Yangon, Myanmar
The Department of Rural Development (DRD) has signed an MoU with Pact Myanmar for energy projects implemented by Pact’s Smart Power Myanmar (SPM) energy access business unit, paving the way for SPM to provide specialized support for the expansion of Myanmar’s solar mini-grid market.
The MoU, signed on the 21st May, establishes the support SPM will provide to the DRD over the next three years as part of a broad partnership between DRD, The World Bank, The Rockefeller Foundation and technical partners such as GIZ. SPM’s support will focus on four main areas:
- Data and business intelligence, including energy research and data analytics and related capacity building
- Financing services, including connection and micro-enterprise financing through SPM’s Energy Impact Fund, and design and execution of private sector financing facilities to accelerate project development
- Demand-side engagement to boost mini-grid utilization and mini-grid viability
- Supporting energy sector policy and advocacy through thought leadership and strategic convening
By signing the agreement, SPM will be able to provide specialist support to the DRD as it manages the off-grid component of the Government’s National Electrification Plan (NEP). The NEP aims to achieve universal electrification in Myanmar by 2030.
The agreement builds upon a number of SPM’s existing initiatives, which fall under three primary categories: thought leadership and convening in the energy sector; data & business intelligence to support strategic growth; and financial and technical services to streamline and speed up project development.
In recent months, SPM has facilitated the launch of a number of equipment financing loan facilities targeted at mini-grid developers in Myanmar. Developed in partnership with local commercial banks including Myanmar Citizens Bank (MCB), AYA Bank and A Bank, these facilities aim to reduce barriers to scaling up for mini-grid developers.
This month, SPM will launch a Mini-Grid Accelerator Program focusing on executive capacity building for Myanmar’s first generation of off-grid developers. The program, jointly organized with the Silicon Valley-based Miller Center for Social Entrepreneurship, part of the Santa Clara University, will bring international and local mentors together with local mini-grid developers to produce business plans that will help developers to scale up and attract international finance.
SPM was established in May 2018 as the energy access business unit of Pact Myanmar. With an initial investment from The Rockefeller Foundation, SPM was established to work with the public and private sectors to accelerate the spread of energy access and transform the long-term economic potential of millions of people current without access to electricity. SPM’s Founding Members include: The World Bank, The Rockefeller Foundation, USAID, Shell and Yoma Strategic Holdings.
