Scoping Off-Grid Renewable Energy Opportunities in Myanmar

Scoping Off-Grid Renewable Energy Opportunities in Myanmar
Asian Development Bank

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"""
Table of Contents
ABBREVIATIONS ........................................................................................................................................ v
ACKNOWLEDGMENTS .............................................................................................................................. vi
1. Introduction and Background ................................................................................................................ 1
2. Study Method and Data Sources .......................................................................................................... 4
3. Socio-Economic Characteristics of Households ................................................................................... 7
3.1 Mandalay Region .......................................................................................................................... 7
3.2 Chin State ..................................................................................................................................... 8
4. Demand and Supply for Electricity and Lighting ................................................................................. 10
4.1 Mandalay Region ........................................................................................................................ 10
4.2 Chin State ................................................................................................................................... 12
5. Household Ability to Pay, Manage, and Maintain Electricity Services ................................................ 15
6. Proposed Solutions to Improve Electricity Access for Mandalay Region and Chin State ................... 18
6.1 Component 1: Promoting Solar PV Home Systems in Mandalay Region and Chin State using
an Output-Based Aid Subsidy .................................................................................................... 18
6.1.1 Output-Based Aid (OBA) Subsidy to Promote Solar PV Home Systems ......................... 19
6.1.2 Business Model ................................................................................................................ 21
6.2 Component 2: Proposed Pilot Projects in Mandalay Region ...................................................... 22
6.2.1 Component 2.1: Solar Lantern Charging and Rental Station in Ywar Taw Village .......... 22
6.2.2 Component 2.2: Solar Lantern Charging and Rental Station in Than Taw Village .......... 23
6.2.3 Component 2.3: Solar Lantern Charging and Rental Station in Zawin Village ................. 26
6.2.4 Component 2.4: Solar PV Mini-Grid in Young Kyin Village .............................................. 29
6.2.5 Component 2.5: Solar PV Mini-Grid in Ye Ngan Village .................................................. 32
6.3 Timeline Moving Forward ........................................................................................................... 37
7. Conclusions and Next Steps ............................................................................................................... 38
APPENDIX A: Detailed Descriptions of Surveyed Villages in Mandalay Region and Naypyitaw Territory 40
APPENDIX B: Detailed Descriptions of Surveyed Villages in Chin State .................................................. 95
APPENDIX C: Summary of Surveyed Villages and Proposed Solutions by Villagers in Chin State ........ 104
APPENDIX D: Summary of Surveyed Village and ADB Proposed Renewable Technologies in Mandalay
Region ...................................................................................................................................................... 107
APPENDIX E: Summary of Surveyed Villages and Proposed Renewable Technologies in Chin State .. 110
APPENDIX F: Operational Guidelines of the Output Aid-Based Program to promote Solar PV Home
Systems .................................................................................................................................................... 111
APPENDIX G: Technical Specifications for proposed SHS (30 Wp) ....................................................... 113
APPENDIX H: Technical Specifications for proposed SHS (70 Wp) ........................................................ 117
APPENDIX I: Technical Specifications for proposed SHS (110 Wp) ....................................................... 121

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List of Tables
Table 1: Range of Household Monthly Spending on Electricity and Energy for Lighting with Household
Wealth Classification .......................................................................................................................... 16
Table 2: Budget for Subsidy Requirements for Solar PV Home Systems (SHS) (USD) ............................ 21
Table 3: Financial Analysis for Solar Lantern Charging & Rental Station in Ywar Taw Village .................. 23
Table 4: Financial Analysis for Solar Lantern Charging & Rental Station in Than Taw Village .................. 25
Table 5: Financial analysis for 26% subsidy on upfront costs in Than Taw Village ................................... 25
Table 6: Financial Analysis for Solar Lantern Charging and Rental Station in Zawin village ..................... 27
Table 7: Financial analysis for 63% subsidy on upfront costs in Zawin Village .......................................... 28
Table 8: Financial Analysis for 40% subsidy on upfront costs in Zawin Village ......................................... 28
Table 9: Affordability for Electricity/Lighting Energy Classification (Zawin Village) .................................... 29
Table 10: Financial Analysis for Solar PV Mini-Grid in Young Kyin Village ................................................ 30
Table 11: Financial Analysis for 79% subsidy on upfront costs in Young Kyin Village (US$) .................... 31
Table 12: Financial Analysis for 60% subsidy on upfront costs - Young Kyin village (US$) ...................... 32
Table 13: Financial Analysis for 70% subsidy on upfront costs - Young Kyin Village (US$) ...................... 32
Table 14: Financial Analysis for Solar PV Mini-Grid in Yengan Village ...................................................... 34
Table 15: Financial Analysis for 88% subsidy on upfront costs in Yengan Village (USD) ......................... 35
Table 16: Financial Analysis for 70% subsidy on upfront costs - Yengan Village (US$) ............................ 36
Table 17: Financial Analysis for 60% subsidy on upfront costs - Yengan village (US$) ............................ 36
Table 18: Summary of Proposed Projects and Project Cost by Village/Location ....................................... 39

List of Figures
Figure 1: Map of Myanmar indicating the focus areas of Mandalay Region and Chin State ........................ 2
Figure 2: Map of villages surveyed in Mandalay Region .............................................................................. 5
Figure 3: Map of villages surveyed in Chin State ......................................................................................... 6
Figure 4: Sources of Electricity and Energy for Lighting in Mandalay Region ............................................ 10
Figure 5: Flow Chart Describing the Proposed OBA Program ................................................................... 19
Figure 6: Schedule for current activities under Energy For All energy access projects in Myanmar ....... 37

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ABBREVIATIONS

AC - alternating current
ADB - Asian Development Bank
CFL - compact fluorescent lamp
DC - direct current
EUEI - European Union Energy Initiative
hh - household
kW - kilowatt
kWh - kilowatt-hour
LED - light-emitting diode
NPV - net present value
OBA - Output-Based Aid
O&M - operations and maintenance
SHS - Solar Photovoltaic (PV) Home Systems
UNDP - United Nations Development Programme
Wp - watt-peak

Currency: 900 Kyats = $1 USD

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ACKNOWLEDGMENTS

This report was developed by a team of consultants under the Asian Development Banks
Regional Technical Assistance (RETA) Grant, Technical Assistance for Energy for All Initiative
(TA 6443-REG, TA-7512). The work presented in this report was conducted from September to
November 2013 in Myanmar. The team was led by Pradeep Tharakan (Senior Climate Change
Specialist, ADB) and Jiwan S. Acharya (Senior Climate Change Specialist, ADB). The study
was carried out by a team of ADB consultants consisting of Hussain Haider (Team Leader),
Voravate Tuntivate, U Kyaw Seynn, and U Kan Sein. This report was written by Voravate
Tuntivate and edited by Maura Lillis (Consultant, ADB).
This study has been conducted for the Government of Myanmar through financing from the
ADB. The study team wishes to thank the Ministry of Industry of Myanmar for its kind
collaboration.
Photo credits: Cover was designed by Charmaine Caparas with photo by Claude LeTien.
Photographs in the report were provided by the field team.

Introduction and Background
$

1. Introduction and Background
Myanmars new era of political and economic openness has initiated a wave of
development with the potential to have rapid benefits on a national scale. The government now
has the task of balancing the needs of its transitioning economy with the widespread poverty
which characterizes most of its population, particularly in the form of severely limited access to
clean sources of energy. The Asian Development Bank (ADB) has committed resources to
scaling up renewable energy access in rural Myanmar, where abundant natural resources
intersect with low local capacity across vast stretches of challenging terrain.
Myanmar has abundant energy resources, particularly hydropower and natural gas.
Unfortunately its power sector is considered to be one of the least developed in Southeast Asia.
With a population of about 60 million, Myanmars per capita electricity consumption is only 100
kWh per year, the lowest among ASEANs 10 countries. This low national average is due to the
countrys low electrification rate, low overall industrial development and lack of investment to
date. Although the countrys average electrification rate grew from about 16% in 2006 to 26% in
2011, it still lags far behind the countrys neighbors. Moreover, electrification in Myanmar tends
to be concentrated only in large cities: Yangon City has the highest electrification ratio (67%),
followed by Naypyitaw (54%), Kayar (37%), and Mandalay (31%). Beyond these city centers,
rural areas in Myanmar are still poorly electrified, averaging a rate of about 16%.
1
These areas
are also quite poor and often very difficult to physically access, posing a challenge to both the
economic acceptability and technical viability of energy technologies to poor communities
throughout the country.
Prior reports released by the United Nations Development Programme (UNDP),
2

European Union Energy Initiative (EUEI),
3
and Mercy Corps
4,5
have done much to advance our
understanding of the practices, resources and challenges of rural energy users in Myanmar, as
well as describe the current institutional makeup of the energy sector in Myanmars new political
landscape. The World Bank has estimated that it would take an investment of $444 million every
year until 2030 to achieve universal access to electricity in Myanmar
6
, and with needs this great,
it will take many years before the benefits of any national economic development can be seen
by the countrys full spectrum of citizens. At the same time, in the face of severe economic and
technical difficulty, these prior studies have documented both burgeoning demand and self-
starting enterprise in local energy markets. Channeling these strengths towards the productive
utilization of Myanmars abundant natural resources could do much to alleviate national
conditions of severe energy poverty.

1
Asian Development Bank (ADB). 2012. Myanmar Initial Energy Assessment. October 2012. Manila, Philippines.
2
UNDP. Accelerating Energy Access for All in Myanmar. United Nations Development Programme, Myanmar. 2013.
3
European Union Energy Initiative. Mission Report: Energy Scoping Myanmar. April & Mary 2012.
4
Mercy Corps. Myanmar Energy Poverty Survey. January 2011.
5
Mercy Corps. Myanmar Household Energy Market Assessment. August 2012.
6
World Bank and Australian Government. One Goal, Two Paths Achieving Universal Access to Modern Energy in
East Asia and the Pacific. Washington, DC: World Bank Group, 2011.
Scoping Off-Grid Renewable Energy Opportunities in Myanmar:
Mandalay Region and Chin State

%
The Asian Development Bank (ADB) has implemented the Energy For All Initiative to
explore new approaches and methodologies for helping poor households gain access to reliable
and affordable modern energy services, and to scale up these efforts to levels that can later be
supported by investment through ADB operations. Under the Energy for All Initiative, the ADB
has launched an in-depth study of select villages in two focus areas of Myanmar, Mandalay
region and Chin State,
7
to contribute to the Government of Myanmars plans to expand energy
access nationally. The study, described in this report, investigated the energy poverty situation
in Myanmar by using conditions from the villages observed over the course of this study to
serve as illustrative case studies of current household practices and needs. The ADB will be
using this analysis to implement renewable energy-based pilot installations in Mandalay Region
and Chin state, also under the Energy for All Initiative.
The main objective of these pilot projects will be to
provide poor communities living in rural villages (more
than five miles away from the electricity grid) with
sustainable access to household energy systems,
community energy systems, and key public services
through clean off-grid solutions.
With this report, the ADB hopes to contribute
to the existing body of knowledge on energy poverty
in Myanmar, and assist the government of Myanmar
with its priority for developing sustainable off-grid
energy solutions. Data collection methods are
introduced in the first section, followed by an
overview and discussion of the socio-economic
characteristics of households in each region. The
report then examines the supply and demand of
electricity as well as demand for lighting energy, and
follows by characterizing current total household
expenditures for electricity and lighting energy. This
section will describe and equate current expenditure
levels with users ability to pay, which is based on
household budget reallocation. Finally, the report will
present specific project proposals and their
associated proposed delivery models for piloting
renewable energy solutions to these households and
communities. The pilot projects described in this
report will be carried out in 2014 to test new business
models and funding mechanisms.
Figure 1: Map of Myanmar
indicating the focus areas of
Mandalay Region and Chin State

7
Since 20 August 2010, Myanmar has been divided into seven states, seven regions, and the Naypyidaw Union
Territory. The areas focused on in this study are: (i) twenty-two selected villages in Mandalay Region and neighboring
Naypyitaw Union Territory, and (ii) eight selected villages in Chin State.
&
This report will be the first of two released as part of these overall activities. Later in
2014, a second follow-up report will provide a geospatial least cost electrification plan for the
two focus areas, and outline the investment costs of providing energy access to the two regions
population. It is hoped that the process and outcome of these case studies will assist the
government with the critical planning needed to harness energy from the countrys rich
indigenous resources to benefit its large rural population.

Study Method and Data Sources
'
2. Study Method and Data Sources
Surveys were carried out in thirty villages in this study. The regions and villages were
selected in consultation with the government and determined according to its priorities. In
Mandalay Region, a total of 20 villages were studied representing about 3,867 households.
Eighteen villages in this grouping are located in the Mandalay Region itself and two are located
in Naypyitaw Territory, which were included in the study based on their neighboring proximity to
Mandalay and recommendations from the government for their specific assessment. The
villages in Mandalay Region are spread out in seven of the regions districts (Meikhtila,
Kyaukse, Thazi, Kyauk Da Daung, Mying Yan, and Madaya), and the two Naypyitaw villages
are located in Tauk Gone Township, Daltaya Thi District, Naypyitaw Region. For the teams
study of conditions in Chin State, eight villages were selected representing about 1,091
households, all located Hakha District. These villages are Chun Cung, Lok Lung, Tipul, and
Tinam Village in Hakha Township, and Sopum, Thluanlan, Thlangrua A and B Village in
Thantalan Township. Detailed maps of the villages surveyed in Mandalay and Chin State are
included as figures on the following pages.
The team carried out a field visit to these villages from September to November 2013.
The main objectives of the field visit were to: (1) collect information regarding the overall socio-
economic characteristics of the villages and their households; (2) assess current electricity
demand and supply as well as demand for lighting of the village households; (3) collect current
household expenditure for electricity and lighting; (4) assess the history of communities abilities
to organize themselves; (5) identify other electricity needs in the village; and (6) develop pilot
projects to test appropriate delivery models for off-grid renewable energy technology.
Rapid appraisal methods were used to quickly assess the socio-economic
characteristics of the selected villages and their households, evaluate electricity supply and
demand for lighting and other energy needs, and determine current household expenditure
levels for electricity and other lighting energy. Data and information were collected through: (i)
interviews with village chair-persons and/or village officials of every village; (ii) interviews with
the head of the households and/or spouses; (iii) focus group interviews; (iv) group discussions;
and (v) interviews with solar PV and electric appliances shop owners in the District and
Township. Other sources of information include secondary data from the respective townships
and interviews with Township officials.
Pilot projects were developed by the team based on these findings. These proposed
solutions have been based not only on the needs and readiness of the households and the
communities to operate and maintain electricity services, but also on the prospect of sustaining
the provided electricity services by developing a permanent market for energy services. It is
hoped that the new business models and mechanisms tested through these projects will be able
to stimulate a growing market for private energy services in rural Myanmar.


5

Figure 2: Map of villages surveyed in Mandalay Region

Shwe daung - Village Name
634 - Number of households
Ywa daw -Village Name
84 -Number of households
Than daw -Village Name
Zawin -Village Name
Yon gyin -Village Name
Ye ngan -Village Name
Dwe hla -Village Name
Nga Zu -Village Name
Kyi eik -Village Name
As she nge do -Village Name
Ale kan -Village Name
Seik Tein -Village Name
Khar Pat -Village Name
Wun tin gon -Village Name
Tha bye eik -Village Name
Te gon -Village name
Nga bu kyin -Village Name
Lewe
Tatkon
Thazi
Singu
Thabeikkin
Yamethin
Pyinmana
Pyinoolwin
Mogok
Pyawbwe
Meiktila
Wundwin
Natogyi
Taungtha
Nyaung_U
Kyaukpadaung
Myittha
Ngazun
Myingyan
Madaya
Patheingyi
KYAUKSE
Tada-U
Mahlaing
97
0'
0" E
97
0'
0" E
96
0'
0" E
96
0'
0" E
95
0'
0" E
95
0'
0" E
2
3
0
'
0
" N
2
3
0
'
0
" N
2
2
0
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0
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2
2
0
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0
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2
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2
1
0
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2
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Location Map of MANDALAY REGION area
Scale 1 : 1,800,000
0 10 20 30 40 50 60 70 80 90 100 5
Kilometers

6

Figure 3: Map of villages surveyed in Chin State
Socio-Economic Characteristics of Households

7
3. Socio-Economic Characteristics of Households
Accurate data and information about energy poverty and access levels across Myanmar
is limited to a few prior studies by international organizations. Aside from these studies, the
countrys current national energy habits, demand and electrification levels remain poorly
understood. A report published by the United Nations Development Program (UNDP),
Accelerating Energy Access for All in Myanmar, characterizes Myanmar as an agrarian and
predominantly poor country. The report cites household survey results conducted in the 1990s
by the Central Statistics Organization which estimated the countrys poverty rate (i.e., the
percentage of both urban and rural households living on less than US$1 per day) to be 22.9
percent. The report also cites the UNDPs household living conditions survey conducted in 2004
and 2005 which concluded that about 32 percent of the population of Myanmar lives in poverty,
with 10 percent in extreme poverty, or unable to cover their basic needs.
Through this study, the ADB hopes to continue filling in major knowledge gaps about
rural energy use in Myanmar. This studys socio-economic assessment carried out in 22
selected rural villages in Mandalay, two villages in Naypyitaw Region, and eight villages in Chin
State confirms that, in parallel with national trends, significant numbers of households in the
selected villages were found to be very poor, many of whom having few means of supporting
their own livelihoods. This section will present an overview of the teams findings regarding the
socio-economic characteristics of these villages, first in Mandalay Region and then in Chin
State. For more detail beyond this overview, please refer to Appendices A and B for in-depth
descriptions of each observed village in the two areas.
3.1 Mandalay Region
This field survey has revealed that virtually all households in Mandalay Region engage
in some type of agricultural activity. The agricultural practices of almost all farmers in Mandalay
are considered to be subsistence farming. Although the region is considered to have among the
most fertile land in the country, a very small portion (less than one percent) of arable land in the
focus villages in Mandalay were found to have access to irrigation. Virtually all farmers in these
selected villages are only able to grow crops during the monsoon season. Typical crops grown
in Mandalay Region are rice, jute, sugar cane, and other dry zone crops such as maize, millet,
chili, sesame, ground nut, and pigeon pea. Since all agricultural activity relies almost exclusively
on rain water, drought during the past few years has had significant impact on the well-being of
many households. Despite having small arable land holdings averaging just one to three
hectares per farmer farmers plant several crops during each monsoon or growing season. The
main reasons for this practice are to reduce the risk of crop failure, ensure sufficient food crops
for their own consumption, and protect against price fluctuation. Only a handful of well-to-do
households with relatively large arable land holdings can afford to use agricultural machineries,
which were found to include small ride-on, 3- or 4-wheel tractors, walk-behind tractors, and
diesel pump sets for irrigation.
The findings from this study confirm that a significant portion of rural households are
quite poor, many of whom are living in conditions of extreme poverty. With respect to arable

8
land holdings in Mandalay, a crucial component of sustainable agricultural activity, interviews
with village chairpersons and village officials revealed that approximately 23 percent of
households in all 22 surveyed villages in the region are landless.
8
The proportion of landless
households in these villages mirrors national trends wherein it is estimated that about one-
quarter of total rural households in Myanmar are landless.
9
The vast majority of these landless
households are quite poor, making modern energy access not only difficult a difficult task, but
an urgent one. Findings from the field survey reveal that most landless farmers tend to earn
their living as farm laborers in their own village or villages nearby. The average wage for farm
labor is 2,000 Kyats (USD$2) per day for men and 1,500 Kyats (USD$1.50) per day for women.
Unfortunately the employment window as farm labor in the village (farming community) is very
limited. Most laborers can gain employment during the three months before and after monsoon
season, meaning that income-earning opportunities for landless adults is limited to just six
months out of the year. In a few villages, namely Tha Pyae Eait and Phae Pon Village in
Madaya, Than Taw Village in Thazi Township, and Yengan Village in Kyauk Da Daung
Township, landless households have additional opportunities to earn income by collecting
firewood, making charcoal for sale, and/or collecting forest products for sale. Although these
additional income earning opportunities may generate better income than farm labor, they are
also very difficult to carry out during the monsoon season, meaning that it is difficult for landless
persons in these selected villages to achieve year-round employment.
Other employment opportunities in the village include tending cows for large dairy
farmers, as practiced by landless households in Nasu and Dwehla Village in Kyaukse Township,
or renting palm trees to collect sap for making palm sugar or palm juice, as observed in Seint
Tain and Young Kyin Village in Kyauk Da Daung Township and Nga Bu Kyin Village in
Myingyan Township. Employment opportunities outside the farming sector are very limited. The
study only identified two villages (Pyaw Ywa and Pe Tauk Gone villages in Tauk Gone
Township) in which, due to their location near quarry industrial sites and close proximity to
Naypyitaw (one hour), farmers and especially landless farmers could seek employment outside
the agricultural sector. More than a third of the households in these two villages are part-time
residents in the village over the course of a year, since many of them work as a migrant labor in
Naypyitaw.
3.2 Chin State
Chin State is located in the remote mountainous regions of Western Myanmar, sharing
borders with India and Bangladesh. Administratively, the State is divided into nine townships:
Tonzang, Tiddim, Hakha, Falam, Htantlang in the North and Kanpetlet, Mindat, Madupi and
Paletwa in the South. The data collection team only concentrated on eight select villages in two
Northern townships (Hakha and Htantlang). Populations across the townships of Chin State are
generally considered poor relative to populations in other states or regions of Myanmar. The
livelihood activities of households in Chin State center on agriculture and shifting cultivation,

8
Twenty surveyed villages are located in Mandalay Region and two villages are located Nay Pyi Taw Region. The
latter are located on the border between the Nay Pyi Taw and Mandalay regions.
9
United Nations Development Program (UNDP). Accelerating Energy Access for all in Myanmar. May 2013,
Myanmar United Nations Development Program. Myanmar.

9
with most farmers practicing slash and burn to clear land for cultivation. Major crops include
maize, rice, and millet. Rice paddies are mainly grown on farmlands at lower altitudes, while
millet is the primary crop of areas at higher altitudes. Other crops and plants grown include
beans and pulses, potatoes, sunflower, cotton, sugarcane, tobacco, coffee, mulberry, various
kinds of vegetables, banana and fruits such as orange, apple, and avocado. Other livelihood
activities include raising livestock, weaving, small trade and seasonal labor. Since all
households in the surveyed villages were found to be subsistence farmers, rice, maize, and
millet are usually planted for the households own consumption. Cash income is usually
generated from seasonal labor, or alternatively from the sale of livestock and agricultural and
forest products. Since the surveyed area is located in a very remote region, access among
villages and from villages to the Township capital is difficult. Employment opportunities in the
Township are thus very low, and villagers frequently trek across the border to seek seasonal
employment in India.
Access to land is not an issue in Chin State as households tend have access to large
plots of land through the shifting cultivation system. However, low yields are common due to the
key problems of poor soil quality, lack of labor, lack of seeds and capital, lack of livestock and
equipment to plough or tilt land, and lack of access to irrigation and fertilizer. As a result, cash
income from agricultural activities tends to be limited, and in some years the food crops
produced are not sufficient to support a households basic consumption. Making a living is
becoming much harder economically due to rapid population increase and the unsustainable
agricultural practices of shifting cultivation, since the number of years between land rotation
have become shorter and shorter to allow soil properties to recover.
Since Chin State is located in a remote and mountainous range, access to the market is
a challenge for villagers. For example, although the villages of Chun Cung, Lok Lung, and
Tinam are located on the main road and thus should be accessible year round, difficult
mountainous terrain and poor road conditions still make it difficult to transport agricultural
products to the main market in the Townships.
10
Market accessibility in the other five villages
visited by the team is limited to the dry season using a four-wheel drive vehicle. Access to the
market for these villages is thus very challenging year-round. Although villages located along
the main road are in a better position to sell their agricultural products, as found in the three
villages mentioned above, such villages tend to have more limited land and natural resources
than villages located in more remote areas in the mountains. This can be attributed to rapid
population increase leaving newcomers and younger families in the village with fewer resources
with which to make a living.

10
As an example, a trip from Hakha Township to Tinam Village took about 3 hours for a distance of 36 miles.
Demand and Supply for Electricity and Lighting

10
4. Demand and Supply for Electricity and Lighting
4.1 Mandalay Region
Based on interviews with village chairpersons and/or village officials, the field survey
team concluded that dry cell batteries and candles are the main sources of energy used for
lighting by households in all 20 selected villages surveyed in and nearby Mandalay. As shown in
Figure 4 below, about 37 percent of the households rely mainly on D-sized dry cell batteries
used to power light-emitting diode (LED) lights, and supplement LED lighting with candlelight.
On the other hand, about 32 percent of the households rely solely on candlelight, and use
candles in combination with LED light powered by dry cell or small car battery. Diesel gen-set
mini-grid accounts for 14 percent. The field survey also reveals the significant penetration of
solar PV home systems (SHS). Approximately 11 percent of the households were found to use
SHS, with system sizes ranging from 80 watt peak (Wp) to more the 200 Wp. Interviews with
households using solar PV home system confirmed that these households tend to be among the
more financially better off households in their village. On the other hand, households relying
solely on candlelight, and candles in combination other energy sources, tend to be the poorer
households of the village. While households using only candlelight and candles with wick lamps
are considered the poorest household group in the village, it is important to note that these
households tend to spend money more on their lighting energy. This is because poor
households buy one or a few candles or a very small amount of diesel fuel (for wick lamp) at a
time, which can amount to considerable spending over time.

Source: Rapid Appraisal and interviews with Village Chair Persons/Officials
and Households, October 2013.
Figure 4: Sources of Electricity and Energy for Lighting in Mandalay Region


11

Household interviews reveal that most households with access to a diesel mini-grid own
one electric lamp; a small minority of these households own two lamps. A typical electric light is
either a 20-watt compact fluorescent lamp (CFL) or a 20-watt fluorescent tube, with a small
minority using 8- to 10-watt T4-size fluorescent tubes. Households with solar PV home systems
also use these types and sizes of CFL and fluorescent tubes. The average number of electric
lights owned by households using solar PV home systems is about two. For households using
dry cell batteries, LED lighting is the most popular light source. The number of LED lights owned
and used by the household only averages to one. The most popular size of LED lights powered
by dry cell batteries requires only two D-size dry cell batteries; the second most popular is
slightly larger and requires three D-size dry cell batteries. Beside lighting appliances, a small
number of households using electricity from solar PV home systems or diesel-generated mini
grids own a small television, with the most popular model being a 9-inch television equipped
with DVD player. Examples of these technologies are found below.

