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Techno-Economic Comparison of Microgrids and Traditional Grid Expansion: A Case Study of Myanmar

Author

Listed:
  • Thet Thet Oo

    (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School (KINGS), Ulsan 45014, Republic of Korea)

  • Kang-wook Cho

    (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School (KINGS), Ulsan 45014, Republic of Korea)

  • Soo-jin Park

    (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School (KINGS), Ulsan 45014, Republic of Korea)

Abstract

Myanmar’s electricity supply relies mainly on hydropower and gas-fired generation, yet rural electrification remains limited, with national access at approximately 60%. The National Electrification Plan (NEP) aims for universal access via nationwide grid expansion, but progress in remote areas is constrained by financial limits and suspended external funding. This study evaluates the techno-economic feasibility of decentralized microgrids as an alternative to conventional grid extension under current budgetary conditions. We integrate a terrain-adjusted MV line-cost model with (i) PLEXOS capacity expansion and chronological dispatch for centralized supply and (ii) HOMER Pro optimization for PV–diesel–battery microgrids. Key indicators include LCOE, NPC, CAPEX, OPEX, reliability (ASAI/max shortage), renewable fraction, and unserved energy. Sensitivity analyses cover diesel, PV, and battery prices, as well as discount rate variations. The results show microgrids are more cost-effective in terrain-constrained regions such as Chin State, particularly when accounting for transmission and delayed generation costs, whereas grid extension remains preferable in flat, accessible regions like Nay Pyi Taw. Diesel price is the dominant cost driver across both regions, while battery cost and discount rate affect Chin State more, and PV cost is critical in Nay Pyi Taw’s solar-rich context. These findings provide evidence-based guidance for rural electrification strategies in Myanmar and other developing countries facing similar financial and infrastructural challenges.

Suggested Citation

  • Thet Thet Oo & Kang-wook Cho & Soo-jin Park, 2025. "Techno-Economic Comparison of Microgrids and Traditional Grid Expansion: A Case Study of Myanmar," Energies, MDPI, vol. 18(18), pages 1-29, September.
  • Handle: RePEc:gam:jeners:v:18:y:2025:i:18:p:4988-:d:1753510
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    References listed on IDEAS

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    1. Alexandros Korkovelos & Hisham Zerriffi & Mark Howells & Morgan Bazilian & H-Holger Rogner & Francesco Fuso Nerini, 2020. "A Retrospective Analysis of Energy Access with a Focus on the Role of Mini-Grids," Sustainability, MDPI, vol. 12(5), pages 1-29, February.
    2. Sotiropoulou, Kalliopi F. & Vavatsikos, Athanasios P. & Botsaris, Pantelis N., 2024. "A hybrid AHP-PROMETHEE II onshore wind farms multicriteria suitability analysis using kNN and SVM regression models in northeastern Greece," Renewable Energy, Elsevier, vol. 221(C).
    3. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
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    Cited by:

    1. Bo, Yaolong & Liu, Kejia & Xia, Yanghong & Wei, Wei, 2026. "Evolution of microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 228(C).

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