AC Energy Inc., the power arm of conglomerate Ayala Corp., said Monday it formed a joint venture with Yoma Strategic Holdings Ltd. to develop 200 megawatts of renewable energy capacity in Myanmar.
Under the agreement, AC Energy and Yoma Strategic will establish a 50:50 joint venture that will invest at least $30 million in Yoma Micro Power (S) Pte. Ltd.
The new joint venture will jointly explore developing around 200 MW of additional renewable energy projects in Myanmar including participation in large-utility scale renewable projects.
AC Energy Renewables chief operating officer Patrice Clausse said the partnership would bring the company closer to its 2025 renewable energy goal.
“This is a very meaningful investment for AC Energy, as we intend to participate in Myanmar’s renewables sector in a significant way. We are delighted to partner with Yoma Strategic who shares the same aspiration to build a meaningful portfolio in renewable energy and together, be able to contribute to creating an environmentally sustainable future,” Clausse said.
Electricity consumption in Myanmar is expected to grow at an average annual rate of 11 percent until 2030, according to the World Bank.
“Our combined expertise, strong financing capabilities and AC Energy’s commitment to shore up presence in the fast-growing region will provide a critical platform for growth in the country,” Clausse said.
Yoma Strategic chief executive Melvyn Pun said electricity supply is one of the largest opportunities in Myanmar and one of the biggest bottlenecks for economic development.
“We are excited to have AC Energy as our partner to drive sustainable and inclusive economic growth. AC Energy’s international expertise in the renewable energy sector and the access to funding will be invaluable as we work together to service this huge, underserved market in Myanmar,” Pun said.
Total electrification in all households in Myanmar will require investments of around $2 billion per year.
Myanmar’s energy master plan envisions solar power contributing up to five percent of the nation’s electricity as the country shifts away from hydropower and natural gas sources.
The recent hike in electricity tariffs in Myanmar also enhanced the attractiveness of solar energy solutions to the commercial and industrial segment.
“The renewable energy sector is a scalable business which has the potential to generate a sizable revenue stream with recurring cashflow to complement Yoma Strategic’s core businesses,” Pun said.