Typical LED light powered by dry
cell batteries
Candle used by poor households
for lighting
Typical SHS using car batteries without controller

12
With regard to LED light powered by dry cell batteries, households using this method
confirm that it is far better than candlelight, although all users complain about the quality and
reliability of the LED light. Based on interviews with users, the average lifespan of an LED light
is about three months, but many households complain that theirs break down easily and may
last less than one month. Public perception of LED light powered by dry cell batteries is not
positive overall, with one user saying, It breaks down easily and its lifespan is not predictable,
even though it is much better than using candle.
In general, household demand for lighting in all selected villages centers on two time
periods. The first period occurs early in the morning before the sun rises and lasts for about one
to two hours, depending on when the sun rises and how early the household wakes up.
Traditionally, women wake up during this period to prepare food for other household members
and monks. The second period is in the evening after the sun sets, for about three to four hours
before going to bed. Lighting demand in the evening hours is the most crucial since it serves
lighting needs for everyone in the household, whereas demand for lighting in the morning is
much smaller since it only serves one or two people (mostly women) limited to the kitchen area
of the house. In sum, at present, each rural household uses electricity and/or needs lighting for
approximately four hours per day, one hour in the morning and three hours in the evening. In
households with access to diesel genset mini grids, these grids are able to provide electricity
supply for two to three hours in the evening.
4.2 Chin State
Unlike rural households in Mandalay, many rural villages in Chin State have constructed
micro hydro systems themselves to generate electricity for their villages for a few hours a day
during the rainy season.
11
In fact, all but one village (Thluanlan Village) were found to be using
or have recently constructed micro hydro to generate electricity for the village. These systems
have been constructed by villagers using their own funding with no technical support from the
government, though both central and local governments have encouraged their efforts. The
typical size of a self-constructed micro hydro in these villages is quite small, with a maximum
size per power generation unit of less than 40 kilowatts (kW) and total combined generation of
usually less than 50 kW. In addition to hydro power generation, villagers have also constructed
mini-grids to distribute electricity to households within the village.
The construction requirements for building a micro hydro plant are site-specific, and
these engineering challenges compounded with limited capital investment and technical
knowhow within the villages have been problematic to almost all the village-constructed micro
hydro systems. The most common problem is insufficient water to generate electricity,
especially during the dry season. Moreover, even during the rainy season, there is not sufficient
water to generate electricity for more than 3 to 4 hours a day, and the system overloads due to
heightened demand for electricity. Interviews with electricity committees and villagers in all the
villages visited by the team confirm that none of the village electricity committees have

11
Micro hydro is a type of hydroelectric power that typically produces up to 100kW of electricity. These installations
can provide power to a small village or community.

13
introduced stringent load control measures to deal with heightened demand for electricity. Only
a few villages have implemented a ban on incandescent light bulbs.
Other problems identified during the field visit include artificial reservoirs constructed for
power production being too small and some leaking, improperly installed valves and turbines,
lack of technical capacity to re-install the system, distribution lines being too long and/or
improperly sized to the conductors, and sub-standard and un-safe distribution networks.
Solutions proposed by villagers from all the villages visited include utilizing new water sources
and constructing new artificial reservoirs located farther away from the village. Appendix C
provides a summary of problems and proposed solutions provided directly from each village in
Chin State which could be considered for implementation in this or upcoming phases of the
ADBs off- grid program.

Artificial reservoir in Chun Cung Village, Chin State Artificial reservoir in Sopum Village, Chin State
Electricity distribution lines in Tinam Village, Chin State

14
It is important to note that hydroelectric facilities require a dependable flow and
reasonable height of fall of water. Any potential hydro power sites/sources must therefore be
thoroughly examined and studied. Moreover, as micro hydro planning is highly site-specific,
investment costs for the necessary civil engineering analysis as well as investment costs to
construct transmission and distribution lines to the village can be very high due to the long
distance and challenging terrain from the power house to the village. It is therefore considered
logical to compare the cost of all alternative supplies of electricity, in addition to the micro hydro
plants, in determining the least cost of electricity supply. For the new micro hydro sites proposed
by villagers, the first and foremost upfront investment cost would involve securing a qualified
hydro engineer to determine whether water flow at the proposed site is sufficient, dependable,
and has reasonable height of fall of water.
12
Given the terrain and geographical location of each
village, and taking into account the number of households in each village, the cost of electricity
supply through a properly constructed micro hydro plant could be too high. The cost of
alternative electricity supplies such as SHS could be more competitive.

12
The consulting fees and expenses for a qualified hydro engineer and support staff could be as high as US$500-
1,000 per day or more, and each engineer and support staff would need to survey the site one or two times. The
team must spend at least five to ten days on each site, bringing overall consulting fees for one site to potentially over
US$20,000.
Household Ability to Pay, Manage, and Maintain Electricity Services

15
5. Household Ability to Pay, Manage, and Maintain Electricity
Services
The range of household monthly spending on electricity and lighting in the surveyed
villages varies among the available sources of electricity and energy for lighting, as well as
among rich, medium-income, and poor households. Moreover, even within each category of
electricity and energy sources, household monthly spending varies depends on the appliances
available and different household habits. The low end of household monthly spending ranges
from 1,000 to 3,750 Kyats per month, but the high end varies significantly from 3,450 to 7,000
Kyats per month. Current monthly spending levels on electricity and other energy for lighting for
rural households is quite high compared to the amount of electricity and lighting the households
actually receive, or when compared to households with access to grid electricity. For example,
households with access to a diesel mini grid would pay 2,000 Kyats per month to power a 20-
watt CFL. The total electricity usage of a 20-watt CFL for 3 hours a day over 30 days amounts
to only 1.8 kilowatt-hours (kWh) per month, meaning that the cost of electricity is about 1,111
Kyats (US$1.23) per kWh. An average household with access to a diesel mini grid owns one or
two lamps and occasionally a small 9-inch television. This means that the maximum total
electricity consumed by such a household is less than 7 kWh per month, for which the
household pays about 5,000 Kyats per month for two lights and one television at a rate of $.80
per kWh.
13
The average cost of electricity delivered to households through the national grid is
currently estimated to be around 75 Kyats (US$0.083) per kWh. Therefore, if electricity from the
grid were priced at 75 Kyats/kWh, rural households which are currently using electricity from
diesel mini grids could afford to pay for and use 36 to 72 kWh of electricity per month.
14
Given
current levels of monthly spending, it is evident that a household could afford to pay up to 1,000
Kyats (US$1.00) per kWh of electricity for alternative sources of electricity.
15

If households were to be given an alternative source of power, they could reallocate their
current spending to acquire the new source of electricity. As shown in Table 1 below, poor
households (accounting for about 25 percent of all households in the 22 selected villages) could
spend between 1,000 to 2,000 Kyats per month on electricity. However, there are a few outlier
households that could spend more. Affordability of households with medium wealth, accounting
for about 49 percent of all surveyed households, ranges from 2,200 to 4,375 Kyats per month. It
is therefore evident that alternative sources of electricity costing outside these ranges of
affordability would require some sort of subsidy.
With respect to the ability to pay upfront costs or provide upfront investment in
households in Mandalay, interviews with households in this region confirm that about 11 percent
of households are able to purchase SHS directly from the market (see Table 1). Field
observations reveal that these households appear to be financially better off than other
households in the village. These households spend about US$80 to US$125 (72,000 Kyats to

13
Electricity tariff for diesel mini grid usually give discount for two lights: 2,000 Kyats for one light, or 3,000 Kyats for
two lights.
14
Currently, households with access to diesel mini grid are paying between 2,700 and 5,400 Kyats per month. At 75
Kyats/kWh, household could use between 36 to 72 kWh of electricity each month.
15
There is one exception: it is not possible to compare the cost per kWh of electricity from a dry cell battery.

16
112,500 Kyats) to purchase one SHS, the sizes of which range from 50 to 80 watt-peak (Wp).
This information has led the team to conclude that financially better off households could spend
between US$80 to US$125 (72,000 Kyats to 112,500 Kyats) in upfront investments for
household energy.

On the other hand, most households in the observed villages in Chin State were found to
be using micro hydro mini grids. Delivery arrangements in all villages require that villagers
contribute to the construction of the villages micro hydro and mini grid. Average contribution
requirements per household range from US$55 to US$90 (50,000 Kyats to 80,000 Kyats).
Interviews with villagers and electricity committees in all villages reveal that at least 30 to 35
percent of the households in the village could pay the required contribution in full. The remaining
households pay by installment and/or up to as much as they can afford. Similar to Mandalay
Region, it appears that a significant portion of households in Chin State are able to spend
upfront investment as high as US$55 to US$90 (50,000 Kyats to 80,000 Kyats).
Table 1: Range of Household Monthly Spending on Electricity and Energy for Lighting
with Household Wealth Classification
Source of Electricity and Energy for
Lighting
Range of Monthly
Spending (Kyat)
Percent of
Households
Wealth
Classification
Low High
Solar PV Home System n/a n/a 11% Very High
Diesel mini grid 2,700 5,400 14% High
LED light powered by dry cell batteries and
some candlelight
2,750 3,450 37% Medium
Car battery power T4 size fluorescent tube
or CFL or LED light
2,200 4,000 5% Medium
Candle and LED light powered by dry cell
batteries or small battery
3,750 4,375 7% Medium
Candle & wick lamp 1,000 6,000* 15% Low
Candle 2,000 7,000* 10% Very Low
Solar lantern n/a n/a 0.30% n/a
Source: Rapid Appraisal and Interviews with Village Chair Persons/Village Officials and Households, October 2013.
*
Households with very high spending number very few, and are considered to be outlier households.
Interviews with village chairpersons, village officials and households confirm that several
villages have significant experience with organizing themselves to manage projects and/or
activities sustainably. Most of these demonstrated experiences include street lighting and
community-owned, diesel-powered mini grids. Villages with such prior experience may be in a
better position to receive immediate help from any proposed assistance activities, since many of
the proposed projects providing renewable energy solutions require an operator to run as well

17
as to manage and maintain the installations. These proposed renewable energy solutions
include solar lantern charging stations and solar PV mini grids. The field survey has confirmed
that seven villages in the Mandalay Region and all visited villages in Chin State have
demonstrated such self-organizing experience. For villages with no experience in organizing
themselves, additional assistance would be required to ensure that villages can manage and
maintain the energy services to be provided under this project. Technical training will be
provided in all cases to ensure that villagers are able to maintain any new equipment and
systems.

Proposed Solutions to Improve Electricity Access for Mandalay Region and Chin State

18
6. Proposed Solutions to Improve Electricity Access for Mandalay
Region and Chin State
As a result of this field study, the team has identified and developed several pilot
projects which will be implemented in Myanmar through the Energy For All Initiative. The largest
project, intended for both Mandalay Region and Chin State, will promote Solar PV Home
Systems (SHS) through an Output-Based Aid (OBA) subsidy with the objective of helping rural
households in both areas overcome the upfront cost of purchasing a SHS. Several smaller pilot
projects are also proposed which will be implemented in specific villages to test different
delivery mechanisms and business models, and help develop best practices for scaling up
renewable energy access in rural Myanmar. These pilot projects have been designed to be
flexible to several factors including least cost of electricity supply alternatives, the readiness of
households and the community to operate and maintain their own electricity services, differing
market approaches, and the sustainability of the provided electricity services. The technologies
and target communities of these smaller pilot projects are more diverse with the intention of
testing financing schemes for solar charging and rental stations and solar PV mini-grid systems
in select villages. This following section will describe these projects and their implementation,
with further detail about the target villages and projects can be found enclosed in Appendices D
and E for Mandalay/Naypyitaw and Chin State, respectively.
6.1 Component 1: Promoting Solar PV Home Systems in Mandalay Region and
Chin State using an Output-Based Aid Subsidy
Estimated Cost: US$85,000
The primary project proposed will be a bi-regional pilot program which uses an OBA
subsidy to promote solar PV home systems (SHS) in households in both Mandalay Region and
Chin State. The proposed SHS promotion will combine market mechanisms and an OBA
subsidy to help rural households overcome the upfront cost of purchasing a system, as well as
to stimulate and to enhance the overall SHS market in both regions.
A field rapid appraisal has confirmed that a market for SHS exists in many districts and
townships in Mandalay Region. Electronic shops in the main markets in Chin State have also
been found to sell SHS.
16
Rapid appraisal has also confirmed that 11 percent of the households
in the 20 selected villages in Mandalay Region are already using SHS, and some households in
Chin State were also found to be using SHS to supplement electricity derived from micro hydro,
or to be using SHS as their main source of electricity. A field rapid appraisal survey confirms
that most households currently using SHS are financially well off, while the main obstacle
among those not yet using solar energy is the high upfront cost of the system. In addition, the
market penetration of SHS is currently limited to villages located near larger townships and/or
districts, since electronic shops selling SHS and related equipment tend to be located in the
main market of larger townships, or in the main market of the districts.

16
The SHS market in Chin State is currently small since solar radiation during the monsoon season is low.
Households in Chin state recognize these limitations to SHS use in their region.

19
While it is possible that the SHS market could expand to smaller townships with a larger
market base, it will take some time for the market mechanism to grow. The bi-regional pilot
project proposed herein could play a major role in helping the SHS market to expand and reach
a greater number of rural households. In addition, the present quality and technical standards of
SHS-related equipment, components, and parts available in the market vary widely. Households
and consumers are not provided with sufficient technical information to help them with making
energy-related decisions, and they lack proper information about maintaining and operating any
systems they do buy. Interviews with rural households currently using SHS have confirmed that
they rely solely on information provided through sale pitches from shop owners and sale-
persons who are promoting SHS. All current SHS users interviewed during the field rapid
appraisal indicated that they just follow the verbal instruction provided by the shop owners and
sale-persons in connecting all of the components and installing the system by themselves. The
proposed pilot project will not only expand the use of SHS and enhance the SHS market, but
also help establish standards and higher quality for SHS-related equipment, and assist and
educate households/consumers to maintain these technologies once acquired.
6.1.1 Output-Based Aid (OBA) Subsidy to Promote Solar PV Home Systems
Through this pilot project, a subsidy will be provided using an OBA approach for every
SHS which is sold to a household/consumer. The amount of the OBA subsidy provided to each
rural household will be dependent on several factors, particularly the households ability and
willingness to pay and the current retail price of SHS, so that any new SHS sold under the pilot
will be able to compete with the SHS currently being sold in the market. The mechanism of the
proposed OBA program is presented in the flow chart in the figure below. Additional detail is
included as Appendix F.

Figure 5: Flow Chart Describing the Proposed OBA Program
!"#$%&'() +,- .)%/&"$01
Ministry of Industries
ADB
Private Supplier
Eligible Households for OBA - Beneficiaries
Installation of
SHS as per
agreed standards
Invoice to ADB for
OBA subsidy after
verification
Payment of OBA
subsidy after
verification
Independent
Verification
Agent
Verification -
Installation of SHS
Reports to ADB/
MOI
3
4
1
5
2

20
It is important to note that the solar systems now being sold in the market consist of low-
cost components and parts, usually using car batteries instead of deep cycle batteries and often
lacking a controller. This cheaper quality ensures that the retail price of SHS systems can be
kept low and affordable to the households, but results in significant operational shortcomings
once installed. Moreover, given the low technical standards involved, current market SHS are
more costly to operate than higher-quality SHS since households must frequently spend money
on battery and parts replacement.
17
In an effort to improve the standards of SHS sold in the
market in Myanmar, all parts and components of SHS which are sold to rural households under
this pilot project will meet higher and more reliable technical standards, which will also have the
effect of making these new solar systems more expensive than those currently available on the
market.
With respect to demand, the teams field visit to the Mandalay Region reveals that
households currently using SHS spend an average of US$80 to US$125 (72,000 Kyats to
112,500 Kyats) on purchasing a SHS. The typical size of the panel bought by households
ranges from 50 Wp to 100 Wp. In Chin State, the field survey team determined that households
contribute an average of US$55 to US$90 (50,000 Kyats to 80,000 Kyats) to construct micro
hydro and mini grid systems in their village. With respect to supply, the typical retail price of a
solar PV panel ranges from only US$1.00 to US$1.25 per one Wp, and the average price of a
car battery ranges from US$30 to US$50 (27,000 Kyats to 45,000 Kyats). Prices quoted by
potential suppliers for higher quality systems that meet international standards are significantly
higher than the typical SHS now sold in the market.
Taking into account current supply and demand in the energy services market, and
considering users ability to pay and the desire to make the pilots SHS price competitive, the
subsidy to be offered to each household will need to be relatively high. Table 2 outlines the
subsidy amounts required based on three pricing scenarios for two sizes of SHS: (i) a 30 Direct
Current (DC) SHS, which is sufficient to provide lighting needs and mobile charging; (ii) a 70 Wp
DC SHS, which could support a 7-9-inch TV and DVD in addition to lighting and mobile
charging; and (iii) a 110 Wp Alternating Current (AC) SHS, which could support a 21-inch LCD
TV and DVD in addition to lighting and mobile charging. As shown in Table 2, the level of
subsidy required for each SHS is about 30-40% percent of the total cost of the system. This
relatively high level of subsidy will be provided to ensure that rural households can afford to pay
for the system, and that the final price paid by the households is competitive to current market
SHS.
This pilot is only proposing to support 30 Wp, 70 Wp and 110 Wp SHS because these
three sizes provide a minimum level of lighting and electricity, and thus will serve the main
intention of the pilot to test the market for small systems which will benefit relatively poor rural
households. Both sizes will include a solar PV panel, a deep cycle maintenance free battery,
controller, mobile phone charger, and two or three LED lights depending on the size of the

17
Car batteries are not designed for deep discharge, and will survive only 5 or 10 cycles, so they are not suitable to
store energy for solar PV application. For solar applications a battery needs to be capable of being discharged
hundreds or even thousands of times. This is the main reason why battery known as a deep-cycle battery used to
store energy for solar PV application.

21
system. The technical specifications of these proposed technologies are enclosed as
Appendices G, H and I for the 30 Wp, 70 Wp and 110 Wp systems, respectively.
Table 2: Budget for Subsidy Requirements for Solar PV Home Systems (SHS) (USD)
Size of Solar
PV Home
System
Estimated
Price of SHS
System
Subsidy
Requirement
per System
Subsidy in
Percentage
of Total
Cost
Per system
Household
Pays
Total
Number
of Units
Estimated
Subsidy
Required
30 Wp, DC 134 54 40% 80 410 22,140
70 Wp, DC 225 100 44% 125 410 41,000
110 Wp, AC 408 122 30% 286 150 18,300
Total 970 81,440
As shown in Table 2, the total budget required for the OBA subsidy payment is
estimated to be US$81,440. This will cover approximately 970 households or systems. Aside
from the OBA subsidy payment, another US$3,560 has been set aside to provide additional
incentives to suppliers selling SHS in Chin State, amounting to approximately US$10 to US$12
per SHS sold. This is intended to incentivize supplier by helping them pay for transportation and
related logistical expenses since most villages in Chin State are located in remote mountainous
regions which are difficult to access. This additional subsidy is only for Chin State and will be
covering approximately 300 installations.
6.1.2 Business Model
Subsidies will be provided to qualified sellers who sell SHS to the
households/consumers. However, to adhere to OBA principles, the sellers will only receive the
subsidy after it has been verified by an independent third party that the SHS has truly been
bought by a household/consumer. Sellers will be required to submit the name, address, and
contact information of each buyer to the project administrator, who will pass this information
along to an independent third party for verification. The independent third party will be required
to verify and confirm that the SHS has been bought by the household/consumer. To ensure that
the SHS being sold under the pilot project meets the projects required technical standards, an
expert from the ADB will develop specifications for the SHS and call for qualified suppliers to
propose an appropriate price of 30 Wp, 70 DC system, and 110 Wp AC systems, including
delivery and installation expenses, to the ADB. Selected suppliers will sell the systems directly
to the households and collect payment at that time which covers only the portion which
households are responsible for paying. Upon independent verification, the suppliers will receive
the balance from the ADB. To ensure competition, it is conceivable that more than one supplier
may be selected to supply SHS through the pilot project.


22
6.2 Component 2: Proposed Pilot Projects in Mandalay Region
Estimated Project Cost: US$ 113,500
In addition to the bioregional OBA program (Component 1), a second component of
ADBs pilot activities will consist of five smaller sub-projects in Mandalay Region. These sub-
projects will be implemented in Thazi, Kyauk Da Daung and Kyoske District in Mandalay
Region. The total cost for all five sub-projects is estimated to be US$113,500, which is budgeted
separately from the cost estimates of the OBA program. The following sections provide
additional information and cost estimates for each sub-project.
6.2.1 Component 2.1: Solar Lantern Charging and Rental Station in Ywar Taw
Village
Estimated Cost US$6,500
Ywar Taw Village is administratively part of Kyaukse Township, Kyaukse District in
Mandalay region. Ywar Taw village is located 1.5 kilometers from the main road and 39.5
kilometers from Kyaukse Township, giving villagers access to the main agricultural products in
the township. There are currently about 84 households living in Ywar Taw village, just two of
whom lack land holdings. Interviews with several villagers reveal that the gap between rich and
poor in Ywar Taw village is significantly lower than other nearby villages. This may be due to the
fact that most households in Ywar Taw village own land and some households own arable land
with access to irrigation.
About 34 households in Ywar Taw Village currently use SHS. The size of these systems
ranges from 80 to 150 Wp. Aside from SHS, about 50 households use car batteries to power
small T4 fluorescent tube, or compact fluorescent lamp or LED light and candle. Almost every
household owns LED light powered by dry cell batteries. Interviews with the households reveal
that there is a battery charging service available for villagers in the village. The battery charging
service provider picks up batteries and takes them to the charging station. The fee for pick up
and charging for one battery is only 500 Kyats, suggesting that the charging station uses
electricity from the grid. Households using car batteries to power LED light indicate that each
charge would provide sufficient electric power for 40 hours for two LED lights. However, the cost
of a car battery could range from 25,000 for a used car battery to over 40,000 Kyats for a new
50 Amp car battery. A used car battery lasts only six months, but a new one lasts about a year.
This means that the cost of lighting using a car battery and two LED lights could range from
7,000-8,000 Kyats per month.
This pilot project proposes setting up a solar lantern charging and rental station to
reduce the financial burden of lighting on households in the village. The teams financial
analysis shows that the rental fee should be set at 2,547 Kyats (US$2.83) per month per
household, or a daily rental fee of 84.90 Kyats (US$0.094), in order to ensure that the total
revenue will meet total investment plus operation and maintenance cost over the lifespan of the
project (seven years); or the net present value (NPV) for the project is positive. Households
living in the village who are using LED lighting powered by dry cell batteries are currently
spending about 7,000 to 8,000 Kyats per month on lighting. Based on their current spending on

23
lighting, subsidies are not needed because household monthly spending on lighting is much
higher than the calculated monthly rental fee.
Table 3: Financial Analysis for Solar Lantern Charging & Rental Station in Ywar Taw
Village
Total equipment cost: US$6,500
Interest rate: 15% per year
Project life: 7 Years
Total number LED lanterns: 50 Lanterns
Exchange rate: 900 Kyats=US$1
Rental fee at cost per month: 2,547.00 Kyats (US$2.83)
Household ability to pay based on current spending: Over 2,600 Kyats (US$2.83)
Total subsidy required per household/month: None
Financial Analysis (in USD)
Year
Equipment
cost
O&M
% of
cost)
O&M
cost
Total
cost
(PV)
Rental
fee at
cost/mo
Total
Revenue
(PV)
Afford-
ability
Subsidy/hh/
month
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 >2.83 0.00
2 - 0.02 130.00 113.04 1,476.52
3 - 0.04 260.00 196.60 1,283.93
4 - 0.06 390.00 256.43 1,116.46
5 - 0.08 520.00 297.31 970.84
6 - 0.10 650.00 323.16 844.21
7 - 0.12 780.00 337.22 734.09
Total 6,000.00 2,795.00 8,088.76 8,124.05
NPV 35.29

Delivery and Business Model: Using a public-private partnership business model, the
project will work with private investors to invest in the solar lantern and charging and rental
station. In this proposed scheme, no subsidy is required since affordability levels are higher than
the calculated rental fee. However, to incentivize the private investor to establish the solar
lantern charging stations, the ADB will provide a 20 percent grant subsidy on its upfront cost.
The regional government of Mandalay is also willing to contribute 10 percent upfront cost and
provide land free of charge to set up the village charging station on a ten-year lease to the
private investor.
6.2.2 Component 2.2: Solar Lantern Charging and Rental Station in Than Taw
Village
Than Taw village is part of Thazi Township is located about three miles off the District
Council road linking Pyaw Pwe and Windwin, situated at the foot of a mountain range near the
Shan State border. There are currently about 225 households living in Than Taw village with a
total population of around 1,117 people. About 100 households in the village do not have land to
plant crops. Landless households in Than Taw village tend to earn their living as farm labor

24
within and outside the village, as well as by collecting forest products. The majority of these
households are relatively poor when compare with other households in the village. Currently,
only 15 households in the village are using SHS, almost all of which are used for lighting and
television. All other households use LED lights powered by dry cell batteries and/or candles.
LED lights are usually bought from the market in Thazi Township. A LED light costs around
1,500 to 2,000 Kyats depending on the size of the light (2, 3, or 4 D-sized dry cell batteries).
Some household use up to nine dry cell batteries and spend about 2,250 Kyats per month for
dry cell batteries, though most households use fewer than nine batteries. For poor households,
candlelight is the only inexpensive option. Interviews with poor villagers confirm that most poor
households try to use only one candle per day. One candle costs 50 Kyats, indicating that poor
households spend less than 2,000 Kyats per month on candles. Typical lighting needs for the
household tend to be one to two hours in the early morning hours and a few hours in the
evening.
This pilot project proposes setting up a solar lantern charging and rental station to
reduce the financial burden of lighting on households in the village. Project financial analysis
shows that the rental fee should be set at 2,547 Kyats (US$2.83) per month per household, or a
daily rental fee of 84.900 Kyats (US$0.094), in order to ensure that the total revenue will meet
total investment plus operation and maintenance cost over the lifespan of the project (seven
years); or the NPV for the project is positive. Poor households living in the village who are using
candles for lighting are currently spending slightly less than 2,000 Kyats per month. Based on
their current spending on lighting, a small subsidy estimated at 547 Kyats (US$0.61) will be
needed since household monthly spending on lighting is slightly less than the calculated
monthly rental fee (see Table 4).


