Grid-Connected Small Scale Electrical Power Regulations
The regulations governing small scale electrical power enterprises connected to the grid in Nay Pyi Taw, March 2018. The document covers aspects such as project connections, state ministries involvement, types of enterprises, interconnection processes, and more.
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Discussion of Grid-Connected Small Scale Electrical Power Enterprise Regulations Nay Pyi Taw, March 2018 Chris Greacen, Ph.D. Page 1
State & Region Any project not connected to the national grid MOEE (Union) Any project connected to the national grid *The Relevant Union Ministry* *The Relevant State Ministry* Myanmar Grid-Connected Small Scale Electric Power Enterprise Regulations 2018 Myanmar Off-Grid Small Scale Electric Power Enterprise Regulations 2018 Notification No: [*] Notification No: [*] (-) date, (-) month, 2018 (-) date, (-) month, 2018 14/03/2025 Page 2
Characteristics of Small Scale Electric Power Enterprises Generation Distribution Sale Type of Small Scale Electric Power Enterprise Small Power Producer (SPP) Small Distribution Network (SDN) Small Electricity Retailer (SER) 14.03.2025 Page 3
Indication of intent by national utility to allow project of specified size/location to connect Grid-connection Process Letter of Intent (LOI) Based on review of engineering plans agreement to allow interconnection Interconnection certificate Contract to purchase / sell electricity at specified price SPPA or SPSA Legal right to operate (streamlined approval for projects <1 MW) Permit Interconnection with the national grid and commencing operations Commissioning 14.03.2025 Page 4
Indication of intent by national utility to allow project of specified size/location to connect Letter of Intent (LOI) Application Interconnection certificate SPPA or SPSA Permit Commissioning 14.03.2025 Page 5
LoI definitions Letter of Intent (LoI) means a statement of intent by a LDN operator to connect to a SPP or SDN; On-grid LoI means a LoI issued by a LDN operator to an existing or proposed project which intends to connect to a LDN which is in the vicinity of the project; Off-grid LoI means a LoI issued to an existing or proposed project that operates, or will operate, in a mode that is not connected to a LDN and that intends to connect when a LDN expands into the vicinity of the Off-grid project; 14.03.2025 Page 6
Request for Letter of Intent (7) 5 1 2 4 3 MMK Receive LoI within 30 days from date of receipt of complete request LDN distribution upgrade & cost estimate within 30 days of LoI Receive notification of receipt of complete request within 7 days Identification of suitable project site Submit Request for LoI to LDN Accompanying documentation: Basis for denial: Distribution Cost Upgrade Estimate Can only be denied for technical (engineering) reasons or if it conflicts with another project GPS coordinates of the proposed location of project assets; Upgrades to LDN paid for by SPP/SDN developer Validity Proposed project power export/import capacity (kW) On-grid LoI: Valid for 12 months, but can be extended for a period of up to 6 months at a time up to 2 years Off-grid LoI: Indefinite (does not expire) until LDN network is within one mile of the project at which point it is nullified and replaced with an on-grid LoI Transfer only with LDN approval 14.03.2025 Page 7
Indication of intent by national utility to allow project of specified size/location to connect Letter of Intent (LOI) Based on review of engineering plans agreement to allow interconnection Application Application for interconnection SPPA or SPSA Permit Commissioning 14.03.2025 Page 8
Interconnection certificate definitions Interconnection Certificate means a certificate issued by a LDN operator certifying approval of the interconnection engineering design submitted by the Electrical Project; 14.03.2025 Page 9
Interconnection certificate application (12) 1 2 3 4 Interconnection Certificate issued within 60 days from date of complete request Receive notification of receipt of complete request within 7 days Submit Application for Interconnection Before LoI elapses Accompanying documentation: Basis for denial: Description of the project, site details Service territory (if SDN or SER) Electrical engineering design specifications Engineering studies (e.g. load flow or fault studies) Prescribed fee Only technical (engineering) criteria 14.03.2025 Page 10
Indication of intent by national utility to allow project of specified size/location to connect Letter of Intent (LOI) Based on review of engineering plans agreement to allow interconnection Interconnection certificate Contract to purchase / sell electricity at specified price SPPA or SPSA Permit Commissioning 14.03.2025 Page 11
SPPA Key definitions Standardized Small Power Purchase Agreement (SPPA) means a standardized contract by which a Small Power Producer sells electricity at wholesale Feed-in Tariff means a generation technology-specific, standardized electricity rate paid for electricity sold to the LDN operator under a SPPA 14.03.2025 Page 12
SPSA Key definitions Standardized Small Power Sales Agreement (SPSA) means a standardized contract by which a Small Electricity Retailer purchases electricity at wholesale 14.03.2025 Page 13
