Bhutan Country Presentation at ACEF 2014

OverviewInstitutional Arrangement of Energy Sector

Energy Access

Renewable Energy

Energy Efficiency SE4ALL Initiatives & Findings of RA/GA report

Challenges

Investment Opportunities

Institutional Arrangements Ministry of Economic Affairs is the lead agency for

Energy with Five Departments to overlook the energy sector: DRE, DoHPS, DHMS, DOT and DGM

Two Power Companies- DGPC and BPCIndependent Regulator- BEAExisting Energy Related Policies:Electricity Act of Bhutan, 2001Economic Development Policy of the Kingdom of

Bhutan, 2010Sustainable Hydropower Development Policy 2008Alternative Renewable Energy Policy 2013Foreign Direct Investment Policy, 2010

Goal 1: Universal Energy Access Total Energy Consumption in Bhutan = 326,687 MTOE (Metric

Tons of Oil Equivalent)- Bhutan Energy Efficiency Baseline Study 2012

Electrical Energy Consumption – 139,315 MTOE (1620 GWh), 57.4%

Thermal Energy Consumption – 187,372 MTOE ( fossil fuels and biomass)

Industry consumes 33.9% of the total energy of the country 99% hydropower driven and diversification is essential to

ensure security of supply98% of rural populace has access to clean and modern energy

Goal 2: Energy Efficiency

No legal frameworks to address Energy Efficiency (EE)Continuous awareness program on EE conductedBaseline Study for Energy Efficiency conducted under UNDP

fundingEE Study in Building Sector conducted and Building Energy

Efficiency Code drafted under UNDP fundingEnergy Efficiency and Conservation Policy to be formulated

under Energy Plus (Norwegian funding)Standards and Labeling for appliances to be developed under

Energy PlusDemand Side Management through efficient lighting systems

to be implemented under Energy Plus (Norwegian Funding)

Goal 3 : Renewable Energy

Hydropower • Techno-economically feasible (>10MW) = 23,760

MW (≈100,000 GWh)• Total installed capacity – 1480 MW• 3,066 MW under construction Accelerated Hydropower Development • 10, 000 MW development plan by 2020

11th FYP (2013-18) Hydropower Projects

Pipingchhu (55 MW)

Mochhu-I (658 MW)

Nikachhu(118 MW)

Dangchhu(120 MW)

Amochhu-I (747 MW)

Amochhu-II (500 MW)

Dagachhu-II(153 MW)

Pachhu (77 MW)

Samchhu (71 MW)

Manas RS (I&II) (2800 MW)

Jomori(73 MW)

Gamri I & II(81+85 MW)

Kholongchhu (130 MW)

Chamkhar Intg. (1397+853MW)

Shongarchhu(107 MW)

Rotpashong(1230 MW)

Nyera Amari I & II(141+332 MW)Dagachhu

(126 MW)

Apr 7, 2023 8

SN Project & location Installed Capacity (MW)/Generation (MU)

Implementation Mode

Status

DHPS1 Chamkharchhu Integrated,

zhemgang 1397+853, 5508 + 3360

IPP/PPP PFR under preparation

2 Dangchhu, Wangdue 120, 473 IPP/PPP PFR under preparation

3 Dagachhu-II, Dagana 135,645 IPP/PPP PFR to be prepared 4 Shongarchhu, Mongar 107, 418 IPP/PPP PFR to be prepared 5 Manas Reservoir I & II,

zhemgang 1800+1000, 10,000+5000

IG PFR to be prepared

6 Jhomori, Sjongkhar 73, 321 IPP/PPP PFR to be prepared

7

Amochhu-I & II, Haa 747+500, 3317+2210 

Reconnaissance study to be undertaken

Mochhu-I, Gasa 658, 2630 Kholongchhu, Yangtse 130, 583Samchhu, Haa 71, 277Pachhu, chukha 77, 300Pipingchhu, Chukha 55,216