25
Table 4: Financial Analysis for Solar Lantern Charging & Rental Station in Than Taw Village
Household ability to pay based on current spending: 2,000 Kyats (US$2.22)
Total subsidy required per household/month: 547 Kyats (US$0.61)
Financial Analysis (in US$)
Year
Equipment
cost
O&M
(% of
cost)
O&M
cost
Total
cost
(PV)
Rental
fee
(cost/mo)
Total
Revenue
(PV)
Afford
-
ability
Sub-
sidy/hh
/mo
Actual
revenue
per year
(PV)
Actual
subsidy
per year
(PV)
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 2.226 0.61 1,333.33 364.67
2 - 0.02 130.00 113.04 1,476.52 1,159.42 317.10
3 - 0.04 260.00 196.60 1,283.93 1,008.19 275.74
4 - 0.06 390.00 256.43 1,116.46 876.69 239.77
5 - 0.08 520.00 297.31 970.84 762.34 208.50
6 - 0.10 650.00 323.16 844.21 662.90 181.30
7 - 0.12 780.00 337.22 734.09 576.44 157.66
Total 6,500.00 2,795.00 8,088.76 8,124.05 6,379.31 1,744.74
NPV 35.29 0.00
To enable poor rural households to gain access to electric light, subsidies on the upfront
investment cost will be provided. This is to ensure that monthly service fees can be set at 2,000
Kyats (US$2.22) per month (or at the same monthly spending levels as households currently
spend on candles and diesel wick lamps). This will ensure that the net present value of the
project will be positive or at least equal to zero. Financial analysis reveals that a minimum 26
percent subsidy on the upfront cost would be required to ensure that monthly service fees are
set at 2,000 Kyats (US$2.22) and the NPV of the project will be positive (see Table 5).
Table 5: Financial analysis for 26% subsidy on upfront costs in Than Taw Village
Year
Subsidy
upfront 26%
(ADB 16% +
community
10%)
Equipment
cost after
subsidy
O&M rate
O&M
Cost
(PV)
Total
cost
Cost per
unit/mo (in
US$)
(high
affordability)
Total
revenue
(PV)
1 1,720.00 4,780.00 0.01 65.00 4,845.00 2.2200 1,332.00
2 - 0.02 113.04 113.04 1,158.26
3 - 0.04 196.60 196.60 1,007.18
4 - 0.06 256.43 256.43 875.81
5 - 0.08 297.31 297.31 761.58
6 - 0.10 323.16 323.16 662.24
7 - 0.12 337.22 337.22 575.86
Total 4,780.00 1,588.76 6,368.76 6,372.93
NPV 4.17

26
project will work with private investors to invest in the solar lantern charging and rental station.
Since the affordability is relatively high and subsidy requirement is lower than the 30 percent
upfront cost subsidy threshold, the prospective investor will receive an upfront subsidy cost as
high as 30 percent of the total investment cost. Under the proposed business model, ADB is
proposing to provide a 20 percent grant subsidy on the upfront cost to incentivize the private
investor to invest in putting up the solar lantern charging stations. The regional government of
Mandalay is also willing to contribute 10 percent of the upfront cost and provide land free of
charge to set up the village charging station on a ten year lease to the private investor.
6.2.3 Component 2.3: Solar Lantern Charging and Rental Station in Zawin Village
Zawin village is administratively part of Thazi Township, Thazi District, Mandalay
Region. Household interviews reveal that there are currently about 101 households living in
Zawin village, of which eight use SHS. All other households in the village can be classified into
three groups: (i) households using LED lights powered by dry cell batteries and some
candlelight, (ii) households using car/small battery to power LED light or T4 fluorescent tube,
and (iii) very poor landless households that rely mostly on candlelight. To provide better sources
of lighting and electricity to poor households which use candles as their main lighting source, as
well as to test business models for delivering inexpensive sources of electric light, this sub-
project proposes investing in setting up a solar lantern charging and rental station in the village.
The solar lantern charging and rental station will include 50 lanterns, batteries and charging
equipment. Total investment is this sub-project estimated to be about US$6,500.
Project financial analysis shows that rental fees should be set at 2,547.00 Kyats
(US$2.83) per month per household, or a daily rental fee of 84.90 Kyats (US$0.094), in order to
ensure that the total revenue meets total investment plus operation and maintenance cost over
the lifespan of the project (seven years); or the NPV for the project is positive. Analyzing
household monthly expenditure levels reveals that poor landless households living in the village
which use mostly candle for lighting spend about 1,250 Kyats per month on their lighting needs.
Based on these current spending levels, and to ensure that poor landless households can afford
to pay for the lantern rental fee, an appropriate subsidy would be 1,297 Kyats (US$1.44) per
month per household (12,547.00 - 1,250.00 = 1,297). Since the actual rental revenue per month
per household is only 1,250 Kyats (US$1.39) per month, the actual NPV of the rental revenue
over the life of the project is estimated to be 3,588,362.02 Kyats (US$3,987.07); and the total
NPV of the subsidy is estimated to be 3,723,284.43 Kyats (US$4,136.98).


27
Table 6: Financial Analysis for Solar Lantern Charging and Rental Station in Zawin village
Interest rate: 15 Percent per year
Total subsidy required per household/month: 1,297.00 Kyats (US$1.44)
Year
Equipment
Cost
O&M rate
(% of
cost)
O&M
Cost
Total
Cost
(PV)
Rental
fee
(cost/
month)
Total
Revenue
(PV)
Afford-
ability
Subsidy
/hh/mo
Actual
revenue
/hh/year
Actual
subsidy
/year
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 1.39 1.44 833.33 864.67
2 - 0.02 130.00 113.04 1,476.52 724.64 751.88
3 - 0.04 260.00 196.60 1,283.93 630.12 653.81
4 - 0.06 390.00 256.43 1,116.46 547.93 568.53
5 - 0.08 520.00 297.31 970.84 476.46 494.38
6 - 0.10 650.00 323.16 844.21 414.31 429.89
7 - 0.12 780.00 337.22 734.09 360.27 373.82
Total 6,500.00 2,795.00 8,088.76 8,124.05 3,987.07 4,136.98
NPV 35.29

investment cost will be provided. However, to ensure that monthly service fees can be set at
1,250 Kyats (US$1.39) per month (or at the same monthly spending levels as households
currently spend on candles and diesel wick lamps), a subsidy on the upfront cost must be
provided. This will ensure that the net present value of the project will be positive. Financial
analysis reveals that a minimum 63 percent subsidy on the upfront cost will be required to
ensure that monthly service fees are set at 1,250 Kyats (US$1.40) and the NPV of the project
will be positive. Under this business model, private entrepreneurs who are interested in the solar
lantern charging and rental business could work with the project to provide services to villagers,
since prospective investors will be able to expect a reasonable return on his/her investment.


28
Table 7: Financial analysis for 63% subsidy on upfront costs in Zawin Village
Year
Subsidy
upfront 63%
(ADB 53% +
community
10%)
Equipment
cost after
subsidy
O&M rate
O&M
Cost
(PV)
Total
cost
Cost per
unit/mo
(US$)
(high
affordability)
Total
revenue
(PV)
1 4,070.00 2,430.00 0.01 65.00 2,495.00 1.40 840.00
2 - 0.02 113.04 113.04 730.43
3 - 0.04 196.60 196.60 635.16
4 - 0.06 256.43 256.43 552.31
5 - 0.08 297.31 297.31 480.27
6 - 0.10 323.16 323.16 417.63
7 - 0.12 337.22 337.22 363.16
Total 2,430.00 1,588.76 4,018.76 4,018.97
NPV 0.20

project will work with private investors to invest in the solar lantern charging and rental station.
In this proposed scheme, the ADB will provide a 20 percent upfront investment, and the regional
government will provide another 10 percent upfront investment plus land for a minimum ten-year
lease to the private investor. However, the 63 percent upfront subsidy, which will ensure that
household monthly payments for lighting remain at 1,250 Kyats (US$1.40), is higher than the
upfront cost subsidy threshold of 30 percent. To attract private investors, it may be necessary to
increase monthly rental fee and upfront cost subsidy threshold and provide additional incentives
such as tax relief. The table below shows that if the upfront cost subsidy is increased to 40
percent, the monthly rental fee will increase to 1,728 Kyats (US$1.92) per month. The 40
percent upfront subsidy cost appears to coincide with medium level of affordability, which falls in
the range of about 1,600 to about 2,000 Kyats per month.
Table 8: Financial Analysis for 40% subsidy on upfront costs in Zawin Village
Year
Subsidy
upfront 40%
(ADB 30% &
community
10%
Investment
after
subsidy
O&M
rate
O&M Cost Total cost
Cost per
unit/mo (in
US$)
Total
Revenue
1 2,600.00 3,900 0.01 65.00 3,965.00 1.92 1,152.00
2 - 0.02 113.04 113.04 1,001.74
3 - 0.04 196.60 196.60 871.08
4 - 0.06 256.43 256.43 757.46
5 - 0.08 297.31 297.31 658.66
6 - 0.10 323.16 323.16 572.75
7 - 0.12 337.22 337.22 498.04
Total 3,900 1,588.76 5,488.76 5,511.72
NPV 22.96


29
Table 9: Affordability for Electricity/Lighting Energy Classification (Zawin Village)
Sources of Electricity or Lighting
Energy
Percent of
Households
Monthly Spending
(Kyat)
Average Size of
SHS
Solar PV home system (SHS)
users
8% N/A 200-250 Wp
LED light powered by dry cell
batteries and some candle
About 60 to 70%
1,500 to 2,000 n/a
Car/small battery power T4 size
Fluorescent tube or CFL or LED
light
2,500
Candle (very poor land less
households)
<38% 1,000 to 1,500 n/a
Total 101 Households

6.2.4 Component 2.4: Solar PV Mini-Grid in Young Kyin Village
Young Kyin village is administratively part of Kyauk Da Daung Township, Mandalay
Region. The village is located about 25 miles from the Township. It is currently comprised of
about 57 households for a total population of about 313 persons. None of the households in the
village use SHS. Their main source of lighting is almost universally candlelight, but a handful of
households use small car batteries. In recent years, households in the village have stopped
using simple diesel wick lamps, though these lamps can still occasionally be found. Since
candles are the main source of lighting for most village households, and candles emit very low
luminaire, households in the village tend to use many candles to satisfy their lighting needs.
Interviews with villagers reveal that households use an average of five candles per day, mostly
in the evening hours (6:00pm to 9:30pm), but also one candle in the morning (4:30am to
5:30am). Each candle costs 50 Kyats, so total household monthly spending per month on
candlelight amounts to 7,500 Kyats (USD$7.60) per month. At this spending rate, monthly
spending for lighting in households in Young Kyin village is higher than all other villages
surveyed for the project. On the other hand, these households receive the least luminaire since
candles emits less lumen than all other type of light. Unlike households in other villages,
households in Young Kyin Village are not interested in using LED light powered by dry cell
batteries. The team learned that one household in the village tried LED before, but it only lasted
two months before breaking down. It was evident from the focus group interview that all but one
participating household have negative views about LED light.
To increase village access to light and electricity, as well as to test business models for
delivering and maintaining electricity services to rural households far away from the grid, this
sub-project proposes setting up a solar PV mini-grid for households in Young Kyin Village. The
total cost of this sub-project is estimated to be US$54,000. The proposed solar mini-grid will be
designed to provide AC electricity to 60 households for five hours per day and community load.
The peak load of solar PV system will be 10 kW, with maximum demand of each household
assumed to be 150 Watts with 10 street lights as there is no other load observed in village.

30
Project financial analysis indicates that the average monthly tariff per household should
be set at 17,568 Kyats (US$19.52) in order to ensure that the total revenue meets total
investment plus operation and maintenance costs over the lifespan of the project (seven years);
or the NPV for the project is positive. Analyzing household monthly expenditure reveals that
households living in the village are spending about 6,500 Kyats (US$7.22) per month for
lighting. Based on these current spending levels, and to ensure that poor households in the
village can afford to pay the electricity tariff, a subsidy should be provided at around 11,070
Kyats (US$12.30) per month per household (17,570.00 - 6,498.00 = 11,070.00). Since the
actual tariff revenue per month per household is only 6,500 Kyats (US$7.22), the actual net
present value of revenue over the life of the project is estimated to be 22,384,489 Kyats
(US$24,871.65): and the NPV of the subsidy is estimated to be 38,094,578 Kyats
(US$42,371.38) over the lifespan of the project (seven years).
Table 10: Financial Analysis for Solar PV Mini-Grid in Young Kyin Village
Interest rate: 15 percent per year
Total size of solar PV mini grid: 12 kW
Average monthly Tariff: 17,570 Kyats (US$19.52)
Total required subsidy per household/month: 11,070.00 Kyats (US$12.30)

Year
Equipment
Cost
O&M
rate (%
of cost)
O&M Cost
Total Cost
(PV)
Tariff
per
mo
Total
Revenue
(PV)
Afford
-
ability
Sub-
sidy
Actual
revenue
(PV)
Actual
subsidy
(PV)
1 54,000.00 0.01 540.00 54,540.00 19.52 14,054.40 7.22 12.30 5,198.40 8,856.00
2 - 0.02 939.13 939.13 12,221.22 4,520.35 7,700.87
3 - 0.04 1,633.27 1,633.27 10,627.15 3,930.74 6,696.41
4 - 0.06 2,130.35 2,130.35 9,241.00 3,418.03 5,822.96
5 - 0.08 2,469.97 2,469.97 8,035.65 2,972.20 5,063.45
6 - 0.10 2,684.75 2,684.75 6,987.52 2,584.52 4,403.00
7 - 0.12 2,801.48 2,801.48 6,076.10 2,247.41 3,828.69
Total 54,000.00 13,198.96 67,198.96 67,243.03 24,871.65 42,371.38
NPV 44.07

To enable poor rural household to gain access to electricity, subsidies on the upfront
investment costs will be provided which will ensure that the monthly electricity tariff can be set at
6,500 Kyats (US$7.22) per month (i.e. at the same level as households currently spend per
month on candles and diesel wick lamps). This will ensure that the NPV of the project will be
positive. Financial analysis reveals that a minimum 79 percent subsidy on the upfront cost
would be required. This will ensure that the monthly electricity tariff can be set at 6,480 Kyats
(US$7.22) and the NPV of the project is positive. Under this business model, private
entrepreneurs who are interested in owning and operating the solar PV mini grid could work with

31
the project to provide services to villagers, since a prospective investor will be able to expect a
reasonable return on his/her investment.
Table 11: Financial Analysis for 79% subsidy on upfront costs in Young Kyin Village
(US$)
Year
Subsidy upfront
cost 79%
(ADB 69% +
Regional Govt
10%)
Equipment
cost after
subsidy
O&M
rate
O&M Cost
Total cost
(PV)
Electricity
Tariff/mo
(US$)
(Low
Affordability)
Actual
revenue
1 42,400.00 11,600.00 0.01 540.00 12,140.00 7.22 5,184.00
2 - 0.02 939.13 939.13 4,507.83
3 - 0.04 1,633.27 1,633.27 3,919.85
4 - 0.06 2,130.35 2,130.35 3,408.56
5 - 0.08 2,469.97 2,469.97 2,963.97
6 - 0.10 2,684.75 2,684.75 2,577.36
7 - 0.12 2,801.48 2,801.48 2,241.19
Total 11,600.00 13,198.96 24,798.96 24,802.76
NPV 3.79
project will work with a private investor to invest, operate and manage the solar PV mini grid.
ADB will provide 50 percent upfront investment, and the regional government will provide an
additional 10 percent upfront investment cost. However, financial analysis shows that the
required upfront subsidy level, i.e. the level at which household monthly payment for lighting
would remain the same as before, is significantly above the 60 percent subsidy threshold.
Therefore, to attract private investors, it may later be necessary to increase monthly electricity
tariffs and/or provide other additional incentives such as tax relief.
Tables 10 and 11 below provide two other affordability scenarios (high and medium
affordability) and the respective requirement for subsidies on the upfront investment cost (60
and 70 percent). These affordability scenarios are based on current expenditure levels for
lighting in households living in comparable villages among all the villages surveyed by the
appraisal team.


32
Table 12: Financial Analysis for 60% subsidy on upfront costs - Young Kyin village (US$)
Year
Subsidy
upfront cost
60%
(ADB 50% +
Regional
Govt 10%)
Investment
after
subsidy
O&M rate O&M Cost Total cost
Tariff per
month (US$)
for NPV>0
Revenue
per year
(US$)
1 32,400.00 21,600.00 0.01 540.00 22,140.00 10.11 7,279.20
2 - 0.02 939.13 939.13

6,329.74
3 - 0.04 1,633.27 1,633.27

5,504.12
4 - 0.06 2,130.35 2,130.35

4,786.19
5 - 0.08 2,469.97 2,469.97

4,161.91
6 - 0.10 2,684.75 2,684.75

3,619.05
7 - 0.12 2,801.48 2,801.48

3,147.00
Total 21,600.00

13,198.96 34,798.96

34,827.21

28.24
Table 13: Financial Analysis for 70% subsidy on upfront costs - Young Kyin Village (US$)
Year
Subsidy
upfront cost
70%
(ADB 60% +
Reg Govt
10%)
Investment
after
subsidy
O&M rate O&M Cost
Total cost
(PV)
Tariff per
month (US$)
for NPV>0
Revenue
per year
(in US$)
1 37,800 16,200.00 0.01 540.00 16,740.00 8.54 6,148.80
2 - 0.02 939.13 939.13 5,346.78
3 - 0.04 1,633.27 1,633.27 4,649.38
4 - 0.06 2,130.35 2,130.35 4,042.94
5 - 0.08 2,469.97 2,469.97 3,515.60
6 - 0.10 2,684.75 2,684.75 3,057.04
7 - 0.12 2,801.48 2,801.48 2,658.30
Total 16,200.00 13,198.96 29,398.96 29,418.83
19.86

6.2.5 Component 2.5: Solar PV Mini-Grid in Ye Ngan Village
Yengan village is administratively part of Kyauk Da Daung Township. It is located nearly
30 miles from the Township center. To travel to Kyauk Da Daung Township, or to transport
agricultural products from the village to the Townships main market, villagers can ride the light
truck belonging to one of the villagers in the village. There are 38 households living in Yengan
village for a total population of about 250 persons. About ten households in the village own less
than one acre of land, and are effectively considered landless households in Yengan. Without
land to farm and no employment opportunities in any other sector, these landless households
are poor and earn their living through farm labor both within and outside the village. They also
collect firewood, bamboo shoots and other forest products for sale. Arable land in the village
totals about 100 acres, all of which is rain-fed. The main crops grown by households in the

33
village are sesame, peanut, pea, and corn. Income from agriculture last year was low due to
drought, and this year the rain arrived much later than usual.
None of the households in the village currently use SHS. The primary lighting source for
nearly all households in the village is candlelight. Only three households were found to use LED
lights powered by dry cell batteries. Since candles are the main source of lighting for most
households in the village, and candles emit very low luminaire, households in the village tend to
use many candles to satisfy their daily needs. Interviews with villagers reveal that households
use an average of 4 to 5 candles per day mostly for the evening hours (6:00pm to 9:30pm), and
use one candle in the morning (4:30am to 5:30am). Each candle costs 50 Kyats, so total
monthly household spending on candles amounts to 7,000 Kyats (USD$7.09) per month. At
7,000 Kyats per month, monthly household spending for lighting in Yengan village is on the
higher side of other villages surveyed for the project. On the other hand, these households
receive the least luminaire since candles emit less lumen than any other type of light.
delivering and maintaining electricity services to rural households living far away from the grid,
this sub-project proposes setting up a solar PV mini-grid for households in Ye Ngan Village. The
designed to provide AC electricity to 40 households for five hours per day. The peak load of the
solar PV system will be 8 kW, with maximum demand for each household assumed to be 150
Watts, ten street lights, and one monastery.
Project financial analysis shows that average monthly tariffs per households should be
set at 19,530.00 Kyats (US$21.70) in order to ensure that the total revenue meets total
or the net present value for the project is positive. It is important to note that the electricity tariff
for Ye Ngan is higher than for Young Kyin village since the expected total customers only
amount to 40 households, as opposed to 60 households in Young Kyin Village. Analyzing
household monthly expenditure levels reveals that households living in the village are spending
about 7,000 Kyats (US$7.78) per month on lighting. Based on their current spending on lighting,
and to ensure that poor households in the village can afford to pay the electricity tariff, a subsidy
should be provided at around 12,530 Kyats (US$13.92) per month per household (19,530.00-
7,000=12,530). Since the actual tariff revenue per month per household is only 7,000 Kyats
(US$7.78), the actual NPV of revenue over the life of the project is estimated to be
16,080,454.95 Kyats (US$17,867.17), and the NPV of the subsidy is estimated to be
28,771,200 Kyats (US$ 31,968.00) over the lifespan of the project (seven years).


34
Table 14: Financial Analysis for Solar PV Mini-Grid in Yengan Village
Average monthly Tariff: 19,530.00 Kyats (US$21.70)
Total required subsidy required per household/month: 12,530.00 Kyats (US$13.92)

Year
Equipment
Cost
O&M
rate
(% of
cost)
O&M Cost
Total Cost
(PV)
Tariff
per mo
Total
Revenue
(PV)
Afford-
ability
Sub-
sidy
Actual
revenue
(PV)
Actual
subsidy
(PV)
1 40,000.00 0.01 400.00 40,400.00 21.70 10,416.00 7.78 13.92 3,734.40 6,681.60
2 - 0.02 695.65 695.65 9,057.39 3,247.30 5,810.09
3 - 0.04 1,209.83 1,209.83 7,875.99 2,823.74 5,052.25
4 - 0.06 1,578.04 1,578.04 6,848.69 2,455.43 4,393.26
5 - 0.08 1,829.61 1,829.61 5,955.38 2,135.16 3,820.23
6 - 0.10 1,988.71 1,988.71 5,178.59 1,856.66 3,321.94
7 - 0.12 2,075.17 2,075.17 4,503.12 1,614.48 2,888.64
Total 40,000.00 9,777.01 49,777.01 49,835.17 17,867.17 31,968.00
NPV 58.16

investment cost will be required to ensure that the monthly electricity tariff can be set at 7,000
Kyats (US$7.78) per month (i.e., at the same levels as current household monthly spending on
candles and diesel wick lamps). This will ensure that the NPV of the project is positive. Financial
analysis reveals that a minimum of 88 percent subsidy on the upfront cost would be required to
ensure that the electricity tariff per month could be set at 7,000 Kyats (US$7.78) and the NPV of
the project is positive. Financial analysis which caps maximum tariff at the affordable level
shows a very high level of upfront cost requirement. This is due to a combination of factors in
addition to low affordability, including high cost of investment and relatively low number of
household customers to spread the cost and increase revenue.


35
Table 15: Financial Analysis for 88% subsidy on upfront costs in Yengan Village (USD)

project is proposing to work with private investors to invest in the solar PV mini grid system. In
this proposed scheme, the ADB will provide a 50 percent upfront investment, and the regional
government will provide an additional 10 percent upfront investment cost. However, financial
analysis shows that the required upfront subsidy level, i.e. the level at which household monthly
payment for lighting would remain the same as before, is significantly above the 60 percent
subsidy threshold. Therefore, to attract private investors, it may later be necessary to increase
monthly electricity tariffs and/or provide other additional incentives such as tax relief.
Tables 14 and 15 below provide two other affordability scenarios (medium and high
affordability) and the respective requirement for subsidies on the upfront investment cost. These
affordability scenarios are based on current lighting expenditures in similar villages.

Year
Subsidy
upfront cost
88%
(ADB 78% +
Regional Govt
10%)
Equipment
cost after
subsidy
O&M
rate
O&M Cost
Total cost
(PV)
Electricity
Tariff/mo (US$)
(low
affordability)
Actual
revenue
1 35,290.00 4,710.00 0.01 540.00 5,250.00 7.80 3,744.00
2 0.02 939.13 939.13 3,255.65
3 0.04 1,633.27 1,633.27 2,831.00
4 0.06 2,130.35 2,130.35 2,461.74
5 0.08 2,469.97 2,469.97 2,140.64
6 0.10 2,684.75 2,684.75 1,861.43
7 0.12 2,801.48 2,801.48 1,618.63
Total 13,198.96 17,908.96 17,913.10
NPV 4.14

36
Table 14: Financial Analysis for 70% subsidy on upfront costs - Yengan Village (US$)
Year
Subsidy
upfront cost
70%
(ADB 60%;
Regional
Govt 10%)
Investment
after
subsidy
Tariff/month
(US$) for
NPV>0
Revenue/year
(US$)
1 28,000.00 12,000.00 0.01 540.00 12,540.00 10.98 5,270.40
2 - 0.02 939.13 939.13 Med afford 4,582.96
3 - 0.04 1,633.27 1,633.27 3,985.18
4 - 0.06 2,130.35 2,130.35 3,465.37
5 - 0.08 2,469.97 2,469.97 3,013.37
6 - 0.10 2,684.75 2,684.75 2,620.32
7 - 0.12 2,801.48 2,801.48 2,278.54
Total 12,000.00 13,198.96 25,198.96 25,216.14
17.17

Table 15: Financial Analysis for 60% subsidy on upfront costs - Yengan village (US$)
Year
Subsidy
upfront
cost 60%
(ADB 50%;
Regional
Govt 10%)
Investment
after subsidy
O&M rate
O&M
Cost
Total cost
Tariff/month
(US$) for
NPV>0
Revenue/year
(US$)
1 24,000.00 16,000.00 0.01 540.00 16,540.00 12.72 6,105.60
2 - 0.02 939.13 939.13 Hi afford 5,309.22
3 - 0.04 1,633.27 1,633.27 4,616.71
4 - 0.06 2,130.35 2,130.35 4,014.53
5 - 0.08 2,469.97 2,469.97 3,490.90
6 - 0.10 2,684.75 2,684.75 3,035.56
7 - 0.12 2,801.48 2,801.48 2,639.62
Total 16,000.00 13,198.96 29,198.96 29,212.14
NPV 13.17


37
6.3 Timeline Moving Forward
ADB is currently preparing the procurement documents for the OBA program and
smaller subprojects with plans to launch and tender the projects in the first quarter of 2014.
More information will also be provided at ADBs International Investor Forum for Off-Grid
Renewable Energy Opportunities, to be held in Naypyitaw from 21-22 March 2014.
Figure 6: Schedule for current activities under Energy For All energy access projects in
Myanmar

Conclusions and Next Steps

38
7. Conclusions and Next Steps

A study was conducted under the Asian Development Banks Energy For All Initiative
to scope opportunities for expanding rural energy access in Myanmar, Mandalay Region and
Chin State. This study was intended as a rapid assessment of current energy poverty levels in
the two regions. This information will provide the basis for implementing small-scale pilot
projects aimed at testing renewable energy technologies, business models and financing
mechanisms in rural markets of Myanmar, thus leading the way towards a larger investment
program in Myanmars rural energy sector. These activities have been undertaken on behalf of
the Government of Myanmar with funding from the ADB RETA 7512 Empowering the Poor
through Increasing Access to Energy.
This report has presented the teams findings with regard to the socioeconomic
conditions of villages in these areas, and proposes specific pilot programs which will be
implemented in Mandalay and Chin State. The total cost of all proposed projects is together
estimated to be about US$321,890. The Asian Development Bank is now preparing the
procurement and implementation of these pilot projects, which will be rolled out over the course
of 2014. These proposed projects include:
1. Provision of solar PV home system (SHS) using an Output-Based Aid approach
(30,70 Wp DC and 110 Wp AC system covering approximately 1,000 households);
2. Solar lantern rental and charging station (3 stations);
3. Installation of approximately 8 kW and 10 kW Solar PV mini-grid for 40 and 60
households, respectively (2 villages);
The scale, subsidy, and overall budget for each of these project components is provided
in summary in the table below. It is hoped that through these activities, appropriate technologies
and delivery methods will be developed which can assist the Government of Myanmar in
reducing energy poverty across the country.

Conclusions and Next Steps

39
Table 16: Summary of Proposed Projects and Project Cost by Village/Location
No District
Town-
ship
Village
Estimated
# of HHs
Proposed
Tech-
nology
Estimated
Total
Project
Cost
(US$)
Proposed
Total
Subsidy
(%)
Estimated
Regional
Govt
Contribution
10%
(US$)
Estimated
Assistance
from ADB
(US$)
Remarks
1
13 villages in Mandalay
Region,
2 villages in Nay Pyi Taw
4 villages in Hakka Township
and whole Hakka city
970 Units
SHS Using
Output Aid-
Based
208,390 30-40 None 85,000

HH will pay
60%-70%
directly to
supplier
3 Kyaukse
Kyauk
se
Ywar
Taw
84
Solar
lantern
rental and
charging
station
6,500 30 650 1,300
Fixed rent
collection
from HH
4 Thazi Thazi
Than
Taw
225
Solar
lantern
rental and
charging
station
6,500 30 650 1,300
Fixed rent
collection
from HH
5 Thazi Thazi Zawin 101
Solar
lantern
rental and
charging
station
6,500 30 650 1,300
Fixed rent
collection
from HH
6
Kyauk
Da
Daung
Kyauk
Da
Daung
Young
Kyin
57
Install 12
kW Solar
PV mini-
grid for 60
households
54,000 60 5,400 27,000
Fixed tariff
collection
from HH
on monthly
basis
7
Kyauk
Da
Daung
Kyauk
Da
Daung
Ye
Ngan
40
Install 8-10
kW Solar
PV mini-
grid for 40
households
40,000 60 4,000 20,000
Fixed tariff
collection
from HH
on monthly
basis
Estimated Total Cost 321,890 11,350 135,900
*Note: Total subsidy from ADB includes US$81,440 for SHS and another US$3,560 incentive to encourage suppliers
to sell SHS in Chin State. It is estimated that about US$10-12 incentive per SHS will be provided.