Interconnection certificate application (12) + SPPA/SPSA (13 & 15) 1 2 3 4 Receive Interconnection Certificate within 60 days from date of complete request Developer and LDN sign SPPA / SPSA within 90 days from Interconnection Certificate Receive notification of receipt of complete request within 7 days Submit Application for Interconnection Before LoI elapses SPPA / SPSA: Standardized contract -- No need for each project to draft and negotiate from scratch each time. SPPA (SPSA) will specify a tariff for sale (purchase) of electricity to the LDN The Ministry may modify the SPPA / SPSA, but modifications only apply to agreements signed after the modification. Accompanying documentation: Basis for denial: Description of the project, site details Service territory (if SDN or SER) Electrical engineering design specifications Engineering studies (e.g. load flow or fault studies) Prescribed fee Only technical (engineering) criteria 14.03.2025 Page 14
Feed-in tariffs (37) Feed-in Tariffs determined by: A standardized methodology established by the Ministry; An avoided cost calculation as determined by an LDN operator, with approval from the Ministry; or Through a competitive bidding process. 14.03.2025 Page 15
SER Tariffs ( 33) SER Retail tariffs Allowed to be higher than tariffs charged to retail customers by LDN (e.g. higher than 35 kyat/kWh) Ministry allows tariff taking into consideration factors including: SER s costs (capital, O&M, taxes, etc.) amount of electricity sold, Reasonable profit to SER Customers' alternatives. ( 34) SER wholesale tariff Sufficient for well-managed company to earn profit at or above prime interest rate plus 8% 14/03/2025 Page 16
Indication of intent by national utility to allow project of specified size/location to connect Letter of Intent (LOI) Based on review of engineering plans agreement to allow interconnection Interconnection certificate Contract to purchase / sell electricity at specified price SPPA or SPSA Legal right to operate (streamlined approval for projects <1 MW) Application Permit Commissioning 14.03.2025 Page 17
Permit application (21) If > 1 MW 4 1 3 2 Receive notification of receipt of complete request within 14 days Ministry publishes in 2 newspapers, 14 days public comment Submit Application for Permit to Ministry Ministry evaluates within 60 days For all projects: Fee Site description Copy of SPPA/SPSA Evaluation critiera (all projects): completeness, veracity and legality of the information Evaluation critiera (projects > 1 MW): The applicant s record of compliance; Public comments and representations received from the public, if any; Protection of the environment; Financial capability of the applicant Economic efficiency and benefit to public & applicant. For projects >1 MW additional requirements: Business registration Business plan Proof of financial capacity Evidence of rights to use land (& water rights if hydro) Health & safety approvals 14.03.2025 Page 18
Authority to issue waivers (20) The Ministry is authorized to issue waivers to requirements otherwise applicable to Permit holders pursuant to the Ministry of Electric Power Permitting (Permit Applications, Issuance, Modifications and Enforcement) Regulations, 2016, or its replacement, in order to minimize the regulatory requirements applicable to SPPs, SDNs and SERs. 14/03/2025 Page 19
Indication of intent by national utility to allow project of specified size/location to connect Letter of Intent (LOI) Based on review of engineering plans agreement to allow interconnection Interconnection certificate Contract to purchase / sell electricity at specified price SPPA or SPSA Legal right to operate (automatic approval for projects <1 MW) Application Permit Interconnection with the national grid and commencing operations Commissioning 14.03.2025 Page 20
Commissioning (30) Commissioning must happen no more than 3 years from SPPA signing (unless exception granted in SPPA or extension granted by Ministry); SPP/SDN must submit quarterly progress reports to LDN leading up to commissioning (and annual reports thereafter); Inspector General must verify interconnection equipment compliant with technical codes prior to interconnection. Issues Interconnected Facility Commissioning Certificate upon completion of testing; Ownership of all relevant assets on the LDN operator s side of the Interconnection Point shall be transferred to the LDN operator upon commissioning. 14/03/2025 Page 21
Small Scale Electric Power Enterprises Unit (32) The Ministry shall establish Small Scale Electric Power Enterprises Unit Single point of contact Coordinate interactions among departments within the Union Government and the LDN operator; Facilitate the issuance of: LoIs; Environmental, health and safety approvals Review annual reports. Monitor project performance and maintain a database of all SPP electricity sales and SER electricity purchases. 14/03/2025 Page 22
Feedback from Union-level consultation workshop with MOEE/MOI/DRD Tues 6 March, 2018 Naypyitaw Regulations need to better integrate with existing (or soon to be released): MOEE technical codes (grid-code, distribution code, metering code), technical and industrial standards, code of conduct and inspection methods, and environmental regulations Feed-in tariffs need to be consistent with reasonable least cost approach Regulations should be promulgated under Electricity Law 72(b) rather than 72(a) so as to not require parliamentary approval. 14.03.2025 Page 23
Questions? Suggestions? 14.03.2025 Page 24
Guiding questions If these regulations were passed, would they help your business? What, if anything, would you change? Small Scale Electric Power Enterprises Unit should there be one in each LDN, or just one inside MOEE? At the moment, ESE, YESC, MESC are the only LDNs. Should LDNs be defined to include smaller distribution utilities? If a request for LOI or application for interconnection is submitted to ESE, should it be submitted to the state-level office, or to the union/head office? What do you think about the processes on the flow-charts? 14.03.2025 Page 25
