Texas-based Quasar Resources, an energy development company, is planning to invest from $300 million to $400 million in the Myanmar power sector over the next five years.
“We’re going to replicate the US model (in Myanmar) where things work efficiently,” said Lin Tun, founder and managing director of Quasar Resources.
The company is looking at developing a 100MW solar power station in Sagaing Region in which it is looking to invest about $150 million. The firm is currently in talks with the government on taking the project forward.
Following approvals, the company is hopeful of completing the project in a year.
The power sector in Myanmar presents a huge opportunity for private players across the value chain from transmission, distribution, generation to industry know-how and affordable access.
“About 70 per cent of electricity in Myanmar comes from hydel sources making it especially suitable for solar. Adding more solar to the system will help since water runs low in dry areas during summer,” he said during an interaction with DEALSTREETASIA.
Quasar is also in talks with the local government for developing a 64MW hydel power plant in the Upper Saedawgyi region. The project involves building a new dam to increase capacity, requiring an investment of up to $150 million.
In the Thilawa Special Economic Zone, the company is looking at developing 33MW dual fuel power plant. “In Thilawa, we have enough land to set up a 100 MW plant. We can build it in three phases of 33MW each,” said Tun.
Power is available to residential consumers at K50 (about 4 cents) per unit in Mynamar.
“No place in the world can you buy electricity for four cents and it is hard to attract investments at this level,” Tun reasons, adding, cost of solar power generation is expected to be 12 to 13 cents per kilowatt hour in Myanmar.
To date, Quasar Resources has raised private capital and is currently in advanced discussions with some more entities to secure additional funding. “There’s a lot of investor interest in the space and we are close to a deal,” he said.
Myanmar has seen a spate of investments in the power infrastructure space give the wide demand-supply gap. Some of these include US based ACO Investment Group and Convalt Energy‘s 300MW project in Myingyan and Thailand’s Green Earth Power Co Ltd plant in Minbu.