Myanmar Power Generation EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Burmese power generation EPC market is expected to record a CAGR of approximately 3.5% during the forecast period of 2020-2027. The COVID-19 pandemic had a significant negative impact on the market, with delays in projects like the 151.54 MW gas power plant project in Alone Township in Yangon. However, all the operations were resumed in no time, thus, augmenting the market size. Factors such as the increased industrial developments that are promoting foreign investments across the sectors and several government initiatives to provide electricity to all people in the country are likely to drive the Burmese power generation EPC market during the forecast period. However, the high inflation rate, environmental awareness, and slow processing of projects are expected to restrain the Burmese power generation EPC market.

• On account of the upcoming projects, the hydropower sector is expected to see significant growth in the Burmese market during the forecast period.
• The electrification rate in Myanmar is growing, and the government's goal is to increase capacity to 20,000 MW by 2030 from the current installed capacity of only 4,000 MW.​ This is expected to create opportunities for the market’s growth during the forecast period.
• Myanmar has a high potential for renewable energy. Increasing investment in the sector is expected to aid the growth in the market during the forecast period.

Key Market Trends

Hydropower Segment Expected to Witness Significant Market Growth

• In 2020, the renewable generation capacity in Myanmar was 3448 MW, of which 3304 MW was hydro/marine capacity, which amounted to about 96% of the total renewable generation capacity in the country, followed by solar with 84 MW, and bioenergy with 59 MW.
• In Myanmar, hydropower has a potential of more than 100GW, however, only 3% was utilized till 2020. There are nearly 27 hydropower stations in Myanmar connected to the national grid for power supply within the country.
• The country has several upcoming projects, which are expected to support the growth of the segments. Among the most prominent are Yeywva hydropower projects. In November 2021, Aboitiz Power and SN Power Company signed an agreement to construct 735 MW of hydropower technology projects. The project is likely to get completed by 2027 and is expected to have an installed capacity of 735 MW.
• Further, the Government of Myanmar has adopted numerous strategies to develop hydropower electricity generation in the country. For instance, dam construction had a substantial economic impact on individuals residing near the dams. The government plans on compensating individuals who have been or might be impacted by the construction of such dams.​ This is expected to have a positive impact on the power EPC market in the country.
• Hence, owing to the above factors, the hydropower segment is likely to see significant growth in the power generation EPC market during the forecast period.

Increasing Investments in Renewable Energy Expected to Drive the Market

• According to statistical data from the Government of Myanmar, by the end of 2021, approximately 62% of the population in Myanmar had access to electricity, which was an increase from 49% in 2010. The electricity demand is expected to witness substantial growth during the forecast period in line with the Burmese government’s plan of providing 100% access to electricity to the country's population by 2030. ​
• The government of Myanmar has signed contracts with companies like TTCL Public Co. Ltd and Sojitz Corporation to fulfill the national energy needs, which are expected to register significant growth during the forecast period and support the market’s growth.
• In May 2020, the World Bank gave a fund of USD 350 million to Myanmar to increase the output and efficiency of power generation. Myanmar is expected to upgrade the Ywama gas-fired power plant to improve the availability and reliability of energy services to consumers in Yangon.
• Moreover, the Government of Myanmar has set a goal of securing 12% of its primary energy from renewable sources by 2025 as energy demand in the region is expected to grow by 50%. This, in turn, is expected to provide a significant edge to the Burmese power generation EPC market.​
• Considering such developments in the renewable sector, the market is expected to witness substantial growth during the forecast period.

Competitive Landscape

The power generation EPC market is moderately fragmented. Some of the key players in this market are EAM Myanmar, TTCL Public Company Limited​​, Zeya & Associates Power Systems​​, Parami Energy​, and SMEC Holdings, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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