A study of sustainability in the energy sector in Myanmar between 2011 and 2020

Abstract

In modern society, energy becomes a life supporting mechanism, as it is not only entangled with the environment pillar of sustainable development, but also inseparably related to the economic and social pillars of society. Taking advantage of a qualitative research method, this study critically examines the level of sustainability of Myanmar’s energy sector between 2011 and 2020, using 2011 as a baseline, by observing three critical components: energy security, environmental considerations in energy production and securing financial health for the sector.

Energy security, possessing uninterrupted availability of energy sources at an affordable price, is studied from available macro secondary data in conjunction with an analysis of existing energy policies. The study concludes that, although the two successive Myanmar’s Union governments were able to generate and import energy to meet its soaring demand and maintain its energy security, it still fell short to improve energy security during the studied period.

This thesis finds that environmental policy integration in the energy sector at the Union level is the most vibrant among the three components. Although there is still a long journey to undertake to meet international standards, the country was able to graduate from “traditional” environmental management and transitioned into a sound streamlined environmental safeguarding mechanism in the sector.

Furthermore, the examination of Myanmar’s energy sector financial health in this study reflects the vital role energy tariffs play in the sustainability of a market economy. Although the two successive governments were able to raise electricity tariffs twice during the studied period, which new tariffs resulted in some improvement in the energy sector’s financial health, the sector still needs massive subsidies from the Union’s budget. This insecure financial health has impacted the sector’s productivity and functionality, but it also has a negative effect on the country’s wider socio-economic development, specifically affecting those who do not have access to modern electricity.

Although this study does not find current satisfactory trends in any of the three studied components, it notes the improvements that the country was able to make especially considering the starting point of the journey - newly transitioning into a semi-democratic society from a military dictatorship. The study also provides pragmatic recommendations for the sector’s sustainability based on its research. By observing the energy sector from a bird’s eye view, this paper intends to initiate a deeper understanding of sustainability in Myanmar’s energy sector and potentially offer new premises and contentions for further debate on the subject.