Burma has started constructing its first low-head hydropower plant. The Mandalay facility will provide a renewable energy source by generating power through flowing river currents, estimated to produce 279.6 kilowatt hours a year. Demands for power are steadily increasing with a 15 percent rise expected each year, forecasting to hit 14,542 megawatts by 2030. Burma has 43 power plants but are performing below capacity, producing just 2,232 megawatts. A loan agreement with Australia was signed on 7 May last year to fund a four-year power plant construction plan.