2018
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 2
PDP: Modules and Services
• Information dissemination and contact establishmentMODULE 1
• Reference ProjectsMODULE 2
• Framework conditions and legal environmentMODULE 3
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 3
New publication:
Available at our booth
“Renewables Made in Germany”
F15
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 5
Facilitator
• 30 % average annual growth in tourist and business visa arrivals
since 2012
Tourism Growth in Myanmar
-
100,000
200,000
300,000
400,000
500,000
600,000
2010 2011 2012 2013 2014
Tourist & Business Visa Arrivals to Myanmar
Total Tourist VisaArrivals
Total BusinessVisa Arrivals
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 6
The Hotel and Condominium Industry
• 1,186 hotels and guesthouses in Myanmar with 46,690 rooms and
growing fast
• 48 major new projects of 200 rooms plus in Yangon alone since
2012, booming construction countrywide
• Over 100 condominium projects in
Yangon, 4,150 units added in 2014
• Average sale price of US$2,300 m2
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 7
Tourism sector Myanmar
• International tourism centers: Yangon,
Nwe Saung & Ngapali Beach, Inle
Lake, Bagan
• Eco-Tourism
733
289
84
Grid-connection of Hotels in Myanmar
Good GridConnection
Fair GridConnection
No GridConnection
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 8
Electricity supply situation
• Grid supply insufficient to provide 24
hours of electricity in most of the country:
most properties requiring diesel
generator back-up
• High electricity prices with Diesel
• 23-40 US-Cent per kWh
• Poor insulation of buildings leading to high energy costs
Commercial Consumption
(kw/month)
Grid Cost MMK/kWh
($cent/kWh)
Off-grid kWh Tariffs (est. ranges)
MMK/kWh ($cent/kWh)
up to 500
501 and above
75 (5,7)
Up to 150 (11.5)
mini-hydro/solar: 100-200 (7,7 – 15,4)
diesel generator: 300+ (23+)
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 10
Business Case 1: Hotel Nay Pyi Taw
• Current electricity supply: Grid-
connection & Diesel gensets
• Solar PV as „fuel saving application“
parallel to the grid and diesel genset
without batteries
• Solar PV production never exceeds
internal power demand of hotel ( no
grid feed-in)
Source: Moerk GmbH & Co. KG
Business Case
Nay Pyi Taw
Proposed capacity PV 503.88 kWp
Required area on
rooftop3,172 m²
Spec. annual yield 1,493 kWh/kWp
Annual energy yield 752,308 kWh/year
Current electricity
costs0.20 $/kWh
Annual savings 149,000 $/year
Investment (just
components; no
import & installation)
654,271 $
Payback period 4.4 years
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 11
Facilitator
• 19-room, family-owned hotel in
Kyaing Tong, the largest city in
eastern Shan State.
• Operates 7 days/week, full year
• Seasonality
High: November-February, Low-season: May-September
• Avg. utility cost: 160 kyats/ kWh ($0.133/kWh)
• Avg. diesel consumption: 150 litres/month
• Avg. diesel and utility cost: $333/month
Business Case 2: Princess Hotel
Facilitator
Absender | Titel | TT.MM.JJJJ | Page 11
Monthly Grid Electricity Consumption
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 12
Facilitator
Key Assumptions:
• 6 kWp solar PV system + battery
• 20 hours autonomy
• Business case: reduce grid-based
kWh and diesel consumption
Key Conclusions:
• Annual savings of $2,967
• Payback of 20 years
Business Case 2: Princess Hotel
Absender | Titel | TT.MM.JJJJ | Page 12
Technical and Financial Overview
PV system size: 6 kWp, roof-mounted
Battery storage:2000Ah, 48V (20 hours autonomy;
50% discharge depth)
Avg. annual PV
production:9,498 kWh
Avg. annual PV utilized: 9,498 kWh
System capital cost:
50,000 USD (24,500 USD for the
battery system)
Annual O&M cost: 5% of annual PV production value
Avg. annual savings: 2,967 USD
Simple payback period: 20.0 years
25-year savings: 74,175 USD
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 14
Facilitator
Good-Fair-No Connection?
733
289
84
Grid-connected Hotels in Myanmar
Good Grid Connection
Fair Grid Connection
No Grid Connection
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 15
Facilitator
Top 3 determinants
• Electricity price
• High diesel consumption
• Constant electricity need
(no big seasonality,
300+ operating days)
becomes obsolete
once net-metering / Feed-
in-Tariff is introduced
Main determinants for an attractive business case
Facilitator
Simon Bittner | Profitably powering the building sector | 27.11.2015 | Page 16
Conclusions and Recommendations
• Electricity supply is one of the biggest challenges for the highly dynamic construction sector in Myanmar
• Solar PV is a technically and economically viable option• Business case for solar PV in the grid-connected hospitality sector is viable
• In fair-grid or off-grid situations, the business case depends on Diesel hours
• Key Barriers include• Limited financing options for solar projects
• Nascent regulatory framework, lack of standards and regulations (e.g. excess feed-in to the national grid) - but expected improved clarity in regulatory framework soon
• Recommended Actions• Collect and share data to make the business case for solar projects
• Develop pilot projects to showcase the viability
• Identify funding for these pilot projects