Myanmar will install its first ever 500-Kilovolt (KV) power grid, which extends as 420 kilometers, in early 2013 in a bid to reduce power loss in the country, official media reported Sunday.

The three-phase project will be respectively implemented by Serbia on a 233-kilometer Thabyaywa-Tounggo power grid at a cost of 116.32 million US dollars as the first phase, while the second phase of 187-kilometer power grid at a cost of 87.75 million dollars will be funded by Economic Development of Cooperation of South Korea and the third phase, which involves construction of three power plants between Thabaywa and Kamarnat, will be implemented at a cost of 87 million dollars funded by Japan's Overseas Development Assistance (ODA), the Ministry of Electric Power was quoted by the New Light of Myanmar as saying.

According to the ministry, due to an increase in number of electric power users and state-owned and private factories and workshops, the demand has hit 1,890 megawatts (mw) against actual supply of 1,500 mw.

There are 18 hydropower plants, one coal-fired station and 10 gas-fired power stations in Myanmar, generating a maximum of about 1,610 mw in monsoon and 1,340 mw in summer.

Of the 1,610 mw, 1,270 mw is generated by hydropower when a full storage capacity of water is available in monsoon.

Although consumption in monsoon is 1,560 mw, less than production and is enough for distribution, but it is 1,850 mw in summer, far exceeding the production as claimed by the ministry.

The power shortage in summer has forced alternative distribution to the public, factories, workshops and businesses.