Hong Kong-listed VPower Group inked a deal with the government to operate a rental power project in Mandalay Region. The company signed a power purchase agreement with the Ministry of Electricity and Energy’s Electric Power Generation Enterprise to run a 90MW gas engine power plant in Myingyan for five years.
The company said it plans to build the power plant with an installed capacity of 109.7MW and expects to start commercial operation next February. The first portion of the project will involve installing an Organic Rankine Cycle (ORC) system for residual heat to power conversion, in order to enhance energy efficiency and reduce cost.Speaking at the ceremony, Electricity and Energy Minister U Win Khaing said, “As the electricity demand of Myanmar is increasing very fast, MOEE has laid down its policy to fulfill the electricity demand of the country by implementing medium-term and long-term plans.”
VPower’s CEO Rorce Au-Yeung commented that the deal is the company’s fourth project in Myanmar. It already operates three power rental contracts in the country, amounting to more than 220MW.
“Applying ORC technology in our solution for the Myingyan II project represents a new page in our technological advancement,” he said.
MOEE launched a tender in January this year for two Mandalay plants to replace existing rental power projects operated by Glasgow-headquartered utilities firm Aggreko and US-based APR Energy. The tender’s deadline, originally scheduled to be February 19, was postponed to March 6.While VPower was selected to operate the Myingyan plant, the National Infrastructure Holding-led consortium (NIHC), comprising three firms, will run a plant at nearby Kyaukse. Both will be fuelled by Shwe field’s natural gas. Within the consortium, Yangon-headquartered infrastructure conglomerate National Infrastructure Holding Co owns the largest number of the shares, followed by Myanmar Chemical & Machinery (MCM) and then a Chinese firm, according to an official from MCM. The 145MW gas power plant will involve US$100-120 million investment over a span of five years, the official added.
Seventy percent of Myanmar’s electricity comes from hydropower. With a dry season that lasts from October to May, the country needs measures to fill the seasonal shortfall and scale up the supply to meet increasing demand.
SOURCE: MYANMAR TIMES
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