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

Thet Thet Oo, Kang-wook Cho () and Soo-jin Park
Additional contact information
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

Energies, 2025, vol. 18, issue 18, 1-29

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.

Keywords: microgrid; grid extension; techno-economic analysis; rural electrification; Myanmar; HOMER Pro; PLEXOS; energy policy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/18/4988/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/18/4988/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:18:y:2025:i:18:p:4988-:d:1753510

Access Statistics for this article

Energies is currently edited by Ms. Cassie Shen

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().