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Closing the energy gap: Smart Power Myanmar reaches 5 MW of energy capacity through partnership

January 27, 2025
Shan Orchard staff carrying freshly picked avocados. Credit: Jackson Downing/Pact.
Shan Orchard staff carrying freshly picked avocados. Credit: Jackson Downing/Pact.

Smart Power Myanmar (SPM), a Pact-implemented project, funded by the Global Energy Alliance for People and Planet (GEAPP), working to end energy poverty and promote economic opportunities by accelerating renewable energy across the country, just hit a significant milestone: The successful installation of 5 MW of solar energy capacity countrywide. Every solar panel installed represents another step toward closing the energy gap, transforming lives, and strengthening economic resilience in Myanmar. 

Currently, energy stability is a major barrier in the region, with far-reaching impacts, affecting urban areas and critically threatening agricultural value chains and rural communities that rely on consistent power for activities such as irrigation, processing, and refrigeration. Given that agriculture is the backbone of Myanmar’s economy, supporting livelihoods for around 70% of the population, energy instability risks food security and economic resilience. Ninety-five percent of businesses are now affected by power outages, and over half of businesses rely on diesel generators, greatly increasing operational costs. These challenges highlight the urgent need for energy diversification, including investments in renewable energy solutions that can improve resilience, especially for rural communities and businesses. 

SPM is leading efforts to strengthen Myanmar’s Distributed Renewable Energy market, including for rural and low-income communities. Solar adoption has reduced energy costs for businesses by more than 50%, boosting financial stability. The project’s scalable approach integrates technical expertise, investment facilitation, and energy sector insights, fostering a financially independent guarantee financing ecosystem. This model enhances energy access, power resilience, and blended finance outcomes, driving social and economic progress in underserved regions.  

Aqua Myeik Premium Seafood Company operates processing and seafood storage on Myanmar’s southern coastline. Powering the freezers in the sweltering climate, along with having no connection to the national power grid, was becoming costly. Their diesel generator was operating 20 hours a day and the fuel costs were up to $10,000 per month. With grant support and a loan guarantee through SPM, Aqua Myeik was able to install a solar power system. With this new reliable power source, they have saved approximately $250,000 for their business. “With solar power, we’ve managed to reduce the generator’s running time by 6 to 8 hours daily,” said Diamond Sang, Director at Aqua Myeik Premium. 

Shan Orchard, located in Heho, Shan State, a valley far from the central power grid is unique in two distinct ways: They are the first and only avocado oil press in Myanmar and they are currently operating on 100% solar power. Before solar power, the cost of diesel was becoming unsustainable for their business model, and the business owners didn’t have the capital required for a bank loan. “Without solar power, we couldn’t do it,” said Nathan Winn, Managing Director at Shan Orchard. “There’s no way we can produce 60 tons with power generator and diesel fuel costs.” By working with SPM, they were able to secure a $80,000 loan and stabilize their business, saving 265 local jobs.  

By the end of 2024, SPM’s commercial and industrial projects have achieved a 5 MW peak output, avoiding more than 60,000 tons of CO2 emissions, a milestone that highlights the transformative potential of clean energy solutions backed by innovative financing and strategic partnerships. Solar power is proving to be more than just a clean energy solution — it’s a lifeline for businesses and communities navigating dire power shortages. While obstacles like financing, technical expertise, and trust in solar need increased attention, with every new project and partnership, progress becomes more tangible. Together with local partners and businesses, SPM is building a brighter, more sustainable future for Myanmar.