APPENDIX A
40
APPENDIX A: Detailed Descriptions of Surveyed Villages in Mandalay
Region and Naypyitaw Territory
Village: Pyaw Ywa and Pe Tauk Gone
Township: Tauk Gone
District: Daltaya Thi
Region: Naypyitaw
Location:
These two villages are located in Naypyitaw Union Territory. Both villages are located
about three kilometers from the main road (old Mandalay Yangon road). There is no public
transportation from the villages to the main road or Tauk Gone Township, which is about 4.5
kilometers away.
Although these two villages are not located in Mandalay Region, these two villages were
recommended for assessment by Myanmars Ministry of Industry. These two villages are
located next to each other at the border between Mandalay and Naypyitaw Region.
Socio-Economic Characteristics:
There are about 500 households currently living in these two villages. However, about
350 of those households reside in the village-year round, with the remaining 150 households
being part-year residents. Most of these part-time residents live in the area eight to nine months
a year; a few part-time households live in the area six month in a year. The total population is
estimated to be around 2,500 persons. Major economic activities of households in two villages
include growing rice, cotton, and chili. Total arable land in the two villages is estimated to be
around 600 acres, but only a third of this arable land is low land. In addition, none of the arable
land has access to irrigation. As a result, farmers in the two villages rely on rain and can only
grow one crop a year. To reduce the risk of low price for some crops or crop failure, all
households plant at least two or three plants in each growing season (monsoon season). The
average total arable land available to each household to grow rice, cotton, and chili is about 1.5
acres including both upland and low land which is usually used to grow rice. None of the
households in the village use tractors, walking tractors or walk-behind power tillers. Oxen are
still used by every farming-household; approximately 50 percent of farming households own
oxen, and non-owning households are able to rent oxen as necessary. The lack of oxen for
agricultural activities also suggests that these households do not have any liquid assets. This is
because livestock ownership is the means (to make a living) for agricultural activities as well as
a form of liquid asset for most farmers that do not use any machinery for agricultural activities.
Given the limited amount of arable land and only one growing season during the
monsoon, household income from agriculture for significant number of households in the
villages tends to be low especially among households with the smaller plots of land. As a result,
many households work as laborers at the stone quarries or as construction workers in
APPENDIX A
41
Naypyitaw City to earn supplemental income. Unfortunately, due to the drought during the past
3-4 years, more and more households have had to seek employment outside the villages.
Moreover, due to the drought, landless households who used to be able to work as farm labor in
the villages have been forced to work and live up to six months a year outside the village. The
two main employers in the area are stone quarry industries and construction in Nya Pyi Taw
city. Salary for the construction workers and laborers at the quarry site is a daily wage of 1,200
Kyats for men and 1,000 Kyats per day for women.
Energy Used for Lighting and Cooking:
It appears that the gap between rich and poor in these two villages is quite wide.
Approximately 100 households out of the 500 households in the two villages appear to be better
off than the rest of the households. These 100 households use solar PV home system (SHS) as
the source of electricity. Information collected during the focus group interview among selected
villagers reveals that many of these SHSs are not functioning well due to the fact that users add
more electric appliances to the solar PV home system. This finding confirms that SHS users
need better information regarding proper use of SHS. Interviews with villagers confirm that
households with SHS tend to be financially better off than other households that do not use
SHS. The cost of 80 Wp SHS including car battery and an inverter is about 110,000 Kyats.

The vast majority of households the remaining 400 households in these two villages
cannot afford SHS. These households use candle and/or simple diesel wick lamp as their main
lighting sources. On average, each household spends approximately 700 Kyats per month for
lighting which includes two packs of small 32 candles. The candles cost 150 Kyats per pack. In
addition, the households spend 400 Kyats for 350 ml of diesel fuel. The fuel costs about 1,300
Kyats per liter. Households that participated in the focus group interview indicated that two
candles and a small amount of diesel fuel is used for lighting from 4:30am to 5:30am in the
morning and from 6:30pm to 8:30pm or 9:00PM in the evening. However, in the morning only
one or two candles would be used as light in the kitchen to prepare food.
Firewood is used for cooking. None of the households buy firewood; instead, households
spend about 2-3 hours in the morning collecting firewood which is enough for the whole week.
Typical Simple Diesel Wick Lamp Used by Villagers Home with Solar PV Home System in the Village
APPENDIX A
42
Affordability for Electricity/Lighting Energy Classification
(Pyaw Ywa and Pe Tauk Gone Village)

Public Institutions:
School: These two villages have one public primary school, starting from first to fifth
grade. A total of eight teachers are assigned to teach at the school. Currently about 300 children
are enrolled in school. There is a plan to extend the school to the eighth grade by 2016. The
school does not have a dormitory for the teachers to live in. Currently, school officials do not see
the need for electricity.
Public Health Center: There is no public
health center in either village.
Temple/Monastery: The temple has an
electric generator set.
Water Supply: During the rainy season
(July to October), households in the two villages
rely on rain water and one dug well located in the
village. However, during the dry season villagers
must travel to another village, or use hand pump
tube well at the temple to fetch water. Villagers
indicated that water is a big problem during the dry
season (November to June). Most households
assign one person in the household to be
responsible for fetching water; most households own and use wooden barrel to carry water.
Total time required to fetch water during the dry season is about an hour.
Organized Permanent Public Services/ Committees: Villagers have limited
experience with organized public services, since most of the organized public services that
villages have set up in the past have been on an ad hoc basis.
Proposed Project: SHS under Output-Based Aid (OBA) program.
Energy
Percent of
Households
Monthly
Spending
Solar PV home system (SHS) users 20% n/a
Candle and simple diesel wick lamp 80% 700 Kyat
Total 500
Wooden Barrel Used to Transport and Collect Water
APPENDIX A
43
Village: Shwe Taung
Township: Wuntwin
District: Meikhtila
Region: Mandalay
Location:
Shwe Taung village is located along the main highway (old Mandalay Yangon road),
and is only four miles from the grid.
About 200 households are currently living in Shwe Tuang village. In fact, the Shwe
Taung village is one of the villages in the village tract (clusters of four villages) with a total
population of about 800 households. Socio-economic characteristics of the Shwe Taung village
appear to be mixed between farming and trading. This is due to the villages strategic location
along the major highway (old highway between Mandalay and Yangon). Since traders and
merchants tend to earn more income than farming, households in this village appear to be
financially better off than other villages that rely solely on farming. Additional evidence which
indicates that households in Shwe Taung village are financially better off than all other surveyed
villages is shown by the total household monthly spending on electricity and lighting.
About half of the households in Shwe Taung village have been receiving electricity
service from privately owned diesel gen-set mini grid for about 10 years.
18
Electricity services
from private diesel gen-set are available only from 6:00 to 9:00 pm. Focus group interview with
households in the villages reveal that electricity services are not good. Electric generator system
often breaks down; households are often left without electricity for up to a week. All households
that are connected to village mini grid have to spend an average of about 2,000 Kyats per
month for dry cell battery and candle. The most popular supplemental electric light that
households tend to choose is the dry cell battery run LED light. Some households use a small
motorcycle battery to power a few watts direct current (DC) incandescent light bulbs. Electricity
tariff from private gen-set is set at 3,000 Kyat/month for 20 watts fluorescent tube, and 5,000
Kyat/month for television and DVD. However, for households that have both television and DVD
and one light, electricity tariff is reduced to 7,000 Kyats per month. Most households in Shwe
Taung village pay 4,000 or 7,000 Kyats per month, which means that most households use two
lights or one light and TV and DVD. Total monthly electricity bills for most households, including
electricity from private gen-set mini grid and the supplemental lighting expenditure, is estimated
to be as high as 9,000 Kyats per month. It is important to note that the existing mini-grid has
already reached the maximum load and can no longer add any more users. The owner
indicated that he has no plan to upgrade the system because there is not much profit to be
made.

18
There are three other private gen-set mini grids operating in three other nearby villages as well. It is important to
note that in all of the cases, the distribution lines of these mini grids are sub-standard and in most case unsafe.
APPENDIX A
44
The half of the households in Shwe Taung village that are not connected to mini grid use
SHS or LED light powered by dry cell batteries and candle. It is estimated that 10 percent of the
households in the village use SHS that with sizes ranging from 200 to 300Wp. There are also a
few households that use 30 or 50Wp SHS. Villagers indicated that the cost of 200 Wp SHS
including two-12 volts, 75 amp car batteries and an inverter costs around 500,000 Kyats. The
remaining 40 percent of the village households use LED light powered by dry cell batteries and
candle.
Firewood and charcoal are used for cooking; some households buy firewood or combine
buying with collecting firewood.
Affordability for Electricity/Lighting Energy Classification (Shwe Taung Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Diesel gen-set mini grid 50% 9,000 n/a
users
10% N/A 200-300 Wp
30% 5,000 to 6,000 n/a
Candle and some LED light
powered by dry cell batteries
10% 3,000 n/a

Public Health Center: There is one public health center in the village. This health center
provides public health services to several nearby villages. It is strategically located along the
main highway, which means that it has a large clientele. Currently, public health center is
connected to private diesel mini grid and has only one electric light outside the building. There is
no electric light inside the building, including the delivery room. The health center is also a
designated birthing center; delivering babies during the night is carried out using LED lights
powered by dry cell batteries. One person must carry the light for the midwife to deliver the
baby.
Temple: The temple has an electric generator set.
School: The school has no access to electricity.
Organized Permanent Public Services/Committees: Villagers have limited
experiences with organized public services, since most of the organized public services that
villages have set up in the past have been on an ad hoc basis. However, the private sector is
well established. A private investor has been providing electricity services for about 10 years.
APPENDIX A
45
Proposed Project:
19
SHS under Output-Based Aid (OBA) program

19
Since the village is located only four miles from the grid, it is not qualified for off-grid electrification. During the focus
group discussion with the villages, villagers requested that the project should at least consider providing electric light
for the public health center and/or street lights.
batteries in use at the Health Center
APPENDIX A
46
Village: Nasu
Township: Kyaukse
District: Kyaukse
Region: Mandalay
Location:
Nasu village is located just off the main road, only 38 kilometers from Kyaukse
Township. There is a public bus services which passes by the village on the way to Kyaukse
Township. The bus runs about 10 trips per day; a one-way bus fare to the Township is 400 Kyat.
In addition, there are also three wheelers for hire which villagers can use to transport
agricultural products from the village to the main market in Kyaukse Township. The three
wheelers transportation services is operated by one of the villagers in the same village. The fare
for transporting agricultural product is 300 Kyats for 30 Viss bag (one Viss is equal to 1.65
kilogram).
Currently there are about 65 households living in Nasu village. The total population is
estimated to be around 302 persons. Nasu is considered to be a farming village, though about
20 households have no land to plant crops. Although the total arable land for the village is
estimated to be 847 acres, only 250 acres are owned by about 45 households that are currently
living in the village. More than three quarters of arable land in the village are owned by land
owners outside the village. The average size of land owned by the 45 households currently
living in the village is less than five acres, but a few households own up to 18 acres. All 20
landless households earn their living as farm labor, and a few households are making pottery.
The gap between rich and poor households in the village is clearly visible. Poor households
tend to be landless with small or no grown up children to work as farm labor to help earning
income for the family. The most popular farm labor jobs are tending cow for large dairy farmers
and working for other land owners in the field. Main crops grown in the village include beans,
pea, chic-pea, corn sesame, tapioca, and banana. Most households can only grow their crops
once a year during the monsoon season. However, most households grow several plants to
reduce risk. Moreover, due to the proximity of the village to the township, villages have direct
access to the main market of agricultural products in Kyaukse Township.
More than 20 households in the village use SHS with sizes ranging from 80 to 150Wp.
The remaining use LED light powered by dry cell batteries, and a small minority of the
households use candle. One villager whose household uses 80Wp SHS indicated that his
system cost 110,000 Kyats including car battery and an inverter. Regarding household that use
LED light powered by dry cell batteries, interviews with the households reveal that a small size
LED light cost around 1,300 Kyats, and can last up to 5 or 6 months. Households usually
purchase LED light at the market in Kyaukse Township. In term of operating cost, a set of two
D-size dry cell batteries for the small size LED light could last up to 2 weeks, provided that LED
light is turned on no more than four hours a day. A pair of D-size dry cell battery costs
APPENDIX A
47

500 Kyat. It is important to note that some households also supplement LED light with candles.
In sum, the total monthly cost of lighting is estimated to be around 1,500 to 2,000 Kyats per
month including the cost of replacing the LED lights and candles.

Firewood and charcoal are used for cooking. Some households opt to purchase
firewood.
Affordability for Electricity/Lighting Energy Classification (Nasu Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
users
30% N/A 80-150 Wp
70% 1,500 to 2,000 n/a
Total 65 Households

School: The village has one primary school. Currently, the school has no need for
electricity.
Public Health Center: There is no public health center in the village. The nearest public
health center is located two miles away in Dwehal village.
Temple/Monastery: The temple has an electric generator set.
Car Batteries being charged without controller Dry Cell Batteries Powered LED Light (Small Size)
APPENDIX A
48
Water Supply: The village has no problem with water supply. There are 12 hand pump
tube wells in the village. Villager can also use one hand pump tube well at the temple or use a
deep well equipped with small electric pump at the temple.
Organized Permanent Public Services/Committees: Villagers have limited
experiences with organized public services, since most of the organized public services in the
past have been set up on an ad hoc basis.
Proposed Project:
SHS under Output-Based Aid (OBA) program.

APPENDIX A
49
Village: Dwehla
Township: Kyaukse
District: Kyaukse
Region: Mandalay
Location:
Dwehla village is located just off the main road which is only 39 kilometers from Kyaukse
Township. There is a public bus services which passes by the village on the way to Kyaukse
Township. The bus runs 10 trips per day; one way bus fare to the Township is 400 Kyat. In
addition, there are also three wheelers for hire, which villagers can use to transport agricultural
product from the village to the main market in Kyaukse Township. Three wheelers transportation
services is operated by one of the villagers in the nearby Nasu village. The fare for transporting
agricultural products is 300 Kyats for 30 Viss bag (one Viss is about 1.65 kilogram).
Currently there are about 194 households living in Dwehla villages. The total population
is estimated to be around 843 persons. Dwehla village is considered to be a farming village.
However, about 50 households have no land to plant crops. The total arable land for the village
is estimated to be 702 acres, of which 699 acres are used for dry land cultivation and the
remaining 3 acres are used for fruit trees such as mongo and banana. On average each
household has about 5 acres. Main crops grown in the village include beans, pea, chic-pea,
corn sesame, tapioca, sun flowers, and banana. Most households can only grow their crops
once a year due to lack of access to irrigation. However, most household grow several crops to
access to the main agricultural product in Kyaukse Township.
Dwehla village has significant number of livestock including goat, sheep, and cattle. Ten
households raise goats and each household owns about 50 goats, one household has 25
sheep. There are more than 300 cows and oxen in the villages. However, most of the cows
belong to one large daily farmer, who hires villagers to tend the cow.
All 50 landless households earn their living as farm labor, and a few households make
pottery. The gap between rich and poor households in the village is clearly visible. Poor
households tend to be landless with small or no grown up children to work as farm labor. The
most popular farm labor job are tending cow for large dairy farmer and work for other land
owners in the field. Daily wage for farm labor is 2,000 Kyat/day for men, and 1,500 Kyat/day for
women. Most farm labors can only gain employment during dry season, which implies that many
landless households live on less than two dollars a day.
More than 30 households in the village use SHS, size of SH ranges from 80 to 150Wp.
The remaining use LED light powered by dry cell batteries, and a small minority of the
households use candles. Interviews with the households reveal that a small sized LED light
APPENDIX A
50
costs around 1,300 Kyats, and can last up to 5 or 6 month. Household usually purchase LED
light at the market in Kyaukse Township. In term of operating costs, a set of two D-size dry cell
batteries for the small size LED light could last up to 2 weeks, provided that the LED light is
turned on no more than four hours a day. A pair of D-size dry cell battery costs 500 Kyat. It is
important to note that some households also supplement LED light with candle. In sum, the total
monthly cost of lighting is estimated to be around 1,500 to 2,000 Kyats per month including the
cost of replacing LED lights and candles.
Firewood and charcoal are used for cooking. Some households opt to buy firewood.
Affordability for Electricity/Lighting Energy Classification (Dwehla Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
users
15% N/A 80-150 Wp
80 to 85% 1,500 to 2,000 n/a
Candle (mostly poor landless
household)
5 to 10% 1,000 to 1,500 n/a

School: The village has one school from primary to middle school. The total enrollment
is 200. Currently, school has no need for electricity.
Public Health Center: There is one public health center in the village. The health center
has one SHS; it is owned by the three health staff that live in the compound off the health
center. The health center has one deep tube well provided by the Rural Development
Department.
Temple/Monastery: The temple has an electric generator set.
Water Supply: The village has no problem with water supply. There are 90 hand pump
tube wells in the village. Water quality from these hand pump tube well is not good; the water
has high salinity. There is one tube well which is good for drinking. All households in the village
rely on the water from this tube well for drinking. This tube will is located in the creamery (a 15
minute walk from the village). It is owned by a large dairy farmer, but all villagers have free
access to this well.
Organized Permanent Public Services/Committees: Villagers have had good
experience with organizing public services. The village is currently operating a community-
owned electric generator set. The genset is only used to generate electricity for 60 street lights
in the village (5 lights for each of the 12 streets in the village). Street lights are turned on for
three hours per evening. In 2011, villagers took a loan from the government to construct street
APPENDIX A
51
lights, but the gen-set was donated to the village from two private individuals. A village
committee collected 1,500 Kyats per household and paid back the loan to the government.
Proposed Project:

APPENDIX A
52
Village: Ywar Taw
Township: Kyaukse
District: Kyaukse
Region: Mandalay
Location:
Ywar Taw village is located 1.5 kilometers from the main road which is only 39.5
kilometers from Kyaukse Township. There is a public bus services on the main road to Kyaukse
Township. The bus runs about 10 trips per day; the one way bus fare to the Township is 400
Kyat. In addition, there are three wheelers for hire which villagers can use to transport
wheelers transportation services is operated by one of the villagers in Ywar Taw village. The
fare cost transporting agricultural products is 300 Kyats for 30 Viss bag (one Viss is about 1.5
kilogram).
There are currently about 84 households living in Ywar Taw village. Only two
households lack any land to plant crops. The two landless households are a widower and a
female-headed household. Crops grown in the village primarily include rice, beans, peas,
chickpeas, corn sesame, tapioca, sun flowers, and banana. Most households can only grow one
crop a year due to lack of access to irrigation. However, households plant several crops to
access to the main agricultural products in Kyaukse Township. Interviews with several villagers
reveal that the gap between rich and poor in Ywar Taw village is significantly lower than other
nearby villages. This may due to the fact that most households in Ywar Taw village own land,
and some households own arable land with access to irrigation.
Currently, about 34 households in the village use SHS; the size of SHS ranges from 80
to 150Wp. Aside from SHS, about 50 households use car batteries to power small T4
fluorescent tube, or compact fluorescent lamp or LED light and candle. Almost every household
owns LED light powered by dry cell batteries. Interviews with the households reveal that there is
a battery charging service available for villagers in the village. Battery charging service provider
will pick up battery and taking it to the charging station. The fee for pick up and charging for one
battery is only 500 Kyats, suggesting that the charging station uses electricity from the grid.
Households using car batteries to power LED light indicate that each charging would provide
sufficient electric power for 40 hours for two LED lights. However, the cost of car battery could
range from 25,000 for a used car battery to over 40,000 Kyats for the new 50 Amp car battery. A
used car battery lasts only six months, but the new one lasts about a year. This means that the
cost of lighting using a car battery and two LED lights could range from 7,000-8,000 Kyats per
month.
APPENDIX A
53
firewood.
Affordability for Electricity/Lighting Energy Classification (Ywar Taw Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
users
42% N/A 80-150 Wp
Dry cell batteries and car battery
power LED light and some candle
58% 7,000 to 8,000 n/a
Total 84 Households

School: The village has no school.
Public Health Center: There is no public health center in the village.
Temple/Monastery: The temple has electric generator set
Water Supply: The village has a problem with access to clean drinking water. Villagers
rely on rain water for drinking. However, rain water is only available during the rainy season.
During the dry season villagers use water from the pond, but water from the pond must be
boiled for drinking. The village-owned pond tends to dry out by February. As a result, for at least
three months of the year (February to part of April), villagers must purchase water which costs
around 5,000 Kyats for 700 gallons. Each household has to purchase water about four times
during this three-month period.
Organized Permanent Public Services/Committees: Villagers have no experiences
with organized public services.
Proposed Project:
Solar lantern charging and rental station.
Project financial analysis shows that the rental fee should be set at 2,547 Kyats
ensure that the total revenue will meet total investment plus operation and maintenance cost
over the lifespan of the project (seven years); or the net present value (NPV) for the project is
positive. Households living in the village who are using LED lighting powered by dry cell
batteries are currently spending about 7,000 to 8,000 Kyats per month on lighting. Based on
their current spending on lighting, subsidies are not needed because household monthly
spending on lighting is much higher than the calculated monthly rental fee.

APPENDIX A
54
Financial Analysis for Solar Lantern Charging & Rental Station in Ywar Taw Village
Total required subsidy per household/month: None
Year
Equipment
cost
O&M
% of
cost)
O&M
cost
Total
cost
(PV)
Rental
fee at
cost/mo
Total
Revenue
(PV)
Afford
-
ability
Subsidy
/hh/mo
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 >2.83 0.00
2 - 0.02 130.00 113.04 1,476.52
3 - 0.04 260.00 196.60 1,283.93
4 - 0.06 390.00 256.43 1,116.46
5 - 0.08 520.00 297.31 970.84
6 - 0.10 650.00 323.16 844.21
7 - 0.12 780.00 337.22 734.09
Total 6,000.00 2,795.00 8,088.76 8,124.05
NPV 35.29

station. In this proposed scheme, no subsidy is required since affordability levels are higher than
the calculated rental fee. However, to incentivize the private investor to establish the solar
lantern charging stations, the ADB is proposing a 20 percent grant subsidy on its upfront cost.
Beyond that, the regional government of Mandalay is willing to contribute 10 percent upfront
cost and provide land free of charge to set up the village charging station on a ten-year lease to
the private investor.
APPENDIX A
55
Village: Kyee Eait
Township: Kyaukse
District: Kyaukse
Region: Mandalay
Location:
Kyee Eait village is located about two kilometers from the main road which is only 39.5
kilometers from Kyaukse Township. There is a public bus service on the main road to Kyaukse
Township. The bus run about 10 trips per day; the one way bus fare to the Township is 400
Kyat. In addition, there are three wheelers for hire which villagers can use to transport
wheelers transportation services is operated by one of the villagers in Kyee Eait village. The
fare for transporting agricultural products is 300 Kyats for 30 Viss bag (one Viss is about 1.5
kilogram).
Currently there are about 270 households living in Kyee Eait village. The total population
in the village numbers about 1,478 persons. About 100 households living in the village have no
land to plant crops. Landless household in Kyee Eait village tend to earn their living as farm
labor or carrying out business activities within and outside the village. Total arable land in the
village is about 700 acres, but only 200 acres have access to irrigation. For the 170 households
in the village that own land for farming, only 50 households have land with access to irrigation.
Arable land holdings average about five acres. Crops grown in the village primarily include rice,
chili, beans, chickpeas, and sunflowers. Rice is usually planted in irrigated land, but rain-fed
arable land is used to grow other crops. There are seven retail/convenient shops in the village.
The majority of households in the village can only grow their crops once a year, because most
of the arable land in the village is rain-fed. To reduce risk, households plant several crops.
Moreover, due to the proximity of the village to the township, villages have direct access to the
main agricultural product in Kyaukse Township. Since a relatively large portion of the
households in the village are landless, it is conceivable that the gap between rich and poor in
the village could be quite wide.
About 80 households in the village currently use SHS. The size of the systems ranges
from 80 to 300 Wp. Aside from SHS, about 60 households use electricity from a community-
owned diesel gen-set mini grid. The remaining households in the villages use car batteries to
power small T4 fluorescent tubes, compact fluorescent lamps, LED lights, or use dry cell
batteries to power LED light.
Household monthly expenditures for lighting among households using electricity from the
community mini grid could range from a minimum of 2,500 to 5,500 Kyats, including the cost of
supplemental lighting such as LED lights powered by dry cell and candles. The electricity tariff
for the community-owned diesel gen-set mini grid is well defined. It is based on the number of
APPENDIX A
56
electric lights use small 9-12 inch television sets with DVD. The electricity tariff for one 20 watt
compact fluorescent lamp or fluorescent tube is 2,000 Kyats, but 3,000 Kyats for 2 lights; the
tariff for one 9-12 inch television plus DVD is 2,000 Kyats, but 5,000 Kyats for 2 lights and a 9-
12 inch television and DVD. Electricity service from the community owned diesel gen-set mini
grid is available three hours in the evening from 6-9 pm, or 6:30 to 9:00 pm when the sun sets
later. A focus group interview with villagers confirms that electricity services from the community
mini grid is relatively reliable and the system is well managed. The current tariffs and revenue
are sufficient to cover diesel fuel, repair, maintenance, and salary for the operator. The
community mini grid also provides street lights ad electricity services to the temple and school in
the village.
For households using SHS, the systems range in size from small 80 to 300 Wp systems.
Villagers using the large 300 Wp SHS indicate that the whole system costs around 400,000
Kyat.
Total household monthly expenditures among households using car batteries to power
small T4 fluorescent tubes, compact fluorescent lamps, LED lights or dry cell batteries powering
LED light could as low as 1,500 to 2,500 Kyats per month for two pairs of D-sized dry cell
batteries for only one LED light plus a replacement LED which lasts only 3 to 4 months. Monthly
expenditure for lighting in households that use car battery to power LED lights is higher, but
households can use more than one LED light. Car batteries cost around 30,000 to 35,000
Kyats, but a small sized motorcycle battery only costs 15,000 Kyat. Charging fees are around
300 Kyat. Households may need to have the battery charged twice or three times per month.
Since a car battery only lasts one year, average total monthly spending for a car battery and
charging fees is estimated to be 4,000 Kyats per month. Typical hours of lighting used by the
households are only three hours in the evening (6:00 to 9:00pm and one hour in the morning
(4:00/4:30 to 5:00/5:30am). The narrow band of total household monthly spending, regardless of
the sources of electricity, suggests that households monthly spending on lighting appears to be
very limited.
firewood.
Affordability for Electricity/Lighting Energy Classification (Kyee Eait Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Solar PV home system (SHS) users 30% N/A 80-300 Wp
Community owned gen set mini grid 22% 2,500 to 5,500
Car battery power T4 size
Fluorescent tube or CFL or LED light
48% 4,000 n/a
Total
270
Households

APPENDIX A
57
School: Uses electricity from community owned mini grid using diesel gen-set.
Temple/Monastery: The temple uses electricity from community owned mini grid using
diesel gen-set.
Water Supply: The village has no problem with access to drinking water. There are four
hand pump tube wells in the village. These wells supply sufficient water for the community.
experience with organizing public services. The Community-owned, diesel-powered mini grid is
well managed and maintained. The village has established a committee (with one chairperson,
secretary and committee members) to oversee the electricity services, manage revenue, and
expenses. One person is employed as an operator, but the committee relies on one specific
villager who volunteers his time to help on any repairs or routine maintenance needed for the
gen-set.
Proposed Project:
SHS under Output-Based Aid (OBA) programs.

