Economic Compatibility of Improved Electricity Reliability: Integrating a Discrete Choice Experiment with PV–Grid–Diesel Optimization in Myanmar’s Garment Industry

The unreliable electricity supply is a major constraint on industrial production in Myanmar, especially for garment factories, which require a reliable power supply to maintain production. Frequent outages disrupt production schedules, increase operating expense, and force factories to rely on expensive backup generation. This study aims to estimate garment factories’ willingness to pay for improvements in electricity service reliability and to assess whether a rooftop solar PV–grid–diesel hybrid system could provide electricity at a cost compatible with these preferences. To achieve this objective, a discrete choice experiment was conducted with garment factories in the Yangon Region. The estimated marginal willingness to pay was USD 0.00293/kWh for one fewer outage per month, USD 0.01207/kWh for a one-hour reduction, and USD 0.00098/kWh for one additional hour of advance notice. For the largest in-design reliability improvement, one outage per month lasting 0.5 h/event, the WTP-based demand-side affordability benchmark was USD 0.2638/kWh. This benchmark reflects respondents’ stated choices and should not be interpreted as a legal tariff, regulated price, or direct tariff recommendation. The proposed-system LCOE was USD 0.2237/kWh, compared with USD 0.2752/kWh for the current system, although the compatibility margin remained statistically uncertain. The joint-venture administration was preferred to both government and private administration. These findings highlight that the proposed rooftop solar PV–grid–diesel hybrid system may improve industrial electricity reliability, although its economic compatibility remains statistically uncertain.