Yoma Strategic Holdings Ltd. has entered into a strategic partnership with AC Energy Inc. to explore developing around 200 megawatts of renewable energy projects in Myanmar.
The two companies plan to establish a 50:50 joint venture to to drive the growth of Yoma Micro Power Pte. Ltd., which builds micro power plants and mini-grids that provide electricity to off-grid rural communities and telecommunications towers in Myanmar.
As part of this transaction, AC Energy and Yoma Strategic have signed a binding term sheet for the joint venture to invest at least $30 million into Yoma Micro Power.
Yoma Strategic currently owns 35 percent of Yoma Micro Power while Norfund and the International Finance Corp. hold 30 percent each. Yoma MicroPower managing director Alakesh Chetia owns the remaining five percent.
“Supply of electricity is one of the largest opportunities in Myanmar and also 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,” said Yoma Strategic CEO Melvyn Pun.
The World Bank estimates that electricity consumption in Myanmar will grow at an average annual rate of 11% until 2030 to achieve complete electrification in all households with an expected investment of around $2 billion per year required.
The Myanmar Government’s energy master plan envisions solar power contributing up to 5% of the nation’s electricity as the country shifts away from hydropower and natural gas sources.
For AC Energy, the partnership is an important step towards meeting its 2025 goals.