APPENDIX A
58
Village: Ah She Nag Toe
Township: Kyaukse
District: Kyaukse
Region: Mandalay
Location:
Ah She Nag Toe village is located about three or four miles from Kyaukse Township
along the irrigation canal. It is located less than five miles from electricity grid.
Currently there are about 350 households living in Ah She Nag Toe village. Rice is the
main crop; and since the village is located along the irrigation canal, farmers can grow rice
during the dry season in addition to monsoon season.
Households in this village have been using a community-owned diesel gen-set mini grid
for about 10 years. In the past the diesel engine used methane gas from a biogas plant. The
size of the bio gas plant is 9 feet (diameter) by 10 feet (height), and is designed in a cylindrical
shape. The biogas plant was constructed in October 2003, and the technical design of the
biogas plant requires 200 kilograms of dung per day. It is not clear when the village stopped
using methane from the biogas plant for the diesel engine. Interviews with village officials reveal
that during the first 4-5 years, biogas plant produced sufficient gas to run the diesel engine for
2.5 hours, but this reduced gradually to only one hour and then no gas at all. Village officials
think the problem is due to impurity of dung since dung was mixed with sand. However, it is
clear that village officials are not interested in fixing the biogas plant and are more interested in
grid connection. The village is located less than five miles from the grid line.
firewood.
School: No information was collected
Public Health Center: No information was collected
Temple/Monastery: No information was collected
Water Supply: Did not investigate
experiences in organized public services. The community-owned mini grid using diesel gen-set
is well managed and maintained. Village has established a committee to oversee the electricity
services, manage revenue, and expenses.
APPENDIX A
59
Village: Ah Le Kan
Township: Thazi
District: Thazi
Region: Mandalay
Location:
Ah Le Kan village is part of Thazi Township. The village is nearby the District Council
road which links Pyaw Pwe and Windwin. There is no regular bus service along District Council
road to Thazi Township. To travel to Thazi Township or to transport agricultural products from
the village to the main market in Thazi Township, villagers can use/hire motor cycle or use three
wheelers for hire. A three wheelers transportation service is operated by several villagers in Ah
Le Kan village.
Currently there are about 278 households living in Ah Le Kan village. The villages total
population is about 1,405 persons. About 50 households living in the village have no land to
plant crops. Landless household in Ah Le Kan village tend to earn their living as farm labor
driving bullock carts, and tending livestock. Total arable land in the village is about 1,500 acres.
Main crops grown in the village include rice, chili, and mung bean. Households in the village can
only grow their crops once a year, because most arable land in the village is rain fed. To reduce
risk, households plant several crops. Moreover, due to the proximity of the village to the
township, villagers have direct access to the main agricultural product in Thazi Township. Aside
from planting there are about 10 households that engage in livestock activity. Each of these
households has about 50 cattle.
Ah Le Kan village has two privately owned diesel gen-set mini grids providing electricity
to about 100 households in the village. Currently, only three households in the village use SHS.
The remaining majority of the households in the village use LED lights powered by dry cell
batteries and candles.
Household monthly expenditures for lighting among households that use electricity the
from privately owned diesel gen-set mini grid could range from a minimum of 3,000 to 6,000
Kyats including the cost of supplemental lighting such as LED light powered by dry cell battery
and candles. Electricity tariffs for the privately owned diesel gen-set mini grid is well defined. It is
based on the number of electric lights and televisions being used. The electricity tariff for one
20-watt compact fluorescent lamp or fluorescent tube is 2,500 Kyats, an the tariff for one small
television is 2,500 Kyat. Electricity service from both private mini-grids is available only two
hours in the evening from 7-9 pm. It is important to note that both gen-set operators use a rice
husk gasifier as their main fuel.
Total household monthly expenditures among households that use LED light powered by
dry cell batteries could be as low as 1,200 to 2,200 Kyats per month for two pairs of D-sized dry
APPENDIX A
60
cell batteries for only one LED light plus a replacement LED light (lasting only 3 to 4 months)
and 100 to 200 Kyats for candlelight.
firewood.
Affordability for Electricity/Lighting Energy Classification (Ah Le Kan Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
users
1% N/A 80-150 Wp
Two privately owned gen set
mini grid
36% 3,000 to 6,000
63% 1,300 to 2,600 n/a

School: Electricity is not needed.
Public Health Center: At the public health center, the nurse/midwife is currently
attending additional training. The health center will be opened again in 2015 after the nurse
completes additional training.
Water Supply: The village has no problem with access to drinking water. Currently there
are about 100 hand pump wells in the village.
Organized Permanent Public Services/Committees: Private sector has demonstrated
experience.
Proposed Project:

APPENDIX A
61
Village: Than Taw
Township: Thazi
District: Thazi
Region: Mandalay
Location:
Than Taw village is part of Thazi Township. Its location is about 3 miles off the District
Council road linking Pyaw Pwe and Windwin. The village is located by the foot of the mountain
range near the border with Shan State. There is no regular bus service along District Council
road to Thazi Township. To travel to Thazi Township or to transport agricultural products from
the village to the main market in Thazi Township, villagers can use/hire motor cycle or use three
wheelers for hire. Three wheelers transportation services is operated by other villagers in Than
Taw village.
Currently there are about 225 households living in Than Taw village. The villages total
population is about 1,117 persons. About 100 households that are living in the village have no
land to plant crops. Landless households in Than Taw village tend to earn their living as farm
labor within and outside the village as well as by collecting forest products. Total arable land in
the village is about 300 acres all of which is rain fed. However, not all of these 300 acres of
arable land are distributed equally. There are 25 households in the village that own an average
of 10 acres. These households are financially better off than all other households in the village.
Some of these financially well off households also engage in business activities including buying
agricultural products and rice milling. Interviews with villagers confirm that a significant number
of people in the village rely on these 25 households for employment.
Currently, only 15 households in the village are using SHS, almost all of which are used
for lighting and television. All other households use LED lights powered by dry cell batteries
and/or candles. LED lights are usually bought from the market in Thazi Township. LED light
costs around 1,500 to 2,000 Kyats depending on the size of LED light (2 or 3 or 4 D-size dry cell
batteries). Some household use up to nine dry cell batteries, and spend about 2,250 Kyats per
month for dry cell batteries. However, most households use fewer than nine batteries. For poor
households, candlelight is the only inexpensive option. Interviews with poor villagers confirm
that most poor households try to use only one candle a day. One candle costs 50 Kyat. This
means that poor households spend less than 2,000 Kyats a month for candles. Typical lighting
needs for the household tend to be one to two hours in the early morning hours and a few hours
in the evening.
Firewood and charcoal are used for cooking, but some of the households opt to buy
firewood.

APPENDIX A
62
Affordability for Electricity/Lighting Energy Classification (Than Taw Village)
Energy
Percent of
Households
Monthly Spending
(in Kyat)
Average Size of
SHS
Solar PV home system (SHS) users 7% N/A 150-300 Wp
60% 2,250 to 2,500 n/a
Candle (very poor households) 33% < 2,000 n/a
Total
225
Households

School: There is one primary school up to seventh grade; and about 400 children are
enrolled in school. Electricity is not needed. However, the teachers dormitory may need
electricity. Currently, there are nine teachers living in three separate dormitories (huts) some
with their families. Three electric lights one for each hut are currently provided by one
private individual who lives across the street and has SHS.
Water Supply: Villagers rely on water from a nearby stream and spring water from the
mountain. In addition there are 20 to 25 hand pump tube wells owned by well-to-do households,
but villagers can use them free of charge.
Organized Permanent Public Services/Committees: There is no demonstrated
experience.
Proposed Project:
Solar lantern charging and rental station.
ensure that the total revenue will meet total investment plus operation and maintenance cost
over the lifespan of the project (seven years); or the net present value (NPV) for the project is
positive. Poor households living in the village who are using candle for lighting are currently
spending slightly less than 2,000 Kyats per month. Based on their current spending on lighting,
subsidies are not needed. This is because household monthly spending on lighting is slightly
higher than the calculated monthly rental fee. The proposed solar lantern charging and rental
station will reduce financial burden for lighting of household in the village.
(US$2.83) per month per household, or a daily rental fee of 84.900 Kyats (US$0.094), in order
to ensure that the total revenue will meet total investment plus operation and maintenance cost
over the lifespan of the project (seven years); or the NPV for the project is positive. Poor
APPENDIX A
63
households living in the village who are using candle for lighting are currently spending slightly
less than 2,000 Kyats per month. Based on their current spending on lighting, small subsidy,
which is estimated to be 547 Kyats (US$).61) will be needed since household monthly spending
on lighting is slightly less than the calculated monthly rental fee.
Financial Analysis for Solar Lantern Charging and Rental Station in Than Taw Village
Interest rate: 15%per year
Total required subsidy per household/month: 547 Kyats (US$0.61)
Year
Equipment
cost
O&M
% of
cost)
O&M
cost
Total
cost
(PV)
Rental fee
(cost/mo)
Total
Revenue
(PV)
Afford
-
ability
Subsi
dy/hh/
mo
Actual
revenue
per yr
(PV)
Actual
subsidy
per yr
(PV)
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 2.226 0.61 1,333.33 364.67
2 - 0.02 130.00 113.04 1,476.52 1,159.42 317.10
3 - 0.04 260.00 196.60 1,283.93 1,008.19 275.74
4 - 0.06 390.00 256.43 1,116.46 876.69 239.77
5 - 0.08 520.00 297.31 970.84 762.34 208.50
6 - 0.10 650.00 323.16 844.21 662.90 181.30
7 - 0.12 780.00 337.22 734.09 576.44 157.66
Total 6,500.00 2,795.00 8,088.76 8,124.05 6,379.31 1,744.74
NPV 35.29 0.00

investment cost will be provided. This is to ensure that monthly service fees can be set at 2,000
Kyats (US$2.22) per month (or at the same monthly spending levels as households currently
spend on candles and diesel wick lamps), a subsidy on the upfront cost must be provided. This
will ensure that the net present value of the project will be positive or at least equal to zero.
Financial analysis reveals that a minimum 26 percent subsidy on the upfront cost will be
required to ensure that monthly service fees are set at 2,000 Kyats (US$2.22) and the NPV of
the project will be positive (see Table 5).
station. Since the affordability is relatively high and subsidy requirement is lower than the 30
percent upfront cost subsidy threshold prospective investor will receive upfront cots subsidy as
high as 30 percent of the total investment cost. Under the proposed business model, ADB will
provide 20 percent grant subsidy on the upfront cost to incentivize the private investor in putting
up solar lantern charging stations. Likewise regional government of Mandalay is willing to
APPENDIX A
64
contribute another 10 percent of the upfront cost and provide land free of charge to set up the
village charging station on a ten year lease to private investor. Table 5: Financial Analysis for 26
percent subsidy on the Upfront Cost in Than Taw Village
Year
Subsidy
upfront 26%
(ADB 16% &
community
10%
Equipment
cost after
subsidy
O&M rate
O&M
Cost(PV)
Total
cost
Cost per
unit/mo (in
US$)
(High
affordability)
Total
revenue
(PV)
1 1,720.00 4,780.00 0.01 65.00 4,845.00 2.2200 1,332.00
2 - 0.02 113.04 113.04 1,158.26
3 - 0.04 196.60 196.60 1,007.18
4 - 0.06 256.43 256.43 875.81
5 - 0.08 297.31 297.31 761.58
6 - 0.10 323.16 323.16 662.24
7 - 0.12 337.22 337.22 575.86
Total 4,780.00 1,588.76 6,368.76 6,372.93
NPV 4.17

APPENDIX A
65
Village: Zawin
Township: Thazi
District: Thazi
Region: Mandalay
Location:
Zawin village is part of Thazi Township. Its location is along the District Council Road
linking Pyaw Pwe and Windwin. There is no regular bus service along the District Council road
to Thazi Township. To travel to Thazi Township, or to transport agricultural products from the
village to the main market in Thazi Township, villagers can use/hire motor cycle or use three
wheelers for hire. A three wheelers transportation service is operated by villagers in Zawin
village.
Currently there are about 101 households living in Zawin village. The villages total
population is about 549 persons. About 38 households that are living in the village have no land
to plant crops. Landless households in Zawin village are poor and earn their living as farm labor
within and outside the village. Total arable land in the village is about 300 acres all of which is
upland. Crops grown by households in the village primarily include rice, sesame, mung bean
and white bean.
Currently, eight households in the village are using
SHS. These households share two sets of SHS. Each
system is about 200 or 250Wp and provides electric
lights to four households. All other households in the
village can be classified into three groups: (1)
households that use LED light powered by dry cell
batteries and some candle, (2) households that use
car/small battery to power LED light or T4 fluorescent
tube, and (3) very poor landless households that rely
mostly on candle for lighting.
An analysis of household monthly expenditure for
lighting reveals that total monthly expenditure for
households in the first group is estimated to be
around 1,500 to 2,000 Kyats per month. This range of
expenditure includes LED light which costs around
1,500 to 2,000 Kyats depending on the size of the
LED light (2 or 3 or 4 D-sized dry cell batteries) and
four to six dry cell batteries per month.
20
For

20
Average life service of LED light is only three months.
Small battery powered LED light
APPENDIX A
66
households that use car/small battery to power LED light or T4 fluorescent tube, average
monthly spending on battery and charging fees is estimated to be around 2,500 Kyats per
month. Total monthly spending for poor landless households that rely mostly on candle is
estimated to be in the range of 1,000 to 1,500 Kyats per month. Based on the current spending
on lighting of poor landless households, we can conclude that affordability levels for poor
households are about 1,250 Kyats per month. In general, households in the village only need
electric light between 6:00 or 7:00 to 9:00pm and 4:30 to 5:30am.
Firewood is used for cooking, but some households opt to buy firewood.
Affordability for Electricity/Lighting Energy Classification (Zawin Village)
Energy
Percent of
Households
Monthly Spending
(Kyat)
Average Size of
SHS
users
8% N/A 200-250 Wp
About 60 to 70%
1,500 to 2,000 n/a
Car/small battery power T4 size
light
2,500
Candle (very poor land less
households)
<38% 1,000 to 1,500 n/a

School: There is no school in the village.
Water Supply: About half of the households in the village own hand pump tube wells,
which is sufficient to supply water to everyone in the village.
experience.
Proposed Project:
Solar lantern rental and charging station

Project financial analysis shows that rental fees should be set at 2,547.00 Kyats
ensure that the total revenue meets total investment plus operation and maintenance cost over
the lifespan of the project (seven years); or the NPV for the project is positive. Analyzing
household monthly expenditure levels reveals that poor landless households living in the village
APPENDIX A
67
which use mostly candle for lighting spend about 1,250 Kyats per month on their lighting needs.
Based on these current spending levels, and to ensure that poor landless households can afford
to pay for the lantern rental fee, an appropriate subsidy would be 1,297Kyat (US$1.44) per
month per household (12,547.00-1,250.00=1,297). Since the actual rental revenue per month
per household will only be 1,250 Kyats (or US$1.39) per month, the actual net present value of
the rental revenue over the life of the project is estimated to be 4,324,905 Kyats (US$). Since
the actual rental revenue per month per household is only 1,250 Kyats (US$1.39) per month,
the actual NPV of the rental revenue over the life of the project is estimated to be 3,588,362.02
Kyats (US$3,987.07); and the total NPV of the subsidy is estimated to be 3,723,284.43 Kyats
(US$4,136.98).

APPENDIX A
68
Financial Analysis for Solar Lantern Charging and Rental Station in Zawin village


investment cost will be provided. However, to ensure that monthly service fees can be set at
1,250 Kyats (US$1.39) per month (or at the same monthly spending levels as households
currently spend on candles and diesel wick lamps), a subsidy on the upfront cost must be
provided. This will ensure that the net present value of the project will be equal to zero or
positive. Financial analysis reveals that a minimum 63 percent subsidy on the upfront cost will
be required to ensure that monthly service fees are set at 1,250 Kyats (US$1.40) and the NPV
of the project will be positive. Under this business model, private entrepreneurs who are
interested in the solar lantern charging and rental business could work with the project to
provide services to villagers, since prospective investors will be able to expect a reasonable
return on his/her investment.

Year
Equipment
Cost
O&M rate
% of
cost)
O&M
Cost
Total
Cost
(PV)
Rental
fee at
cost/m
o
Total
Revenue
(PV)
Affor
d-
abilit
y
Subsidy
/hh/mo
Actual
revenue
/hh/yr
Actual
subsidy
/yr
1 6,500.00 0.01 65.00 6,565.00 2.83 1,698.00 1.39 1.44 833.33 864.67
2 - 0.02 130.00 113.04 1,476.52 724.64 751.88
3 - 0.04 260.00 196.60 1,283.93 630.12 653.81
4 - 0.06 390.00 256.43 1,116.46 547.93 568.53
5 - 0.08 520.00 297.31 970.84 476.46 494.38
6 - 0.10 650.00 323.16 844.21 414.31 429.89
7 - 0.12 780.00 337.22 734.09 360.27 373.82
Total 6,500.00 2,795.00 8,088.76 8,124.05 3,987.07 4,136.98

NPV
35.29

APPENDIX A
69
Financial Analysis for 63 percent subsidy on the Upfront Cost in Zawin Village
Year
Subsidy
upfront 63%
(ADB 53% &
community
10%
Equipment
cost after
subsidy
O&M rate
O&M
Cost(PV)
Total
cost
Cost per
unit/mo (in
US$)
(High
affordability)
Total
revenue
(PV)
1 4,070.00 2,430.00 0.01 65.00 2,495.00 1.40 840.00
2 - 0.02 113.04 113.04 730.43
3 - 0.04 196.60 196.60 635.16
4 - 0.06 256.43 256.43 552.31
5 - 0.08 297.31 297.31 480.27
6 - 0.10 323.16 323.16 417.63
7 - 0.12 337.22 337.22 363.16
Total 2,430.00 1,588.76 4,018.76 4,018.97
NPV 0.20
station. In this proposed scheme, the ADB will provide a 20 percent upfront investment, and the
regional government will provide another 10 percent upfront investment plus land for a minimum
ten-year lease to the private investor. However, the 63% upfront subsidy which will enable to
ensure that households monthly payment for lighting remain at 1,250 Kyats (US1.40), is higher
that the upfront cost subsidy threshold of 30 percent. To attract private investor it may be
necessary to increase monthly rental fee and upfront cost subsidy threshold and provide
additional incentives such as, tax relieve. Table 8 shows that if upfront cost subsidy is increased
to 40 percent monthly rental fee will increase to 1,728 Kyats (US$1.92) per month, which fall in
the range of medium affordability level. At 40 percent upfront cost subsidy, the monthly rental
fee will be higher than monthly spending of the poorest group of household in the village. As
show in table 8, the monthly fee must be set at 1,728 Kyats (US$1.92). Although it is higher
than affordability (or current spending) of poorest group of households in the village, it is still
within the same ranges of affordability (or monthly spending) of majority of households in the
village which is about 2,500 and 1,500 to 2,000 Kyats per month depending on sources of
energy.
Financial Analysis for 40 percent Subsidy on the Upfront Cost in Zawin Village
Year
Subsidy
upfront 40%
(ADB 30% &
community
10%
Investme
nt after
subsidy
Cost per
unit/mo (in
US$)
Total Rev
1 2,600.00 3,900 0.01 65.00 3,965.00 1.92 1,152.00
2 - 0.02 113.04 113.04 1,001.74
3 - 0.04 196.60 196.60 871.08
4 - 0.06 256.43 256.43 757.46
5 - 0.08 297.31 297.31 658.66
6 - 0.10 323.16 323.16 572.75
7 - 0.12 337.22 337.22 498.04
Total 3,900 1,588.76 5,488.76 5,511.72
NPV 22.96

APPENDIX A
70
Village: Seint Tain
Township: Kyauk Da Daung
District: Kyauk Da Daung
Region: Mandalay
Location:
Seint Tain village is part of Kyauk Da Daung Township. Seint Tain is located 10 miles
from the Township. To travel to Kyauk Da Daung Township, or to transport agricultural products
from the village to its main market, villagers can use a light truck service which leaves the
village at 7:00am and returns to the village at 4:00pm. The fare for a round trip is 88 Kyats, but
the fee for goods is 20 Kyat/Viss (one Viss = 1.6 kilogram).
There are currently about 227 households living in Seint Tain village, with a total
population of about 1,120 persons. About 140 households living in the village have no land to
plant crops. Landless households in Seint Tain village are poor and earn their living as farm
labor within and outside the village, as well as from collecting sap from palm trees to make palm
sugar. Total arable land in the village totals about 400 acres all of which are rain-fed. The main
crops grown by households in the village are rice, sesame, mung bean and corn.
Currently, 100 households in the village se
electricity from a privately owned diesel gen-set
mini grid. Electricity tariffs are 1,500/month Kyats
for one 20-watt compact fluorescent lamp or
fluorescent tube, and 3000 Kyat/month for a 9-inch
television plus DVD. Electricity is available from
7:00 to 9:00pm, which is the same time as nightly
video showing. The owner of the diesel gen-set
mini grid uses the same generator to generate
electricity for video as well as to simultaneously
sell electricity to other villagers. In term of monthly
expenditure, most diesel mini grid customers
spend only 1,500 to 3,000 Kyats per month for one or two lights. However, monthly expenditure
for households which own a 9-inch television and DVD is slightly higher. Nine households spend
4,500 Kyat/month for television and one light.
Two households in the village use SHS. The remaining 125 households use candles
and/or motorcycle batteries. Most households in the village use two candles in the evening and
half a candle in the morning. Total monthly spending for households using candlelight is
estimated to be 3,500 Kyat/month (one candle cost 50 Kyats). For households using motorcycle
batteries, monthly expenditure for the charging battery is about 3,000 Kyats (three charges per
month at 100 Kyats per charge). It is important to note that none of the households in this village
!"Inch $%&%'()(*+ ,+- ./. 0&,1%2
APPENDIX A
71
use LED lights powered by dry cell battery. All of the households that participated in the group
interview were convinced that LED light is not durable and can break down in a week or so, and
that it is thus not worth using at all.
Affordability for Electricity/Lighting Energy Classification (Seint Tain Village)
Energy
Percent of
Households
Monthly Spending
(in Kyat)
Average Size of
SHS
Privately owned gen set mini grid 44% 3,000 to 4,500
Solar PV home system (SHS) users <1% N/A 150-300 Wp
Candle and some small motorcycle
battery
56% 3,000 to 3,500 n/a
Total
227
Households

School: There is one primary school in the village.
Water Supply: Villagers rely on deep tube well and cistern to collect rain water for
drinking.
experience.
Proposed Project:

APPENDIX A
72
Village: Young Kyin
Region: Mandalay
Location:
Young Kyin village is part of Kyauk Da Daung Township. Young Kyin is located more
than 20 miles from the Township. To travel to Kyauk Da Daung Township, or to transport
agricultural products from the village to the main market in the Township, villagers can take a
light truck which belongs to one of the villagers in the village. This light truck usually leaves the
village in the morning and returns in the afternoon. Travel time from the village to Kyauk Da
Daung Township is about 1.5 hours.
There are currently about 57 households living in Young Kyin village for a total
population of about 313 persons. About five households in the village have less than one acre of
land. These household are effectively considered to be landless households in Young Kyin.
Without land in the farming community and no employment in any other sector, these landless
households are poor and earn their living as farm labor within and outside the village, as well as
by collecting sap from palm trees to make palm sugar. Total arable land in the village is about
400 acres, all of which is rain-fed. The main crops grown by households in the village are
sesame, peanut, pea, and corn.
Currently, none of the households in the village use SHS. For almost all households, the
main source of lighting is candlelight, but a handful of households use small car batteries. In
recent years, households in the village have stopped using simple diesel wick lamps, though a
few households may occasionally use them. Since candlelight is the main source of lighting for
most of households in the village and this emits very low luminaire, households in the village
tend to many candles. Interviews with villagers reveal that households use an average of five
candles per day, mostly in the evening hours (6:00 to 9:30pm) lighting, but also one candle in
the morning (4:30 to 5:30am). Each candle costs 50 Kyats, so total household monthly spending
on candlelight amounts to 7,500 Kyats per month. At 7,500 Kyats per month, it is clear that
monthly spending for lighting for households in Young Kyin village is higher than all other
villages surveyed for the project, even though these households receive the least luminaire,
since candles emit less lumen than all other type of light. It is important to note that households
are not interested in using LED light powered by dry cell batteries either. It is clear from the
focus group interview that all but one household participating in the interview hold negative
views about LED light. One household in the village that has used LED light before used it for
two months before it broke down.
APPENDIX A
73
Deep Tube Well using Diesel Pump

Affordability for Electricity/Lighting Energy Classification (Young Kyin Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Candle 99% 7,500 n/a
Small car battery and candle 1% 6,000 to 7,000 n/a
Total 57 Households n/a

Public Institution:
School: There is one primary school in the village. Currently, there are 28 children
enrolled in school ranging from kindergarten to first grade.
Water Supply: Villagers Uue stream
water, but during the dry season stream water
is low and this poses difficulties. However,
one villager has just recently constructed one
deep (150 feet) tube well using a diesel
engine to pump the water. This tube well has
become an important source of water for
villagers year round. At present, the owners of
the well have only asked villagers to donate
money to pay for diesel fuel to pump the
water. The owner of the well reveals that he
uses about three gallons of diesel fuel per
month, and receives donations of about
15,000 Kyats for diesel fuel each month.
experience.
Proposed Project:
Provision of solar PV mini-grid for the households in the village
delivering and maintaining electricity services to rural households far away from the grid, this
sub-project proposes to set up a solar PV mini-grid for households in Young Kyin Village. The
designed to provide AC electricity to 60 households for five hours per day. The maximum
capacity of the solar PV system will be 10-12 kW, with maximum demand of each household
assumed to be 150 Watts.
APPENDIX A
74

Project financial analysis indicates that the average monthly tariff per household should
be set at 17,568 Kyats (US$19.52) in order to ensure that the total revenue meets total
or the NPV for the project is positive. Analyzing household monthly expenditure reveals that
households living in the village are spending about 6,500 Kyats (US$7.22) per month for
lighting. Based on these current spending levels, and to ensure that poor households in the
village can afford to pay the electricity tariff, a subsidy should be provided at around 11,070
Kyats (US$12.30) per month per household (17,570.00-6,498.00=11,070.00). Since the actual
tariff revenue per month per household is only 6,500 Kyats (US$7.22), the actual net present
value of revenue over the life of the project is estimated to be 22,384,489 Kyats
(US$24,871.65): and the NPV of the subsidy is estimated to be 38,094,578 Kyats
(US$42,371.38) over the lifespan of the project (seven years).
Financial Analysis for Solar PV Mini-Grid in Young Kyin Village
Average monthly Tariff: 17,570 Kyats (US$19.52)