DGPC1 Dagachhu, Dagana 126, 515 PPP Commission by

april’14 2 Nikachhu, Trongsa 118,500 PPP DPR by sept’13 3 Rotpashong, Lhuentse &

Mongar1230, 5265 PPP DPR to be prepared

4 Nyera amari, SJongkhar & Trashigang

141+332, 556+1320 PPP PFR under preparation

5 Gamri Integrated, Trashigang

81+85, 383+783 PPP PFR to be prepared

11th FYP (2013-18) Projects

Hydropower Development (10,000 MW) by 2020

Amochhu (540 MW)

Wangchhu (570 MW)

Sankosh (2500)

Sankosh Lift (60 MW)

Bunakha(180 MW)

Puna-I (1200 MW)

Puna-II (1020 MW)

Mangdechhu (720 MW)

Chamkhar (770 MW)

Kuri-Gongri (2640 MW)

Kholongchhu(600 MW)

Goal 3 : Renewable Energy

Alternative Renewable Energy • Minimum Target of 20 MW by 2025 excluding SHP Small hydropower ( upto 25MW)• potential to be accessed • total installed capacity – 8MW Biomass/Biogas• Constitutional mandate to maintain 60% under forest

cover• Source of primary energy (91% met by biomass)• Over 16,000 biogas plants techno-economically

feasible• 2800 biogas plants under implementation• 1200 biogas plants completed and operational

Goal 3: Renewable Energy

• 14,000 improved biomass stoves under implementation (UNDP Funding)

• 170 improved biomass stoves commissioned Wind Energy• 500 – 600 kW pilot wind power project under

implementation (ADB/RGoB funding) Solar Energy• Over 0.25 MW installed (stand alone systems)• Resource potential of 4.2 to 6 kWh/m2/day• 8 Solar Water Heating Systems (500-1000L) piloted• Plan to install MW size grid interactive solar power

plant

Improved biomass stoves 500 Lpd solar heating system

Biogas dome Biogas slurry

Fossil Fuels• Coal reserve of 1.96 MT• No known reserve => Import dependent!.• Imported over 86,000 KL of diesel, 24,000 KL of

petrol and 6,000 KL of kerosene in 2010.• 100% of fossil fuel imported (stability of supply and

price volatility - more stress on the economy)• Renewable Energy’s role critical for energy

security and fossil fuel (import) substitution

Other Energy Sources

SE4 ALL InitiativesBhutan joined SE4ALL in 2012 after the Rio Brazil

Summit.Energy Plus Cooperation Partnership with funding from

Norwegian GovernmentRapid Assessment and Gap Analysis study with funding

from ADB (2012)Findings from Rapid Assessment & Gap Analysis

Study:Energy AccessNo Clear policy targets to address reduced use of fuel

wood for cooking and heatingRequire significant capacity building of public and private

agencies to develop Bhutan’s hydropower potential

Findings from RA/GA StudyRenewable Energy Systems:Develop RE roadmap for each of the RE technologies and

appropriate feed-in tariff system to incentivize private sector participation in the development of RE resources

DRE needs to strengthen their capacity and gain experience in promoting and developing RE technologies

Strengthening of the capacity of private sector to implement RE systems and financial institutions to finance RE systems

No specific budget prepared for developing RE Energy Efficiency:No detailed studies of the potential of EE in the country

have been undertaken nor EE specific programs developed

Findings from RA/GA StudyNo Energy Efficiency and Conservation Policy in

place No specific institution to coordinate EE activities

in the countryPrivate Sector to play an important role in

implementing EEFinancing requirement of EE has not been

estimated due to the absence of policy in place

ChallengesRenewable Energy :No legal framewokTechnology very expensive compared to large hydropowerLack of Institutional capacity Lack of private sector capacity Limited access to fundsDifficult geographical terrains Providing affordable and reliable access to Renewable

Energy

Energy Efficiency:No Energy Efficiency & Conservation Policy Poor private sector participation.

Investment OpportunitiesPreparatory studies are being undertaken for

promotion of RE and EE under Energy Plus (Norwegian Funding)

Investment opportunities will open up after the completion of Preparatory studies

Hydropower:Need funding for Ratposhong Project (1230 MW

in Eastern Bhutan) to execute DPR and later investment under Public Private Partnership.

1-2 projects to be implemented under PPP/IPP in the 11th FYP.

THANK YOU!!!

For further information visit www.moea.gov.bt