About $1.35m of the grant will be used to improve coordination on energy efficiency and renewable energy sources under a 20-year energy plan.
ADB Southeast Asia Lead Energy specialist Jong-Inn Kim said Myanmar has indicated that its energy policy should promote sustainable and renewable resources, as well as focus on energy efficiency and conservation.
"A master plan will help the country assess its energy needs and provide a roadmap to meet them," Kim said.
ADB will also use $1.5m from the funding to provide second technical assistance for Ministry of Electric Power of the country to deploy better transmission and distribution projects.
Under the projects, the Government is expected to provide electricity connections to both rural and urban areas, while increasing transmission capacity and reducing losses in the transmission and distribution systems.
According to the agency, the project will focus on rehabilitating distribution networks in Yangon, Mandalay, Sagaing, and Magwe Regions and expanding the transmission capacity.