Year
Equipment
Cost
O&M rate
(% of
cost)
O&M Cost
Total
Cost (PV)
Tariff
per
mo
Total
Revenue
(PV)
Afford
-
ability
Sub-
sidy
Actual
revenue
(PV)
Actual
subsidy
(PV)
1 54,000.00 0.01 540.00 54,540.00 19.52 14,054.40 7.22 12.30 5,198.40 8,856.00
2 - 0.02 939.13 939.13 12,221.22 4,520.35 7,700.87
3 - 0.04 1,633.27 1,633.27 10,627.15 3,930.74 6,696.41
4 - 0.06 2,130.35 2,130.35 9,241.00 3,418.03 5,822.96
5 - 0.08 2,469.97 2,469.97 8,035.65 2,972.20 5,063.45
6 - 0.10 2,684.75 2,684.75 6,987.52 2,584.52 4,403.00
7 - 0.12 2,801.48 2,801.48 6,076.10 2,247.41 3,828.69
Total 54,000.00 13,198.96 67,198.96 67,243.03 24,871.65 42,371.38
NPV 44.07

investment costs will be provided which will ensure that the monthly electricity tariff can be set at
6,500 Kyats (US$7.22) per month (i.e., at the same as the households currently spend per
month on candles and diesel wick lamps). This will ensure that the NPV of the project will be
positive. Financial analysis reveals that a minimum 79 percent subsidy on the upfront cost will
be required. This will ensure that the monthly electricity tariff can be set at 6,480 Kyats
(US$7.22) and the NPV of the project is positive. Under this business model, private
APPENDIX A
75
entrepreneurs who are interested in owning and operating the solar PV mini grid could work with
the project to provide services to villagers, since a prospective investor will be able to expect a
reasonable return on his/her investment.
Financial Analysis for 79% subsidy on on upfront costs in Young Kyin Village (USD)
Year
Subsidy
upfront cost
79%
(ADB 69% +
Regional
Govt 10%)
Equipment
cost after
subsidy
O&M rate O&M Cost
Total cost
(PV)
Electricity
Tariff/mo
(US$)
(Low
Affordability)
Actual
revenue
1 42,400.00 11,600.00 0.01 540.00 12,140.00 7.22 5,184.00
2 - 0.02 939.13 939.13 4,507.83
3 - 0.04 1,633.27 1,633.27 3,919.85
4 - 0.06 2,130.35 2,130.35 3,408.56
5 - 0.08 2,469.97 2,469.97 2,963.97
6 - 0.10 2,684.75 2,684.75 2,577.36
7 - 0.12 2,801.48 2,801.48 2,241.19
Total 11,600.00 13,198.96 24,798.96 24,802.76
NPV 3.79

project will work with a private investor to invest in the solar PV mini grid. In this proposed
scheme, the ADB will provide 50 percent upfront investment, and the regional government will
provide an additional 10 percent upfront investment cost.
Table 1 and 2 below provide two other affordability scenarios (medium and high
affordability) and the respective requirement for subsidies on the upfront investment cost.
These affordability scenarios are based on current expenditure levels for lighting in households
living in comparable villages among all the villages surveyed by the appraisal team.
Financial Analysis (70 percent) Subsidy on the Upfront Cost - Young Kyin Village (in US$)
Year Subsidy
upfront
cost70%
(ADB 50%
Reg Govt
10%)

Investment
after
subsidy
O&M rate O&M
Cost
Total cost
(PV)
Tariff/mo
(US$) for
NPV>0
Rev/yr (in
US$)
1 37,800 16,200.00 0.01 540.00 16,740.00 8.54 6,148.80
2 - 0.02 939.13 939.13 5,346.78
3 - 0.04 1,633.27 1,633.27 4,649.38
4 - 0.06 2,130.35 2,130.35 4,042.94
5 - 0.08 2,469.97 2,469.97 3,515.60
6 - 0.10 2,684.75 2,684.75 3,057.04
7 - 0.12 2,801.48 2,801.48 2,658.30
Total 16,200.00 13,198.96 29,398.96 29,418.83
19.86

APPENDIX A
76
Financial Analysis (60%) Subsidy on the Upfront Cost - Young Kyin village (US$)
Year Subsidy
upfront cost
60% (ADB
50, Reg
Govt 10%)
Investme
nt after
subsidy
O&M rate O&M
Cost
Total cost Tariff/mo
(US$) for
NPV>0
Rev/yr
(in US$)
1 32,400.00 21,600.00 0.01 540.00 22,140.00 10.11 7,279.20
2 - 0.02 939.13 939.13 6,329.74
3 - 0.04 1,633.27 1,633.27 5,504.12
4 - 0.06 2,130.35 2,130.35 4,786.19
5 - 0.08 2,469.97 2,469.97 4,161.91
6 - 0.10 2,684.75 2,684.75 3,619.05
7 - 0.12 2,801.48 2,801.48 3,147.00
Total 21,600.00 13,198.96 34,798.96 34,827.2
1
28.24

APPENDIX A
77
Village: Yengan
Region: Mandalay
Location:
Yengan village is part of Kyauk Da Daung Township. Yengan is located close to 30
miles from the Township. To travel to Kyauk Da Daung Township, or to transport agricultural
products from the village to the main market in Kyauk Da Daung Township, villagers can take a
light truck belonging to one of the villagers in the village.
There are currently about 38 households living in Yengan village for a total population of
about 250 persons. Around ten households living in the village have less than one acre of land.
These households are considered effectively landless in Yengan. Without land in the farming
community and no employment in any other sector, these landless households are poor and
earn their living as farm labor within and outside the village, as well as by collecting firewood,
bamboo shoots and other forest products. Total arable land in the village is about 100 acres, all
of which is rain-fed. The main crops grown by households in the village are sesame, peanut,
peas, and corn. Income from agriculture last year was low due to drought, and this the year rain
came very late.
Currently, none of the households in the village use SHS. Almost all households use
candlelight as their main source of lighting. Only three households are using LED light powered
by dry cell batteries. Since candle is the main source of lighting for most households, and
candlelight emits very low luminaire, households in the village tend to use many candles.
Interviews with villagers reveal that households use an average of 4 to 5 candles per day,
mostly for the evening hours lighting (6:00 to 9:30pm), but also one candle during the morning
(4:30 to 5:30am). Each candle costs 50 Kyats, so total household monthly spending on candles
for lighting amounts to 7,000 Kyats per month. At 7,000 Kyats per month, it is clear that monthly
spending for lighting for households in Yengan village is on the higher side than other villages
surveyed for the project. On the other hand, these households receive the least luminaire, since
candles emit less lumen than any other type of light.

APPENDIX A
78
Affordability for Electricity/Lighting Energy Classification (Ye Ngan Village)
Energy
Percent of
Households
Monthly Spending
(in Kyat)
Average Size of
SHS
Candle 99% 7,000 n/a
batteries and candle
< 1% 3,000 to 4,000 n/a

School: There is one primary school in the village. Currently, there are 16 children
enrolled in school.
Water Supply: There is one village well which villagers use for drinking. Villagers also
use stream water, but during the dry season, stream water is low and this poses difficulties.
experience.
Proposed Project:
Solar PV Mini-Grid
delivering and maintaining electricity services to rural households living far away from the grid,
this sub-project proposes setting up a solar PV mini-grid for households in Ye Ngan Village. The
designed to provide AC electricity to 40 households for five hours per day. The maximum
capacity of the solar PV system will be 8-10 kW, with maximum demand for each household
assumed to be 150 Watts.

APPENDIX A
79
Project financial analysis shows that average monthly tariffs per households should be
set at 19,530.00 Kyats (US$21.70) in order to ensure that the total revenue meets total
or the net present value for the project is positive. It is important to note that the electricity tariff
for Ye Ngan is higher than for Young Kyin village since the expected total customers only
amount to 40 households, as opposed to 60 households in Young Kyin Village. Analyzing
household monthly expenditure levels reveals that households living in the village are spending
about 7,000 Kyats (US$7.78) per month on lighting. Based on their current spending on lighting,
and to ensure that poor households in the village can afford to pay the electricity tariff, a subsidy
should be provided at around 12,530Kyat (US$13.92) per month per household (19,530.00-
7,000=12,530). Since the actual tariff revenue per month per household is only 7,000 Kyats
(US$7.78), the actual NPV of revenue over the life of the project is estimated to be
16,080,454.95 Kyats (US$ 17,867.17): and the NPV of the subsidy is estimated to be
28,771,200 Kyats (US$ 31,968.00) over the lifespan of the project (seven years).
Financial Analysis for Solar PV Mini-Grid in Yengan Village
Average monthly Tariff: 19,530.00 Kyats (US$21.70)
Total subsidy per household/month: 12,530.00 Kyats (US$13.92)


Year
Equipment
Cost
O&M
rate
% of
cost)
O&M Cost
Total Cost
(PV)
Tariff
per mo
Total
Revenue
(PV)
Afford
-
ability
Sub-
sidy
Actual
revenue
(PV)
Actual
subsidy
(PV)
1 40,000.00 0.01 400.00 40,400.00 21.70 10,416.00 7.78 13.92 3,734.40 6,681.60
2 - 0.02 695.65 695.65 9,057.39 3,247.30 5,810.09
3 - 0.04 1,209.83 1,209.83 7,875.99 2,823.74 5,052.25
4 - 0.06 1,578.04 1,578.04 6,848.69 2,455.43 4,393.26
5 - 0.08 1,829.61 1,829.61 5,955.38 2,135.16 3,820.23
6 - 0.10 1,988.71 1,988.71 5,178.59 1,856.66 3,321.94
7 - 0.12 2,075.17 2,075.17 4,503.12 1,614.48 2,888.64
Total 40,000.00 9,777.01 49,777.01 49,835.17 17,867.17 31,968.00
NPV 58.16

To allow poor rural household to gain access to electricity, subsidies on the upfront
investment cost will be required to ensure that the monthly electricity tariff can be set at 7,000
Kyats (US$7.78) per month (i.e., at the same levels as current household monthly spending on
candles and diesel wick lamps). This will ensure that the NPV of the project is positive. Financial
analysis reveals that a minimum of 88 percent subsidy on the upfront cost will be required. This
APPENDIX A
80
will ensure that the electricity tariff per month can be set at 7,000 Kyats (US$7.78) and the NPV
of the project is positive. Under this business model, private entrepreneurs who are interested in
owning and operating the solar PV mini grid could work with the project to provide services to
villagers, since a prospective investor will be able to expect a reasonable return on his/her
investment.
Financial Analysis for 88% subsidy on upfront costs in Yengan Village (USD)

Year
Subsidy
upfront
cost 88%
(ADB 78%
Reg Govt
10%)
Equipment
cost after
subsidy
O&M rate O&M Cost
Total cost
(PV)
Electricity
Tariff/mo
(US$)
(low
affordability)
Actual
revenue
1 35,290.00 4,710.00 0.01 540.00 5,250.00 7.80 3,744.00
2 0.02 939.13 939.13 3,255.65
3 0.04 1,633.27 1,633.27 2,831.00
4 0.06 2,130.35 2,130.35 2,461.74
5 0.08 2,469.97 2,469.97 2,140.64
6 0.10 2,684.75 2,684.75 1,861.43
7 0.12 2,801.48 2,801.48 1,618.63
Total 13,198.96 17,908.96 17,913.10
NPV 4.14
APPENDIX A
81
Delivery and Business Model Using a public-private partnership business model, the
project is proposing to work with private investor to invest in the solar PV mini grid system. In
this proposed scheme, the ADB wil provide a 50 percent upfront investment, and the regional
government will provide an additional 10 percent upfront investment cost.
Table 1 and 2 provide two other affordability scenarios (medium and high affordability)
and the respective requirement for subsidies on the upfront investment cost. These affordability
scenarios are based on current expenditure of lighting of comparable village in the selected
villages.
Financial Analysis (70 percent) Subsidy on the Upfront Cost - Yengan Village (US$)
Year Subsidy
upfront
cost 70%
(ADB
60%; Reg
Govt
10%)
Investment
after
subsidy
O&M rate O&M Cost Total cost Tariff/mo
(US$) for
NPV>0
Rev/yr (in
US$)
1 28,000.00 12,000.00 0.01 540.00 12,540.00 10.98 5,270.40
2 - 0.02 939.13 939.13 Med afford 4,582.96
3 - 0.04 1,633.27 1,633.27

3,985.18
4 - 0.06 2,130.35 2,130.35

3,465.37
5 - 0.08 2,469.97 2,469.97

3,013.37
6 - 0.10 2,684.75 2,684.75

2,620.32
7 - 0.12 2,801.48 2,801.48

2,278.54
Total 12,000.00

13,198.96 25,198.96

25,216.14

17.17

Financial Analysis (60 percent) Subsidy on the Upfront Cost - Yengan village (US$)
Year Subsidy
upfront cost
60% (ADB
50%, Reg
Govt 10%)
Investment
after
subsidy
O&M rate O&M
Cost
Total cost Tariff/mo
(US$) for
NPV>0
Rev/yr (in
US$)
1 24,000.00 16,000.00 0.01 540.00 16,540.00 12.72 6,105.60
2 - 0.02 939.13 939.13 Hi afford 5,309.22
3 - 0.04 1,633.27 1,633.27 4,616.71
4 - 0.06 2,130.35 2,130.35 4,014.53
5 - 0.08 2,469.97 2,469.97 3,490.90
6 - 0.10 2,684.75 2,684.75 3,035.56
7 - 0.12 2,801.48 2,801.48 2,639.62
Total 16,000.00 13,198.96 29,198.96 29,212.14
NPV 13.17

APPENDIX A
82
Village: Khapat
Region: Mandalay
Location:
Khapat village is part of Kyauk Da Daung Township. Yengan is located close to 20 miles
from the Township. To travel to Kyauk Da Daung Township, or to transport agricultural products
from the village to the main market in the Township, villagers can take a light truck which
belongs to one of the villagers in the village.
There are currently about 284 households living in Khapat village.
None of the households in the village currently use SHS. The main source of lighting for
the majority of households in the village is candlelight. Other households use LED light powered
by dry cell batteries. Since candles are the main source of lighting for a majority of households
in the village, and candlelight emits very low luminaire, households in the village tend to use
many candles. Interviews with villagers reveal that households use an average of 4 to 5 candles
per day, mostly for the evening hours (6:00 to 9:00pm), but also one candle in for morning (4:30
to 5:30am). Each candle costs 50 Kyats, therefore the total household monthly spending on
candlelight amounts to 7,000 Kyats per month. At 7,000 Kyats per month, it is clear that monthly
spending for lighting of households in Khapat village is on the higher side of other villages
surveyed for the project. On the other hand, these households receive the least amount of
luminaire, since candles emits less lumen than all other types of light. For households that use
LED light powered by dry cell batteries, households use an average of 6 batteries per months,
which amounts to 1,500 Kyats per month. The cost of a LED light is about 1,500 Kyats, but it
must be replaced every 3 months.
Affordability for Electricity/Lighting Energy Classification (Khapat Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Candle
100%

7,000 n/a
batteries and candle
3,000 to 4,000 n/a

APPENDIX A
83
School: No information.
Public Health Center: No information.
Temple/Monastery: Temple owns one diesel gen-set and provides street lighting when
generator is turned on.
Water Supply: Main source of water in the village is spring water. It takes one hour
(round trip) to fetch the water. There is no hand pump tube well in the village the water table is
300 feet deep.
experience.
Proposed Project:

APPENDIX A
84
Village: Nga Bu Kyin
Township: Myingyan
District: Myingyan
Region: Mandalay
Location:
Nga Bu Kyin village is part of Myingyan Township, and located close to 35 kilometers
from the Township. To travel to Myingyan Township, or to transport agricultural products from
the village to the main market in Myingyan Township, villagers can take a light truck belonging
to one of the villagers in the village.
There are currently about 131 households living in Nga Bu Kyin village for a total
population of about 715 persons. About 50-60 households living in the village have no land or
own an insignificant amount of arable land for engaging in agricultural activities. Landless
household in Nga Bu Kyin village tend to earn their living as farm labor within and outside the
village, as well as by collecting sap from palm trees to make palm sugar. About ten landless
households rent palm trees to collect sap and make palm sugar. Typically, wage for farm labor
is about 2,000 Kyats per day for men and 1,500 Kyats per day for women. However,
employment for farm labor is seasonal. Most farm laborers can gain employment during the
three months before monsoon season and three months after monsoon season. Total arable
land in the village is about 1,200 acres all of which is rain fed. The primary crops grown by
households in the village are sesame, peanut, peas, and corn. Last year, crops such as corn
and peanut grew well after monsoon season.
Currently, 57 households are using electricity from a community-owned gen-set mini
grid. Only one household in the village uses SHS. The main source of lighting for the majority of
households in the village is LED light powered by dry cell batteries and candlelight.
Electricity services from the community mini grid are provided for just three hours in the
evening. The tariff is based on the number of lights and television sets in use. The tariff for one
light (20 watts fluorescent tube of compact fluorescent lamp) is 50 Kyats per day, and for a
television is 100 Kyats per day. Currently, the majority of households use only one light.
However, there are nine households that use one light and one 9-inch television plus DVD, and
five households use one light and one 21-inch television set. Electricity bills are collected every
10 days. For households that use electricity from the community mini grid, the average monthly
electricity and lighting bill ranges from 2,000 to 5,000 Kyat. This is because households may
have to spend about 500 Kyats per month for candlelight to fulfill lighting requirements in the
morning. For households that use LED light powered by dry cell batteries, the average number
of dry cell batteries used per month range from 4 to 6 batteries. One pair of D-sized dry cell
batteries costs 500 Kyat. Therefore, total monthly spending for dry cell batteries ranges from
1,000 to 1,500 Kyat. When taking into account the cost of LED light which costs around 1,500
APPENDIX A
85
Kyats and lasts only 3-4 month, the total monthly spending for lighting for LED light powered by
dry cell batteries is estimated to be 1,500 to 2,000 Kyats per month. However, some households
also spend another 500 Kyats per month for candlelight, which is usually used in the morning
(4:00 to 6:00am).
Affordability for Electricity/Lighting Energy Classification (Nga Bu Kyin Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Community owned gen set mini
grid
44% 2,000 to 5,000 n/a
56% 2,000 to 2,500 n/a

School: There is one primary school in the village. The total enrollment is 82 students.
The school has no electricity.
Public Health Center: No information.
Temple/Monastery: No information.
Water Supply: The main source of water in the village is a pond and two deep tube
wells. The pond is located about one mile from the village. The two deep tube wells are located
in the village. One tube well is 135 feet deep and another is 200 feet deep. Both tube wells are
equipped with diesel pumps. However, only one tube well is currently functioning and only runs
once a week due to the cost of diesel fuel. To fetch water from the pond, villagers use bullock
carts and bicycles to transport water from the pond to home. It takes one hour (round trip) to
fetch the water.
Organized Permanent Public Services/Committees: There is one community owned
gen-set mini grid which is used to generate electricity for street lighting and provide electricity
services to 50 households in the village. The village has a well established electricity lighting
committee which operates and manages the community mini grid. The mini grid has been in
operation for only 2.5 years and is functioning well, and financially generates a surplus of about
10,000 Kyats per month. Dynamo and diesel motors were donated by two private individuals to
the village. The size of the dynamo is 7.5 KVA, and the diesel engine is 22 HP.
APPENDIX A
86
Village: Wain Tin Kong
Township: Madaya
District: Madaya
Region: Mandalay
Location:
Wain Tin Kong village is part of Madaya Township which is about 40 kilometers north of
Mandalay. Wain Tin Kong village is located less than 40 kilometers from the Township. To travel
to Madaya Township, or to transport agricultural products from the village to the main market in
Madaya Township, villagers can take a regular bus services that passes by the village, or take a
light truck which belongs to one of the villagers in the village. Bus fare to Madaya is 500 Kyats
one way.
There are currently about 145 households living in Wain Tin Kong village. About 70-80
households living in the village have no land or own an insignificant amount of arable land for
engaging in agricultural activities. Landless households in Wain Tin Kong village tend to earn
their living as farm labor within and outside the village. Typically, wage for farm labor is about
2,000 Kyats per day for men and 1,500 Kyats per day for women, but during the peak demand
for labor, daily wages are about 3,000 Kyats for both men and women. However, employment
for farm labor is seasonal, so many men and women also seek employment in the city and are
away from the village for a few months each year. Most farm laborers can gain employment for
three months before and after monsoon season. Arable land in the village totals more than 100
acres all of which is rain fed. However, about seven well-to-do farmers in the village own and
use diesel/gasoline to pump water to irrigate their land. Main crops grown by households in the
village are sesame, corn, and sugar cane.
21
The last two years have been difficult due to
drought. Yields from the last two years were only a third of a typical year. Aside from farming,
about 20 households, including some landless households in the village, make and sell charcoal
and firewood.
Currently, only seven households in the village use SHS. The main source of lighting in
almost all households in the village is LED light powered by dry cell batteries and candlelight.
About 70 percent of the households in the village use LED light powered by dry cell batteries.
The remaining 25 percent use candles for lighting. The average numbers of dry cell batteries
used per month by households using LED light ranges from 6 to 12 D-sized dry cell batteries.
This means that total monthly expenditures for dry cell batteries in these household could range
from 1,500 Kyats to 3,000 Kyat. In addition, these households must buy and replace LED light,
which amounts to an average of about 500 Kyats per month. For candle users, households use
small candles which cost 25 Kyats per candle; on average, each household uses three candles

21
One large sugar mill located in Madaya District is the main buyer of sugar cane.
APPENDIX A
87
at night and one candle in the morning. The total monthly spending for households that use
candle is estimated to be 3,000 Kyats per month.
Firewood and charcoal is used for cooking, but some households opt to buy firewood.
Affordability for Electricity/Lighting Energy Classification (Wain Tin Kong Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
70% 2,000 to 3,500 n/a
Candle 25% 3,000
*
5% n/a 80 to 260Wp
Note: One household owns two 260 Wp SHS
School: There is one primary school (only up to fourth grade) in the village.
Temple/Monastery: There is one temple in the village, but we do not have information
regarding its access to electricity and/or sources of electricity.
Water Supply: Villagers rely on rain water and a small well near the stream, which is the
main source of water during the dry season. In addition, there are a few hand pump tube wells
in the village. The pond is located near the village. Travel time (round trip) to fetch water is 20
minutes.
experience.
Proposed Project:

APPENDIX A
88
Village: Tha Pyae Eait
Township: Madaya
District: Madaya
Region: Mandalay
Location:
Tha Pyae Eait village is part of Madaya Township, north of Mandalay. Tha Pyae Eait
village is located less than 40 kilometers from the Township. To travel to Madaya Township, or
to transport agricultural products from the village to the main market in Madaya Township,
villagers can take regular bus services that passes by the village or take a light truck which
belongs to one of the villagers in the village. Bus fare to Madaya is 500 Kyats one way.
Currently there are about 170 households living in Tha Pyae Eait village for a total
population of about 712 persons. About 70-80 households living in the village have no land or
own an insignificant amount of arable land for engaging in any agricultural activities. Landless
household in Tha Pyae Eait village tend to earn their living as farm labor both within and outside
the village. More than half of landless households collect and sell firewood. Typically, wage for
farm labor is about 2,000 Kyats per day for men and 1,500 Kyats per day for women, but during
peak demand for labor daily, wages can be about 3,000 Kyats for both men and women.
However, employment for farm laborers is seasonal, so many men and women also seek
employment in the city and are away from the village for a few months each year. Most farm
laborers can gain employment for the three months before and after monsoon season. Total
arable land in the village is about 400 acres, most of which is rain fed. The size of arable land
owned by households in the village provides further evidence that the gap between the poor and
well-to-do households within the village is wide. Seven households own more than ten acres,
while another 50 households own an average of 6 acres. The remaining 30 to 40 households
with arable land own less than one or two acres for farming. Farmers with large arable land
holdings own and use small farm machineries such as tractors, walk-behind hand tillers, and
diesel pump sets. On the other hand, households with small arable land holdings still use farm
animals or hire tractor owners to plough their land.
Main crops grown by households in the village are sesame, mung bean, corn, and sugar
cane.
22
The last two years have been difficult due to drought. Farmers with large arable land
holdings are less impacted by drought than other farmers. This is because large land owners
used pump sets to irrigate some of their crops. Farmers in the village conclude that due to
drought, yields from the last two years were only a third of a typical year.
Currently, 12 households in the village use SHS. Two households use an electric
generator: one is a retail/convenient shop and another is a tea shop. The main source of lighting

22
One large sugar mill which located Madaya District is the main buyer of sugar cane.
APPENDIX A
89
for almost all households is LED light powered by dry cell batteries and candlelight. For
households using SHS, the average size of the solar panel is 80 Wp. The whole system costs
around 120,000 Kyat. SHS are bought from the market in Madala Township, and users install
them by themselves. Most households with SHS use them for lighting (two 20 watts compact
fluorescent lamp), and some use them for lighting and a small 9-inch television plus DVD.
The majority households in the village rely mainly on LED light powered by dry cell
batteries with some candlelight to supplement LED light. Household interviews with households
using LED light powered by dry cell batteries reveal that households prefer medium sized LED
lights, which require three D-sized dry cell batteries. Households use an average of 12 batteries
per month. This means that the total monthly expenditure for dry cell batteries of these
household is around 3,000 Kyat. In addition, these households will have to buy and replace LED
light, which amounts to an average of about 600 Kyats per month. Medium sized LED lights cost
1,800 Kyats and last about 3 to 4 months. Total expenditure for candled to supplement LED
light could ranges from 200 to 400 Kyats per month. Therefore, the total monthly expenditure for
lighting is estimated to be 4,000 Kyats per month
Affordability for Electricity/Lighting Energy Classification (Tha Pyae Eait Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
93% 4,000 n/a

7% n/a 80 to 100Wp

School: There is one primary school (kindergarten to
fourth grade) in the village. At present, 104 children are
enrolled in school. The school has a dormitory for three
teachers in the school compound. The school and teachers
dormitory have no electricity.
Public Health Center: No public health center in the village.
Water Supply: Villagers rely on rain water and hand pump tube wells which provide a
sufficient supply of water year-round.
Organized Permanent Public Services/Committees: No demonstrated experience.
APPENDIX A
90
Village: Phae Pone
Township: Madaya
District: Madaya
Region: Mandalay
Location:
Phae Pone village is part of Madaya Township, north of Mandalay. To travel to Madaya
Township or to transport agricultural products from the village to the main market in Madaya
Township, villagers can take regular bus services that pass by the village or take a light truck
which belongs to one of the villagers in the village. Bus fare to Madaya is 500 Kyats one way.
There are currently about 110 households living in Phae Pone village. About 40
households living in the village have no land or own an insignificant amount of arable land for
engaging in agricultural activities. Landless households in Phae Pone village tend to earn their
living as farm labor within and outside the village. Several landless households collect and sell
firewood and/or make and sell charcoal. Typically, wage for farm labor is about 2,000 Kyats per
day for men and 1,500 Kyats per day for women, but during the peak demand season, daily
wages can be about 3,000 Kyats for both men and women. However, employment for farm
labors is seasonal, and many men and women also seek employment in the city and are away
from the village for a few months each year. Most farm labor can gain employment for the three
months before and after monsoon season. However, income from charcoal is relatively better. A
charcoal maker could make and sell up to 100 bags of charcoal per month. The current
wholesale price of charcoal is about 2,000 Kyats for a 16 kilogram bag. This means that selling
charcoal could earn up to 200,000 Kyats a month. Unfortunately, charcoal making is also
seasonal, since it can only be executed during the dry season. Total arable land in the village is
about 170 acres, most of which is rain fed. All farmers in the village still use farm animals or hire
tractor owners to plough their land. Main crops grown by households in the village are sesame,
rice, and mung bean. Almost all households in the village also own a small number of livestock;
households in the village have an average of one or two pigs and 5 to 10 chickens, which can
generate significant income for the households. For example a mature pig weighing around 100
kilograms could be sold for 200,000 Kyat.
Phae Pone village is physically split into two locations, one location (new) is located
along the main road; another location (original) is located about one kilometer off the main road
by the stream on the foot hill. Currently, about 70 households are living in the new location; and
another 40 households are living in the original village location. At the new location, 12
households in the village use electricity from a small privately owned diesel gen set mini grid.
The same gen set is used to power a video viewing business in the village. At the original village
location, 40 households use electricity from a small privately owned diesel gen set mini grid.
Aside from the mini grid, six households in the village (4 at the new location and 2 at the old
APPENDIX A
91
village location) are using SHS. The remaining half of the household in the village rely on LED
light powered by dry cell batteries with some candlelight to supplement LED light.
Electricity tariffs for both mini grids are based on the number of lights and television.
Currently the gen set owner charges 100 Kyats for one light and 100 Kyats for one television,
with services provided from 7:00 to 10:00pm. This means that households with only one light
pay 3,000 Kyats a month, but households with one light and one television pay 6,000 Kyats a
moth.
For household with SHS, the average size of the solar panel is 80 Wp. The whole
system costs around 120,000 Kyat. SHS are bought from the market in Madala Township, and
users install them by themselves. Most household with SHS use them for lighting (two 20-watt
compact fluorescent lamps), and some with use them for lighting and powering a small 9-inch
television and DVD.
Interviews with households using LED light powered by dry cell batteries reveal that
households prefer the medium size of LED light, which requires three D-sized dry cell batteries.
Households use an average of 9 to 12 batteries per month. This means that total monthly
expenditures for dry cell batteries of these household range from 2,250 to 3,000 Kyat. In
addition, these households must buy and replace LED light, which amounts to an average of
about 600 Kyats per month. Medium sized LED lights cost 1,800 Kyats and last about 3 to 4
months. Total expenditure for candles to supplement LED light could range from 200 to 400
Kyats per months. Therefore, total monthly expenditure for lighting is estimated to range from
3,000 to 4,000 Kyats per month
Affordability for Electricity/Lighting Energy Classification (Phae Pone Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)
Average Size of
SHS
Privately owned gen set mini
grid
47% 3,000 to 6,000
48% 3,000 to 4,000 n/a
*
5% n/a 80 Wp

