Power revenue dips by about Nu 0.9bn in July and August

Business Bhutan | Sherab Dorji | October 21, 2023

Hydropower revenue saw a dip of about Nu 0.9 billion (bn) in July and August this year as compared to the same month in 2022. This is attributed to the Dagachhu Hydropower Corporation Limited (DHPCL), which didn’t produce any units of electricity during these two months.

The country generated power revenue worth Nu 7.6bn this year in the months of July and August. Last year, the revenue generated was around Nu 8.5bn. This is thus a decrease by about Nu 0.9bn.

Similarly, the overall generation of power was recorded at 3,524 million units in July and August 2023 compared to 3,174 million units of electricity in the same months of last year.

The revenue generation and electricity production units include Basochhu Hydropower Plant (BHP), Chhukha Hydropower Plant (CHP), Kurichhu Hydropower Plant (KHP), Tala Hydropower Plant (THP), Mangdechhu Hydroelectric Project Authority (MHPA), amongst others.

From the six hydropower projects, MHPA generated the highest revenue through export sales in July and August with about Nu 2.3bn and about Nu 2.2bn respectively and KHP generated the least with about Nu 13.48 million (mn) and about Nu 16.01mn respectively through export sales.

In terms of domestic sales, BHP generated the highest revenue with about Nu 64.84mn and Nu 64.62mn in July and August respectively, while CHP made the least revenue in July with Nu 13.52mn and MHPA with Nu 26.28mn in the month of August this year.

In July and August this year, THP generated the highest power with about 830 million units and 827 million units respectively as compared to about 698 million units and 808 million units in the same month last year.

Similarly, the least power was generated by KHP in July and August this year with about 47 million units each as compared to 47 million units and 48 million units in the same month last year.

According to the State of The Nation’s report 2023, the annual electricity generation from the plants under operation in 2022 was 10,752 million units, of which 3,295 million units were consumed domestically, and 7,819 million units exported to India.

From the total gross revenue of about Nu 27.88bn generated in 2022, MHP alone contributed about Nu 12.54bn in 2022.

Meanwhile, three phase-I small hydro projects with a total generation capacity of 104MW are under construction and financing instruments are being explored including raising of capital through issuing renewable energy bonds. The three projects are expected to be commissioned within 2025. In addition, four more small hydro projects, namely the 45 MW Gamri-I, the 26 MW Druk Bindu-I and II, the 20 MW Begana, and the 90 MW Jomori, are nearing completion of their feasibility studies. Following this, building will start right away. Continued negotiations are being held with Indian financial institutions regarding potential funding sources to restart the 600 MW Kholongchhu hydropower project, the report stated.