School: There is no school in the village; children go to school in the nearby villages.
Public Health Center: No public health center in the village.
APPENDIX A
92
Water Supply: Villagers rely on rain water and two hand pump tube wells which provide
sufficient supply of drinking water year round. For other domestic use, villagers rely on water
from the canal by the village.
Organized Permanent Public Services/Committee: There is no demonstrated
experience.
Proposed Project:

APPENDIX A
93
Village: Thekong
Township: Singu
District: Singu
Region: Mandalay
Location:
Thekong village is part of Singu Township, north of Mandalay. Thekong village is located
less than 10 kilometers from the Township by boat, and is considered to be a sub-village of
Sethea North village. The village is located on the banks of the Irrawadee River. There is no
road access to the village. To travel to Singu Township, or to transport agricultural products
from the village to the main market in Singu Township, villagers must take a regular boat service
which takes about 30 minutes by motor boat. The fare for the motor boat is 500 Kyats for one
way and 400 Kyats for 30 Viss bag (one Viss=1.65 kilogram) of peanut. The motor boat service
is only run for one trip a day, leaving the village at 7:00am and coming back around 5:00 or
6:00pm. It is important to note that Thekong is part of a large and high density cluster of villages
along the banks of the river with relatively active economic activities due to the high population
density.
There are currently about 60 households living in Thekong village. The total population
in the village is 240 persons. About half of the households living in the village have no land or
own an insignificant amount of arable land for engaging in agricultural activities. Landless
households in Thekong village tend to earn their living as farm laborers within and outside the
village or seek employment in Singu Township. Due to the fact that Thekong village is part of a
large cluster of villages and is not far from the Township, opportunities for employment are
relatively better off many than other villages visited by the team. Typically, wage for farm labor is
about 2,000 Kyats per day for men and 1,500 Kyats per day for women.
Arable land in the village totals about 120 acres, most of which is rain fed. All farmers in
the village still use farm animals. Main crops grown by households in the village include peanut,
corn, and rice which are usually grown for a households own consumption.
Currently, 40 households in the village use LED light powered by dry cell batteries. The
remaining 20 households use LED light powered by 6-Volt motorcycle batteries and solar
lanterns. Interviews with households using LED light powered by dry cell batteries reveal that
each household uses about six dry cell batteries per month. Therefore the total household
monthly spending for dry cell batteries and average monthly spending to replace LED lights is
estimated to be 2,000 Kyat. For households that use motorcycle batteries, initial investment for
a battery is 7,500 Kyats for a 6-Volt motorcycle battery. The battery only lasts 8 months. The
cost of charging the battery is only 200 Kyats and one charge lasts for 15 days. It is estimated
that total monthly spending for battery charging, the cost of battery replacement and the LED
light is estimated to be about 1,900 Kyat.
APPENDIX A
94
Affordability for Electricity/Lighting Energy Classification (Thekong Village)
Energy
Percent of
Households
Monthly
Spending (in
Kyat)

Solar lantern 16% n/a 3,000 Kyat/lantern
67% 2,000 n/a
Motor cycle battery power LED
light

17% 1,900 n/a
Total 60 Households

School: There is no school in the village; children go to school in Sethae North villages.
Public Health Center: A public health center is located in Sethae North which takes
less than 10 minutes on foot from the village.
Water Supply: Villagers rely on rain water and a hand pump tube well which provides a
sufficient supply of drinking water year round.
experience.
Proposed Project:
SHS under Output-Based Aid (OBA) programs.

APPENDIX B
95
APPENDIX B: Detailed Descriptions of Surveyed Villages in Chin State

Village: Chun Cung
Township: Hakha
District: Hakha
State: Chin
Location:
Chun Cung village is located along the main road linking Hakha and Falam Township.
The village is located relatively near Hakha Township. Although the distance between Chun
Cung and Hakha is less than 30 kilometers, it takes nearly one hour to travel from the village to
Hakka Township. This is due to the mountainous terrain and poor road conditions. Interviews
with villagers and village officials confirm that villagers prefer to trek to and from Hakha
Township, which takes about 3.5 hours one-way. Since the village is located along the main
road that linking Hakha and Talay City in Sagaing Region, villagers can catch several buses
from the village to the main towns including Hakha, Falam Township, and Kalay City.
There are currently about 360 households living in the village. Due to the villages
location and proximity to the areas larger towns (Hakha and Falam), it appears that households
in Chun Cung village are slightly better off than the seven other villages chosen for rapid
appraisal in Chin State. This is due to the fact that many villagers are working in Hakha
Township. Moreover, agricultural products produced in the village are sold in Hakha Township.
Similarly to all other villages in Chin State, the main economic activities in the village center on
agriculture and the majority of households in the village are subsistence farmers, practicing
shifting cultivation. Main crops grown by the households are corn, rice, potato, and ginger. Corn
and rice are usually grown for a households own consumption, but potato and ginger are
produced for the local market (Hakha and Falam). Another main source of cash income for
households in the village is serving as casual labor in the nearby towns and especially in India.
Interviews with villagers reveal that during the dry season, a significant number of villagers trek
across the mountain for four days to India to seek employment. Current wages are 100 Rupee
per day, the equivalent of 1,500 Kyats per day, which is slightly less than the typical farm labor
wage in Myanmar. This suggests there is not sufficient employment in the state and as a result,
villagers have to cross the border to seek employment in India.
Electricity Supply and Demand:
Chun Cung Village has been using electricity for several years. Like many other villages
in Chin State, households in Chun Cung Village rely on a self-help micro hydro mini-grid. The
systems total generating capacity is 50 KW (two-10 KW and one-30 KW). Unfortunately, not all
households in the village are connected to the grid. A total of 210 households are connected to
the grid, and the remaining 150 households are use LED light powered by dry cell batteries
APPENDIX B
96
and/or candles. Currently, electricity supply in the village is facing a few challenges. First, due to
the limited water supply, electricity is available only four hours a day (6 to 10 PM) during the
rainy season. Second, during the dry season (March to May), the constructed artificial reservoir
is not big enough to store sufficient water to generate electricity; and the flow of water to the
artificial reservoir during the dry season is insufficient. Finally, the electricity supply system is
overloaded; even in the rainy season, electricity demand outpaces supply capacity.
Organized Permanent Public Services/Committees:
Villagers have extensive experience in managing and operating the micro hydro mini-
grid. The village has a well established electricity committee which is responsible for investing,
managing and overseeing the operation of the micro hydro mini-grid. For example, the electricity
committee is responsible for collecting contributions from villagers to invest in the construction
and installation of the system, as well as collecting monthly bills. The average contribution that
villagers contributed to constructing and installing the micro hydro mini-grid is estimated to be
around US$150, which can be used as criteria to gauge villagers ability to pay upfront
investment costs for electricity services such as SHS.

APPENDIX B
97
Village: Lok Lung
Township: Hakha
District: Hakha
State: Chin
Location:
Lok Lung village is located south of Hakha Township along the main road which links
Hakha and Madupi Township. Lok Lung village is located near Hakha. The distance between
Lok Lung and Hakha is less than 25 kilometers. Due to the terrain, which is mountainous, travel
time between Hakha and Lok Lung is close to an hour by car. Since the village is located along
the main road that links Hakha and Madupi Township, villagers can catch a few buses from the
villages to Hakha and can easily bring their agricultural products to the market in Hakha
Township.
Currently there are about 138 households living in the village. Due to the location and
proximity to the main township, during the past few years, a large number of households have
moved into and settled down in the village. Officially records indicate that only 65 households
are living in the village. As a result of migration, villagers have to compete for natural resources.
Interviews with village officials confirm that only 60 households have land to grow rice. The
remaining households tend to rely on natural resources from the forest to make a living. The
most popular income earning activities are cutting and selling firewood, making charcoal,
logging (pine trees), and raising cattle. Another important source of cash income is as labor
working on road repair and maintenance works.
Like many other rural households in Chin Sate, households in Lok Lung Village have
been using electricity since 2007 as the households rely on a self-help micro hydro mini-grid.
The total generating capacity is only 20 KW. Almost all households (130 households) in the
village are connected to the grid. Unfortunately, electricity supply in the village is very limited
and is facing several difficulties. First, due to the limited water supply, electricity is available only
three hours a day (6 to 9 PM) during the rainy season. Second, during the dry season (March to
May) the constructed artificial reservoir is not big enough to store enough water to generate
electricity, and the flow of water to the artificial reservoir during the dry season is insufficient.
Third, the electricity supply system is overloaded; even in the rainy season, electricity demand
has outpaced supply capacity. The fourth problem is high line losses from the distribution line.
The power house is located about 2.5 kilometers from the center of village. To solve these
problems, villagers and village officials have identified new water sources located about three
kilometers away from the existing artificial reservoir and power house. However, villagers do not
have sufficient funds to carry out the civil works, purchase, and installation of a new turbine and
generator.

APPENDIX B
98
Villagers have extensive experience managing and operating the micro hydro mini-grid.
The village has a well established electricity committee which is responsible for investing,
managing and overseeing the operation of micro hydro mini-grid. For example, the electricity
committee raised funds from selling firewood to purchase power supply equipment, collected
contribution from villagers to invest in the construction and installation of the micro hydro mini-
grid, and collects monthly bills. The average contribution paid by villagers for the construction
and installation of the micro hydro mini-grid is estimated to be around US$50 to US$80, which
can be used as criteria to gauge villagers ability to pay upfront investment costs for electricity
services such as SHS.

APPENDIX B
99
Village: Tipul
Township: Hakha
District: Hakha
State: Chin
Location:
Although Tipul Village is located only 16 miles away from Hakha Township, it took the
team about two hours to reach the village using a four-wheel drive vehicle. The terrain is very
mountainous and road conditions are very poor, even during the dry season. Given the
conditions encountered by the team during the field visit in November, it no doubt that travel to
Tipul Village during the rainy season would be extremely difficult. Given the terrain and very
poor road conditions, villagers prefer to trek (5 hours one-way) or use a motorcycle (1.5 hours
one-way) to travel between the village and Hakha Township.
There are currently about 130 households living in the village. Village officials indicate
that in 1995 there were 160 households living in the village. However, since 1996, households
have been migrating out of the village, and therefore the population has been declining. Almost
all households in the village are subsistence farmers, practicing shifting cultivation. The main
crops grown by households are maize, rice, potato, millet, banana, and fruit trees. Maize and
rice are usually grown for a households own consumption, but other agricultural products are
sold for cash income at the local market in Hakha Township. Another main source of cash
income for households in the village is casual labor in the nearby towns or working as laborers
on road repair and maintenance works.
Although land access is not an issue, households tend to have access to large plots
through the shifting cultivation system. Tipul Village is currently managing about 30,000 acres of
forest land, of which 20,000 are allowed to be used for cultivation. However, the quality of soil,
lack of workforce, lack of seeds and capital, animals and equipment to plough or tilt the land,
plus lack of access to irrigation and fertilizer, are major problems rendering low yields. Village
officials confirm that 15 households in the village are considered very poor since these
households do not have capital or animals to plough and/or tilt the land to start cultivation.
Households in Tipul village had been using electricity from a self-help micro hydro mini-
grid since 2005, but in October 2013, lightening struck the power house, and the dynamo was
not functional. After the accident, villagers were able to raise sufficient funds to purchase a new
20 KW dynamo. Unfortunately, villagers do not know how to install the new generator and are
seeking help from the local government. Interviews with village officials and members of the
electricity committee reveal that before the accident, the micro hydro mini-grid in Tipul was able
to provide an electricity supply of up to three hours a day year round. However, the system was
overloaded and demand outpaces supply. Another problem was the line losses as the distance
covered by distribution lines from the powerhouse to the village is over 5 kilometers.
APPENDIX B
100
Villagers have extensive experience in managing and operating the micro hydro mini-
grid. The village has a well established electricity committee which is responsible for investing,
managing and overseeing the operation of micro hydro mini-grid. For example, the electricity
committee raised funds to purchase a new dynamo, collected contributions from villagers to
invest in the construction and installation of micro hydro mini-grid, and collects monthly bills.
The average contribution that villagers contributed to purchase the new dynamo is around
US$50, which can be used as the criteria to gauge villagers ability to pay upfront investment
costs for electricity services such as SHS.

APPENDIX B
101
Village: Sopum
Township: Thantalang
District: Hakha
State: Chin
Location:
Sopum Village is located 18 kilometers north of Thantalang Township. Although the
distance between Thantalang Township and Sopum village is only 18 kilometers, it takes close
to an hour to travel to the village using a four-wheel drive vehicle. This is due to the terrain,
which is mountainous, and very poor road conditions even during the dry season.
There are currently 110 households living in the village. Almost all households in the
village are subsistence farmers, practicing shifting cultivation. Crops grown by the households
are primarily maize, rice, potato, millet, banana, and fruit trees. Maize and rice are usually
grown for household consumption, but other agricultural products are sold for cash income at
the local market in Thantalang Township. Another main source of cash income for households
in the village is casual labor in the nearby towns and especially in India. Interviews with villagers
reveal that during the dry season, about 30 to 40 households in the village have family members
aged between 20-30 years old who trek across the mountain for three days to India to seek
employment as well as to take livestock (pigs) to sell. Their current wages are 100 Rupee per
day or the equivalent of 1,500 Kyats per day, which is slightly less than the typical farm labor
wage in Myanmar. This suggests there is not sufficient employment in the state and as a result,
villagers have to cross the border to seek employment in India.
Land access is not an issue as households tend to have access to large plots through
the shifting cultivation system. However, villagers indicate that in recent years the quality of soil
has declined significantly. This is due to the fact that the time lag between one shifting
cultivation to another has been shortened. In addition, lack of workforce, seeds, capital, animal
and equipment to plough or tilt land, plus lack of access to irrigation and fertilizer, have also
contributed to low yields.
Sopum village has just constructed and installed a micro hydro mini-grid. The size of the
generator is 10 KW. The total cost of investment is 8.5 million Kyats, of which 3.5 million Kyats
are collected from villagers. The remaining 5 million Kyats are borrowed (with no interest) from
one wealthy villager. The system began providing electricity services in October 2013.
Unfortunately, due to insufficient water supply, the system was able to provide electricity for only
two hours for two days a week for one month. The constructed artificial reservoir has since dried
up. Currently, households in the village are using candles and pine torches (pine wood sticks)
for lighting. It is important to note that 30 households in Sopum village have been using SHS. A
total of 26 households are using 40 Wp and the remaining 4 households are using 70 Wp
systems. It appears that the problems of the newly constructed micro hydro mini-grid are due to
APPENDIX B
102
an insufficient water source and the fact that the size of the constructed artificial reservoir is too
small (50x20x6) to hold sufficient water for power generation. To solve these problems,
villagers and village officials have identified new water sources located about eight kilometers
away from the village. However, villages do not have sufficient funds to carry out civil works and
install a new turbine and generator.
Villagers have not had sufficient experiences in managing and operating the micro hydro
mini-grid.

APPENDIX B
103
Village: Thluanlan
Township: Thantalang
District: Hakha
State: Chin
Location:
Thluanlan Village is located about 15 kilometers northwest of Thantalang Township.
Although the distance between Thantalang Township and Thluanlan village is only 15
kilometers, it can take more than one hour to travel to the village using a four-wheel drive
vehicle. This is due to the terrain, which is mountainous, and very poor road conditions even
during the dry season. Interviews with villagers and village officials confirm that villagers prefer
to trek to and from Thantalang Township, which takes about three hours one-way.
There are currently 90 households living in the village. Almost all households in the
village are subsistence farmers, practicing shifting cultivation. Main crops grown by the
households are maize, rice, potato, millet, banana, and fruit trees. Maize and rice are usually
grown for a households own consumption, but other agricultural products are sold for cash
income at the local market in Thantalang Township. Another main source of cash income for
households in the village is serving as casual labor in the nearby towns and especially in India.
Interviews with villagers reveal that during the dry season, a significant number of households in
the village have family members aged between 20-30 years old who trek across the mountains
for 3-4 days to India to seek employment, as well as to take livestock (pigs) to sell. Current
wages are 100 Rupee per day or the equivalent of 1,500 Kyats per day, which is slightly less
than the typical farm labor wage in Myanmar. This suggests there is not sufficient employment
in the state and as a result, villagers have to cross the border to seek employment in India.
Thluanlan Village is the only village that does not use a self-help micro hydro mini-grid.
Households in this village do not have access to electricity. The main sources of lighting that
household in the village use are candle and pine wood sticks (pine torches).

APPENDIX C
104
APPENDIX C: Summary of Surveyed Villages and Proposed Solutions by Villagers in Chin State

No District Township Village
# of
HHs
Mini
hydro
grid
% of
hhs use
mini
hydro
Problem
Proposed Solution by
Villagers
1 Hakha Hakha 1. Chun Cung 360
1-30KW
1-10KW
1-10KW
60%
System only provides electricity 4 hrs per
day during the rainy season.
No water to generate electricity from
March to May.
System overload even during the rainy
season.
Need civil engineer to
determine if it is possible to
increase the height of the
reservoir.
Hakha Hakha 2. Lok Lung 138 1-20KW 95%
Only provide electricity for 3 hrs/day
during the rainy season
March to May
System overload even during the rainy
season
Long distance distribution line
Villagers suggest that water
source for hydro is 2 miles
away. Need mini hydro
engineer/professional to
confirm sufficient water and
possibility of constructing a
reservoir and mini hydro.
2 Hakha Hakha 1. Tipul 130 1-20KW 62% System overload, but electricity is
available for 3 hrs a day year-round.
Lightning struck, but villagers bought a
new 20 KW generator; villagers need help
installing the new system.
Distribution lines from the power house to
the village run 3.5 miles.
About 38% of the households stopped
using electricity from the grid because light
bulbs burn out very often
Need technicians to help
install the system
3 Hakha Hakha 1. Tinam 98
1-15KW
(hydro)
1-15
KW
(Diesel
gen-set)
100%
Hydro only supplies electricity 2.5 hrs/day
from Jun Jan
February to May
In Jun 2013 the reservoir cracked. It has
been repaired since, but is still leaking.
Villagers suggest that new
water source can be
diverted to a new site,
where a reservoir can be
constructed. Distance for
water diversion will be 2 mi.
long. New reservoir will be
1.5 mi. from the village.

APPENDIX C
105

Chin State: Summary of Surveyed Villages and Proposed Solutions by Villagers

No
Distric
t
Township Village
# of
HHs
Mini
hydro grid
% of hhs
use mini
hydro
Problem
Villagers
4 Hakha Thantalan
1. Sopum 110 1-10KW 78%
Reservoir is very small (50x20x6)
Completed construction in Sept 2013.
In October water is sufficient to provide
electricity only 2 hrs for 2 days per week.
Small reservoir and insufficient water for
electricity generation.
Villagers suggest that water
source for hydro is 5 miles
away. Need mini hydro
engineer or professional to
confirm that there is
sufficient water and that it is
possible to construct mini
hydro.
2. Thluanlan 90 None N/A
Households use candle and pine burn wood
stick (pine torch) for lighting.
Villagers do not want to commit to any solution
proposed by the ADB because they are afraid
that they may miss out on free SHS from the
government
Villagers prefer SHS, and
expect to receive free SHS
from the government.

3. Thlangrua
A
102 1-15KW 98%
System is overloaded, but provides electricity
for 3- 4 hrs/day during rainy season.
Insufficient water to generate electricity from
March to May. During that time electricity is
available every 3 nights for 2 hours a night
Heavy rain washed away the pipe and power
house, but villagers rebuilt the power house
nearby (completed Oct 2013).
New system has a water leak since valve
cannot be closed completely.
Villagers are determined to use hydro and are
not interested other alternatives
Villagers (A & B) suggest
that the water source for
hydro is 3.5 miles away.
They would like to construct
a reservoir for mini hydro to
provide electricity for both
village A and B. They need
a mini hydro engineer or
professional to confirm that
there is sufficient water and
it is possible to construct
mini hydro.

4. Thlangrua
B
63 1-5KW 100%
System is also overloaded, and can only
provide electricity for one hr/day year round.
Reservoir is leaking.
System constructed in 2006. Supplied
3hrs/night for first three years of operation
during monsoon, 1 hr/night when dry season.

APPENDIX C
106

Chin State: Summary of Surveyed Villages and Proposed Solutions by Villagers

No District City Wards # of
HHs
Problem (insufficient electricity supply for the city)
Villagers
1 Hakha Hakha 6 3,178
No street lights.
New building for regional hospital has no hot water.
Insufficient electricity for lighting at the orphanage homes in the
city.

Install solar PV street lights
Solar PV hot water
SHS for orphanage homes
The total population of Hakha city is 17,973 people.

APPENDIX D
107
APPENDIX D: Summary of Surveyed Village and ADB Proposed Renewable Technologies in
Mandalay Region

No District Township Village # of
HHs
Energy Use and Percent of
Households
Proposed Technology
1
Daltaya
Thi
Tauk Gone
1. Pyaw Ywa

2. Pe Tauk
Gone
500
(20%)
Candle and simple diesel wick
lamp (80%)
OBA for SHS
2 Meikhtila Wuntwin 1. Shwe Taung 200
Diesel gen-set mini grid (50%)
SHS (10%)
batteries and some candle (30%)
Candle and some LED light
powered by dry cell batteries
(10%)
SHS for lighting at public
health center in the
village (equipped with
Ten-5Watts LED lights)
3 Kyaukse Kyaukse
1. Nga Su 65
SHS (30%)
batteries and some candle (70%)
OBA for SHS
2. Dwehla 194
SHS (15%)
batteries and some candle (80 to
85%)
Candle (mostly poor landless
household) (5 to 10%)
OBA for SHS
3. Ywat Taw 84
SHS (42%) and LED light powered
by dry cell batteries and some
candle (58%)
Solar lantern rental and
charging station (50
lanterns).
4. Kyee Eait 270
SHS (30%)
Community owned gen set mini
grid (22%)
Car battery power T4 size
light (48%)
OBA for SHS
5. Ah She Nag
Toe
350
Community owned diesel gen-set
mini grid
OBA for SHS (less than 4
miles from the grid)

APPENDIX D
108

Mandalay Region: Summary of Surveyed Village and Proposed Renewable Technologies (Cont)

HHs
Energy Use and Percent of Households Proposed Technology
4 Thazi Thazi
1. Ahlekan 278
SHS (1%)
Two privately owned gen set mini grid
(36%)
LED light powered by dry cell batteries
and some candle (63%)
OBA for SHS
2. Than Taw 225
SHS (7%)
Candle (very poor households) (33%)
charging station (50 lanterns).
3. Zawin 101
SHS (8%)
and some candle; Car battery power T4
size Fluorescent tube or CFL or LED
light (about 60 to 70%)
Candle (very poor land less households)
(<38%)
charging station (50 lanterns).
5
Kyauk Da
Daung
Kyauk Da
Daung
1. Seint Tain 227
Privately owned gen set mini grid (44%)
Solar PV home system (SHS) users
(<1%)
Candle and some small and motorcycle
battery (56%)
OBA for SHS
2. Young Kyin 57 Candle (99%)
Small car battery and candle (1%)
Install 10 kW Solar PV mini-
grid for 60 households
3. Ye Ngan 38
Candle (99%)
and candle (< 1%)
Install 8 kW Solar PV mini-
grid for 60 households
4. Kha Pat 284
Candle; and LED light powered by dry
cell batteries and candle (all
households)
OBA for SHS
APPENDIX D
109

Mandalay Region: Summary of Surveyed Village and Proposed Renewable Technologies (Cont)

HHs
Energy Use and Percent of Households Proposed Technology
6 Mying Yan Mying Yan 1. Nga Bu Kyin 131
Community owned gen set mini grid
(44%)
OBA for SHS
7 Madaya Madaya
1. Wain Tin
Kong
145
Candles (25%)
Solar PV home system (SHS) (5%)
OBA for SHS
2. Tha Pyae
Eait
170
and some candles (93%)
OBA for SHS
3. Phae Pon 110
Privately owned gen set mini grid
(47)%
OBA for SHS
8
Singu (23)
mile
Singu 1. Thekong 60
Solar lantern (16%)
Motor cycle battery power LED light
(17%)
OBA for SHS

APPENDIX E
110
APPENDIX E: Summary of Surveyed Villages and Proposed Renewable Technologies in Chin
State

No District Township Village
# of
HHs
Mini
hydro
grid
% of hhs
use mini-
grid hydro
Problem Proposed Technology
1 Hakha Hakha 1. Chun Cung 360
1-30KW
1-10KW
1-10KW
60%
The system only provides electricity
from 4 hrs per day during the rainy
season.
Mar to May.
System overload even during the
rainy season.
OBA for SHS
Hakha Hakha 2. Lok Lung 138 1-20KW 95%
Only provide electricity from 3 hrs/day
during the rainy season
Mar to May
System overload even during the
rainy season
Long distance distribution line
OBA for SHS
2 Hakha Hakha 1. Tipul 130 1-20KW 62% System overload, but electricity is
available for 3 hrs a day year round.
Lightning struck, but village bought a
new 20 KW generator; villagers need
help to install the new system.
Distribution line from power house to
the village is 3.5 miles.
About 38% of the households
stopped using electricity from the grid,
because light bulbs burned out very
often
OBA for SHS
3 Hakha Hakha 1. Tinam 98
1-15KW
(hydro)
1-15 KW
(Diesel
gen-set)
100%
Hydro only supply electricity 2.5
hrs/day from Jun Jan
Feb to May
In Jun 2013 reservoir crack, has been
repair but still leaking.
OBA for SHS

APPENDIX F
112
APPENDIX F: Operational Guidelines of the Output Aid-Based
Program to promote Solar PV Home Systems

The implementers of the Output-Based Aid (OBA) program for Solar PV Home Systems
(SHS) will consist of the government of Myanmar (Ministry of Industry), local governments
(especially at the Township level), the Asian Development Bank (ADB), a verification team, and
private SHS suppliers. The following paragraphs outline the roles and responsibilities of each
agency/organization.
The ADB will develop specifications for the solar PV home system (SHS) and announce
a call for private suppliers to provide detailed price quotations of all components for SHS, the
total retail price of the SHS, and installation costs. The ADB will select at least two or three
suppliers. Selected suppliers will be responsible for selling and installing SHS, as well as
providing after-sales services to consumers in Mandalay Region and Chin Sate for at least one
year.
Mandalay Regional Government and Designated Township Officials
Government will assign an agency and staff to work as the administrator of the OBA to
promote SHS and disseminate pilot project activities. The OBA for SHS Administrator (the
Administrator) will work with township officials and qualified SHS suppliers to promote the SHS
that will be sold under the pilot project, as well as accept orders from households in the village.
In this administrative role, this Administrator will maintain and update sales and
installation reports submitted by private suppliers that have sold and installed SHS for
households. In addition, the Administrator will also be in charge of reviewing, endorsing, or
rejecting verification reports submitted by the verification teams and passing these reports to the
ADB for subsidy payment.
Qualified Private Suppliers
Qualified private suppliers will be responsible for selling, installing, and providing after-
sales services to the SHS installed in households. Since the subsidy under an OBA approach
requires proof that households have actually purchased SHS, private suppliers will be
responsible for keeping record of their sales. Their records must contain sufficient information
for the verification team to carry out the verification process, which in general will involve visiting
the households to check and verify the systems installation and use. At the time of sale,
households will only pay the suppliers for the portion of the retail price which the household can
afford. Suppliers will receive the remaining portion of the retail price (subsidy portion) from the
ADB only after the sale has been verified by the verification team.

APPENDIX F
112
Verification Team
The service provider will report the outputs it has delivered to an Independent
Verification Agent (IVA), who will verify the results prior to the subsidy payments being released.
The IVAs verification checks will focus on quality and connections made for SHS. The
verification checks will be scheduled in batches of 100-150 installations per check and take
place over the course of a few months to ensure sustainability. The IVA will report back to the
ADB regarding the actual quantity of outputs delivered. Based on these verification reports,
funding will be released to the service provider.
The IVA will gather information on outputs delivery throughout the pilot project and
delivers an ex-post evaluation review to ADB at its close.

APPENDIX G
113
APPENDIX G: Technical Specifications for proposed SHS (30 Wp)

Design of off-grid PV applications demand calc
ADB
Customer: Ministry of Industries - Myanmar Hussain Haider-Team Lead
Project: Off-Grid Renewable Energy Application - Myanmar Phase 1 12/9/13
ually consumpLlon proflle (uLlllzaLlon hours)
1 2 3 4 3 6 7 8 9 10 11 12 13 14 13 16 17 18 19 20 21 22 23 24 x ower (ln W)
1 12 3 1 x x x x x 23 Wh x 3
2 12 3 2 x x x x x 30 Wh x 6
3 12 3 1 x x 6 Wh x 3
4
3
6
7
8
9
10
11
12
13
14
13
16
17
18
19
20
21
22
23
24
!" $%
Max. slmulLanous load
"& $ '()*+,*- )*./ 01.-2
'()*+,*- ,1,.0 -.304 *5*674 -*8.5-
ually operaLlng Llme
(hours)
2.00 h
3.00 h
uC LLu lamp 3.00 h
uC LLu lamp
Mob hone
ually consumpLlon no.
ower
(ln W)
num-
ber
volLage
(ln v)
1ype of consumers
APPENDIX G
114
Technical Specifications for proposed SHS (30 Wp)

Design of off-grid PV applications Input data sheet

Company: AD8

CusLomer name: M|n|stry of Industr|es --- Myanmar
ro[ecL LlLle Cff---Gr|d kenewab|e Lnergy App||cat|on --- Myanmar hase 1

ueslgner: nussa|n na|der---1eam Lead
uaLe of deslgn: 12]9]13

S|te |nformat|on:
LocaLlon: Manda|ay LCC 5elect ftom tbe poll Jowo meoo.
AzlmuLh: AZlM colcolotloo ls vollJ fot 0 5ootb -/---
15. 1llL angle of array 1S deg 1_AnCLL 5elect ftom tbe poll Jowo meooe.
Annual lrradlaLlon 202S kWh]m]year l88Au_?LA8

ually energy demand DC:
eak load DC:
ually energy demand AC:
eak load AC:
1ota| da||y energy demand:
1ota| peak |oad:
61 Wh]d
14 W
0 Wh]d
0 W
CCn_uC 5ee olso "uemooJ colc"
L_uC "
CCn_AC "
L_AC "
CCn = CCn_uC + CCn_AC
LAk_LCAu = L_uC + L_AC
61 Wh]d
14 W

V modu|e data:
30 Wp

_M

5ee tbe tecbolcol Joto sbeet.
ower aL M (_M)
CurrenL aL M (l_M) 1.61 A l_M "
volLage aL M (v_M) 18.60 V v_M "
ShorL clrculL currenL (l_SC) 1.70 A l_SC "
Cpen clrculL volLage (v_CC) 24.30 V v_CC "
ueslgn Lo securlLy of power supply for 1S years SLC_?LA8S 5elect ftom tbe poll Jowo meoo.

8attery:
8aLLery volLage
uepLh of dlscharge
uays of auLonomous operaLlon
Charge Contro||er:
LS
12 V
S0
3.0
LS
8A11 8_vCL1
8_ulSCPA8CL
8_Au1CnCM?
CC
5elect ftom tbe poll Jowo meoo.
"
Mlo. 20X --- Mox. 50X
M-
--1racklng Mlnlmum requlred charglng
volLage aL M
Maxlmum currenL lnpuL uC
Maxlmum volLage lnpuL uC
NC
14.S0 V
SS.00 A
S7.00 V
M1
CC_Mln_v
CC_MAx_l
CC_MAx_v
5ee cbotqe coottollet Joto sbeet.
"
"

Inverter:
Mlnlmum requlred lnpuL volLage aL M
nomlnal power
#ulv/0!
Surge facLor
NC lnv 5elect ftom tbe poll Jowo meoo.
lnv_Mln_v 5ee tecbolcol Joto sbeet.
lnv_MAx_l "
lnv_MAx_v "

lnv_Su8CL_l "
11.00 V
SS.00 A
SS.00 V
22S W
#DIV]0!
60.0

Cab||ng: Measure connecLlon lengLhs on slLe.
Array >>> Charge conLroller
Cable dlameLer
10 m
2.S0 mm
CCnn_L_1
CA8_MM1
5lte meosotemeot
Charge conLroller >>> 8aLLery
Cable dlameLer
1 m
2.S0 mm
CCnn_L_2
CA8_MM2
SlLe measuremenL

Losses:
0

C_LCSS_lnv Converslon losses lnverLer
Converslon losses baLLery + charge conLroller 3 C_LCSS_8A11_CC
MlsmachLlng wlLhouL M1 3 MM_LCSS_nC_M1
MlsmaLchlng wlLh M1 MM_LCSS_M1
!""#$%&' )
!!"
Des|gn of off-gr|d V app||cat|ons V array and battery s|z|ng
Company: AD8
CusLomer name: M|n|stry of Industr|es - Myanmar
ro[ecL LlLle Cff-Gr|d kenewab|e Lnergy App||cat|on - Myanmar hase 1
ueslgner: nussa|n na|der-1eam Lead
Da||y Consumpt|on: 61 Wh]d CCn
1ota| cab|e |osses: 1 C8_LCSS = 1 - ((1-C8_LCSS1) * (1-C8_LCSS2))
Convers|on |osses 3 C8_LCSS = C_LCSS_8A11_CC
M|smatch |osses 3 MM_LCSS = MM_nC_M1
erformance kat|o 93 _8A1lC = (1-C8_LCSS) * (1-C_LCSS) * (1-MM_LCSS)
Necessary da||y V y|e|d 66 Wh]d ?lLLu_nLC = CCn / _8A1lC
G|oba| rad|at|on per day 4.00 kWh](d*m) l88Au_uA? !"# %&' ()#%& *"%& +)*',% "--./".%")#0
Necessary m|n|mum V M power 19 W _8LCu = ?lLLu_nLC / l88Au_uA? * 0.99^SLC_?LA8S
V array conf|gurat|on
Mlnlmum requlred number of modules 1 Mln_MCu = _8LCu / _M
Des|gn Input: number of modules ln serles 1 SL8_MCu
Des|ng |nput: number of sLrlngs ln parallel 1 A8_S18lnCS
SafeLy of supply facLor 1.S8 Su_lAC1 = W_LAk / _8LC
SUIIICILN1 LNLkG SUL
1oLal number of modules 1 n8_MCu = SL8_MCu * A8_S18lnCS
v array power 30 Wp A88A?__M = A8_S18lnCS * _M
M currenL (l_M) of array 1.61 A A88A?_l_M = A8_S18lnCS * l_M
M volLage (v_M) of array 18.60 V A88A?_v_M = SL8_MCu * v_M
Maxlmum currenL of array 1.70 A A88A?_l_MAx = A8_S18lnCS * l_SC
Maxlmum volLage of array 24.3 V A88A?_v_MAx = SL8_MCu * v_CC
Charge Contro||er
volLage aL charge conLroller 18.37 V v_CC = A88A?_v_M * (1-C8_LCSS1)
vmpp facLor 1.28 CC_vM_l = v_CC / 8_vCL1 *1.2
M VCL1AGL IS SUIIICILN1
vmax facLor 0.32 CC_vMAx_l = v_CC / CC_MAx_v
MAkIMUM CnAkGL VCL1AGL IS WI1nIN 1nL LIMI1S
CurrenL aL charge conLroller 1.70 A A88A?_l_MAx
CurrenL charge facLor 0.03 CC_lCPA8CL_l = A88A?_l_MAx / CC_MAx_l
MAkIMUM CUkkLN1 A1 CnAkGL CCN1kCLLLk IS WI1nIN 1nL LIMI1S
8attery
Mlnlmum capaclLy requlred 31 Ah 8_Mln_CA_8LC = CCn / 8_ulSCPA8CL / 8_vCL1
CurrenL aL peak load requlred 1.17 A 8_Cu88Ln1_LAk = L_uC/8_vCL1
Avallable volLage aL baLLery 18.33 V 8_vAvAlLA8LL = A88A?_v_M * (1-C8_LCSS1) * (1-C8_LCSS2)
vcharge facLor 1.27 vCPA8CL_l = 8_AvAlLA8LL / (1.2 * 8_vCL1)
CnAkGING VCL1AGL IS SUIIICILN1
Avallable volLage aL lnverLer
vcharge facLor
Maxlmum lnpuL currenL aL lnverLer IALSL lALSL
ConnLlnuous currenL aL lnverLer IALSL lALSL
CurrenL facLor
Cab||ng
Array >>> Charge contro||er 20 m CA8_L_1 = 2*CCnn_L_1
Vo|tage 18.60 V A88A?_v_M
ower 30 W A88A?__M
Se|ected cab|e cross-sect|on 2.S mm CA8_MM1
kesu|t|ng cab|e |osses 1.24 C8LCSS_1 = A88A?__M*A88A?_v_M/(36*A88A?_v_M^2*CA8_MM1)*100
Charge contro||er >>> 8attery 2 m CA8_L_2 = 2*CCnn_L_2
Vo|tage 14.40 V 8_vCL1 * 1.2
ower 30 W A88A?__M
kesu|t|ng cab|e |osses 0.21 C8LCSS_2 = A88A?__M*CC_Mln_v/(36*(8_vCL1*1.2)^2*CA8_MM2)*100
2 m CA8_L_3 = 2*CCnn_L_3
Vo|tage 12.00 V 8_vCL1
ower 14 W LAk_LCAu
Se|ected cab|e cross-sect|on 4.0 mm CA8_MM1
kesu|t|ng cab|e |osses 0.00 C8LCSS_3 = LAk_LCAu*8_vCL1/(36*8_vCL1^2*CA8_MM3)*100

APPENDIX G
116

Des|gn of off-gr|d V app||cat|ons DC consumer cab|e ca|c
Company: AD8
ueslgner: nussa|n na|der-1eam Lead
Legend: INU1
CALCULA1LD
CkI1ICAL INU1
Connect|on of consumer
Connect|ng D|stance
(musL be measured along Lhe cabllng rouLe on slLe)
Cable lengLh
(cable lengLh = double Lhe connecLlng dlsLance (+ and -))
volLage v 12
ower W 1S
Maxlmum allowed losses S
CpLlmum cable cross-secLlon (LheoreLlcal) mm 0.74
roposed cable cross-secLlon (sLandard) 0.7S
Ava||ab|e cab|e cross-sect|on (des|gned) mm 1.S
8esulLlng losses 2.48
volLage supplled Lo consumer v 11.7
ower supplled Lo consumer W 13
m
m
10
20
!""#$%&' *
!!$
APPENDIX H: Technical Specifications for proposed SHS (70 Wp)


ADB

Customer: Ministry of Industries - Myanmar Hussain Haider-Team Lead

no.

1ype of consumers
volLage
(ln v)
ower
(ln W)
num-
--
ber
(hours)

ually consumpLlon
1 2 3 4 3 6 7 8 9 10 11 12 13 14 13 16 17 18 19 20 21 22 23 24 x ower (ln W)
1 uC LLu lamp 12 3 3 3.00 h

x

x x x x

43 Wh x 9
2 uC 1v wlLh uvu player 12 23 1 3.00 h

x x x x x

123 Wh x 23
3 Mob hone 12 3 2 2.00 h

x x

12 Wh x 6
4

3

6

7

8

9

10

11

12

13

14

13

16

17

18

19

20

21

22

23

24

!"#$%&$' &)&*+ '*,+- $.$/0- '$1*.' 234 56

!"#$%&$' #$*7 +)*'8 9: 5
APPENDIX H
118


Company: AD8



S|te |nformat|on:
LocaLlon: Manda|ay LCC 5elect ftom tbe poll Jowo meoo.
AzlmuLh: AZlM colcolotloo ls vollJ fot 0 5ootb -/---
15. 1llL angle of array 1S deg 1_AnCLL 5elect ftom tbe poll Jowo meooe.
Annual lrradlaLlon 202S kWh]m]year l88Au_?LA8

ually energy demand DC:
eak load DC:
ually energy demand AC:
eak load AC:
1ota| da||y energy demand:
1ota| peak |oad:
182 Wh]d
40 W
0 Wh]d
0 W
CCn_uC 5ee olso "uemooJ colc"
L_uC "
CCn_AC "
L_AC "
CCn = CCn_uC + CCn_AC
LAk_LCAu = L_uC + L_AC
182 Wh]d
40 W

V modu|e data:
70 Wp

_M

5ee tbe tecbolcol Joto sbeet.
ower aL M (_M)
ShorL clrculL currenL (l_SC) 4.7S A l_SC "

8attery:
8aLLery volLage
uepLh of dlscharge
uays of auLonomous operaLlon
Charge Contro||er:
LS
12 V
S0
3.0
LS
8A11 8_vCL1
8_ulSCPA8CL
8_Au1CnCM?
CC
"
Mlo. 20X --- Mox. 50X
M-
--1racklng Mlnlmum requlred charglng
volLage aL M
NC
14.S0 V
SS.00 A
S7.00 V
M1
CC_Mln_v
CC_MAx_l
CC_MAx_v
"
"

Inverter:
Mlnlmum requlred lnpuL volLage aL M
nomlnal power
#ulv/0!
Surge facLor
NC lnv 5elect ftom tbe poll Jowo meoo.
lnv_Mln_v 5ee tecbolcol Joto sbeet.
lnv_MAx_l "
lnv_MAx_v "

lnv_Su8CL_l "
11.00 V
SS.00 A
SS.00 V
22S W
#DIV]0!
60.0

Array >>> Charge conLroller
Cable dlameLer
10 m
2.S0 mm
CCnn_L_1
CA8_MM1
5lte meosotemeot
Charge conLroller >>> 8aLLery
Cable dlameLer
1 m
2.S0 mm
CCnn_L_2
CA8_MM2
SlLe measuremenL

Losses:
0

C_LCSS_lnv Converslon losses lnverLer
APPENDIX H
119

Des|gn of off---gr|d V app||cat|ons V array and battery s|z|ng

Company: AD8

Da||y Consumpt|on:
1ota| cab|e |osses:
Convers|on |osses
M|smatch |osses
erformance kat|o
182 Wh]d
4
3
3
90
CCn
C8_LCSS = 1 --- ((1---C8_LCSS1) * (1-
--C8_LCSS2)) C8_LCSS = C_LCSS_8A11_CC
MM_LCSS = MM_nC_M1
_8A1lC = (1---C8_LCSS) * (1---C_LCSS) * (1---MM_LCSS)
Necessary da||y V y|e|d
G|oba| rad|at|on per day
202 Wh]d
4.00 kWh](d*m)
?lLLu_nLC = CCn / _8A1lC
l88Au_uA? !"# %&' ()#%& *"%& +)*',% "--./".%")#0
Necessary m|n|mum V M power S9 W _8LCu = ?lLLu_nLC / l88Au_uA? * 0.99^SLC_?LA8S
Des|gn Input: number of modules ln serles
Des|ng |nput: number of sLrlngs ln parallel
1 SL8_MCu
A8_S18lnCS 1

SafeLy of supply facLor 1.19 Su_lAC1 = W_LAk / _8LC
1oLal number of modules
v array power
M currenL (l_M) of array
M volLage (v_M) of array
Maxlmum currenL of array
Maxlmum volLage of array
1
70 Wp
4.60 A
17.00 V
4.7S A
21 V
n8_MCu = SL8_MCu * A8_S18lnCS
A88A?__M = A8_S18lnCS * _M
A88A?_l_M = A8_S18lnCS * l_M
A88A?_v_M = SL8_MCu * v_M
A88A?_l_MAx = A8_S18lnCS * l_SC
A88A?_v_MAx = SL8_MCu * v_CC
Charge Contro||er
volLage aL charge conLroller 16.41 V v_CC = A88A?_v_M * (1---C8_LCSS1)
CurrenL aL charge conLroller 4.7S A A88A?_l_MAx
8attery
CurrenL aL peak load requlred 3.33 A 8_Cu88Ln1_LAk = L_uC/8_vCL1
Avallable volLage aL baLLery 16.33 V 8_vAvAlLA8LL = A88A?_v_M * (1---C8_LCSS1) * (1---C8_LCSS2)

IALSL lALSL
IALSL lALSL
Cab||ng
ower 70 W A88A?__M
Se|ected cab|e cross---sect|on 2.S mm CA8_MM1
kesu|t|ng cab|e |osses 3.46 C8LCSS_1 = A88A?__M*A88A?_v_M/(36*A88A?_v_M^2*CA8_MM1)*100

Vo|tage 14.40 V 8_vCL1 * 1.2
ower 70 W A88A?__M
Se|ected cab|e cross---sect|on 2.S mm CA8_MM1
APPENDIX H
120

INU1
CALCULA1LD
CkI1ICAL INU1

Des|gn of off---gr|d V app||cat|ons DC consumer cab|e ca|c

Company: AD8
ro[ecL LlLle Cff---Gr|d kenewab|e Lnergy App||cat|on --- Myanmar hase
1

Legend:

Connect|ng D|stance
m


Cable lengLh
m

(cable lengLh = double Lhe connecLlng dlsLance (+ and ---))

10

20

volLage v 12
ower W 40

CpLlmum cable cross---secLlon (LheoreLlcal) mm 1.98
roposed cable cross---secLlon (sLandard) 2.S
Ava||ab|e cab|e cross---sect|on (des|gned) mm 2.S
APPENDIX I
121
APPENDIX I: Technical Specifications for proposed SHS (110 Wp)

ADB
Customer: Ministry of Industries - Myanmar Hussain Haider
1 2 3 4 3 6 7 8 9 10 11 12 13 14 13 16 17 18 19 20 21 22 23 24 x ower (ln W)
1 12 3 3 x x x x x 43 Wh x 9
2 12 3 2 x x 12 Wh x 6
3 12 43 1 x x x x x 180 Wh x 43
4 23 1 x x x x x 100 Wh x 23
3 x 0
6
7
8
9
10
11
12
13
14
13
16
17
18
19
20
21
22
23
24
!!" $%
ually consumpLlon no.
ower
(ln W)
num-
ber
volLage
(ln v)
1ype of consumers
4.00 h
2.00 h
AC LLu lamp 3.00 h
Moblle Charglng
1v 21 lnches(LCu)
(hours)
uvu
&'()*+), +-+./ ,.0/1 )2)341 ,)5.2,
&'()*+), ().6 /-.,7 89 $
4.00 h
APPENDIX I
122

Company: AD8
ueslgner: nussa|n na|der
S|te |nformat|on:
LocaLlon: LCC 5elect ftom tbe poll Jowo meoo.
AzlmuLh: 0 South AZlM colcolotloo ls vollJ fot 0 5ootb -/- 15.
1llL angle of array 30 deg 1_AnCLL 5elect ftom tbe poll Jowo meooe.
Annual lrradlaLlon 2144 kWh]m]year l88Au_?LA8
ually energy demand DC: CCn_uC 5ee olso "uemooJ colc"
eak load DC: L_uC "
ually energy demand AC: 337 Wh]d CCn_AC "
eak load AC: 8S W L_AC "
1ota| da||y energy demand: 337 Wh]d CCn = CCn_uC + CCn_AC
1ota| peak |oad: 8S W LAk_LCAu = L_uC + L_AC
V modu|e data:
ower aL M (_M) 110 Wp _M 5ee tbe tecbolcol Joto sbeet.
ShorL clrculL currenL (l_SC) 4.7S A l_SC "
8attery: LS 8A11 5elect ftom tbe poll Jowo meoo.
8aLLery volLage 12 V 8_vCL1 "
uepLh of dlscharge S0 8_ulSCPA8CL Mlo. 20X - Mox. 50X
uays of auLonomous operaLlon 3.0 8_Au1CnCM?
Charge Contro||er: LS
M-1racklng NC M1 5ee cbotqe coottollet Joto sbeet.
Mlnlmum requlred charglng volLage aL M 14.S0 V CC_Mln_v 5ee cbotqe coottollet Joto sbeet.
Maxlmum currenL lnpuL uC SS.00 A CC_MAx_l "
Maxlmum volLage lnpuL uC S7.00 V CC_MAx_v "
Inverter: LS lnv 5elect ftom tbe poll Jowo meoo.
Mlnlmum requlred lnpuL volLage aL M 11.00 V lnv_Mln_v 5ee tecbolcol Joto sbeet.
Maxlmum currenL lnpuL uC SS.00 A lnv_MAx_l "
Maxlmum volLage lnpuL uC SS.00 V lnv_MAx_v "
nomlnal power 22S W
nomlnal reserve 16S
Surge facLor 60.0 lnv_Su8CL_l "
Array >>> Charge conLroller 10 m CCnn_L_1 5lte meosotemeot
Cable dlameLer 2.S0 mm CA8_MM1 5elect ftom tbe poll Jowo meoo.
Charge conLroller >>> 8aLLery 1 m CCnn_L_2 SlLe measuremenL
Cable dlameLer 2.S0 mm CA8_MM2 5elect ftom tbe poll Jowo meoo.
8aLLery >>> lnverLer 1 m CCnn_L_3 SlLe measuremenL
Cable dlameLer 4.00 mm CA8_MM3 5elect ftom tbe poll Jowo meoo.
Losses:
Converslon losses lnverLer 7 C_LCSS_lnv
CC
!"#$"%"&
APPENDIX I
123

Des|gn of off-gr|d V app||cat|ons DC consumer cab|e ca|c
Company: AD8
Legend: INU1
CALCULA1LD
CkI1ICAL INU1
Connect|ng D|stance
Cable lengLh
(cable lengLh = double Lhe connecLlng dlsLance (+ and -))
volLage v 12
ower W 90
CpLlmum cable cross-secLlon (LheoreLlcal) mm 4.46
roposed cable cross-secLlon (sLandard) 6
Ava||ab|e cab|e cross-sect|on (des|gned) mm 6
m
m
10
20
APPENDIX I
124
Des|gn of off-gr|d V app||cat|ons V array and battery s|z|ng
Company: AD8
Da||y Consumpt|on: 337 Wh]d CCn
1ota| cab|e |osses: 7 C8_LCSS = 1 - ((1-C8_LCSS1) * (1-C8_LCSS2) * (1-C8_LCSS3))
Convers|on |osses 10 C_LCSS = C_LCSS_8A11_CC + C_LCSS_8A11
M|smatch |osses 3 MM_LCSS = MM_nC_M1
erformance kat|o 81 _8A1lC = (1-C8_LCSS) * (1-C_LCSS) * (1-MM_LCSS)
Necessary da||y V y|e|d 416 Wh]d ?lLLu_nLC = CCn / _8A1lC
G|oba| rad|at|on per day 4.70 kWh](d*m) l88Au_uA? !"# %&' ()#%& *"%& +)*',% "--./".%")#0
Necessary m|n|mum V M power 103 W _8LCu = ?lLLu_nLC / l88Au_uA? * 0.99^SLC_?LA8S
Des|gn Input: number of modules ln serles 1 SL8_MCu
Des|ng |nput: number of sLrlngs ln parallel 1 A8_S18lnCS
SafeLy of supply facLor 1.07 Su_lAC1 = W_LAk / _8LC
1oLal number of modules 1 n8_MCu = SL8_MCu * A8_S18lnCS
v array power 110 Wp A88A?__M = A8_S18lnCS * _M
M currenL (l_M) of array 4.60 A A88A?_l_M = A8_S18lnCS * l_M
M volLage (v_M) of array 17.00 V A88A?_v_M = SL8_MCu * v_M
Maxlmum currenL of array 4.7S A A88A?_l_MAx = A8_S18lnCS * l_SC
Maxlmum volLage of array 21 V A88A?_v_MAx = SL8_MCu * v_CC
Charge Contro||er
volLage aL charge conLroller 16.08 V v_CC = A88A?_v_M * (1-C8_LCSS1)
CurrenL aL charge conLroller 4.7S A A88A?_l_MAx
8attery
CurrenL aL peak load requlred 4S6.99 A 8_Cu88Ln1_LAk = (1/1-C_LCSS_lnv/100) * ((L_uC/8_vCL1) + (L_AC * lnv_Su8CL_l / 8_vCL1)
Avallable volLage aL baLLery 1S.9S V 8_vAvAlLA8LL = A88A?_v_M * (1-C8_LCSS1) * (1-C8_LCSS2)
Inverter
Avallable volLage aL lnverLer 11.94 V lnv_vAvAlLA8LL = 8_vCL1 * (1-C8_LCSS3)
vcharge facLor 1.09 lnv_vAvAlLA8LL / lnv_Mln_v
INVLk1Lk INU1 VCL1AGL IS SUIIICILN1
Maxlmum lnpuL currenL aL lnverLer 4S6.99 A lnv_MAx_l=1(1-C_LCSS_lnv/100)*(L_AC*lnv_Su8CL_l/8_vCL1)
ConnLlnuous currenL aL lnverLer 7.62 A lnv_CCn1_l=1(1-C_LCSS_lnv/100)*(L_AC/8_vCL1)
CurrenL facLor 0.14 lnv_Cu88_l = 8_Cu88Ln1_LAk * lnv_MAx_l
CIN1INUCUS CUkkLN1 IS WI1nIN 1nL INVLk1Lk LIMI1S
Cab||ng
ower 110 W A88A?__M
kesu|t|ng cab|e |osses S.44 C8LCSS_1 = A88A?__M*A88A?_v_M/(36*A88A?_v_M^2*CA8_MM1)*100
LCSSLS !!!
Vo|tage 14.40 V 8_vCL1 * 1.2
ower 110 W A88A?__M
8attery >>> Inverter 2 m CA8_L_3 = 2*CCnn_L_3
Vo|tage 12.00 V 8_vCL1
ower 8S W LAk_LCAu
Se|ected cab|e cross-sect|on 4.0 mm CA8_MM1
kesu|t|ng cab|e |osses 0.S3 C8LCSS_3 = LAk_LCAu*8_vCL1/(36*8_vCL1^2*CA8_MM3)*100

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